Value of Expediting Project Delivery

March 13, 2015

California State Senate Transportation and

Housing Committee Informational Hearing

Hasan Ikhrata

SCAG Executive Director

About SCAG

Nation’s largest Metropolitan Planning Organization (MPO)

38,000 Square Miles

15 Subregions

Nation’s Global Gateway for Trade

Adopted 2012-2035 Regional Transportation

Plan/Sustainable Communities Strategy

Almost $525 billion in investments to improve

the SCAG region’s transportation system

through 2035

$263 billion in capital investments

$217 billion in system operations,

preservation, and maintenance

$45 billion in debt service to

advance construction of projects

How the RTP/SCS is Funded

EXPENDITURES REVENUES

Federal $117.3 (22%)

State

$130.0 (25%) Local

$277.4 (53%)

Transit Capital $106.8 (30%)

Highway &

Local Roads Capital

$156.0 (30%)

Debt Service $45.1 (9%)

O&M Highway

$56.7 (11%)

O&M Transit $139.3 (27%)

O&M Local Roads

$20.9 (4%)

Long-Term Funding Challenge

0

50

100

150

200

250

300

350

400

450

1970 1980 1990 2000 2010 2020 2030

VMT Population Gas Tax Gas Tax Purchasing Power

HISTORICAL TREND FORECAST 380

227

70

26

Construction Costs Growing Faster than General Inflation

100

120

140

160

180

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Inflation Index

Construction Cost Index

178

147

Impact of Construction Cost Escalation and Project Delay

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Base Cost Cost of Delay

Annualized Job Benefits of RTP/SCS

354,500 Annual Jobs

NETWORK BENEFITS Commuting Accessibility Transportation

174,500 Annual Jobs

CONSTRUCTION

Annualized Job Benefits by County

VENTURA COUNTY

3,400 Jobs http://bit.ly/17VTd2n

SAN BERNARDINO

COUNTY

18,300 Jobs http://bit.ly/17VUdUf

RIVERSIDE COUNTY

24,400 Jobs http://bit.ly/1EqF49U

LOS ANGELES COUNTY

92,000 Jobs http://bit.ly/17VVfzn

ORANGE COUNTY

35,100 Jobs http://bit.ly/1EqFmgR

IMPERIAL COUNTY

1,000 Jobs http://bit.ly/1EqFLjq

Follow links for additional benefits and key projects in each county

Preservation Cost-Effectiveness

Good

Failed

Time

Bridge Conditions in SCAG Region

County Number of

Bridges

Number of

Structurally

Deficient

Bridges

Number of

Functionally

Obsolete

Bridges

Total

Deficient

%

Structurally

Deficient

%

Functionally

Obsolete

% Deficient

IMPERIAL 436 43 25 68 10% 6% 16%

LOS ANGELES 3,552 391 906 1,297 11% 26% 36%

ORANGE 1,117 68 252 320 6% 23% 29%

RIVERSIDE 1,074 11 127 237 10% 12% 22%

SAN

BERNARDINO 1,384 178 87 265 13% 6% 19%

VENTURA 497 50 74 124 10% 15% 25%

TOTALS 8,060 840 1,471 2,311 10% 18% 28%

Source: FHWA National Bridge Inventory (NBI), update 12/031/2013

Pavement Condition by County

Pavement

Condition Index PCI

2008 2014

71-100 (Good)

50-71 (At Risk

0-49 (Poor)

SCAG Region has Highest Vehicle Operating

Costs (VOC) Due to Poor Road Conditions

Rank Urban Area Annual VOC

1 Los Angeles-Long Beach-Santa Ana $832

2 Tulsa $784

3 San Francisco-Oakland $782

4 Oklahoma City $782

5 San Diego $758

6 San Jose $737

7 Tucson $723

8 Milwaukee $700

9 New Orleans $687

10 New York City-Newark $673

Source: America’s Roughest Rides and Strategies to Make Our Roads Smoother (October 2013)

Local Streets and Roads System Preservation Need in SCAG Region

County Total Miles Total 21 Year

Needs ($M)

Total 21 Year

Funding ($M) Shortfall ($M)

IMPERIAL 4,251 $2,439 $654 ($1,785)

LOS ANGELES 21,543 $26,267 $8,300 ($17,967)

ORANGE 6,600 $7,005 $2,417 ($4,588)

RIVERSIDE 7,876 $7,576 $2,822 ($4,754)

SAN BERNARDINO 9,825 $9,476 $1,889 ($7,587)

VENTURA 2,515 $2,702 $581 ($2,121)

TOTALS 52,610 $55,466 $16,664 ($38,802)

Source: SCAG Analysis Assuming Current Funding Levels, 2015

Additional Investment Needed for Global Competitiveness

Rank County

1 Switzerland

2 Singapore

3 United States

4 Finland

5 Germany

6 Japan

7 Hong Kong SAR

8 Netherlands

9 United Kingdom

10 Sweden

11 Norway

12 United Arab Emirates

13 Denmark

GLOBAL COMPETITIVENESS RANKING

Rank County

1 Hong Kong SAR

2 Singapore

3 United Arab Emirates

4 Netherlands

5 Switzerland

6 Japan

7 Germany

8 France

9 Spain

10 United Kingdom

11 Taiwan, China

12 United States

13 Austria

INFRASTRUCTURE RANKING

Global Competitiveness Ranking is a composite score for Governance, Environment, Education, Public Health, Market Efficiency, Technology Readiness, Business Sophistication, etc.

Southern California - A Major Trade Gateway for U.S.

The region is the largest international trade gateway in the U.S., supported by marine

ports, air cargo facilities, railroads, and freeways.

In 2013

over $403 billion of maritime

cargo were collectively handled by the Ports of Los Angeles, Long Beach, and Hueneme

nearly $92 billion in

international air cargo was handled by regional airports

almost $14 billion of trade

passed through Imperial County POEs

Goods Movement Projects and Strategies

Over $70 Billion*

Freight Corridors

Port access

Freight rail capacity

Grade separations

Truck bottleneck projects

Intermodal facilities

Emission reduction strategies

Goods Movement Investments 2012 RTP/SCS

* Approximately $20 Billion in funding identified to date

$1.25-1.95B Per Year Average

$6.8-9.9B 5 Year GDP Gross

Accelerating Five Years of Projects

CONSTRUCTION

Jobs Per Year 5 Year GDP Gross

102,143 $35.1B

NETWORK & OPERATIONS BENEFITS

Jobs Per Year 5 Year GDP Gross

204,293 $128B

CONSTRUCTION COST SAVINGS

Major transportation projects take an average of 17 years to deliver

Thank You