ODOT 2010-2011 Business Plan Moving Ohio into a Prosperous New World

ODOT 2010-2011 Business PlanMoving Ohio into a Prosperous New World

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Ohio’s historic investments in transportation areigniting the state’s economic engine

During this biennium, ODOT will deliver on time, on budget, and at the highest level of quality, the largest construction program in Ohio history - 30% larger than at any other time - with personnel levels at a historic 30 year low.

$4 billion in capital and constructioncombining federal stimulus fundingand ODOT’s dedicated federal and state gas tax dollars

Working faster, more collaboratively, transparently and multi-modallyhave become the norm at ODOT not the exception.

Historic Leadership in an Historic Time

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“The world is changing and Ohio has to change with it. So the time to move forward on these action priorities

with purpose and determination is now.”- Ohio’s 21st Century Transportation Priorities Task Force

These words epitomize the ODOT spirit under the Governor Ted Strickland

ODOT’s 2008-2009 Business Plan began a transition to meet the Governor’s call to develop a balanced multi-modal transportation system,

advance economic development, and promote partnership.

Guided by the Governor’s vision, ODOT presents the 2010-2011 Business Plan and sets a course to transform Ohio’s transportation system to meet the

challenge of the global economy.

From Transition to Transformation

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Building the Foundation for a 21st Century Multi-Modal Transportation System

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Securing Innovation:2010-2011 State Transportation Budget

Among new authorities granted ODOT:

Design Build Contracts Innovative Enterprises Passenger Rail Direct investment in public transit Tolling Authority


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Modernizing our Project Selection:Transportation Review Advisory Council

Under a “new era of TRAC”the Council looks at Major New project applications

more systemically, as part of a multi-modal transportation system


New Scoring: benefit/cost ratio environmental category enhanced economic development land use planning and “Smart Growth” communities who partner on investments

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Taking Action :Creating a 21st Century ODOT

Modernizing ODOT to meet Ohio’s 21st Century transportation needs

New Division of Transportation System Development New Office of Maritime New Office of Innovation, Partnership and Energy New Office of Multi-Modal Planning First-ever ODOT Economic Development Liaison New Division of Equal Opportunity


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Finding Multi-Modal Solutions:Go Ohio Transportation Futures Plan

“Go Ohio” Futures Plan will help ensure department’s investmentsand planning efforts focus on job growth and economic opportunity,

improved safety, system diversification, logistical connectivityand livable communities that attract economic prosperity.

The Futures Plan will serve as a compass for future decision makingwhere investments can be most effective in achieving prosperity in Ohio


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Providing a FAST TRAC:Advancing Projects of State and Regional Economic Significance

TRAC to pursue new “FAST TRAC” proceduresto advance Major New transportation projects

that are economic drivers, have statewide or regional significanceand have committed public and private sector partners.

ODOT will designate $100 million over the biennium

and a total of $400 million in the financial plan to support FAST TRAC


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Target: ZeroFocus on safety in the workplace, on the construction site

and with the traveling public to assure ZERO tolerance for any safety hazard

ODOT’s increased safety efforts - combined with reduced traveling - have resulted in 16% fewer fatalities on Ohio roadways

through the end of November 2009.

Over the biennium:

Establish annual goal of reducing employeeinjury/equipment incidents by 20% andreducing total crashes on Ohio’s roadways by 5%.

Use new technology to increase safetyincluding piloted use of new edge line/centerline rumble stripesuse of reflective back plates on traffic signalsand increased use of cable barriers

Key Initiatives for 2010-2011

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Igniting Ohio’s Economic EnginePursue job creation, business development and economic growth

as hallmarks of ODOT’s construction and investment policies and programs Over the biennium:

Establish criteria and provide new funding for a FAST TRACprogram to advance projects to constructionquickly after approval by TRAC “Think Ohio First” by utilizing ODOT’s purchasing powerto procure supplies, services, equipment and renewable energiesfrom Ohio-based companies Establish Transportation Development Roundtables


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Go with Green Use the best environmentally-sensitivity practices in our operations and pilot new

green initiatives as ODOT leads by example in embracing environmental stewardship and reducing energy consumption

In 2009, ODOT’s highway maintenance crewsreduced spraying of herbicides by 98% ODOT snow plows earned “Ohio Green Fleets” by reducing diesel emissions and using alternative fuels

Over the biennium:

Upgrade traffic control devices with LED technology LEEDS certification for at least 50% of newly constructedoccupied buildings (garages, offices).


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In the 2008-2009 Business Plan, the cumulative effects of high construction cost inflation, adjustments needed to address maintenance

and preservation shortfalls, and past over-programming created a forecasted deficit of $3.5 billion for through the year 2015.

During the past two years of the Strickland Administration,

ODOT has cut the projected shortfall by $2 billion through 2017.

Solid Financing Foundation

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Ohio Motor Fuel TaxRevenue and Consumption History and Forecast

Revenue

(Bil

lio

ns)

Consumptio

n(B

illion

so

fG

allon

s)

Fiscal Year$0.000

$0.200

$0.400

$0.600

$0.800

$1.000

$1.200

$1.400

$1.600

$1.800

$2.000

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Estimated

70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Revenue - left axis

ConsumptionGallonsRevenue and consumption - net of refund

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$1,800

2010 2011 2012 2013 2014 2015 2016 2017

$2,800

$2,600

$2,400

$2,300

$2,000

State and Federal Revenue Assumptions(Net of Debt Service)

TotalRevenue

(in

mil

lio

ns)

Fiscal Year

Slow Growth Moderate Growth Aggressive Growth

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July 2009 CompoundedODOT Construction Cost Inflation Forecast

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

2010 2011 2012 2013 2014 2015 2016 2017

Business Plan High Moderate Low

State Fiscal Year

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4%

Construction Cost Inflation Forecast Rates

0%

2%

6%

8%

10%

12%

14%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

State Fiscal Year

Actual Inflation Business Plan Forecast

3.1

%

3.5

%

4.4

%

2.6

%

3.0

% 4.0

% 5.0

%

5.0

%

5.0

%

5.0

%

5.0

%

5.0

%

8.6

%

12

.3%

11

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Cumulative 2010 -2017 Revenue Growth Scenarios and Inflationary Impacts on Construction Program

(In $ Billions)

Revenue Inflation

Slow GrowthLow Medium

Business Plan High

State 0% Growth – 2010 to 2017($1.5) ($2.5) ($2.7) ($3.9)

Federal 0% Growth – 2010 to 2017

Moderate Growth

State 0% Growth – 2010 and 2011; 0.5% – 2012;1.0% – 2013 and 2015; 0% – 2016 and 2017

($0.5) ($1.4) ($1.5) ($2.8)Federal 0% Growth – 2010; 1.5% – 2011;

3% – 2012 to 2017

Aggressive Growth

State 0% Growth – 2010 and 2011; 0.5% – 2012; 1.0% – 2013 to 2017 $0.5 ($0.4) ($0.6) ($1.9)

Federal 0% Growth – 2010; 5% – 2011 to 2017

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As a member of Team ODOT, SERVICE is my commitment:

Safety First: I will focus each day on safety: my own, my teammates, our workplace, our work practices, and our customers – the traveling public – with a “Target: Zero” goal for any and all safety hazards;

Every Partner: I will remember that partnership is the key to success and help all members of Team ODOT succeed, along with all our public and private partners;

A New Pledge to Serve Ohioans

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Respect for My Customers: I will bring a positive attitude to everything I do, remembering Ohioans are my customers and deserve respect, prompt and effective solutions, and the best return on their investment of tax dollars in our transportation system;

Value of My Job: I will commit myself fully every day to be a productive and safety-conscious member of Team ODOT, and in return, be given meaningful, valuable work and treated without discrimination;


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Integrity: I will conduct myself with honor, integrity and professionalism by following the highest ethical standards;

Clear Communication: I will communicate with everyone respectfully, clearly, honestly, effectively, and timely; and

Eye to the Future: I will always look for and welcome new ways to assure ODOT’s continuous improvement through partnership, innovation, wise investment, technology and environmental stewardship.



ODOT 2010-2011 Business Plan Moving Ohio into a Prosperous New World

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