Newsletter

Senate Passes Bill Containing $2.2 Billion Reduction

in Highway Contract Authority

The Senate passed a bill last Thursday that would rescind $2.2 billion in highway contract authority apportionments from balances held by state transportation departments. The House of Representatives has been called back into session early this week to approve the measure and send it to President Barack Obama.

Senators voted 61-39 to pass the bill, HR 1586, which contains $16 billion to extend increased Medicaid funding for states by six months and $10 billion to help states cover teacher salaries for the upcoming school year. The bill is fully paid for with several provisions to increase taxes and cut spending, including the $2.2 billion reduction in highway contract authority.

The Senate's language would give states flexibility to choose which highway formula programs to cut. The Federal Highway Administration released a table Thursday showing how much each state will lose as a result of the rescission if it is enacted into law. Cuts range from $8.5 million for Delaware, the District of Columbia, and Vermont to $205 million for California.

Representatives had originally proposed this $2.2 billion highway rescission in June. The American Association of State Highway and Transportation Officials (AASHTO) wrote House members July 1 opposing this action after that chamber's Appropriations Committee proposed an amendment to a Fiscal Year 2010 supplemental appropriations bill that would rescind $2.2 billion in highway contract authority. The amendment to that legislation was never adopted, but then resurfaced last week as the Senate called up a Federal Aviation Administration reauthorization bill. Senators stripped all aviation language out of it, then inserted the funding for Medicaid and education along with accompanying offsets.

House Speaker Nancy Pelosi, D-California, announced Wednesday that the House will meet thisTuesday to consider the legislation. It is rare for a congressional chamber to return to Washington during a legislative recess, but the increased funding for Medicaid and education is a high priority for Democratic leaders. They have expressed an urgency to complete action on the bill immediately because the new school year will soon be starting across the nation, and cash-strapped states and localities might be forced to lay off thousands of teachers if they do not receive federal assistance.

(Courtesy of AASHTO)

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Caltrans Makes 2 Significant Appointments

Last week, Caltrans announced two (2) appointments that are significant to the pavement industry in California.

First, late Wednesday, August 4th, Steve Takigawa, Deputy Director of Maintenance & Operations, announced that Tony Tavares (pictured below right) has been named to the position of Chief of the Division of Maintenance. In his announcement Mr. Takigawa had this to say about Mr. Tavares; "Tony has 20 years of State experience.

He began his career at Caltrans in 1990 as a Transportation Engineer and worked through the ranks of Senior, Supervising and Principal Transportation Engineer. In September 2009, he was appointed the Chief, Division of Right of Way and was responsible for the Right of Way program statewide. Additionally, he served as the acting District Director for District 10 where he provided strategic direction to a staff of over 900 multi-disciplinary professionals responsible for all functions and activities within the District."

When contacted by the APA of California, Mr. Tavares indicated that . . "I am looking forward to developing a strong partnership with the pavement industry. It is very important for both the Department and industry associations, such as the Asphalt Pavement Association of California, to collaborate on all issues, involving both flexible and rigid pavements, to ensure the quality and performance of California's more than 50,000 lane miles of highways. I am excited about this opportunity and look forward to productive meetings in the months to come."

Tony's appointment is effective on Monday, August 9th, 2010. Basem Muallem, Acting Chief of the Division of Maintenance, will be working with Tony until sometime in the middle of August to help him become acquainted with his new position and aid in the transition. Not only do we want to welcome Mr. Tavares, but we would like to thank Basem for all of his hard work during his tenure as the Acting Division Chief.

Second, on Friday, August 7th, Basem Muallem, Acting Division Chief of Maintenance, announced the appointment of Amarjeet Benipal to the position of Assistant Division Chief, Pavement Management, in the Division of Maintenance which includes serving as the State Pavement Engineer. In his announcement, Mr. Muallem has this to say about Mr. Benipal; "Amarjeet has been with Caltrans for 20 years and has proven his skills and leadership abilities through assignments that have included Project and Design Engineer in Central Design, and Project Manager in District 3 where he rose to Principal Transportation Engineer, Division Chief of Project Development. He has also assisted the department by taking on the role of Acting Division Chief of DES and Acting Division Chief of the Division of Pavement Management."

Amarjeet's appointment will be effective September 7th. Not only do we want to welcome Mr. Benipal, but we would like to thank both Tom Pyle and Susan Massey for their efforts in providing leadership to the Pavement Management Team as the Acting State Pavement Engineer for the past several months.

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Asphalt Pavement - The Green Pavement Alternative II

Asphalt is the sustainable material for constructing pavements. From the production of the paving material, to the placement of the pavement on the road, to rehabilitation, through recycling, asphalt pavements minimize impact on the environment. Low consumption of energy for production and construction, low emission of greenhouse gases, and conservation of natural resources help to make asphalt the environmental pavement of choice.

Ultimate Sustainability

The road doesn’t wear out
Only asphalt can be the Perpetual Pavement. When appropriately designed and constructed, the road itself doesn’t wear out. Maintenance is simple: only the top layer is removed and replaced. This can be done quickly, even overnight, and it saves taxpayers money. The material that has been reclaimed is then recycled. The newly overlaid road surface (which may also contain recycled material) is a good-as-new pavement. Total removal and reconstruction is not needed. This is a truly sustainable construction process.

Rubblizing for sustainability
When concrete pavements reach the end of their useful life, they must undergo expensive, time-consuming rehabilitation or be completely removed and replaced. This process squanders precious natural resources—unless the pavement is rehabilitated through a sustainable process called rubblization. The worn-out concrete is “rubblized” (fractured) and becomes the base for the new asphalt road. This saves fuel that would have been used by trucks hauling the old material away; saves the virgin materials that would have been needed to build a new road base; and can give the traveling public a new Perpetual Pavement. In addition to the environmental and speed of construction advantages, cost savings can be significant.

Public safety
Smooth asphalt roads give vehicle tires superior contact with the road, improving safety.
Open-graded asphalt allows rainwater to drain through the pavement surface, reducing the amount of splash and spray kicked up by vehicles.

Noise reduction
Asphalt is the quiet pavement. Newer quiet pavement technologies include fine-graded dense pavements, open-graded surfaces, and two-layer open-graded pavements. Studies show that the noise-reducing properties of asphalt last for many years.

Noise reductions of 3 to 10 dB(a) are common. Reducing noise by 3 dB(a) is about the same as doubling the distance from the road to the listener, or reducing traffic volume by 50 percent.

For more information on quiet pavement technology, visit www.quietpavement.com.

Asphalt moves traffic along
Asphalt pavements are faster to construct and rehabilitate. In crowded urban areas, where closing a road for rehabilitation or reconstruction would dump increased traffic on to neighboring routes, asphalt is the answer. Highways and roads can be milled for recycling, then overlaid, during off-peak hours. An entire freeway can be resurfaced without commuters ever being inconvenienced.

For more information on the sustainability of asphalt pavement and the reason it should be your first choice for your pavement decisions, visit the Asphalt Pavement alliance website @ www.asphaltroads.org or click here.

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Technical Corner

by Rita B Leahy, APACA Technical Director

Time-Related Incentive$ in Highway Construction

Transportation agencies are under increasing pressure to reduce the duration of highway construction projects. This pressure stems from the desire to reduce traffic delays and other inconveniences to the traveling public. To reduce the duration of construction projects, many agencies have turned to the use of time-related incentive/disincentive (I/D) contract provisions. To facilitate a better understanding of these contracting strategies, we’ll spend the next few weeks taking a close look at the work undertaken by Trinity Construction Management Services for the National Cooperative Highway Research Program (NCHRP). Specifically, we’ll review the following:

- types of contracts;

- extent to which they are used;

- record of success;

- when appropriate;

- how to determine the dollar amount, and

- effects on the quality.

The Trinity team reviewed the literature and collected information from highway agencies - including Caltrans - and contractors on the use and effectiveness of these contracting provisions. After analyzing the effectiveness of these provisions, the team identified and quantified, where possible, the impacts of these provisions on both highway agency and contractor staffing levels, productivity, project cost, quality, contract administration, and contractor operations and innovations. Also, the Trinity team created a decision process guide for determining the most suitable type of incentive or disincentive contract provision and for determining the dollar amount to be applied to these provisions and the conditions under which they are the most appropriate.

Effects of I/D Provisions on Agencies and Contractors

Time-related incentive and disincentive (I/D) provisions have been widely used by state transportation agencies. The vast majority of these provisions have been successful at accelerating highway construction work, resulting in reduced delays to the traveling public. Besides reducing road user delays, time-related I/D provisions have other effects on the agencies and contractors involved with the projects, including the following:

- cost;

- innovation;

- contract administration;

- staffing;

- quality; and

- safety

Next week, we’ll get started with the types of incentive/disincentive contract provisions and the extent to which they are used.

References:

G Fick, E Cackler, S Trost and L Vanzler, Time-Related Incentive and Disincentive Provisions in Highway Construction Contracts, NCHRP Report 562, Transportation Research Board, Washington, DC, 2010.

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Budget Bickering Goes Public in Dispute Over Democratic Plan

Lawmakers and Gov. Arnold Schwarzenegger bickered publicly over the state budget in May and June. They took those discussions behind closed doors in July. Neither approach yielded much progress.

So Democratic leaders went public with a new budget plan this week – hiking vehicle and income taxes while slashing the state sales tax. Republicans are swatting back the proposal publicly as well.

In an Op-Ed article Thursday, the Legislature’s two GOP leaders, Assemblyman Martin Garrick of Solana Beach and State Senator Dennis Hollingsworth of Murrieta, called the plan “dead on arrival.” Schwarzenegger’s spokesman, Aaron McLear, said the same thing the day the Democrats unveiled the plan.

Democrats, meanwhile, are pitching the plan as concessionary to the GOP: Although it would raise income taxes for all brackets, Californians in the top income bracket would see the smallest hike.

That has resulted in some topsy-turvy rhetoric in a Capitol where Democrats have long fashioned themselves as the defenders of the downtrodden.

“The poor, seniors, renters and working families … will be hit the hardest,” Garrick and Hollingsworth wrote of the plan in the Sacramento Bee.

The Democrats cast the plan, which raises revenues for the state, as a tax cut. They say the new taxes on vehicles and income are deductible from federal tax returns, while existing sales taxes are not. Schwarzenegger and Republicans have disputed that math.

(Courtesy of Capitol Weekly)

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Tell Your Member of Congress to Make Highway Bill a Priority!

10 months have passed since the expiration of SAFETEA-LU and it appears Congress will not take action on a multi-year reauthorization bill before the mid-term elections in November. As state and local governments slash highway spending, and the private markets remain soft, unemployment in the transportation construction industry hovers at 20%. Stimulus funding will begin to wane in the fourth quarter of 2010 casting an air of uncertainty over the 2011 highway market.

Without predictable, multi-year highway funding at the federal level, state transportation departments will not start new projects and contractors will not be able to plan beyond the short-term extensions. The program is currently funded by a short-term extension lasting through December 2010. Over the past two years, the Highway Trust Fund has had to “borrow” $36 billion from general fund revenues, undermining the user-fee principle and the public’s trust. Without additional revenues, we are facing a 30-50% cut in the federal program as early as 2012.

The APA of California is cooperating with the National Asphalt Pavement Association (NAPA) in a "Grass Roots" effort to meet with our California Legislators while they are in California on vacation from their Washington DC offices. We will be attempting to create an “outside-the-beltway” movement to make the Highway Bill a priority in Washington. We will be working with members of the Transportation Construction Coalition and the Americans for Transportation Mobility Coalition to launch this campaign. It is important that you meet with your representatives - Congress will not act on a reauthorization bill unless they hear from you.

The following information will assist you in setting up the meetings:

- To identify and contact your Member of Congress, click here.

- Information about the pending highway funding crisis, click here.

- Talking points on why Congress needs to take action on highway legislation

- Instructions on how to arrange meetings and questions to ask

- Congressional meeting feedback form.

- TRIP state-by-state fact sheets.

- Impacts of recurring delays and extensions

- Highway Construction Materials Group White Paper.

- Report on jobs in the Asphalt Pavement Industry

We are encouraging everyone to contact their representatives and let them know just how important the passage of significant, well funded, multi-year highway funding bill is to you and your business!

If you have any questions, please contact the APA of California office at 949-855-6489.

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