Remarks for Secretary Tippett
West Raleigh Rotary Club Luncheon
NCSU University Club
April 28, 2006 at 12:30 p.m.
Introduction
Good afternoon and thank you for that introduction, Bob.
I was pleased to hear that you are interested in learning more about transportation issues in North Carolina because now, more than ever, these issues are critical to ensuring the continued success of our state.
I appreciate this opportunity to share the North Carolina Department of Transportation's agenda for 2006, as well as update you on several projects here in Raleigh.
I know that your club is deeply committed to improving this community and providing its citizens with a high quality of life.
NCDOT shares this commitment, and we have an aggressive agenda in order to fulfill the department's mission to provide North Carolinians with a safe, modern and integrated transportation.
The Relationship Between Growth and Funding
Each of you should have a copy of this agenda at your seats.
It is no secret that Raleigh, along with the rest of North Carolina, is becoming an increasingly popular place to live and work.
While this growth provides numerous opportunities, it is also 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.
Funding
It is evident that our needs far outweigh available revenue.
In fact, the Statewide Long-Range Transportation Plan, identified a nearly $30 billion gap between needs and revenue over the next 25 years.
That's over $1 billion a year in unmet needs and that gap will only continue to grow as the cost of construction continues to dramatically increase.
Construction has jumped more than 30 percent over the past two years alone.
That's why it is imperative that we look at new funding solutions and ways to maximize our existing system in order to meet more of our state's needs.
Seeking Innovative Funding for Highway Projects
In recent years, these measures have included Senate Bill 1005 and N.C Moving Ahead!, both programs aimed at preserving and modernizing the state's highway infrastructure.
Together, these two programs have resulted in more than $1 billion in improvements for North Carolina's highway system.
N.C. Turnpike Authority
Another way we are looking at using innovative funding is through the work of the N.C. Turnpike Authority.
In addition to my role as Secretary of Transportation, I also serve as the chair of the authority, which the General Assembly formed in 2002.
Last year, the authority's powers were expanded, allowing us to design and construct up to nine toll facilities across the state.
Toll funding is one of our most promising solutions for the future, allowing us to complete projects much sooner than by traditional funding methods.
In the past several months, we have begun taking a careful look at six projects and evaluating their potential for development as the state's first toll facilities.
Two of those projects are here in the Triangle area:
· the extension of N.C. 147 further south - known as the Triangle Parkway; and
· the western and southern portions of I-540.
For each project, a detailed study is being conducted to estimate future traffic and gauge potential toll revenues.
The results of those financial feasibility studies are due within the next couple months.
Those results, together with updated project cost estimates, will give us a pretty good idea of how much money we can raise for the projects via bond sales and what the expected gap in funding will be.
This gap is the critical element and will largely determine how successful we may be in developing toll roads in the Tar Heel State.
As you know, some Wake County leaders asked us to consider tolling the western and southern sections on I-540
This is occurring across the state as communities and local leaders see toll funding as a promising solution to allow us to get critical roads on the ground and open to traffic faster than we could using traditional funding methods.
It is said that "necessity is the mother of invention," and this is certainly the case with toll roads.
GARVEE Bonds
Also, thanks to legislation passed last fall, the department is moving forward with a funding tool known as Grant Anticipation Revenue Vehicles, or GARVEE bonds.
These bonds allow us to borrow against future federal funding, accelerating our transportation dollars to complete projects sooner and reduce inflation-related costs.
We have been approved to issue $950 million in GARVEE bonds and are currently working to determine candidate projects.
Land-Use Planning
In addition to securing new, innovative ways of funding highway projects, we need your help encouraging communities to make wise land-use planning decisions.
NCDOT's first priority in regards to land-use planning is preserving the mobility of a community and ensuring that citizens can easily and efficiently move from one place to another-both in the short- and long-term.
We have been working closely with the Department of Commerce and the Department of Environment and Natural Resources to devise a strategy for the future that will ensure North Carolina's long-term prosperity.
A prime example of how the three agencies are working together is through the Strategic Highway Corridors policy, which identifies and prioritizes highways that play a critical role in regional or statewide mobility.
We have also established another partnership aimed at planning transportation improvements hand-in-hand with economic development and environmental protection.
Known as the Interagency Leadership Team, this partnership brings together state and federal resource agencies to develop an interagency plan for North Carolina that balances the mobility, natural and cultural resource protection, community values, and economic vitality of the state.
One of the team's chief goals is to involve local, state and federal agencies in integrating land-use, transportation and economic development planning.
We are currently working to identify strategies to accomplish this goal and bring together partners on each level to think about and plan for the future.
Improved Project Delivery and Oversight
Along with this, we are working to streamline the process of delivering transportation projects.
One highly successful method has been design-build, which allows a project's design and construction to be completed under one contract, reducing project completion time by as much as several years.
The program also helps keep inflation costs down by completing projects in a shorter time frame.
The U.S. 64 Knightdale Bypass was one of the first design-build projects to be completed and opened to traffic about one year sooner using this method.
Currently, the department is using design-build to construct the U.S. 17 Windsor Bypass in Bertie County, the U.S. 17 Washington Bypass in Beaufort County and the widening of I-40 in Asheville.
Another way we are working to improve project delivery is through an important partnership we have in place with the Department of Environment and Natural Resources, known as the Ecosystem Enhancement Program, or EEP.
This partnership helps streamline the environmental permitting process and reduces delivery time for road projects by allowing transportation mitigation to be completed years in advance of construction.
To date, the program has helped preserve more than 35,000 acres across the state.
Increased Investment in Rail Infrastructure and Expanded Alternative Modes of Transportation
While people tend to think of highways when they hear the word, "transportation," a multi-modal transportation system that promotes seamless and efficient travel is key to success in today's marketplace.
With this in mind, the department has continued to support the House Interim Committee on Expanding Rail Service.
We've worked with the committee to evaluate alternative future transportation investment scenarios and examine the costs and benefits of providing transportation alternatives.
The committee has also considered how these transportation investments could spur future economic growth for North Carolina.
Along with this, NCDOT in 2005 alone invested $1.85 million to fund 12 rail industrial access projects across the state.
Once completed, the companies affected by these improvements will ship a combined 17,700 carloads annually and create or preserve a total of 640 jobs.
The department also contributed $642,402 in grants through our N.C. Moving Ahead! program to fund four short line railroad rehabilitation projects.
N.C. Moving Ahead! is aimed at meeting the maintenance and preservation needs of our state and stimulating future economic development. In light of this goal, these projects will positively affect 20 rail customers that ship 25,150 carloads annually.
We are also providing citizens more options by improving and expanding public transit services across the state.
Last year, the department helped expand transit service in major cities throughout North Carolina, including Charlotte, Durham, Raleigh, Wilmington and the Triad. This includes the expansion of weekend and night service in a number of urban areas.
We've also established a new regional daily bus service from Raleigh to Charlotte with stops in eight cities.
Along with these improvements, we've also expanded North Carolina's vanpool program, which targets North Carolina residents earning less than 200 percent of the poverty level.
The program transports people to work who would otherwise be unemployed or have to use a large portion of their income for a commute trip. As many as 30 rural vanpools operated across the state in 2005.
Beyond buses and vans, we've worked to encourage bicycle and pedestrian activity by completing $22 million in bicycle and pedestrian improvements in 2005 alone.
This past weekend on Earth Day, the department dedicated the final phase of the Reedy Creek Greenway here in Raleigh.
The Reedy Creek Greenway system has already proved to be great asset to the Triangle area and brought this area a good amount of recognition for this project.
The 660-foot pedestrian bridge over the Interstate 440 Beltline has already become a landmark for the Raleigh area and has garnered several awards including a Sir Walter Raleigh Award for community appearance and a Environmental Excellence Award by the Federal Highway Administration for excellence in non-motorized transportation.
I am pleased to let you know that the lights on the pedestrian bridge are now up and running and automatically come on each night when the sun goes down.
The greenway is unique because it creates a livable community environment that gives citizens an opportunity to walk, run or bicycle on a scenic trail, while providing a convenient connection to some of the most frequently visited places in Wake County.
Future greenway connections will eventually tie the Reedy Creek Greenway to the American Tobacco Trail, making it possible to ride a bike on a trail from downtown Raleigh to downtown Durham.
An integrated and balanced transportation system improves mobility and helps maintain quality of life to ensure North Carolina's continued prosperity.
Creating More Opportunities for Employees and Business Partners
The future of transportation also rests on creating new opportunities for our own employees and business partners.
NCDOT employs more than 14,000 people, making it one of the largest agencies in the state.
We also work with numerous partners outside our agency both in government and the private sector to carry out our mission.
We consider it an important investment of time and resources to provide programs that help our employees and partners succeed in the transportation industry and deliver a better final product to our citizens-both in their work with NCDOT and with other members of the industry.
That's why we launched the Business Assistance Center in Raleigh, which makes business development services such as a state-of-the-art plan room, financial counseling, lending services and marketing assistance readily available to disadvantaged business enterprise firms. Two more centers are scheduled to open in 2006.
We've also developed the NCDOT Contractor Opportunity Program, which provides qualified firms with assistance and advice to improve their ability to compete in the highway construction industry and to bring them to the point they can operate as fully independent and viable firms.
Highway Safety
Day in and day out, the department is also working to improve highway safety throughout the state.
In the past 10 years, more than 15,000 people have lost their lives on North Carolina highways due to traffic crashes.
To address this problem and better coordinate the many safety initiatives both within and outside the department, NCDOT formed the North Carolina Executive Committee for Highway Safety in April 2003.
This group comprises transportation safety experts from across the state and is charged with developing and implementing short- and long-term sustainable strategies to reduce the number of fatalities and injuries on our state's highways.
The committee is providing new and innovative ways to address highway safety through its many working groups.
Key issues include: increasing safety belt usage, keeping drivers alert, speed, lane departure and ensuring drivers are fully licensed.
The good news is that we have seen a slight decline in fatalities the past couple of years, but we still have a lot of work to do.
As the committee strives to not only meet, but also exceed, the adopted national goal of one fatality per 100 million vehicle miles traveled by the year 2008, they will continue to need support of community leaders such as you.
The keeping drivers alert working group is currently developing a campaign aimed at teen drivers about the dangers of distracted driving.
If we educate teens about good driving habits before they get behind the wheel, the chance of our message staying with them greatly increases.
We must continue to work together to enforce the measures we have in place and develop new ways to keep motorists safe on North Carolina's highways.
Update on Raleigh Projects
Before I close, I want to update you on some projects in the Raleigh area.
The department is also currently conducting preliminary studies in regards to the possibility of building a bridge over the railroad tracks at the intersection of Blue Ridge Road and Hillsborough Street.
We are also looking more closely at the possibility of widening the final section of the I-440 Beltline from Wade Avenue to I-40 in Cary.
I am sure many of you travel this section of highway on a regular basis and know how much this project would improve travel in that area.
Another project that has been going on in this area for a while is the I-540 corridor.
I am pleased to let you know that we are looking forward to opening the section from the Knightdale Bypass to U.S. 64 Business in September.
The section from U.S. 64 Business to Triangle Town Center should be open at the end of the year, providing motorists in the area with a nice Christmas present and new route to travel on into the new year.
Conclusion
The projects and programs that I've highlighted for you this afternoon are just a few of the many ways that we are working to improve transportation and enhance the quality of life in Raleigh and Wake County.
As leaders, we share a common desire to better our communities and give our citizens new opportunities for success.
Thank you again for inviting me here today.
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