Life cycle certification regional transportation plan freeway program

              ~
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Arizona
Departmentof Transportation
Certification of Revenue and Construction Costs for the
RegionalTransportationPlan
FreewayProgram
July311 2007
ADCT
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Victor M. Mendez, Director
Arizona Department of Transportation
TABLE OF CONTENTS
Page
* Regional Transportation Plan Map ii
* Introduction and History , 1
* Executive Summary 3
* Revenue Projections . .. . ...7
* Construction Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..10
* Appendix.. .. ... .. . .. ... ... .. .. .. . .. . .. . ... ... ... .. . .. . .. .. .. .15
July 2007 Certification -i- Contents
July 2007 Certification
Regional Transportation Plan
Freeway Program
2006 - 2025
New River Rd.
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Remaining LifeCycle Cost: $9.68 billion
Obligated as of January 2007 Certification: $779 million
Riggs Rd.
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New Freeway
New Hav and General Purpose lanes
New HaV lanes
New General Purpose lanes
Interim Corridor Development
Right of Way Protection
ExistingFreeway
Grand Avenue Corridor Improvements
New Traffic Interchange
New HaV Ramp Connection
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Santon
Pecos Rd. ! Williams Gateway*
INTRODUCTION AND HISTORY
This semi-annual Regional Transportation Plan Freeway Program (RTPFP) Life Cycle
Certification report is prepared in compliance with the 1991 Performance Audit of the
Maricopa Association of Governments (MAG) Regional Freeway Program. The Arizona
Department of Transportation (ADOT) will continue to produce semi-annual
Certification report for the RTPFP. The report is designed to review the progress of the
RTPFP and identify the projections and changes in program revenues and costs.
The RTPFP is funded by three primary revenue sources: the extension of the Maricopa
County transportation excise tax (often referred to as the one-half cent sales tax or
Regional Area Road Funds), the Arizona Department of Transportation's (ADOT) funds
dedicated to Maricopa County and federal funds.
Per ARS 42-6l05.E, 56.2 percent of all sales tax collections will be distributed to
freeways and state highways; 10.5 percent will be distributed to arterial street
improvements; and 33.3 percent will be distributed to the public transportation fund.
The RTPFP Life Cycle Program includes both new facilities and improvements to the
existing system. Operation and maintenance of the system are also addressed. Projects
include new freeway corridors, additional lanes on existing facilities, new interchanges at
arterial cross streets, high occupancy vehicle ramps at system interchanges, noise
mitigation and maintenance and operations programs.
The concept of a Life Cycle Program refers to a programming approach that forecasts and
allocates funds through the full life of a major funding source. The Life Cycle Program
covers the project program through fiscal year 2026, and reflects a fiscal balance between
anticipated revenues and expenditures. The Life Cycle Program provides the necessary
management tools to ensure both ADOT and MAG maintain realistic planning and
construction schedules, predicated upon funding, and provide periodic reports to the
public and other governmental agencies.
Arizona House Bill 2292, which was passed in the Spring 2003 session of the Arizona
Legislature, established the Transportation Policy Committee which was tasked with
developing a Regional Transportation Plan for Maricopa County, and established the
process for an election to extend the current 12cent County Transportation Excise Tax.
The Regional Transportation Plan includes both new freeway corridors to serve growth in
the region and improvements to the existing system to reduce current and future
congestion. The Regional Transportation Plan also addresses quality of life issues such
as noise mitigation, maintenance, litter control and landscaping. The Regional
Transportation Plan has three major components: Freeways/Highways, Transit and
Arterial Roads.
July 2007 Certification -1- Introduction and History
On November 2, 2004, voters in Maricopa County approved Proposition 400 to extend
the existing half-cent Sales Tax for transportation for an additional twenty years to 2026.
The previous tax expired December 31, 2005. The extension began January 1, 2006.
The FY 2007-2011 RTP Freeway Program incorporated locally accelerated projects:
1-10, Sarival Avenue - Agua Fria Freeway (SRI OIL):Advanced from FY 2011/14
to FY 2008/09.
1-17,Dove Valley Road TI: Advanced from FY 2022 to FY 2007.
Arizona House Bill 2865, approved in the Spring session of the Arizona Legislature
(2006), established the Statewide Transportation Acceleration Needs (STAN) account.
The STAN account provided $307 million to be used for the acceleration of the design,
RIW acquisition and construction or reconstruction of freeways, state highways, bridges
and interchanges on the statewide highway system.
Per HB 2865.G, 60 percent ($184.2 million) would be distributed to projects in the
Maricopa County region. Pima County would receive 16% ($49.1 million) and remaining
24% ($73.7 million) funds were distributed to the other thirteen counties. It is anticipated
that 5% growth in interest income will increase the MAG allocation to $193.4 million.
The legislation required that funds spent in Maricopa County region be allocated to
projects in the MAG Regional Transportation Plan. Six projects approved by the MAG
Regional Council and State Transportation Board include:
* 1-10,Verrado Way - Sarival Avenue
* 1-17,SR74-Anthem Way
* PimaFreeway(SRIOIL),TatumBoulevard- PrincessDrive
* PriceFreeway(SRIOIL),BaselineRoad- SantanFreeway(SR202L)
* Bob Stump Memorial Parkway (SR303L), Bell Road, Cactus Road and Waddell
Road intersections
* WilliamsGatewayFreeway,SantanFreeway(SR202L)- Meridian Road for
RlW Protection
ADOT, City of Phoenix and MAG are in process of deleting SR153 from the RTP
Freeway Program and to shift the available funding for improvements to SR143/SR202L
TI. The proposed change is a major amendment and requires that the statutory
consultation process be followed per A.R.S. 28-6353.
A key management tool used for the Life Cycle Program is the development of certified
revenues and costs. Certification involves the preparation of reliable cost estimates for
the entire MAG system, as well as a forecast of revenues available to fund the system.
The costs and revenues are reviewed and certified by ADOT every six months.
This certification of information pertaining to the Regional Transportation Plan Freeway
Program constitutes the official position of ADOT and is used for all planning and
programming purposes. It enhances the information flow to MAG and the public on a
periodic basis and allows ADOT to make program adjustments as necessary.
July 2007 Certification -2- Introduction and History
EXECUTIVE SUMMARY
The Director of the Arizona Department of Transportation has certified the MAG Area
Life Cycle Program of the Regional Transportation Plan Freeway Program (RTPFP)
effective July 31, 2007. This certification of the MAG Area Life Cycle Program
incorporates the Adopted FY 2008 - 2012 Regional Transportation Plan Freeway
Program.
Revenue forecasts are based on a cutoff date of May 31, 2007.
Maior Milestones since Last Certification
0 The Superstition Freeway (US60) from Gilbert Road to Power Road was opened to
traffic in June 2007.
0 The Papago Freeway (I-I0) at Bullard Avenue TI construction project was advertised
in January 2007 and awarded in April 2007.
0 The Piestewa Freeway (SR51) from Shea Boulevard to the Pima Freeway (SRI OIL)
HOV construction project was advertised in January 2007 and awarded in April 2007.
0 The Black Canyon Freeway (1-17) from 16th Street to Buckeye Road system
preservation project was advertised in February 2007 and awarded in April 2007.
0 The Black Canyon Freeway (1-17)at SR74 TI reconstruction project was advertised'in
February2007and awardedin April2007.
0 A system wide, ramp metering construction project was advertised in February 2007
and awarded in April 2007.
0 The Price Freeway (SRI0IL) from Guadalupe Road to Santan Freeway (SR202L)
Freeway Management System construction project was advertised in February 2007
and awarded in May 2007.
0 Quiet Pavement Phase IX construction project was advertised in February 2007 and
awarded in April 2007.
0 SR87 from Forest Boundary to New Four Peaks construction project was advertised
in April 2007 and awarded in June 2007.
0 The Pima Freeway (SRlOIL) from Princess Drive to Red Mountain Freeway
(SR202L) construction project was advertised in May 2007.
0 US93, Wickenburg By-Pass construction project was advertised in June 2007.
July 2007 Certification -3- Executive Summary
D The Pima Freeway (SRI OIL) at 64th Street TI construction project was advertised in
June 2007.
D SR85 from MP 139.01 to MP 141.71 construction project was advertised in June
2007.
D The Agua Fria (SR101L) from Northern Avenue to 31st Avenue landscape
construction project was advertised in June 2007.
Pro2ram Chan2es
The following changes to the Tentative FY 2008 - 2012 Regional Transportation Plan
Freeway Program have been included in the new program.
D Updated design, R/W and construction costs based on latest estimates.
D Modified some design and R/W project schedules to align with study schedules.
D Modified limits of existing Red Mountain corridor projects based upon
implementation plan identified in DCR.
D Created new R/W projects which were identified during studies.
D Created erosion control and roadway improvement projects on the SR87 corridor.
D Created spot improvement congestion management project on the 1-10 corridor at the
Broadway Curve.
D Created TI improvement project on the 1-10 corridor at the SR347.
D Created an advance bridge widening project on the Red Mountain corridor for better
coordination with Light Rail construction.
D Added privately funded project on the 1-10 corridor.
D Minor project name changes to reflect updated project limits.
Revenues
Net funds available through year 2025 for the RTP Freeway Program show a decrease of
17.5 million from the previous Certification. Details are presented in the "Revenue
Projections" section, page 9.
Pro2ram Costs
Obligations for the RTP Freeway Program totaled $779 million. The remaining cost to
complete the RTP Freeway Program totaled $9.68 billion.
July 2007 Certification -4- Executive Summary
Desi2n Concepts and Environmental Studies
A Design Concept Report (DCR)/Categorical Exclusion (CE) is complete for the 1-10
corridor between Sarival Avenue and the Agua Fria Freeway (SRI OIL). The study
includes adding general purpose lanes.
A DCR/Environrnental Impact Statement (EIS) is underway for the 1-10corridor between
SR51 and the Santan Freeway (SR202L). The study includes freeway widening for
express local lanes.
A Scoping Letter is complete for the 1-10 Corridor between Southern Avenue and SR143.
The study includes adding auxiliary lane.
A DCR/EIS is underway for the 1-17 Corridor between 1-10 and SRI0IL. The study
includes freeway widening concepts.
A Project Assessment (PA)/CE is underway for the Superstition Freeway (US60) between
1-10and SRI0IL. The study includes adding general purpose lanes.
A PA is underway for Grand Avenue (US60) between the Agua Fria Freeway (SRI OIL)
and 1-17. The study includes improvements of roadway.
A DCR is underway at the SR85/I-8 TI. The study includes divided roadway concept.
A PA is underway for 99th Avenue between 1-10 and MC85.
improvements of roadway.
The study includes
A DCR/CE is complete for the Red Mountain Freeway Corridor (SR202L) between SR51
and the Pima Freeway (SRI OIL). The study includes adding general purpose lanes.
A DCR/CE is underway for the Red Mountain Freeway Corridor (SR202L) between the
Pima Freeway (SRI OIL)and Gilbert Road. The study includes adding HOV lanes.
An EIS/DCR is underway for the South Mountain Freeway Corridor (SR202L). The
study includes construction of new freeway.
A DCR/Environrnental Assessment (EA) is underway for the Bob Stump Memorial
Parkway (SR303L) between the 1-10 Reliever (SR801) and 1-10. The study includes
construction of new freeway.
A DCR/EA is underway for the Bob Stump Memorial Parkway (SR303L) between 1-10
and Grand Avenue (US60). The study includes construction of new freeway.
July 2007 Certification -5- Executive Summary
A DCR/EA is undelWay for the 1-10 Reliever (SR80l) between SR85 and the South
Mountain Freeway (SR202L). The study includes construction of new freeway.
A DCR/Environmental Document is undelWay for the Williams Gateway Freeway
(SR802). The study includes construction of new freeway.
Pr02ram Trends
This certification confinns that the revenues and costs are in balance. However, there are
other economic trends that the Department will continue to monitor.
For fiscal year 2007, revenue growth rates for the Transportation Excise Tax Revenues
have slowed compared to fiscal year 2006. This is primarily due to weaker than
anticipated retail sales in Maricopa County.
FY 2007 bid amounts on several Regional Transportation Plan Freeway Program
construction projects came close to or lower than ADOT's estimates with more bids
received compared to FY 2006. Construction material costs have appeared to stabilize
from the rapid increases that have been seen over the last two years. Although the
increases have moderated, there has not been a significant decline for key commodities to
previous levels.
However, based on numerous studies currently undelWay,construction and RIW costs for
two new freeways (South Mountain and Bob Stump Memorial Parkway, SR303L) and
major corridor improvement projects (1-10and 1-17)reflect significantly higher costs than
initial estimates, which were developed in 2003. These higher estimates are due to
increased costs for construction materials and substantial increases in real estate values,
which result in higher right of way costs. Scope refinements identified during design
studies have also led to certain cost increases. The Department will have better
infonnation to detennine the magnitude of cost increases as studies progress. If these
cost increases continue long tenn, they will have a substantial impact on the program and
the Department's ability to deliver the program as currently planned, within the originally
anticipated timeframe.
ADOT will continue to monitor market conditions and costs throughout fiscal year 2008
to detennine if higher construction and right of way costs are short-tenn in nature or
reflect generallong-tenn trends.
ADOT also is updating cost estimates for the RTP Freeway Program based upon the
results of design and scoping studies currently underway. The infonnation from this
work will be incorporated into ADOT's cost estimates as they become available.
ADOT will monitor and review these trends closely and will continue assessing the
potential financial impact to the program.
July 2007 Certification -6- Executive Summary
Revenue Projections
'fA
.4DCJT
Arizona Department of Transportation
Transportation Services Group
206 South Seventeenth Avenue Phoenix, Arizona 85007-3213
Janet Napolitano
Governor
Victor M. Mendez
Director
John A. Bogert
Chief of Staff
LETTER OF CERTIFICATION
The Financial Management Services Office of the Arizona Department of Transportation
(ADOT) has developed the following information describing the estimated funds
available for construction of the Regional Transportation Plan Freeway Program from
Fiscal Year 2006 through Fiscal Year 2026. This information updates certain information
previously certified on January 31, 2007.
This information is intended primarily for internal planning purposes and requires
reliance upon a variety of data and information sources. The revenue forecasts rely upon
assumptions regarding future economic conditions and on forecasts of certain
independent economic variables. These assumptions mayor may not prove to be
accurate. If the assumptions do not prove accurate, differences between forecast and
actual results may occur.
We believe the results contained herein represent a realistic forecast of Maricopa County
transportation excise tax revenues, MAG share of the ADOT funds and other available
monies for the period described above and so certify. However, the Department will
continue its practice of reviewing and updating the forecasts as needed on a semi-annual
basis.
E. McGee I'
iefFinancialOfficer
July 31. 2007
Date
FINANCIAL ASSUMPTIONS
Following are the assumptions made in estimating revenues available for the Regional
Transportation Plan Freeway Program.
Bond Proceeds and Debt Service: The issuance of bonds secured by RARF and HURF
revenues are assumed. Interest on the bond issues is assumed to be 5.0 % maximum.
Bond maturities are assumed for up to 30 years. Bonds are amortized on a level debt
service basis, and assume no refinancing or restructuring. No additional bonds secured
by federal aid revenues are assumed.
Transportation Excise Tax: The forecast was developed during the October 2006 Risk
Analysis session. Authority for and collection of the Proposition 300 transportation
excise tax ended on December 31, 2005. The YzCent Sales Tax extension approved
through Proposition 400 went into affect on January 1, 2006. Per ARS 42-6105.E, 56.2
percent of all sales tax collections will be distributed to freeways and state highways; 10.5
percent will be distributed to arterial street improvements; and 33.3 percent will be
distributed to the public transportation fund.
ADOT Discretionary Funds, 37%: A 37 percent share of ADOT Discretionary Funds is
programmed for the MAGRegion.
Highway User Revenue Fund (HURF), 15%: The MAG area receives annual funding in
the form of ADOT 15 percent funds, which are allocated from the Highway User
Revenue Fund. These funds are spent for improvements on controlled access routes on
the State Highway System.
Federal Aid: Federal Aid includes STP and CMAQ funds. The Federal Aid forecast
assumes an annual average of $34.1 million (until FY 2015) of MAG sub-allocated
federal funds will be dedicated to the RTP Freeway Program.
Statewide Transportation Acceleration Needs (STAN): Per statute, 60 percent of the
STAN is distributed to projects in the Maricopa County region. Pima County receives
16% and the remaining 24% are distributed to the other thirteen counties.
Interest Income: Assumes a 3.0% investment rate with 95% invested. Interest income is
dependent on prior month's average cash balance.
Third Party Billing: Represents local funds and State federal funds for programmed
projects.
Other Income: Includes building rent, sales of excess property and other miscellaneous
Income.
Discount Factor: Base year is FY 2007. An annual inflation factor is applied to the costs
based on estimated construction and right of way cash flows. See Appendix A.
July 2007 Certification -7 - Revenue Projections
Additional assumptions regarding the funding from YzCent Sales Tax Extension include
the following principles:
. Firewalls are established so funding cannot be transferred from one category
to another.
. Bond proceeds will only be used for capital costs and not for maintenance or
operation expenses.
. Consistent with the "firewall" principle, bonding for each funding category
will be done independently.
Revenue Sources and Uses
The following pie chart depicts the sources and uses of Regional Transportation Plan
Freeway Program revenues. The sources consist of the transportation excise tax (1/2 cent
sales tax), ADOT Funds and various other revenues. The transportation excise tax makes
up 49 percent of the total revenues, with ADOT Funds reflecting 47 percent and the
remaining 4 percent consisting of various other funding sources, primarily federal aid.
Of the available funding, 64 percent is used for design, right of way and construction. Of
the remainder, 14 percent is used for cost of capital and 22 percent is used for a discount
factor and Regional Public Transit Authority (RPTA) transfers.
Certified Financial Plan
Fiscal Years 2006 - 2026
(dollars in millions)
Total SourceslUses : $17,756.2
SOURCES
$8,652.1
49%
$8,371.8
47%
EEl 1/2 Cent Sales Tax
EEl Other
EElADOT Funds
$732.3
4%
USES
$3,878.9
22%
$2,576.7
14%
$11,300.6
64%
EElConstruction
EElCost of Capital
EElOther
* Construction includes design, right of way and construction
July 2007 Certification -8- Revenue Projections
Net Revenues
The following chart reflects a breakdown of the individual revenues and costs for the
Regional Transportation Plan Freeway Program.
Notes: Details may not add due to rounding. Dollars in millions.
11 Includes STP and CMAQ.
/2 Includes Dedicated Highway, Discretionary transfer to Grand
Ave, Bethany Home Rd and Wickenburg Bypass.
/3 Interest income is on a cash basis and assumes a 3% rate with
95% invested. Interest income is dependent on fund balances.
/4 Includes estimated RARF, HURP, GAN interest expense and
debt service fund interest earned.
/5 Discount Factor represents conversion of construction program
from inflated to current dollars.
July 2007 Certification -9- Revenue Projections
REVENUES January 2007 July 2007 Change
1/2 Cent Sales Tax $8,652.1 $8,652.1 $0.0
Highway User Revenues $2,696.4 $2,696.4 $0.0
Federal Aid /1 $572.8 $572.8 $0.0
MAG 37% Dedicated $5,241. 1 $5,241.1 $0.0
State Discretionary /2 $240.9 $240.9 $0.0
3rd Party $36.7 $58.7 $22.0
STAN $193.4 $193.4 $0.0
Interest Income /3 $77.5 $68.5 ($9.0)
Other Income $37.6 $32.3 ($5.3)
Subtotal: Revenues $17,748.5 $17,756.2 $7.7
EXPENDITURES
Cost of Capital /4 ($2,483.2) ($2,576.7) ($93.5)
Discount Factor /5 ($3,702.8) ($3,635.3) $67.5
RPTA Transfer ($221.7) ($221.7) $0.0
Other Costs ($22.7) ($21.9) $0.8
Subtotal: Costs ($6,430.4) ($6,455.6) ($25.2)
Net Funds Available $11,318.1 $11,300.6 ($17.5)
Freewav Construction Costs and Chan!!es
The design and construction cost estimates for the Regional Transportation Plan Freeway
Program (RTPFP) projects are thoroughly reviewed and updated by three management
consultants, DMJM Harris, HDR and PB for the RTP Freeway Program. The
management consultants continually review and evaluate design and construction cost
estimates. They also provide preliminary engineering services by developing scoping,
Stage I (15%) and Stage II (30%) project documents for the RTPFP. This effort helps
define design and right of way requirements allowing ADOT to establish better cost
estimates for design, right of way, utility relocations and construction. They further
monitor the design consultants' cost estimates through the remaining design phases
including the final estimates. The management consultants also evaluate contractor bids
for RTPFP construction projects to constantly monitor construction unit cost trends, such
as the cost of concrete, asphalt, structures, drainage and other items used to establish
project cost estimates.
The revenue forecast was developed during the October 2006 Risk Analysis Process.
Panel members from various segments of the real estate and economic community were
invited to discuss future risks and trends in revenues. The risk analysis process
consultant updated construction cost forecast models and utilized the panel input to
calculate discount factors. The consultant, ADOT Financial Management services, MAG
and Regional Freeway System office reviewed the discount factors and made adjustments
to fit current cost trends. The information collected was used in the Risk Analysis
Process to ensure that ADOT has sufficient resources to complete the RTPFP Life Cycle
Program by projecting the rate of construction cost growth for the Life Cycle period (See
Appendix A for Discount Factors).
July 2007 Certification -10- Construction Costs
Oblb~ations
Obligations by phase and corridor are listed in the table below. These figures are through
June 30, 2007. Regional Transportation Plan Freeway Program (RTPFP) obligations
since the last certification increased $344 million, from $435 million to $779 million.
Regional Transportation Plan Freeway Program Obligations
Through June 30, 2007
RTP Freeway Program
Obligations
Noise
Mitigation
4%
Maintenance
3%
Design
22%
Right of Way
6%
Construction
65%
July 2007 Certification -11- Construction Costs
--..-. - ... .......-..-
Corridor Design Right of Way Construction
Noise R/W
Maintenance Total
Mitigation Protection
1-10, Papago &Maricopa $15.4 $4.4 $20.0 $0.0 $0.0 $0.0 $39.8
1-10 Reliever (SR801) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
1-17, Black Canyon $12.1 $21.3 $92.6 $0.0 $0.0 $0.0 $126.0
SR51, Piestewa $3.5 $0.0 $47.6 $0.0 $0.0 $0.0 $51.1
US60, Grand Ave $4.9 $0.0 $6.1 $0.0 $0.0 $0.0 $11.0
US60, Superstition $0.1 $0.0 $96.7 $0.0 $0.0 $0.0 $96.8
SR74 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
SR85 $19.0 $9.7 $44.2 $0.0 $0.0 $0.0 $72.9
SR87, Duthie-Martin $0.0 $0.1 $21.5 $0.0 $0.0 $0.0 $21.6
SR88, Apache Trail $0.2 $0.0 $0.2 $0.0 $0.0 $0.0 $0.4
US93 $0.0 $10.6 $32.3 $0.0 $0.0 $0.0 $42.9
101L, Agua Fria $0.7 $0.0 $26.4 $0.0 $0.0 $0.0 $27.1
101L, Pima $8.6 $0.0 $96.7 $0.0 $0.0 $0.0 $105.3
101L, Price $5.0 $0.0 $3.0 $0.0 $0.0 $0.0 $8.0
SR153, Sky Harbor $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
202L, Red Mountain $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
202L, Santan $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
202L, South Mountain $8.3 $1.6 $0.0 $0.0 $0.0 $0.0 $9.9
SR303L, Bob Stump
$46.1 $0.0 $0.0 $0.0 $0.0 $0.0 $46.1
Memorial Parkway
Williams Gateway $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Systemwide $50.6 $2.9 $8.5 $34.8 $0.0 $23.3 $120.1
TOTAL $174.5 $50.6 $495.8 $34.8 $0.0 $23.3 $779.0
Remainin!! System Costs
There remain $9.68 billion of costs associated with the Regional Transportation Plan
Freeway Program (RTPFP), a decrease of $37 million from the January 2007
Certification.
Regional Transportation Plan Freeway Program
* Multi Phase: Includes more than one phase (For example, project described as "Design and
RJW" or "Design and Construction" etc.).
Remaining RTP Freeway Program
R/W Protection Maintenance
1.0% 2.8% Design
Noise Mitigation 6.3%
Multi Phase 0.4%
10.6%
Right of Way
6.3%
Construction
72.6%
July 2007 Certification -12- Construction Costs
\UU u> u>uuu/
Regional Transportation Plan Freeway Program
Corridor Design Right of Way Construction Multi Phase*
Noise R1W Maintenance Total
Mitigation Protection
1-10, Papago & Maricopa $57.8 $38.0 $959.0 $5.5 $0.0 $0.0 $0.0 $1,060.3
1-10 Reliever (SR801) $0.0 $69.0 $464.0 $271.0 $0.0 $0.0 $0.0 $804.0
1-17, Black Canyon $19.0 $20.0 $1,035.3 $370.0 $0.0 $0.0 $0.0 $1,444.3
SR51 $4.2 $0.0 $47.0 $0.0 $0.0 $0.0 $0.0 $51.2
US60, Grand Ave $6.8 $1.0 $217.6 $34.0 $0.0 $0.0 $0.0 $259.4
US60, Superstition $5.4 $0.0 $55.9 $0.0 $0.0 $0.0 $0.0 $61.3
SR74 $0.0 $0.0 $5.6 $0.0 $0.0 $48.0 $0.0 $53.6
SR85 $0.0 $0.0 $115.8 $22.5 $0.0 $0.0 $0.0 $138.3
SR87, Duthie-Martin $2.5 $0.0 $25.2 $0.0 $0.0 $0.0 $0.0 $27.7
SR88, Apache Trail $0.0 $0.0 $1.5 $0.0 $0.0 $0.0 $0.0 $1.5
US93 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
101L, Agua Fria $41.5 $0.0 $433.4 $0.0 $0.0 $0.0 $0.0 $474.9
101 L, Pima $21.7 $0.0 $280.0 $6.6 $0.0 $0.0 $0.0 $308.3
101L, Price $5.0 $0.0 $105.5 $0.0 $0.0 $0.0 $0.0 $110.5
SR153, Sky Harbor $0.1 $0.0 $16.6 $0.0 $0.0 $0.0 $0.0 $16.7
202L, Red Mountain $41.9 $0.0 $468.7 $0.0 $0.0 $0.0 $0.0 $510.6
202L, Santan $32.1 $0.0 $342.4 $0.0 $0.0 $0.0 $0.0 $374.5
202L, South Mountain $25.0 $225.0 $767.0 $60.0 $0.0 $0.0 $0.0 $1,077.0
SR303L, Bob Stump
$27.2 $131.0 $1,460.0 $40.0 $0.0 $50.0 $0.0 $1,708.2
Memorial Parkway
Williams Gateway (SR802) $10.0 $10.0 $203.0 $110.0 $0.0 $0.0 $0.0 $333.0
Systemwide $318.1 $121.0 $15.0 $109.7 $34.9 $0.0 $267.0 $865.7
TOTAL $618.3 $615.0 $7,018.5 $1,029.3 $34.9 $98.0 $267.0 $9,681.0
Roadwav Desi2n
ADOT currently has 21 major Regional Transportation Plan Freeway Program projects
under design.
Major design work continues on the following projects:
Stage I: 15%Plan
Stage II: 30% Plan
Stage III: 60% Plan
Stage IV: 95% Plan
Final: 100% Plan
July 2007 Certification -13- Construction Costs
Corridor Project Location Length Design Status
(Mile)
1-10,Papago VerradoWay- SarivalAve. 6 Stage II
1-10,Papago SarivalAve.- SR101L 8 Final
1-10,Papago SarivalAve.- Dysart Rd. 4 Stage II
1-17,Black Canyon SR101L- JomaxRd. 4 Final
1-17,Black Canyon Dove Valley Rd. TI Stage I
1-17,Black Canyon JomaxRd.- SR74 5 Final
1-17,Black Canyon SR74-Anthem Way 5 Stage I
1-17,Black Canyon PeoriaAve.- Greenway Rd. Drainage On hold
US60, Grand Ave. 99thAve. - 83rdAve. 2.5 Stage III
US60, Superstition 1-10- SR101L 5 Stage I
SR101L, Agua Fria Thunderbird Rd. TI Final
SR101L, Pima TatumBlvd.- PrincessDr. 5 Stage II
SR101L, Price SR202L- BaselineRd. 4 Stage III
SRI OIL, Price BaselineRd.- SR202L 4 Stage II
SR303L SR303L/I-10 TI Stage II
SR303L ThomasRd.- PeoriaAve. 8 Stage II
SR303L Cactus Rd., Waddell Rd. and TIs Stage II
Bell Rd.
SR303L PeoriaAve.- Bell Rd. 4 Stage II
SR303L BellRd.- US60,GrandAvenue 3 Stage II
SR303L LakePleasantRd.- 1-17 7 Stage III
SR303L Happy Valley Rd. - Lake 7 Stage III
Pleasant Rd.
Ri!!htofWav
During the July 2007 Certification reporting period (December 1,2006 through May 31,
2007), the Right of Way Group acquired 52 acres for the RTP Freeway Program. As of
June 1, 2007, the Right of Way Group acquired 283 acres for the RTP Freeway Program.
RTP Freeway Program Right of Way
(acres)
July 2007 Certification -14- Construction Costs
Corridor
Last Certification Acquired during this Total
Total Certification Period
1-10, Papago &Maricopa 3.0 6.8 9.8
1-10 Reliever (SR801) 0.0 0.0 0.0
1-17, Black Canyon 43.3 16.7 60.0
SR51 0.0 0.0 0.0
US60, Grand Ave. 0.0 0.0 0.0
US60, Superstition 0.0 0.0 0.0
SR74 0.0 0.0 0.0
SR85 73.8 26.5 100.3
SR87, Duthie-Martin 0.0 1.1 1.1
SR88, Apache Trail 0.0 0.0 0.0
US93 107.5 0.0 107.5
101 L, Agua Fria 0.0 0.0 0.0
101 L, Pima 0.0 0.0 0.0
101 L, Price 0.0 0.0 0.0
SR153, Sky Harbor 0.0 0.0 0.0
202L, Red Mountain 0.0 0.0 0.0
202L, Santan 0.0 0.0 0.0
202L, South Mountain 3.4 0.7 4.1
SR303L, Bob Stump Memorial Parkway 0.0 0.0 0.0
WilliamsGateway (SR802) 0.0 0.0 0.0
Systemwide 0.0 0.0 0.0
Total 231.0 51.8 282.8
flA
./ADDT
Arizona Department of Transportation
Intermodal Transportation Division
206 South Seventeenth Avenue Phoenix, Arizona 85007-3213
Janet Napolitano
Governor
Victor M.Mendez
Director
Sam Elters
State Engineer
LETTER OF CERTIFICATION
The Intennodal Transportation Division of the Arizona Department of Transportation
(ADOT) has completed a six month review and update of costs associated with
construction of the Regional Transportation Plan (RTP) Freeway Program. Construction
and design costs have been updated by our Valley Project Management Group; DMJM
Harris, HDR and PB, our three management consultants; and the consultants currently
preparing final construction plans. Right of way costs have been updated by the ADOT
Right of Way Group reflecting current appraisals and changes in right of way
requirements. This infonnation replaces data previously certified on January 31,2007.
The construction and right of way cost data in this document provides an accurate
accounting of costs incurred and includes a realistic estimate of future costs based upon
current construction costs and real estate values. Estimated future costs are subject to
changes in the economy and are affected by variables in national, state and localized
market values and trends.
The results of our review provide an accurate basis upon which to schedule and fund the
balance of the freeway construction program for Fiscal Years 2008-2012. Today, the
Regional Transportation Plan Freeway Program continues to be on schedule and within
budget. However, the Department will continue to monitor all trends.
~»\ E'ltU> ~ Sam Elters
State Engineer . I
~
Appendix A
Discount factors representing the rate of construction cost growth are calculated using
software developed by HDR - Hickling, Lewis and Brod Inc. Data from the October
2006 Risk Analysis Process (RAP) for construction was utilized to compute factors for
design and construction. These factors represent potential cost growth which includes
general inflation.
Cash Flow Discount Factors
(percent)
For Desi{!n& Construction For Ri{!htofWav
2008
2009
2010
2011
2012
6.0
3.0
3.0
3.0
3.0
2008
2009
2010
2011
2012
6.0
3.0
3.0
3.0
3.0
Fiscal Year Design &
Construction
Fiscal Year Right of Way
July 2007 Certification -15- Appendix