State of Nevada

Department of Transportation

2011-2013 Biennial Budget Overview

March 15, 2011

Department of Transportation

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The Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of TransportationThe Nevada Department of Transportation

Summary of Agency Operations:

The Nevada Department of Transportation (NDOT) is responsible for the planning, construction, operation and maintenance of the 5,400 miles of highway and over 1,000bridges which make up the state highway system. This system carries 60% of total vehicle miles traveled in Nevada.

The department is also responsible for an integrated transportation system which supports travel by pedestrians, rail, bike, air, and bus, including providing the majority of federal funding for Nevada’s rural transit needs.

Highway Fund Agency:Highway Fund Agency:

Article 9, Section 5 of the Nevada constitution created the State Highway Fund with proceeds from licensing, registration, and other charges with respect to the operation of any motor vehicle upon any public highway in this state plus excise taxes on fuel (less administrative costs); and this fund is reserved exclusively for the construction, maintenance, and repair of public highways in Nevada. The Nevada Department of Transportation (NDOT) is funded with state highway funds and federal funds and does not utilize any general funds.

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NDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget PhilosophyNDOT Mission, Goals and Budget Philosophy

Mission Statement:

Providing a better transportation system for Nevada through our unified and dedicated efforts.

Strategic Priorities:

The department's goals are to:(1) Optimize safety;(2) Effectively preserve and manage our assets; (3) Efficiently operate the transportation system;(4) Deliver timely and beneficial projects and programs;(5) Be in touch with and responsive to our customers;(6) Innovate; and(6) Innovate; and(7) Be the employer of choice

Budget Philosophy:

The department's budget request for the fiscal year 2011-2013 biennium was prepared with an emphasis on economy, efficiency, and safety; and the department is working to optimize all of our resources, from our employees to our equipment and our methodologies, in order to provide a safe and efficient transportation system. NDOT analyzes our operation on an ongoing basis, making improvements as needed to ensure the best use of taxpayer funds. NDOT's budget submittal reflects this strategy by placing strong emphasis on optimization of federal funding and grants, preservation of Nevada's assets, and ongoing cooperation with our many partners.

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Projected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and ExpendituresProjected Overall Highway Fund Revenues and Expenditures

(Dollars in millions)

2011 – 2013 Biennium:

Revenue $1,578

Expenditures:

- NDOT $1,219- Bond Repayment 161- DMV 192- DPS 136- Other Agencies 8- Other Agencies 8

(TSA, LCB, & other Public Safety)

Total Expenditures $1,716

Projected Ending Balance:

FY 2013 – June 30, 2013 $ 100

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State Highway Fund State Highway Fund State Highway Fund State Highway Fund Projected Projected Projected Projected RevenueRevenueRevenueRevenue2011 2011 2011 2011 ---- 2013 Biennium2013 Biennium2013 Biennium2013 BienniumDollars in Dollars in Dollars in Dollars in MillionsMillionsMillionsMillions

State Highway Fund State Highway Fund State Highway Fund State Highway Fund Projected Projected Projected Projected RevenueRevenueRevenueRevenue2011 2011 2011 2011 ---- 2013 Biennium2013 Biennium2013 Biennium2013 BienniumDollars in Dollars in Dollars in Dollars in MillionsMillionsMillionsMillions

Gasoline taxes, $380

Motor carrier fees, $68

Drivers license fees, $37

Special fuel taxes, $156

SSSSTATETATETATETATE RRRREVENUEEVENUEEVENUEEVENUE

DMV/DPS authorized

revenue, $113 LVCVA

Petroleum Clean Up Fund, $5

Other, $33

MMMMISCELLANEOUSISCELLANEOUSISCELLANEOUSISCELLANEOUS RRRRECEIPTSECEIPTSECEIPTSECEIPTS

Vehicle registration & bicycle safety fees, $193

revenue, $113

Agreement income, $40

Interest, $7

LVCVA Revenue, $76

Federal Aid, $470

$

Highway FundProjected Revenue $1,578

FFFFEDERALEDERALEDERALEDERAL RRRREVENUEEVENUEEVENUEEVENUE

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American Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActARRAARRAARRAARRA

American Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActAmerican Recovery and Reinvestment ActARRAARRAARRAARRA

ARRA provided approximately $201 million in highway funding. This funding required no state match.

• 71 highway projects (all contracts awarded)

• Projects in every Nevada county

• Expended Approximately $142 million• Expended Approximately $142 million

NDOT and other partners hosted workshops in Las Vegas and Reno to provide additional information for parties interested in bidding on recovery act projects.

These workshops were part of NDOT's Disadvantaged Business Enterprise program.

NDOT’s 2011 – 2013 budget does not include ARRA funding.

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State Highway Fund State Highway Fund State Highway Fund State Highway Fund Projected Projected Projected Projected ExpendituresExpendituresExpendituresExpenditures2011 2011 2011 2011 –––– 2013 Biennium2013 Biennium2013 Biennium2013 BienniumDollars in MillionsDollars in MillionsDollars in MillionsDollars in Millions

State Highway Fund State Highway Fund State Highway Fund State Highway Fund Projected Projected Projected Projected ExpendituresExpendituresExpendituresExpenditures2011 2011 2011 2011 –––– 2013 Biennium2013 Biennium2013 Biennium2013 BienniumDollars in MillionsDollars in MillionsDollars in MillionsDollars in Millions

$

Highway FundExpenditures $1,716

TTTTRANSPORTATIONRANSPORTATIONRANSPORTATIONRANSPORTATION

$169

BBBBONDONDONDOND RRRREPAYMENTEPAYMENTEPAYMENTEPAYMENT

& O& O& O& OTHERTHERTHERTHER AAAAGENCIESGENCIESGENCIESGENCIES

$192

MMMMOTOROTOROTOROTOR VVVVEHICLESEHICLESEHICLESEHICLES

$136

PPPPUBLICUBLICUBLICUBLIC SSSSAFETYAFETYAFETYAFETY

$1,219

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NDOT Organizational ChartNDOT Organizational ChartNDOT Organizational ChartNDOT Organizational ChartNDOT Organizational ChartNDOT Organizational ChartNDOT Organizational ChartNDOT Organizational Chart

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Maintenance and Support Personnel LocationsMaintenance and Support Personnel LocationsMaintenance and Support Personnel LocationsMaintenance and Support Personnel Locations

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NDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime ExpendituresNDOT Personnel and Overtime Expenditures

NDOT Personnel:

• NDOT employs 1,780 FTE positions.

• The 2011-2013 budget eliminates 5.51 positions.

Events Impacting Overtime:

$3.0

$3.5

$4.0

$4.0

$3.2

$2.1

Overtime $ Paid(Year to date thru PP18)

Events Impacting Overtime:

• ARRA projects

• Adverse weather

• Large construction program

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

FY 2009 FY 2010 FY 2011

$2.1

$ Millions

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Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators

FY 10 Work Program Actual

FY 11 Work Program FY 12 FY 13

1 Number of fatalities on Nevada’s streets and highways. (Actual = CY 2010) 222 256 363 354 345

2Percentage of employees incurring work place injuries and illnesses. 15.5% 12.4% 11.2% 10.1% 9.1%

Percentage of employees incurring work place injuries requiring medical attention.

8.0% 7.9% 7.1% 6.4% 5.8%

3 Percentage of state maintained pavements needing preservation. 4.50% 4.50% 3% 3% 3%

4Percentage reduction (biennially) of NDOT owned bridges which are eligible for federal funding and are categorized as structurally deficient or functionally obsolete that were replaced or rehabilitated.

2.7% 2.7% 10.8% 5.4% TBD

5 Percentage of permits issued or rejected within 45 days of receipt. 95.0% 95.0% 95.0% 95.0% 95.0%

6Percentage of projects constructed within established range of cost estimate. 96% 96% 80% 80% 80%

Percentage of projects constructed within established range of schedule. 84% 84% 80% 80% 80%

7Percentage of fleet meeting replacement criteria. 41.0% 40.3% 39.0% 38.0% 37.0%

Percentage of fleet in compliance with condition criteria. 70.0% 63.0% 64.0% 65.0% 66.0%

8Percentage of NDOT Emergency Plans that have been completed and training and education provided to appropriate personnel.

79.0% 79.0% 88.0% 94.0% 100.0%8education provided to appropriate personnel.

79.0% 79.0% 88.0% 94.0% 100.0%

9Percentage of projects designed and advertized within range of establishedestimate and schedule after the environmental process is completed.

75% 80% 80% 80% 85%

10Average percentage of employees receiving updated training during the year in accordance with prescribed training plans and legal requirements.

100.0% 100.0% 100.0% 100.0% 100.0%

11Percentage of building facilities that comply with regulatory building and safety codes.

86.0% 86.0% 86.0% 88.0% 91.0%

12 Percentage of agreements fully executed within 45 days of division submittal. 90.0% 90.0% 90.0% 90.0% 90.0%

13

Maintain congestion at Level of Service D on urban roadways of the State Roadway System.

85% 85% 85% 85% 85%

Maintain congestion at Level of Service D on rural roadways of the State RoadwaySystem.

90% 90% 90% 90% 90%

14 Number rating based on public opinion and user (customer) surveys. N/A TBD TBD TBD TBD

15 Overall rating on percentage based upon employees’ satisfaction surveys. 62% 62% 75% 75% 75%

Please refer to the 2010 Performance Management Report for more details.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Adjusted Base Budget2013 Adjusted Base Budget2013 Adjusted Base Budget2013 Adjusted Base BudgetFY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Adjusted Base Budget2013 Adjusted Base Budget2013 Adjusted Base Budget2013 Adjusted Base Budget

Adjusted Base FY 2011-2012 FY 2012-2013

Personnel 138,863,535$ 140,931,103$

Out-of-State Travel 60,537 60,537

In-State Travel 1,873,631 1,873,631

Operating Expenses 54,577,615 54,716,095

Equipment - -

Land & Bldg Improv (Capital Outlay) 345,247,000 334,286,680

Out-of-State Inspection Audit 26,583 26,583

Honor Camp Payments 1,083,514 1,083,514

Airplane Operations 666,053 778,821

Admin Consultants / Other Federal Programs 10,511,124 10,586,124

Transportation Board Expenses 921 921

Governor Recommends

Bike Path Planning 90,335 90,561

Sale of Gas & Oil 2,857,102 2,857,102

Information Services 2,410,198 2,410,198

Washington Office 127,137 127,137

Transfer to Nuclear Project Office 400,000 400,000

Washington Consultant 197,995 197,995

Traffic Management Center (TMC) 715,978 755,978

Purchasing Assessment 377,589 377,589

State Cost Allocation 974,943 974,943

Attorney General Cost Allocation 2,206,351 2,206,351

Total 563,268,141$ 554,741,863$

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� FY 2010 FY 2010 FY 2010 FY 2010 ---- NDOT Expenditures in Urban and Rural AreasNDOT Expenditures in Urban and Rural AreasNDOT Expenditures in Urban and Rural AreasNDOT Expenditures in Urban and Rural Areas

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Maintenance Items2013 Budget Maintenance Items2013 Budget Maintenance Items2013 Budget Maintenance ItemsFY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Maintenance Items2013 Budget Maintenance Items2013 Budget Maintenance Items2013 Budget Maintenance Items

M100 – Budget Office Statewide Inflation - $177,685:

• Rate changes for Internal Service funds.

M160 – Position Reductions Approved During Biennium – ($485,609):

• Eliminates 5.51 FTE positions as part of the budget reduction process initiated in FY 2010.

M300 – Budget Office Fringe Benefit Rate Adjustment: - $679,892:

• Reflects changes to fringe benefit rates.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements2013 Budget Enhancements2013 Budget Enhancements2013 Budget EnhancementsFY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements2013 Budget Enhancements2013 Budget Enhancements2013 Budget Enhancements

E275 - Nevada Shared Radio System - $422,000:

• Replacement of outdated equipment at repeater sites to enhance the ongoing operational management of the statewide 800 MHz trunked radio system.

• Provides effective and reliable radio communications for routine intra-agency operations as wellas inter-agency communications throughout the State of Nevada during mutual aid and disaster operations.

• Partnership shared between the Department of Transportation, NV Energy, and the University of • Partnership shared between the Department of Transportation, NV Energy, and the University of Nevada Las Vegas.

• System shared with the Washoe County Communication System, which is working with such entities as: City of Reno Police and Fire Department, City of Sparks Police and Fire Department,Truckee Meadows Water Authority, Washoe County School District, Washoe County Sheriff, Washoe County Airport Authority, Nevada System of Higher Education, and Nevada National Guard.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E276 - Commercial Vehicle Information Systems & Networks (CVISN) grant - $1,851,496:

• Accepted grant from the Federal Motor Carrier Safety Administration.

• Grant projects promote commercial carrier safety and operational efficiency.

• Partnership with DMV and DPS.

• Planned projects include:• Planned projects include:

� Nevada remote truck monitoring system � Trucker 511 information web page� Mobile commercial vehicle recognition system� Inspection site upgrades� Support, hosting, and maintenance of the commercial vehicle information exchange

window (CVIEW) which allows for nationwide sharing of information.

(See also E595 for additional CVISN grant project information)

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E586 - Electronic Documentation System (EDS) - $2.03M:

• A digital system to improve data gathering, processing and reporting.

• Combines current technology and best practices to:� Promote efficiency � Eliminate manual/paper processes.� Increase operational efficiencies� Reduce project costs and delays� Lower costs to the state

• System is projected to pay for itself in under three years

• Estimated five-year gain on investment of $1.6 million.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E595 - Commercial Vehicle Information Systems & Networks (CVISN) Grant - $602,997:

• CVISN federal grant project

• Replacement of existing over-dimensional permitting system

• Greater permitting capabilities

• Significant savings in third party permit processing fees

• Goal is 24/7 web-enabled permitting under most circumstances

• This more-efficient system is projected to pay for itself in five years.• This more-efficient system is projected to pay for itself in five years.

(See also E276 for additional CVISN grant project information)

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E710 - Replacement of Mobile and Fleet Equipment - $10 million:

• Replacement of a portion of the licensed mobile and fleet equipment based on:� Cost of repairs� Cumulative miles or hours� Equipment age� Parts availability� Life cycle cost analysis� Condition

• NDOT typically exceeds standard replacement criteria• NDOT typically exceeds standard replacement criteria

• Request is 50% reduction from previous budget years.

• NDOT has established a rebuild program helping to achieve this budget reduction while maintaining safe and efficient operations.

E711 - 800 MHz Radio Replacement Equipment- $702,000:

• Replacement of ten percent of the 800 MHz radios owned by NDOT.

• Used for statewide communication in remote locations (with no cell phone service).

• Radios to be replaced are at least seven years old.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E720 - Purchase of New Equipment - $6.7 million:

• Federally funded Air Quality Improvement equipment:� Sweepers� Brine equipment� Distribution tanks� Dump boxes

• Wing and tow plows

• Operational and specialized equipment items such as:• Operational and specialized equipment items such as:� Surveying equipment� Testing Equipment� Shop equipment� Computers, servers and computer-related equipment

E730 - Maintenance of Buildings and Grounds - $12.4 million:

• Planning, inspections, maintenance, alterations and additions to rest areas, maintenance station facilities, equipment shops, welcome centers, and communicationsites statewide.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E731 - Construction of Roop Street Annex - $3.6 million:

• Building to accommodate staff who will be displaced from the Landmark Building prior to completion of the Carson City bypass.

• Relocation of the Right of Way (ROW) Appraisal section from its current off-campus leased space.

• The building will accommodate a total of 61 positions.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E735 - Aircraft Maintenance - $1.9 million:

• Expenses associated with the maintenance of the Department's two aircraft.

• These aircraft are a cost-effective way to transport elected officials, NDOT employees, and otherstate officials, and collect photographic information needed to complete projects.

• Cessna Citation maintenance includes:� Engine overhaul (required every 3,500 hours)� Comprehensive structural inspection of major components (required every 10,000 hours)� Windshield replacement

• Gulf Stream Commander maintenance includes:• Gulf Stream Commander maintenance includes:� Inspection of combustion chamber, power turbines and exhaust guide vanes (required

every 2,500 hours)� Multifunction display, autopilot, camera equipment, emergency locator transmitter,

satellite communication, global position system

• Recent analysis indicates the following savings per passenger per trip:� Round trip - Carson City to Las Vegas: approximately $200 to $300� Round trip - Carson City to Elko: approximately $500 to $600

Numerous other savings are noted in the included February 22nd response to LCB regarding aircraft cost-

effectiveness.

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements 2013 Budget Enhancements (Continued)(Continued)(Continued)(Continued)

E901 - Consolidation of DPS Bicycle Safety Program with NDOT - $676,518:

Both programs share the goal of improving bicycle safety and a state-based fee funding source (50¢ from each driver’s license).

• Consolidation is expected to lead to operational efficiencies

• Transfers 1 FTE position from DPS to NDOT

• Included in Department of Administration budget bill

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FY 2011 FY 2011 FY 2011 FY 2011 –––– 2013 2013 2013 2013 BUDGET SUMMARYBUDGET SUMMARYBUDGET SUMMARYBUDGET SUMMARY

The department's budget request for the fiscal year 2011-2013 biennium was prepared with an emphasis on economy, efficiency, and safety.

$1,400

$1,600

$1,800

$276

$257

$1,421

$1,710

$1,219

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

Actual 2008-2009 Actual / Work Program 2010-2011 Governor Recommends 2012-2013

$1,145

$1,453

$1,139

$276

$80 M

I

L

L

I

O

N

S

Other NDOT Budget Accounts 4660 Budget Account

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