RALPH COMER

TENNESSEE DEPARTMENT of TRANSPORTATION

January 19, 2010

THE ASSOCIATION OF GOVERNMENT ACCOUNTANTS

TDOT's Approach to Economic Stimulus Funding:  Early Planning,

Implementation & Successes

Pre-Planning

During Fall 2008, TDOT developed a list of potential projects:

Ready to let in 180 days (Sept. 1, 2009) List of projects provided to FHWA (Dec. 11,

2008) List totaled $850 million (road and bridge)

and $100 million (resurfacing) Posted on the TDOT website (Dec. 19, 2008)

Project Selection Criteria

The final version of the ARRA was signed into law on February 17, 2009

Based on the Act and guidance from FHWA, the following criteria were used in selecting highway and enhancement projects:

Eligible for funding under federal aid guidelines

Minimum of 80% of the funds will be utilized on projects that can be awarded in 120 days

Project Selection Criteria Con’t

Minimum of 70% of the funds for projects projected for completion within 3 years

Minimum of 60% of the funds on projects that are located in economically distressed areas under either of the following:

Counties with unemployment rate 1% above national average

Counties with per capita income of 80% or less of the national average

Project Selection Criteria Con’t

Coordination with other projects under construction in the area

Projects across an array of construction activities (bridges, resurfacing, reconstruction, stage construction, paving, etc.)

Balance geographically (east-west, north-south, urban-rural)

Off-system bridges given priority consideration

Recovery Act Grant AwardsState of Tennessee

The “Big Picture”:

Recovery Act Program Total Award

Highway Infrastructure Investment $572,701,043

Transit Capital Assistance $73,244,842

Grants-in-Aid for Airports $17,534,870

Grand Total of Awards to State of Tennessee

$663,480,755

Available FundingAvailable Funding ObligationsObligations

TDOT-Administered FundingHighway Infrastructure Investment

TDOT Projects Obligated: 315

Percentage Obligation: 99.8%

Available FundingAvailable Funding ObligationsObligations

TDOT-Administered FundingTransit Capital Assistance

Percentage Obligation: 85%

Available FundingAvailable Funding ObligationsObligations

TDOT-Administered FundingGrants-in-Aid for Airports

Sub-recipient: Greeneville-Greene County Municipal Airport

Percentage Obligation: 100%

Recovery Act Expenditures

Recovery Act Program

Cumulative Expenditures

Percent of Total

Obligations

Highway Infrastructure Investment

$212,321,663 43.7%

Transit Capital Assistance $4,873,903 27.1%

Grants-in-Aid for Airports $715,455 15.7%

Grand Total $217,911,021 42.8%Data as of December 31, 2009

Recovery Act Discretionary GrantsAwarded

EPA Truck Stop Electrification - $2,000,000

TDOT currently in competitive process to sub-award grant money to truck stops

Recovery Act Ferry Boat Discretionary - $3,000,000

Cumberland City Ferry, Stewart County

On-the-Job Training/Support Services - $800,000

TIGER Grant Applications

$1.5 billion available nationwide

Tennessee participated in a 5-state joint application with PA, AL, MS, VA for the Norfolk-Southern Railway Crescent Corridor project

TN portion of the Crescent Corridor request was $81.0 million

Grant Application Amount of ApplicationHighway I-40 Mississippi River "Hernando DeSoto" Bridge Seismic Retrofit Project $34.5 millionInterstate 69 Corridor Project - Obion County $98.0 millionU.S. 64 (SR-15) Highway Improvement Program - Hardeman County $40.0 millionU.S. 64 (SR-15) Highway Improvement Program - Lawrenceburg Bypass $65.0 millionU.S. 64 (SR-15) Highway Improvement Program - Lawrence County $26.0 millionU.S. 64 (SR-15) Highway Improvement Program - Wayne County $25.0 millionSubtotal - Highway $288.5 million Transit Statewide (Urban and Rural) Rail $68.5 millionSubtotal - Transit $68.5 million Grand Total of All TIGER Grant Applications $357 million

Early Success in Implementation

Recovery Act JobsHighway Infrastructure Investment

Payroll paid to date: $28,309,407

Total Hours Worked: 1,484,912

Data is cumulative through December 31, 2009

Obligations by Type of WorkAs of November 20, 2009

* ARRA Obligation Total includes MPO Obligations

Project Type of Work Description # of Projects ARRA Obligation% of Total

Projects To Date

% of Total ARRA Obligations to Date

New Construction Roadway 4 $ 44,553,042 1.4% 8.8%

Reconstruction, Added Capacity 15 213,688,104 5.3% 42.2%

Resurfacing 131 160,879,704 46.5% 31.8%

Restoration and Rehabilitation 1 4,768,267 0.4% 0.9%

Bridge Replacement, No Added Capacity 53 56,682,700 18.8% 11.2%

Preliminary Engineering 49 2,159,090 17.4% 0.4%

Right of Way 1 1,000,000 0.4% 0.2%

Safety 1 134,390 0.4% 0.0%

Traffic Management Engineering 7 3,000,000 2.5% 0.6%

Facilities for Pedestrians and Bicycles 12 11,286,231 4.3% 2.2%

Landscaping and Other Scenic Beautification 2 260,000 0.7% 0.1%

Rehabilitation/Operation of Historic Transportation Buildings, Structures, or Facilities 5 7,473,386 1.8% 1.5%

Establishment of Transportation Museums 1 200,000 0.4% 0.0%

TOTAL: Highway Infrastructure without Discretionary Project 282 $ 506,084,914 * 100.0% 100.0%

Recovery Act Reporting

Weekly Updates to Notice to Proceed/Contract Award Dates

Monthly Project Status Report to FHWA Employment Status Report to FHWA T&I Committee Status Report TRAM Status Reports Status Report to FAA Status Report to EPA

Quarterly Section 1512 Report to OMB Financial Status Report to EPA Status Report to FTA

Periodic Maintenance of Effort Status Report to FHWA Initial Project Information Report to FHWA Section 1511 Certifications on new Recovery Act projects QA/QC Report Reviews by TDOT Staff

Major Milestone: Section 1512 Q4 Report

State of Tennessee reports centrally on behalf of all state agencies

Section 1512 reports are to be submitted to the Office of Management & Budget (OMB) every quarter

For Q3 2009 report due October 10, 2009

Total reports submitted: 309TDOT reports submitted: 259

For Q4 2009 report due January 15, 2009

Total reports submitted: 329TDOT reports submitted: 271

Transparency & Accountability

Reviews, Inspections, and AuditsFederal

DOT OIG Fraud Awareness Training – May & Oct 2009 DOT OIG In-Depth Project & Field Reviews– Nov 2009 FHWA National Review Team – Nov 2009 FHWA Project Field Reviews & Inspections – On-going

State Comptroller Continual review of ARRA compliance

TDOT Internal Audit Project Review of 2 contractors for ARRA compliance

Next Steps

Prepare for Q1 2010 Section 1512 report submittal to OMB

Enhanced coordination with MPOs to ensure obligation requirements will be met

Monitor congressional actions for potential second stimulus

Prepare for award of TIGER Grants in January 2010

Questions?

Check out TDOT’s Recovery Act Website for more information:

www.tn.gov/tdot/recovery