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Volume 102 Number 18
May 3, 2002
Executive Digest

Congress
Information
Details

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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