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102 Number 18 |
May 3, 2002 |
Executive Digest
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Congress
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RABA
Restoration Bills Readied
Two different bills to
restore $4.4 billion in highway funding for FY 2003 are being
readied for possible action next week in the House. A bill
reported by House transportation authorizers would set the Revenue
Aligned Budget Authority calculation at zero for the last year of
TEA-21. The other approach being advanced by House transportation
appropriators would render the RABA provision "null and void."
On Wednesday the House Transportation and Infrastructure
Committee reported out H.R. 3694 by a unanimous voice vote, which
would restore highway funding to at least the $27.7 billion level
guaranteed in TEA-21. The bill would place the additional $4.4
billion behind the budgetary firewall to ensure that it is spent
for highway purposes, and specified that for purposes of FY 2003,
the RABA adjustment would be "zero." The legislation also includes
a "sense-of-Congress" provision that states RABA should be
"amended in the future to more accurately align highway spending
with highway revenues while maintaining predictability and
stability in highway funding levels."
Going into the Committee mark-up, the bill had 317 cosponsors.
There is some indication that it may be brought up for action
under a suspension of the rules early next week, and would appear
certain of passage.
Committee Chairman Don Young (R-AK) stated, "The principle that
highway spending should equal highway revenues is the cornerstone
of TEA-21. It is urgent that the message be sent that these funds
will be available to the states to continue vital transportation
projects. This funding is necessary to combat our nation's
congestion problems, improve highway safety, and protect jobs."
However, Young added "We must send a loud and clear message to the
House of Representatives that we will not agree to restoring these
funds at the expense of this principle."
House Transportation Appropriations Subcommittee
Meanwhile, the transportation appropriators have readied a
somewhat different bill that would restore $4.4 billion in highway
spending for FY 2003. A significant difference, however, is that
the bill would render the RABA mechanism "null and void" for the
final year of TEA-21. That has raised concern among the
authorizers that such a "repeal" of RABA would set a precedent
that could affect the future application of the RABA mechanism on
a year-to-year basis.
The appropriators may choose to attach their RABA language to
the upcoming supplemental appropriations bill which is expected to
be marked up in the House next week.
No Consensus in Senate to Boost Funding to $28.9 Billion
Although the Senate Budget Committee has reported a Budget
Resolution that provides for the highway program to increase by
$5.7 billion to $28.9 billion, Senate authorizers appear unwilling
to push for that level. Senator James M. Jeffords (I-VT), Chairman
of the Senate Environment and Public Works Committee, reportedly
has tested the waters and found there is not Committee consensus
on increasing the size of their version of the Highway Restoration
Act to the $28.9 billion level made possible by the Budget
Committee.
Several Republicans have indicated they would prefer to hold
firm with the original language that restores the highway program
to at least $27.7 billion, the TEA-21 authorized level that the
Administration indicates it will support.
Should the Congress and Administration reach agreement on
imposing new spending caps, the Committee believes they will be
forced to move a bill to ensure the additional funding -
regardless the amount - would be behind the firewall to ensure
sufficient and guaranteed outlays for the program.
House
Examines Project Oversight
Cost and oversight of major
highway and bridge projects was the subject of a House hearing
this week that included testimony from Nevada Department of
Transportation Director Tom Stephens, Federal Highway
Administrator Mary Peters, Federal Transit Administrator Jenna
Dorn, U.S. DOT Inspector General Ken Mead and General Accounting
Office transportation specialist JoEtta Hecker.
Stephens, who chairs the AASHTO Task Force on Project
Oversight, said that group is identifying solutions that can
benefit all major infrastructure projects and working to share
them within the highway and transit communities.
Even though his home state, Nevada, is by far the
fastest-growing state in the nation, "We have been able to
maintain an excellent record on cost-control and project
oversight," but still want to do even better, Stephens said. As a
result, Nevada's DOT has identified 10 areas in which change
orders could be reduced -- an aspect of construction that has
added an average of 9 percent to project costs over the low-bid
amount.
The areas are project tracking, design expertise, design
manuals/checklists/training, construction inspection expertise,
geotechnical issues, unbalanced bidding by contractors, the
complexity of new systems, the challenges of locations that pose
special building difficulties, and right-of-way issues -
especially utility relocations.
Stephens shared examples of several recent "Megaprojects" that
have gone well, including the reconstruction of Utah's Interstate
15 using a design/build approach. Stephens noted that AASHTO has
supported fraud-free highway contracting since the very inception
of the national defense highway system more than four decades ago.
AASHTO has since co-sponsored, with U.S. DOT's Office of Inspector
General and FHWA, national anti-fraud conferences - one is slated
to open in St. Louis, Missouri on May 13 - and offers state
transportation departments a computer product that helps detect
patterns that might indicate bid-rigging.
"AASHTO has long supported ensuring adequate inspection of
projects under construction, and has worked to make sure proper
tools are available to examine project cost changes resulting from
changed conditions," Stephens said. "AASHTO has also disseminated
information on best practices in project management, and continues
to work with its members to share that information."
"AASHTO and its members have always placed a premium on
assuring that projects receive appropriate oversight," Stephens
said.
Oversight Termed a Top DOT Priority
Federal Highway Administrator Mary Peters stated that major
project oversight had become increasingly important, with 14
active projects across the country exceeding $1 billion in cost.
She said that lessons learned from the Boston Central Artery, I-15
reconstruction in Salt Lake City, and the Alameda Corridor have
indicated that the most common factor leading to cost increases
and delays has been the annual adjustment of project schedules to
fit actual revenues available. She added that based on experience,
"effective FHWA program oversight is the best foundation for major
project oversight."
Peters emphasized FHWA's oversight efforts including the
creation of the Major Project Team, information and technology
transfer and industry partnership activities. She said that in the
upcoming reauthorization the FHWA will seek to "improve oversight
and accountability for the expenditure of public funds, without
negatively impacting the ability of states and local governments
to deliver their programs."
U.S. DOT Inspector General Ken Mead noted that FHWA will need
to take a more multidisciplinary approach to oversight activities,
hiring staff with private sector project management skills, and
streamlining project-level approvals to the states. He outlined
other issues such as the accuracy of preliminary cost estimates,
project schedule and tracking, improved finance plans and review
of state transportation plans.
Mead said that instances of fraud do not approach that
experienced in the 1950's and '60's, noting that fraud convictions
from 1999 to 2001 increased from 12 to 26 cases. He noted, however
that 113 investigations are pending in 37 states.
"The prevention and detection of fraud is an objective we share
throughout all levels of government," said Inspector General Mead.
He said the states are the first line of defense in preventing
such fraud, adding that AASHTO, in conjunction with several
states, has developed an information system called TRANS*PORT that
can be used to analyze bids and contractor information to detect
bid rigging, among other things. Mead also noted that AASHTO is
cosponsoring the second National Fraud Conference with the U.S.
DOT, to be held in St. Louis beginning May 13.
Federal Transit Administrator Jenna Dorn's testimony focused
primarily on FTA's oversight of major capitol investment projects.
She emphasized that FTA's oversight responsibilities extend to all
of its 600-plus grantees. "FTA grantees are subject to a variety
of reviews, including triennial reviews, financial and procurement
reviews," said Dorn, adding "grantees undertaking major capitol
projects however, are subject to additional oversight focused on
those projects."
"Managing major highway and bridge projects involves many
factors other than cost, including safety, quality, mobility, and
environmental impact," said GAO's JayEtta Hecker, adding
"nevertheless, given their magnitude, cost increases on major
projects often take center stage, especially in light of the
growing competition for federal dollars."
Moran and
Davis Introduce "Smart" Driver's License Bill
Representatives James P.
Moran Jr. (D-Va.) and Thomas M. Davis III (R-Va.) introduced
legislation Wednesday to require the 50 states and the District to
issue driver's licenses with computer chips and biometric
identifiers such as thumb prints and digital photographs, reported
the Washington Post.
The so-called "smart" license concept responds to the Sept. 11
terrorist attacks and the growing crime of identity theft. Eight
of 19 suicide hijackers obtained state-issued identification cards
by exploiting Virginia regulations allowing a notarized form to
prove residency. Those regulations have since been changed.
The House bill and a broader Senate measure proposed by Sen.
Richard J. Durbin (D-IL), with support from state motor vehicle
administrators and police chiefs, represent Congress's most
ambitious efforts to set national identification requirements and
to link state ID databases for government checks.
Both proposals would provide federal funds to help states set
uniform, stricter rules for granting licenses. Moran's bill
proposes $300 million to be available through the Transportation
Department and $15 million through the National Science
Foundation.
The bill is supported by the Progressive Policy Institute, an
arm of the centrist Democratic Leadership Council, and by Virginia
Gov. Mark. R. Warner (D).
The legislation would embed an encrypted microchip in driver's
licenses accessible by federal, state and local governments,
designated contractors and private users authorized by license
holders. The bill also promotes usage of the smart card for such
programs as food stamps and voter registration.
Amtrak
Announces New President and CEO
Amtrak Board Chairman John
Robert Smith announced the appointment of David L. Gunn as
President and CEO of the National Railroad Passenger Corporation
(Amtrak) effective May 15, 2002.
"David Gunn comes aboard with exceptional experience and
leadership skills to guide Amtrak at a time of tremendous
opportunity for the railroad," said Chairman Smith.
Gunn most recently served as Chief General Manager at the
Toronto Transit Commission from 1995 until 1999. Prior to leading
the Toronto Transit Commission, Gunn was the General Manager for
the Washington Metropolitan Area Transit Authority (WMATA) from
1991-1994. He served as President of the New York City Transit
Authority from 1984 through 1990. From 1979 through 1984 Gunn was
General Manager/Chief Operations Officer for the Southeastern
Pennsylvania Transportation Authority (SEPTA).
Gunn graduated from Harvard College in 1959 and continued his
education at Harvard Graduate School of Business, where he
received his MBA in 1964. "I have always been a proponent of a
strong national passenger rail network," said Gunn. "While we face
substantial financial and physical challenges, I'm convinced that
by securing adequate operational and capital funding, we will be
able to rebuild our plant and equipment in an effective and
efficient manner, and continue to provide a high-quality service
to the traveling public. I'm looking forward to joining Amtrak."
Incidents
Prompt Special Safety Watch at Amtrak
A high rate of rule
violations deemed "serious" during April - including one incident
in which an engineer apparently fell asleep while driving a train
into Union Station in Washington, DC and another in which a train
began to leave the Philadelphia station with a forklift still
inside a mail car - have led the Federal Railroad Administration
to place a special safety watch on the financially challenged
Amtrak, the Washington Postreported.
All 20 of the month's rule violations occurred in stations or
yards rather than on the passenger rail corporation's main lines.
None have been pinned on Amtrak workers being distracted by the
organization's dismal financial prospects, which have led to the
layoffs of several hundred station agents, mechanics and other
workers, the Post reported.
However, FRA spokesman Robert L. Gould noted that formal FRA
safety watches are rare, and "seldom done on this grand a scale."
Amtrak Executive Vice President Stan Bagley said he takes all
rule violations seriously, and as a result Amtrak officials will
go into the field to conduct 48-hour safety blitzes in which they
talk with every safety-critical Amtrak employee.
"We saw a few things in April that shouldn't happen," Bagley
said. "Whenever you have incidents and you see a pattern or trend
to them, you step up work in that area," he said.
Rules violations characterized as "major" do not always cause
damage, but always involve such serious situations as running a
red signal or failing to follow instructions critical to safety.
In one such case in April, an engineer operating an
early-morning passenger train en route from Miami to New York
apparently fell asleep while pulling the train up to the platform,
passing the platform, running past a red signal and damaging a
switch. A staffer in the yard's dispatch tower apparently was able
to awaken the engineer, the Post said. Though the train
operator did not acknowledge being asleep, the engineer accepted a
30-day suspension following the incident.
Mallory
Receives Inaugural FHWA Award for Environmental Statesmanship
AASHTO President Brad
Mallory, Secretary of the Pennsylvania Department of
Transportation, was the first-ever recipient of the Federal
Highway Administration's Award for Environmental Statesmanship,
FHWA announced.
"I strongly believe that a commitment to the environment is
crucial if we are to move transportation forward both in
Pennsylvania and around the nation," Mallory said. "We at PennDOT
are working hard to be good environmental stewards as we provide a
safe, swift and smooth transportation experience." Environmental
stewardship and streamlining are on Mallory's list of emphasis
areas for AASHTO this year.
"President Bush has asked us to help protect the environment
for our children and grandchildren," FHWA Administrator Mary E.
Peters said. "With leaders like Brad, we can be assured of a
legacy of clean water, clean air and natural beauty and a safe and
efficient transportation system. He has shown that protecting the
environment, improving surface transportation and enhancing our
quality of life can go hand-in-hand."
Mallory received the award from FHWA Executive Director
Frederick "Bud" Wright, who joined AASHTO officials at the
organization's annual meeting last week near Farmington,
Pennsylvania.
The FHWA award recognizes individuals whose high standard of
commitment contributes -- in a positive way -- to both the
environment and transportation. Under Mallory's leadership,
PennDOT has increased transit ridership; added hundreds of miles
of new walkways and bikeways; and benefitted from programs like
wetland banking, land-use planning and environmental research.
Water
Projects Halted Pending Review
Some 150 water projects
ranging from channel dredging to flood control have been put on
hold by the Army Corps of Engineers pending a reexamination of
their economic costs and benefits.
Corps civil works director Major General Robert H. Griffin
announced Tuesday that work on one-fifth of the agency's projects,
which are in the preconstruction phase, would be temporarily
suspended pending additional review. While the specific list of
projects was not yet released, it is estimated to amount to
billions of dollars of construction.
According to a news release, the projects being affected are
those with an economic assessment older than 1999, and those where
they are indications of changes in economic, engineering or
environmental information since their authorization.
Griffin said, "This action is part of a more comprehensive
initiative to ensure that Corps projects are a sound investment
for our nation and are proposed in an environmentally sustainable
way. It is essential that Corps projects keep up with ;the pace of
change," Griffin stated.
The Corps' water projects have been the target of a
Washington Postinvestigation that has continued for more
than a year, fueled by complaints from environmental organizations
that the proposed projects have been approved because of political
influence, rather than economic benefit.
Vehicle
Sales Rise in U.S.
Major U.S. automakers
reported on Wednesday that vehicle sales across the nation
increased by 3.1 percent last month, when compared with the same
month in 2001, a gain attributed to improving economic conditions
and sales incentives, the Associated Press reported.
"We're coming into a more powerful market than we've been
looking at," said David Healy, an analyst with Burnham Securities.
"It's another indication that the car market, and for that matter
the economy, is improving."
The gain marked the first time, this year, that sales by month
were higher than for the same month a year ago. For the year to
date, industry sales are down 1.7 percent over the same period
last year, with more than 5.3 million vehicles sold in the first
four months of 2002, AP reported.
General Motors had particularly strong results, with a 12.6
percent sales increase in April compared with the same month last
year. GM saw an especially large surge in sales of trucks. In all,
the U.S. automakers sold more than 1.4 million vehicles last month
compared with more than 1.3 million in April 2001. Truck sales
were up 6 percent for the month; car sales, up 1 percent.
April sales by European and Asian-based automakers were up 5
percent and 2.7 percent, respectively, AP reported.
Healy said while dealer incentives were a part of the rise, "I
think that it's underlying demand that's pushing those numbers
higher, and perhaps a recovery from the initial trough of the
recession," he said. Court Refines ADA Application
The Supreme Court this week
further refined the application of the Americans with Disabilities
Act, ruling that seniority systems can take precedence over ADA
claims in making job assignments.
The court ruling issued April 29 sprang from a suit filed by an
employee of US Airways who had injured his back on the job
handling cargo. The employee, Robert Barnett, used his seniority
to obtain a job in the mailroom, but then contended that other
employees should not be able to bid for the job because of his
disability.
The Supreme Court, in a 5-4 decision, reversed a ruling by the
Ninth Circuit and remanded the case for reconsideration under
their direction that an employer is entitled to a "rebuttable
presumption" that an accommodation is unreasonable if it is in
conflict with a seniority system. The Court indicated that such a
determination was not automatic, but should be considered in light
of the impact on other employees.
Supreme Court to Rule on Traffic Accident Privacy
The United State Supreme Court has agreed to hear a case that
will determine whether states can keep secret information about
traffic accidents collected as part of a federal highway safety
law, which will decide if a county in Washington state has to turn
over records to families suing over serious accidents, reported
the Washington Post.
It is reported that the ruling will affect governments in every
state and determine if officials have to admit they knew an
intersection might be dangerous. The Washington Supreme Court said
that a federal law allowing the withholding of records is
unconstitutional, the Supreme Court blocked the ruling earlier
this year, until it could look at arguments from all sides.
Lawyers for the county said that if the state ruling is upheld,
the state's federal funding for elimination of roadway hazards and
its citizens' safety both will be jeopardized. Moreover, many
states in addition to Washington argued that they need to be able
to know that information collected about dangerous intersections
will not be later used in lawsuits against them. The states'
further argued that if they cannot feel secure about the privacy
of the information, they may not collect it. The Court is expected
to rule on this case (Pierce County v. Guillen) sometime next
year. Louisiana Gov. Signs Bills
Gov. Mike Foster (R-LA) has
signed two bills aimed at improving safety at railroad crossings.
Senate Bill 51 requires railroad companies to cut weeds and
clear visual obstacles at the crossings, and SB 52 authorizes a
study of crossings near schools to determine which ones need
safety devices such as crossing arms and flashing lights, reported
The Times-Picayune.
The bills were sponsored by Sen. Foster Campbell, (D-Bossier
City), who said he wants to reduce the number of deaths and
injuries at rail crossings.
State Officials in Michigan Request 10-Year Construction
Guarantees
Motorists and state road officials in Michigan are seeking a
10-year warranty on road work performed by road builders,
extending the already 5-year service contract required.
According to The Detroit News, state transportation chief Greg
Rosine agrees with the measure, and is pushing for 10-year
warranties in the contracts Michigan makes with road builders for
majors projects. He said that taxpayers shouldn't have to pay to
fix road work that doesn't hold up for 10 years, half the minimum
of 20 years a new or rebuilt highway is suppose to last.
Supporters of the increase say warranties should be longer and
should cover how well a paving job was officially completed.
It is further reported that road builders argue that long-term
warranties could back fire on the state, prompting contractors to
bid higher on road projects, so their future financial bases are
covered, which may burden tax payers, who are reportedly paying
$1.5 billion for this years road budget. In addition, they also
fear that they will be on the hook for millions of dollars in
repairs on roads whose deterioration could have resulted from
forces beyond their control, such as abnormally bad weather, rough
traffic or design flaws.
Although some road contractors' associations are reported to be
reluctant, it is further noted that the Michigan Asphalt Pavement
Association, whose members do a large amount of the annual highway
work endorse the idea. Carlsen Named Secretary of Wisconsin
DOT
Thomas Carlsen has been
named as the Secretary of the Wisconsin Department of
Transportation, replacing Terry Mulcahy who has retired.
Carlsen, a professional engineer, started his career with the
department in 1964 as an Engineer in Training. After graduating
from the University of Wisconsin with a degree in civil
engineering, he because a traffic engineer, specializing in
traffic operations and safety. Since then he has risen through the
department, becoming Chief of Technical Services, District
Director for the Division of Transportation Districts Eau Claire
and Madison. He retired from the department in 2001, and has
worked for the past year as the head of the Wisconsin offices of
the engineering consultant firm HNTB. He returned to WisDOT as the
Chief Operating Officer and Acting Secretary in February of this
year.
Carlson received AASHTO's Alfred E. Johnson Achievement Award
for technological advances in highway engineering in 1989.
AASHTO
Appointments
AASHTO President Brad
Mallory has made several appointments to the newly formed Special
Committee on Joint Development (SCOJD).
The AASHTO Board of Directors approved the formation of the
Special Committee at the recent AASHTO Spring Meeting, as part of
a proposal to reorganize the AASHTOWare? oversight committee
structure. The SCOJD represents a consolidation of the former
Special Committee on Software Systems and Task Force on Joint
Development into a streamlined ten-person committee, with
representation from the Administrative Subcommittee on Information
Systems and AASHTOWare business areas, including Bridge,
Construction and Pre-Construction Engineering, and Traffic
Engineering, and Advanced Transportation Systems, and Information
Technology.
Named as members of the committee are:
Bryan Nicol, Indiana Department of Transportation, as an
ex-officio member of the Special Committee, in his existing
capacity as Chairperson of the Administrative Subcommittee on
Information Systems.
Judy Skeen, P.E., Texas Department of Transportation, to an
initial two-year term as Chairperson, as a representative of the
Administrative Subcommittee on Information Systems.
Jim Nugent, Indiana Department of Transportation, to an initial
two-year term, as a representative of the Administrative
Subcommittee on Information Systems.
Marion Waters, III, P.E., Georgia Department of Transportation,
to an initial one-year term, as a representative of the Traffic
Engineering and Advanced Transportation Systems business areas.
Dan Buhler, Manitoba Transportation and Government Services, to
an initial one-year term, as an Information Technology
representative.
Tom Bradshaw, Virginia Department of Transportation, to an
initial two-year term, as an Information Technology
representative.
These initial appointments will provide continuity to the newly
formed Special Committee with members of the previous Task Force
on Joint Development. Additional appointments are pending and will
be announced as soon as they are
confirmed.
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