The Tom Warne Report
The Tom Warne Report, Volume 3, No. 35 - September 9, 2006, 2006         PDF TomWarneReport.com
 
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In This Issue

Bush Names Mary Peters as Transportation Secretary
Missouri Announces $600M Bridge Repair
David Ekern Appointed as VDOT Commissioner
Rell Ready to Consider Gas Tax Cuts
Salem Feels the Effects of Transit Cuts
Candidate Supports State Gas Tax Repeal
$1,000 Reward Offered for Ideas to Relieve Traffic
Wireless Internet at Wash. Rest Stops
LA Transit Looks at Plans for Next Rail Line
Study Prefers Mass Transit over Roads
Road Authority under Scrutiny Again

Bush Names Mary Peters as Transportation Secretary

CNN, September 5, 2006

WASHINGTON – Former federal highway administrator Mary Peters has been named by President Bush as the successor to Norman Mineta, according to an announcement by the President in the Roosevelt Room of the White House Tuesday.

Mrs. Peters spent 16 years in the Arizona Department of Transportation, including three years as the department’s director. She served as the head of the Federal Highway Administration between 2001 and 2005. Peters has worked as the national director for transportation policy and as a consultant in HDR, Inc.’s Phoenix office since November.

The cabinet seat was vacated by Mineta in July, after he spent six years in the position. Bush was anxious to announce his choice immediately after the Senate returned from the August recess so the confirmation process could begin.

Peters, an advocate of toll roads, said in a recent interview that without significant changes, the federal highway program would be out of money by the end of this decade and many states are turning to tolls instead of taxes to make up for the deficit.

“You just can’t depend on the federal government to bring the money in that was around when the interstate system was first built,” Peters said.

Virtually everyone was pleasantly surprised to hear the news of Mary’s appointment. She is universally admired in the industry, has garnered the respect of members of Congress and obviously has the support of the President of the United States. Congratulations to Mary and best wishes for a successful tenure in a critical time in our industry. TW

Missouri Announces $600M Bridge Repair

St. Louis Business Journal, September 7, 2006; St. Louis Post-Dispatch, September 7, 2006

COLUMBIA, Mo. – The Missouri Department of Transportation announced plans Thursday to replace or repair 800 of the state’s worst bridges by 2012. The $400 million to $600 million initiative is called the Safe & Sound Bridge Improvement Plan, and will allow a single contractor to both design and build the bridge improvements, as well as maintain the bridges for at least 25 years.

“This is an extremely innovative program we’re attempting – I don’t know of any other transportation department in the nation tackling their projects so aggressively – and I’m excited to see how the contracting industry will respond,” said Pete Rahn, director of MoDOT. He said the winning proposal will promote flexibility and new approaches in construction and maintenance, to “offer the best value to Missouri taxpayers.” The accelerated project schedule suggests a bridge repair every two business days, he said.

The list of bridges to be upgraded will be completed by the end of this year, and the contract will be awarded by summer 2007. Bridges are slated for repair in 109 of the state’s 114 counties. The contractor will be paid $40 million annually for the duration of the contract to avoid a lump-sum payment and the sale of state-backed revenue bonds.

Missouri Gov. Matt Blunt commended Rahn and the department “for this innovative, forward-thinking proposal to fix some of our state’s worst bridges.”

I feel a little like Ronald Reagan when I say, “There he goes again.” Pete Rahn making history and breaking the mold. This is a major program that will ultimately serve as a model for future asset management in the states. Keep an eye on Missouri-the Show Me State. TW

David Ekern Appointed as VDOT Commissioner

Washington Post, September 9, 2006

Virg. - Governor Timothy M. Kaine appointed former Idaho Transportation Department Director David S. Ekern to be the next Commissioner of the Virginia Department of Transportation. Ekern was selected over a field of very qualified candidates. VDOT has been run by its former inspector general, Gregory A. Whirley, since Commissioner Philip A. Shucet resigned last year.

He has over 30 years experience in Idaho and Minnesota, where he served as Assistant Commissioner of the Minnesota Department of Transportation. In 2001, Ekern was appointed as a Loaned Senior Executive with AASHTO, and has served at the agency’s headquarters in Washington, D.C. for two years.

“David Ekern is a recognized national leader in transportation operations, management, context sensitive design, and innovative program delivery for the 21st Century,” Governor Kaine said. “He has the vision and leadership to take VDOT to the next level – with a focus on performance, accountability, innovation, and smarter integration of transportation and land use planning.”

Ekern developed the largest transportation improvement program in the history of Idaho. He will be moving from an agency with a $450 million annual budget to a $4 billion-a-year department with 57,000 roads.

Rell Ready to Consider Gas Tax Cuts

Journal Inquirer, September 3, 2006

Conn. – Connecticut Governor M. Jodi Rell says she is still willing to consider cutting the state petroleum tax, which gasoline merchants say is causing even higher prices at the pumps. A spokesman for the governor said the administration is also finishing up work on its own energy plan, which could be introduced in a special legislative session this fall, or during the regular 2007 session that begins in January.

Connecticut also charges the petroleum products gross receipts tax, in addition to the 25-cent-per-gallon state gasoline excise tax. In gasoline’s case, this tax applies to the wholesale transaction between the gasoline retailer and a major oil company. The tax is applied to the first sale of petroleum products in the state, before the gas is resold to the consumer.

Leaders of both the Democratic and Republican House of Representatives said last week they hope to hold a special session this fall to lower gas prices.

State officials have been criticized for the little-known gasoline levy since because the tax is calculated based on the wholesale price of a gasoline transaction, instead of on the volume, it raises more money and drives the cost of the fuel highest during times of soaring gas prices.

The gross receipts tax was unanimously agreed upon in spring 2005 to be raised in four annual increments from July 2005 to July 2008, ultimately increasing it from 5 to 7.5 percent. The boost was originally planned to net the state an additional $80 million annually, to use for a multi-billion dollar highway and infrastructure overhaul. But as a result of Hurricane Katrina and instability in the Middle East, the first increase from 5-5.8 percent netted an extra $95 million in one year alone.

Salem Feels the Effects of Transit Cuts

Statesman Journal, September 5, 2006

Salem, Oreg. – Thousands of people had to adjust their schedules this week, and pay extra for their rides as cutbacks take effect after a failed property-tax levy. The Salem-Keizer Transit District’s $34.4 million, five-year tax failed in May by way of Oregon’s unusual double-majority law.

In an effort to raise money quickly and cut overhead costs, the system was forced to reduce its schedules and raise its fares. Buses will be much more crowded now that most of the less-popular bus routes are now running hourly instead of twice an hour.

The transit system will stay in its reduced state unless riders can convince the locals that Salem-Keizer Transit benefits everyone. A new levy will be on the ballots in November, giving the district two months to prove to critics that riders are now paying more of their share of the cost, as well as reducing traffic, parking problems, and pollution.

Many local voters must be shown that even though they don’t use the public transit, they need to get out and vote for those who do, or the community will be forced to settle for a system far short of the one it has benefited from for years.

Candidate Supports State Gas Tax Repeal

The Daily Free Press, September 5, 2006

Mass. – Massachusetts Lt. Gov. Kerry Healey’s support of a proposed state gas tax repeal is fueling a debate among the state’s gubernatorial candidates and national economists. Healey, a Republican running for governor, originally defended a proposal in May to suspend the 21-cent gas tax from Memorial Day to Labor Day – during the height of New England travel season. The bill did not pass.

Healey is now working to indefinitely suspend the gas tax, in order to provide direct relief to small business owners and working class families who have been directly affected by the high pump prices, according to campaign spokeswoman Amy Lambiaso.

“The cut should have widespread support,” Lambiaso said. “Everyone should want to put money into their own pockets.”

Opponents say although Healey’s proposal is attractive to voters, it is not responsible, and paying more at the pump benefits the state in the long run. Democratic candidate Attorney General Thomas Reilly’s spokesperson said Healey’s proposal is deflecting attention away from the reasons for the high gas prices.

$1,000 Reward Offered for Ideas to Relieve Traffic

Seattle Times, September 2, 2006

Wash. - The Washington State Secretary of Transportation is trying a new way to solve transportation problems and involve the public in reaching the goal. Secretary Doug McDonald is donating $1,000 of his own money to the cause.

The $1,000 Doug MacDonald Challenge, sponsored by the national Transportation Research Board, is looking for ways to achieve “through-put maximization,” or moving the maximum number of cars through a stretch of highway at the maximum speed.

MacDonald said he came up with the $1,000 prize because he has been buying property in the San Juan Islands for years and was making $1,000 payments each month. This month will be his last payment, and he was looking at ways to spend his extra $3,000 for the rest of the year. He plans to donate $1,000 to build water projects in Africa and $1,000 to an AIDS orphanage in Malawi, Africa, where he served in the Peace Corps. And the last $1,000 will go to his traffic contest.

A three-member panel of judges will analyze the ideas. A class at the University of California, Berkeley has taken on the contest as a project.

“I’m not trying to promote an agenda,” MacDonald said. “We always solve problems with a little circle of people, consultants, and I’m not sure it always works. Maybe there’s a better plan to get new ideas, so I decided to make a modest personal contribution in hopes of stirring up interest. It was worth my while to write a check.”

About the contest

Entries can be up to 175 words and can include a picture, chart or graph. Entries are due Oct. 6, although that could change. They should be sent to Dougmacdonaldchallenge@wsdot.wa.gov.

Wireless Internet at Wash. Rest Stops

The Columbian, September 2, 2006

28 rest stops in the state of Washington will now have wireless Internet capability, thanks to a deal recently made between the Washington State Department of Transportation and Roadconnect.com. Rest areas in the Gee Creek region on I-5 between the fairgrounds and the Ridgefield exits are among the stops where the service will be available starting this weekend.

Travelers who stop at these areas can take advantage of updates on road conditions and travel information on the WSDOT website and all its links, free of charge to the motorists and at no cost to the state. Motorists can log onto Roadconnect to visit other internet sites, for a fee of $1.99 for 20 minutes, $3.99 daily, and $7.99 weekly.

LA Transit Looks at Plans for Next Rail Line

Los Angeles Times, Septempber 3, 2006

LOS ANGELES - Los Angeles County transit officials are prioritizing their spending plans for the next 25 years, including a decision about where to build the next leg of the county’s light rail line. The choice must be made between extending the Westside’s proposed Expo line all the way to downtown, or building Pasadena’s Gold Line 13 miles east to Montclair.

While construction will not begin for several years, officials must make long-term planning decisions in the next few months to determine which major county projects will be built through 2030 to qualify for federal funding.

Both projects may be considered worthy, but transit officials say it is highly unlikely to get federal funding for two $1 billion transportation projects at the same time in the same county.

The last time the projects were ranked, in 2001, the Expo Line was given a higher priority by the MTA board of directors. Although some Expo supporters say they believe both projects can be built if the $12 billion state transportation bond issue passes in November, Gold Line supporters are already appealing directly to Congress for funds.

Habib Balian, chief executive officer of the Gold Line Foothill Extension Construction Authority said he is not asking MTA to pay for the costs of constructing the line. But for federal funds to be secured, MTA must commit to running the line – at $10 million a year – after the line is built.

Supporters of the Westside line say there is no comparison between the two projects, because the Westside has no commuter rail line. And the area’s only freeways, the San Diego and the Santa Monica, are parking lots.

This caught my eye this week when it was noted that they were hoping for a share of the $12 billion bond package on the ballot this November. MTA will be standing in a long line as virtually every other major political entity in the state is vying for this money for their selected projects. I was in one Caltans district this week where the director said they could spend most it just in their area. How the money is divided up will be most interesting. TW

Study Prefers Mass Transit over Roads

Sun-Sentinel, September 3, 2006

Flor. – The solution to traffic congestion problems is not mass transit, but building more roads, according to a recent study released by the Reason Foundation, a libertarian think tank. They say by 2030, the South Florida Metro area, from Jupiter to Miami, will see gridlock as bad or worse than Los Angeles freeway tie-ups.

In the next 25 years, 2.5 million people will be moving into the Palm Beach, Broward, and Miami-Dade counties. The additional residents are a big part of the reason it will take 84 percent longer to make a trip during rush hour than at other times of the day.

The study points out that many metro areas are trying build their way out of congestion by spending too much money on mass transit, hoping commuters will change their behaviors and leave their cars at home. Approximately 1.5 percent of Palm Beach commuters took buses or trains to work in 2005. But over half of the county’s $6.1 billion long-term plan through 2030 will go toward mass transit.

“We will be spending billions on transportation projects in the coming years, but after population growth and increased truck traffic, our congestion will actually be far worse if we spend those billions as now planned,” said Robert Poole, director of transportation at the Reason Foundation.

“We must prioritize and focus our transportation funding where it can do the most good. We know the vast majority of Americans need to drive cars and that truckers haul 80 to 90 percent of our economy’s goods,” Poole added. “Unless we take significant action to add capacity where commuters have shown they want and need it, our economy and quality of life will take a pounding from congestion.”

Road Authority under Scrutiny Again

St. Petersburg Times, September 2, 2006

TAMPA – Just one day after Governor Jeb Bush ordered an investigation of the Tampa-Hillsborough Expressway Authority, state Sen. Victor Crist called for a legislative inquiry into possible improprieties at the organization. Bush ordered the investigation Thursday following accusations that it violated the Florida’s Sunshine Law and ethics policies in awarding a well-paid contract for legal services.

While Crist says he’s glad Bush is investigating the agency, he believes the Legislature can provide a more objective examination because four members of the authority’s board are governor-appointed.

The Expressway Authority came under scrutiny last week when the authority’s board went against a selection committee’s recommendations to rehire its attorney, Steve Anderson, as its legal counsel. The board, including all four of Bush’s appointees, instead chose the law firm of Gary Robinson, which has ties to Bush as well. Robinson’s partner, Jason Unger, is married to Karen Unger, who served as Bush’s campaign manager in 2004. And Bush’s daughter Noelle was represented by a Gary Robinson attorney, Peter Antonacci, when she was charged with writing phony Xanax prescriptions in 2002.

Bush ordered the investigation after Gary Robinson’s partner David Hendrix reportedly met with a lobbyist for the authority, John Beck, and the authority’s executive director, Ralph Mervine, within weeks of when the contract was awarded.

Some lawmakers are using the controversery to push the efforts to create a regional transportation authority. A group is drafting legislation to for the authority that would plan and finance toll roads, mass transit, and other transportation projects in the eight-county area.

 
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