New Mexico Transportation Funding Challenges

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1 New Mexico Transportation Funding Challenges Rocky Mountain Pavement Preservation Partnership Meeting October 29-31, 2008 Ernest Archuleta, P.E. Field Operations Division Director 1

2 NMDOT DISTRICT OFFICES 5,315 Lane Miles 6,239 Lane Miles 3,345 Lane Miles 2,248 Lane Miles 5,649 Lane Miles 7,650 Lane Miles 6 Districts with a total of 30,446 lane miles District 1 = 5,649 lane miles District 2 7,650 lane miles our largest District and has no interstate miles District 3 2,248 lane miles our smallest district, but the most urban District 4 6,239 lane miles District 5 5,315 lane miles District 6 3,345 lane miles I and I 40 are our interstate system. With over 40% of heavy truck traffic occuring on I40 2

3 Total Lane Miles In New Mexico s State Highway System (In Thousands) FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Over the last 10 years, NMDOT has seen a increase of 3,200 in lane miles in NM This is approximately a 12% increase 3

4 Patrols in NM Patrols LANE MILES D1 12 5, D2 16 7, D3 5 2, D4 16 6, D5 21 5, D6 12 3, TOTAL 82 30, New Mexico has a total of 82 Patrols with 746 FTEs among the 6 Districts covering those 30,446 lane miles. This is a statewide average of 371 lane miles per patrol and lane miles per FTE While lane miles across the state have increased 12% during the last 10 years, in that same time frame our forces have only increased 6%. 4

5 Maintenance Budget Trend (In Millions) $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $- $75.9 $75.9 $64.5 $54.0 $56.0 $55.7 $55.7 $58.6 $58.6 $62.7 $63.5 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 While NMDOT has seen about a 41% increase in budget over the last 10 years, generally that increase has been very slow and gradual. From 1999 to 2007, our budget was mostly flat with only minor increases every couple of years. However, we experienced an 18% increase in 2008 due to a special legislative appropriation. In 08 we received a one time appropriation of $42 million from General Fund to address our maintenance program. 5

6 NMDOT Transportation Needs NMDOT Overall Needs 20 year projection Based on HERS-ST Model, 2005 Gap in Funding per Year Routine Maintenance Pavement Preservation GRIP I GRIP II Rail Runner Operations Unfunded Capital Improvements Bridge Deficiencies Bridge Replacement Bridge Maintenance $16.7 Billion $21.8 mil/yr $54.2 mil/yr $445 mil $87 mil $18 mil/yr $386 mil/yr for 20 yr $43.3 mil/yr for 5 yr $25.3 mil/yr $12.6 mil/yr Routine Maintenance FY07, Needs=$65.4 mil, Actuals= $43.6 mil, Gap = $21.8 mil Pavement Preservation Unfunded Construction, Congestion Need = 566 mil/yr, Ave Constr Program = 180 mil/yr, Gap = $386 mil/yr Bridges spend $26mil/yr currently, Bridge Deficiencies 239 deficient state owned bridges Cost to replace all structurally deficient bridges 1,730,037 $125/sf = $216.3 million $216.3 million / 5 yrs = $43.3 million/yr, bridge 5 yr plan Bridge Replacements Should be replacing 25 bridges/yr based on 50 yr design life, (1267 br/50 yr/br) Ave cost to replace 1 bridge = $1,012,500 Ave cost to replace 25 bridges = $25.3 million/yr Double for associated roadwork, $25.3 x 2 = 50.6 mil/yr Less current budget of $26 mil/yr = roughly $25.3 mil/yr Bridge Maintenance Should be doing preventative maint on 25 bridges/yr 25br x $62.50/sf x 8100sf/br = $12.6 mil/yr 6

7 Needs - Statewide Bridge Program $216.3 Mil Replacement Cost Deficient Bridge Deck Area 2,400,000 Deficient Bridge Deck Area (S.F.) 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600, million S. F 1.90 million S.F million S.F QUARTER The 239 deficient bridges equate to a Deficient bridge deck area of 1.73 million SF Bridge replacement costs Average $125 dollars/sf $216.3 million Replacement Cost - needed to replace Structurally Deficient bridges in today s dollars Bridge replacement only does not include roadway work generally associated with bridge construction Embankment for approaches and departures Drainage, Paving, concrete medians, lighting, signalization, guardrail, signing Detours $432.6 million Construction Cost - Can easily double replacement cost for actual construction cost This number will increase each year due to inflation. Replacement costs continue to rise with each year of do nothing alternative. 7

8 Needs Routine Maintenance $21.8 million gap in funding FY07 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 $33,852,496 $44,612,272 Routine Maintenance Expenditures Needs vs Actuals $10,759,776 FY03 FY04 FY05 FY06 FY07 Actuals Needs Gap Linear (Needs) Linear (Actuals) Last 5 yrs, Avg Exp = $37.1 mil/yr Avg Needs = $50.1 million/yr $43,572,226 $65,435,206 $21,862,980 Routine Maint costs continue to rise $21.8 million gap in funding for FY07 Gap growing since FY04 Routine Maint becomes more reactive vs proactive This slide is a snapshot of Routine Maintenance Expenditures vs. Needs over the last 5 yrs. Routine Maintenance all typical roadside and roadway maintenance excluding pavement treatments Erosion & Drainage Repair, Sign replacement, Mowing, Shoulder widening, Pot Hole Patching, Litter Pickup Routine Maintenance Expenditures average $37.1 million/yr over the last 5 yrs. Needs averaged $50.1 million/yr. This is an average GAP of $13.1 million/yr The gap in addressing all Routine Maintenance needs has been growing for the last 4 yrs. Last year the gap was over $21 million. The Gap will continue to grow as available funding falls short of meeting the Needs. 8

9 Chip Seal - Cost per Lane Mile Cost and Highway Lane Miles Chip Sealed $9,000 Benchmark 5-6 Year Cycle 2,500 Miles FY Cost Per Lane Mile $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 COST PER MILE $8,025 $8,024 2,407 2,423 2,308 2,266 $6,893 $6,401 Funding Gap to 2,011 $5,498 Benchmark- 1,887 1,851 $5,274 1,113 Lane Miles $4,890 or $8.9 Million $4,636 $4,480 1,433 1,387 $3,801 1,087 3,000 2,000 1,000 Miles Accomplished $1,000 $ Fiscal Year 0 Chipseal Cost Per Lane Mile Lane Miles Accomplished 9

10 Escalation of Average Costs Pavement Preservation Treatments Pavement Preservation Treatments Cost/Lane Mile 5 Years Ago Cost/Lane Mile Today Percent Increase Fog Sealing $1,045 $1,156 11% Crack Sealing $3,600 $14, % Chip Sealing $4,852 $ % Open Graded Friction Course (OGFC) Overlay $10,920 $32, % 2 Hot Mix Overlay $34,027 $80, % Heater Scarification & Overlay (Cutler) $9,504 $64, % Microsurfacing $37,500 $58,560 56% Cold Mill/Inlay $175,000 $359, % Cold In-Situ Recycle Overlay $200,000 $350,000 75% Rehabilitation $500,000 $750,000 50% Reconstruction $1,125,000 $1,835,000 63% 10

11 Crude Facts Variation of oil grades from extra heavy to sour 42 Gallons per barrel sold in 10,000 units Crude Oil is separated into fractions by fractional Distillation process 29% produced in Middle East 19% of supply provided to North America Largest oil refinery in Venezuela Produces 957,000 barrels per day Crude oil prices have dropped 57% since July from $140/bl to $60.53/ bl. 11

12 What s happening in NM? Increase in asphalt index price $500/ton in June Estimated $30 million impact to active construction program New price index developed and published for use in July program let and into the future to respond to unprecedented instability in asphalt market Possible project completion delay due to supply issue related to price increases Operations, Design and Finance working on impacts to construction, design and funding impacts to statewide program Adjustments to maintenance program (price agreement) in progress. Current Asphalt Price Index is $735/ ton Estabilished a NM Index rack prices provided from 4 NM suppliers 12

13 Conclusions Transportation Needs far outweigh available funding Federal revenue streams are decreasing with more emphasis being placed on States to pick up slack Current level of funding will not sustain New Mexico s transportation needs into the future Options in Transportation Funding are needed 13

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