In the Silver State, the Nevada Department of Transportation (NDOT) received a total of $201 million dollars in American Recovery and Reinvestment Act (ARRA) money, and like all states getting stimulus funds; the department was faced with the ‘strings attached’ challenges before appropriating the funds to specific projects. The parameters attached to the money are mostly concerned with how and when Nevada needs to spend it and NDOT is still in the process of examining those criteria.
The total package of $201 million is being distributed by a set formula: The state’s largest and most densely populated Clark County received $40 million, while upstate Washoe County was allocated $9 million. Out of the $201 million stimulus package NDOT was allowed $140 million in discretionary spending. NDOT is working closely with Clark and Washoe Counties and in conjunction with the League of Cities, The Nevada Association of Counties, The Nevada Transportation Board and the governor’s office in identifying what projects need to move forward.
One of the criteria regarding the $140 million dollars was to obligate and commit 50 percent to projects before the ARRA June 29, 2009 deadline. The remaining money must be certified by February 2010. And all projects using ARRA money must be committed within three years. Two factors that impeded this process are rights-of-way certification and environmental impact studies. As a result of these factors NDOT chose a direct route in identifying ready to go projects referred to as statewide preservation projects, and according to NDOT – “those shovel-ready” projects that have already been identified as a priority.
Projects selected were also judged on their engineering requirements, but a new system of contractor bidding has made that process more equitable. ARRA specified advancement of jobs and important transportation improvements statewide of significant needs requirements including all transportation projects using ARRA funds.
More Funding Needed
Lt. Governor Brian Krolicki is a member of the Nevada State Transportation board (NBT). As such, Krolicki and his colleagues hold sway over NDOT’s actions since NDOT reports to the Transportation Board. Krolicki welcomes the ARRA money, but says the $201 million doesn’t go far enough. “We have multi-billion dollars in unfunded projects that we need to get funded.” Projects such as repaving is high on the list. To meet those needs, Nevada is competing for an additional $1.5 billion dollar package.
How is it all going? The good news is, “many projects under ARRA funding are coming in under budget. As a result ARRA money can go much further,” Krolicki noted.
“We need billions to fund our super projects,” observed Krolicki. NDOT should have all of its ARRA money committed by mid-June, noted Krolocki who expressed confidence that meeting that deadline is on target.
Project Appropriations
According to Susan Martinovich, NDOT director, “parameters and challenges” is how she described the use of stimulus money. As head of NDOT, Martinovich has a full plate of projects deemed “priority.” What exactly qualifies as priority? In a word “preservation projects,” which are already established projects around the high volume interstate such as I-80, which crosses Nevada through upstate Pershing County. She categorized the problem as, “basically maintaining what we already have on the table and ready to go but just lacked the funding.”
The interstates and the national highway routes are a good example. In Northern Nevada, I-80 is a heavily trafficked truck route. The pavement takes a pounding and must be resurfaced. Although this project has not been warded, bids are flowing in for the $20 million repaving contract. The lowest dollar amount contractor bid as of date is $13 million.
In Southern Nevada, there has been much talk recently of installing toll lanes along the resort corridor of the I-15, but the Nevada State Assembly Transportation Committee has said no to tolls lanes. The Bill, AB 524, sponsored by NDOT never made it out of committee. The Bill asked for a 19 mile, $1 billion dollars demo project on I-15 from I-215 to US-95. Transportation Committee Chair Kelvin Atkinson effectively ended the aspirations of NDOT and private investors to try out what other states have done.
Judging projects statewide has proved a formidable task. The needs test dominates the selection process and Martinovich stresses that it’s not pet projects we are approving. To that end, “We are getting some good bids reflective of the competition,” said Martinovich.
As the City of Henderson Council member sitting on the Southern Nevada Regional Transportation Commission Board Andy Hafen is exposed to the needs of the state. ”There are some tremendous needs in Nevada as they relate to transportation. There is a portion of the stimulus funding that is coming to Nevada that has to go to local jurisdictions. That money will allow cities like Henderson to take care of a handful of projects that otherwise would have been put off for some time because our funding sources have simply dried up.”
Moving Nevada Forward
As the metropolitan planning organization, the Regional Transportation Commission (RTC) conducts studies regularly to learn more about how to effectively improve mobility for the region’s residents and visitors. One fairly recent study from the Southern Nevada RTC involved the Sahara Avenue corridor in Southern Nevada.
The RTC studied several options for improving traffic flow on Sahara Avenue to accommodate short and long-term transportation needs within the corridor. Based on the study, and in response to continued growth and increased traffic congestion in the Las Vegas Valley, the RTC developed several options for improvements including creating dedicated lanes for rapid transit; traffic signal enhancements; minor roadway improvements; paired one-way streets (couplets); a super arterial (like Desert Inn Road between Valley View Boulevard and Joe W. Brown Drive); a tunnel; and overpasses and underpasses at some intersections.
In 2011, minor road improvement construction will begin on segments of Sahara Avenue east and west of Las Vegas Boulevard. The installation of a dedicated lane for rapid transit on Sahara Avenue will begin construction in 2010. The construction of overpasses or underpasses at Maryland Parkway and Eastern Avenue are long-term solutions and a date has not been established for the start of their construction.
Jacob Snow, Director of the Southern Nevada RTC noted, “The RTC has utilized public private partnerships in order to fund two projects that were critical for mobility in the community. This type of partnership can allow for projects to be expedited and can benefit both the public and private sectors.”
One example, is the Silverado Ranch Interchange. In October 2007, the I-15 and Silverado Ranch Blvd. interchange project was completed. This $38.7 million project began in early Sept. 2006. The South Point Hotel and Casino contributed about $5 million to the construction costs for the project in order to ensure its expedited completion.
Another example took place in January 2006 when the Auto Show Dr. interchange project was completed. The Auto Mall Association contributed $1.7 million to the $34 million project. This initial funding allowed the project to move into the design phase.
Club Ride Commuter Services is a free program from the Regional Transportation Commission of Southern Nevada (RTC) designed to help reduce traffic congestion, improve air quality and mobility, encourage the use of commute alternatives and ultimately create a more sustainable community. “To accomplish these goals, Club Ride works with employers and commuters in the Las Vegas Valley to establish custom commute options programs and offers incentives to get commuters to try new modes for getting to work,” stated Snow. The Club Ride Commuter Services program is funded largely by federal grants designed to improve air quality.
“The Club Ride program is robust and doing very well. Today is boasts nearly 200 employer partners and nearly 3,000 active employee participants,” said Snow. “In the past five years the program has helped to remove 1.5 million single occupancy vehicles from our roadways and more than 320 tons of emissions.”
The RTC of Northern Nevada in the last 12 months has completed its seminal document of its entire system’s long-range improvement goals, which includes public transit and roads. Known as the Map for the Community Program, it’s where we are now and where we want to be in the future in term of transportation, said Derek Morse RTC Interim Executive Director. “The MFTC Program also puts us on the map for federal funds to make sure we have the resources to accomplish our plans.”
As an example, approximately $4.7 million of stimulus money is going into the 4th Street Transit Station Project in Reno, ground breaking has already commenced while the second half is slated for energy and employment projects. Another example is the stimulus and local money tax money that is going into improving US 395 to relieve congestion. While dozens of other road and transit improvements are currently under way in Northern Nevada.
Equal Opportunity Projects
The federal Disadvantaged Business Enterprise (DBE) program is all about securing equal opportunity in business. Funded through the U.S. Department of Transportation (USDOT), the program helps businesses classified as small, woman-owned or disadvantaged to compete in a fair environment right alongside larger corporations.
“The RTC has established a goal to identify, communicate and work with businesses that are certified DBE’s”, said Snow. A DBE is defined as a small business that is socially or economically disadvantaged. “It is the policy of the RTC to ensure nondiscrimination in the award and administration of U.S. Department of Transportation-assisted contracts and to create a level playing field on which DBE’s can compete fairly for contracts and subcontracts,” concluded Snow.
Under this program RTC is a recipient of federal funds and must have goals, so contractors are asked if they participate in the program.
“You try and do what you can to engage more DBE’s in the process,” stated Morse. Under the program DBE firms are registered and certified with the state, “We have not had a lot of difficulties achieving our goals,” said Morse.
Road Work Ahead
When it comes to transportation in Nevada there is much to do and much is being done. However, the $201 million in stimulus money is just a drop in the bucket. The bucket of public and private works needs billions and the goal of the stimulus to create jobs will do just that, but will fall far short.
Meanwhile NDOT is trying to identify “shovel-ready” projects to meet time constraints, right-of-way certification and satisfy environmental impact studies; not an easy task to juggle. NDOT will meet the June deadline of 50 percent certified projects, and within three years the remaining half of projects will have been certified as per ARRA.
However, it should be noted there are programs being funded such as CLUB RIDE and DBE that are providing incentives for businesses to grow, while serving the needs the population.
Until the $1.5 billion sought for transportation becomes a reality, the problem facing Nevada will still be money. To date, even with the $201 million in ARRA money, the Silver State is still behind the eight ball in transportation funding.
