Remarks for Secretary Tippett
2007 Maintenance Engineer's Conference
Crowne Plaza Resort Asheville
Asheville, N.C.
April 9, 2007


Thank you, Jennifer, for that introduction.

It is always good to join you for the Maintenance Engineers Conference as we work together to improve our level of service to the citizens of North Carolina.

I want to thank you for your hard work to keep our highway system in top condition, despite severe weather events, limited funds and other challenges.

As you know, this year's conference is focused on "Maximizing Your Maintenance Performance."

Maintenance and preservation are critical to the overall performance of our highway system. We have made great strides in recent years and we will continue to look for ways to improve on what we are already doing.

The same theme applies to our department's vision as a whole in 2007. As you can see from the agenda cards in your packets, we are looking for new opportunities to improve.

GREAT VALUE TO THE STATE
Over the past several years, we have made significant progress.

In 2006, we completed numerous projects to improve our highway infrastructure including:

· Two new sections of the U.S. 17 Wilmington Bypass, a new section of the I-485 Charlotte Outer Loop and the U.S. 17 Jacksonville Bypass;

· Improving 4,700 miles of highways through contract resurfacing and sealing;

· Replacing more than 100 bridges;

· Completing 141 N.C. Moving Ahead! projects to improve safety and mobility; and

· Completing 26 projects specifically aimed at economic development.

In 2007, these strides will continue with a number of high-profile projects already under way:

· We look forward to opening new stretches of I-540 in Raleigh; I-485 in Charlotte; I-73/74 in Richmond County; the Greensboro Western Loop; and a widened I-85 in Durham.

· We are also beginning construction on a new four-lane bypass on U.S. 17 around the town of Washington and two new sections of the U.S. 311 Bypass around High Point.

THE COST OF PROGRESS
In the process of trying to meet the needs of citizens, we set our sights high - but as you know, we must deliver within our fiscal constraints.

Our fiscal challenges result from a variety of factors. In particular, North Carolina's growth -while providing numerous opportunities - is placing an increasing demand on our transportation system.

To put the situation in perspective:

· North Carolina's population grew from 5 million in 1970 to 8.5 million in 2004, and is expected to grow by 4 million more people in the next 25 years.

· Vehicle miles traveled more than tripled from 30 billion in 1970 to 94 billion in 2004, and are expected to increase 50 percent more by 2020.

· Truck freight hauled in North Carolina is projected to increase to 808 million tons by 2020, a 190-percent increase since 1998.

Many of the state's highways were built as farm-to-market roads and were not designed or built to handle the heavy traffic volumes they carry today.

As a result, an increasing number of the state's most important corridors need significant upgrades. This includes our interstate highway system, which celebrated its 50th anniversary last year.

OTHER FACTORS
There are several factors besides growth that make this situation especially challenging.

As you know, in North Carolina, unlike many other states, a major portion of the burden to fund local transportation improvements rests on the state level rather than the local level. We maintain more than 79,000 miles of state highway; only Texas maintains as many.

We also continue to deal with construction inflation, which has continued to increase by about 15 percent annually over the past several years.

MAXIMIZING FISCAL PERFORMANCE
We are looking at a variety of ways to meet this growing need.

Grant Anticipation Revenue Vehicles, or GARVEE bonds, allow us to borrow against future federal funding and accelerate transportation dollars to finish projects sooner and reduce inflation-related costs.

The General Assembly has authorized DOT to issue $950 million in GARVEE bonds, and there are 24 such projects tentatively scheduled for letting now until the end of the year.

Thanks to GARVEE bonds, we will soon be able to begin several much-needed interstate maintenance projects across the state.

We are also looking at additional ways to build and maintain our highways. Next month, we will be turning over routine maintenance operations on the Charlotte-area interstate highways to a private contractor.

This pilot project - successful in other states - will help us increase efficiency by allowing our regular maintenance crews to focus on other roadways in the area. We are currently pursuing legislation that would expand our ability to form such partnerships.

The department continues to work with the N.C. Turnpike Authority on tolls as another potential option for transportation funding. The authority is studying six new toll roads across the state, from the Mid-Currituck Bridge to the Gaston East-West Connector.

PREVENTIVE MAINTENANCE
Our pavement preservation program is a prime example of how we are protecting our investment in the state highway system. National transportation experts tell us that one dollar spent today in preventative maintenance saves six dollars in the long run.

By investing in infrastructure improvements now, we can make sure that our highways will be in top condition for years to come.

Both preservation and maintenance are heavily emphasized in our Long Range Statewide Multimodal Transportation Plan, and your preventative maintenance efforts are essential for the long-term success of our infrastructure.

PERFORMANCE-BASED MANAGEMENT
But we cannot achieve long-term success if we cannot identify our progress.

One of the ways we are measuring steps toward our agenda items is through the highway performance-based management program.

As you know, we are tracking job performance by using statistical measures. Each type of road is evaluated based on a different set of goals.

This allows us to break down our broad vision into quantifiable terms that can be easily followed.

I know that measuring our performance based on the amount of litter or height of grass can seem tedious at times.

But these records help us know where we've come from, where we are and where we're going.

They allow us to set goals, correct problems, improve processes and document accomplishments.

These guidelines are not only for DOT. In the Charlotte area, we will be holding our interstate maintenance contractor to similar high standards for its oversight of the highways.

REST OF THE AGENDA
Before I close, I want to briefly update you on several other areas of our agenda.

N.C. Moving Ahead!
We are nearing completion of N.C. Moving Ahead!, which has funded $700 million in projects in all 100 counties. The maintenance and economic development improvements made possible through this program will have lasting impacts for citizens across the state.

Thank you for your hard work in this program.

Charlotte Roadside Litter
As I've already mentioned, we are partnering with the State Highway Patrol, Department of Correction and private contractors to address the issue of roadside litter in the Charlotte area. I hope our joint approach will help educate the public on the importance of keeping our roads clean.

Severe Weather Event Response
We also continue to improve our response to weather events.

I commend you for your collaboration with local officials during the tropical storms and wintry weather events that affected our state over the past year.

I realize that it is not easy to leave your families and daily work routines to respond to these events. Thank you for all that you do to keep our highways safe and get citizens moving again.

Ecosystem Enhancement Program
The department continues to be recognized for the Ecosystem Enhancement Program, or EEP, a program that implements stream and wetland mitigation years in advance of construction.

Just last week, Gov. Easley announced that the EEP is one of three state government programs that are among Harvard University's 2007 Top Government Innovations. This designation qualifies EEP as a semifinalist in the 2007 Innovations in American Government Awards, known as the "Oscars of Government Awards," in which nearly 1,000 programs nationwide are competing.

To date, EEP has allowed $3.2 billion in transportation improvements to proceed without a single delay for lack of permits. It has also helped protect nearly 39,000 acres across the state.

Intelligent Transportation Systems
Our Intelligent Transportation Systems division is expanding through dynamic message signs, Incident Management Assistant Patrols, known as IMAP, and 511, our travel information line.

Every day, more and more people are using these systems. I cannot emphasize enough how important your role is in ensuring that TIMS and 511 have accurate and timely information for our citizens.

CHARGE TO ENGINEERS
These are just some of the strides we are making, but we all know that our needs are still great.

Throughout the department, we are looking for ways to improve every aspect of what we do in order to meet transportation needs across the state.

We will continue to look to the General Assembly and local governments to help us develop new ways to meet our state's transportation needs.

We will continue to efficiently use our funds so they will have the greatest impact on the most citizens.

We will continue to employ innovative techniques to help our roads last longer, protect the environment and keep motorists moving.

And we will continue to ask each of you to make the most of every day, to maximize your performance and to look for new ways to improve our operations.

Thank you again for all you do.

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