Can you hear me back there? OK. I'm going to call the committee to order. This is a first meeting of the separate Transport Appropriations Committee, and we're not meeting with the Senate any more, and it seems like we've only got one forward in the house today. We do have one forward here. He doesn't attend us, so thank you Representative Ford for being here. I hope we will gather a few others, they have Bills in other committees, I know Representative Tine has got a Bill of finance. So they're in other committees representing Bills and they'll be here when they finish I hope because we've got to get information today. I want to recognize folks that help us every day. We appreciate Sergeant at Arms Carlton Adams Joe Orton[sp?], and Martha Gederson[sp?] We have two pages today from the House. We have Walton Clare McCarrick, Wilson County, Representative Susan Martin, in the back there, and Mr. Matthew Parker, Forsyth County, Representative Evelyn Terry. OK, we've got a very simple agenda today. We're going to hear from Fiscal Research Division staff Amna Cameron, who is always a help to our committee ever since I've been here, at least five years if not ten. It's five for me, ten for her probably, but Miss Cameron is going to present a review of legislative directives, and then we're going to hear two presentations on the technical services and highways from Mr. Rochelle and Mr. Olders[sp?] So, Miss Cameron are you ready? Thank you Mr. Chair, co-chairs, members of the committee my name is Ana-lee Cameron and the purpose of this presentation is to review where DUT stands so far this fiscal year and meeting key legislative directives. I focused on two provisions of the 2014 budget, one is the provision that established the pavement preservation in the highway maintenance improvement program and so, on tomorrow that'd be HMIP which I've always referred to as the maintenance TIP and that will be released as will be needs assessment report and DUT I expect will be compliant with both of those initiatives. Next it required contract reservicing contracts to be ledged[sp?] in the quickly following the start of the fiscal year. The requirements that were set forth were meant to face in this process next year, these requirements become much more stringent in that percent or funds are required to be release within the first three months but BUT made these goals. The industry on the next one gives BUTNA on reaching out to the industry and issuing trainings and workshops to build the pavement preservation industry, so that outsourcing goals in the future can be met. Lastly this provision required DUT to turn these $65 million that was appropriated, into an ISO lane mile width, beauty is pretty far from performing this now, but it doesn't mean that they can't meet the goal by the end of this fiscal year if they do significant they can't pay this, and as you can see in the first X those two are tied together at 65 million million and all that $65 million DUT will have to outsource 20% this year. Where you are now is the DUT has expended only 7.6 million of that $65 million. And this would be
equivalent to about five hundred to six hundred lane miles and next, section 34.13 continued a four year trained for outsourcing limits for pre construction in technical services, Elisha Rochelle will be discussing this in his presentation sum. And this has a lot more areas where DUT is currently not in compliance, they released a report that you should have received yesterday that indicates the latest figures for their compliant, the first is an overall goal for all of the units within pre construction and technical services and DUT is at 58% of the 70% goal, hi, I think that would be difficult for them to meet and three month period they went from 56% 56.2 to the 58.3 that you see, world way design, they made a lot of progress in the last three months this was 22% on the last quarterly report and so that if you can see a 10% gain there so that will be a close one by the end of this fiscal year. Next is Pedia, and you can see they're very close to meeting that goal so one would assume that they will be able to meet that by the end of the fiscal year and there in compliance with the right of way, lastly in order to accomplish some of these goals that would have required reductions in force our DOT has identified 81 positions for elimination that would be necessary to meet the legislative directive bust so far they have not been any risk that have occurred. Any questions from the committee, Miss Cameron, I've got one. This goal we're discussing on June 30th goals. That's right, OK. Any other questions from the committee? Mind you, when you do have the questions punch the little red button, there is a green button there and they can hear you for the record. OK, I had a question on the department from secretary Tennison Terry will make a comment and you may come forward if you like. Thank you. Nick Anderson, Chief Deputy Secretary in CDOT, Abner has done a very good job of holding our feet to the fire and reporting to us on those occasions when we seem to have our energy flag on trying to meet the mandate of legislation. I just want you to know that one of the things that has happened as a result of recent reorganizations where we have moved to several of these divisions in our department has been re-examine from different perspective the whole question of the goal, and I want to assure you that we're moving toward if not almost achieving 100% outsourcing of those aspects of the planning and environmental portions of the projects. The pre-construction projects, for all the new projects that we're beginning to put into the pipeline, one of the challenges we got is that the calculation, numerator, denominator involves money expended, the denominator involves some none out source-able aspects of the department's operation. We're setting up as we wait to try to make sure that we are having a clear communication about the pentagon registration, the gold registration we are trying to make sure that we talk to the chairs first to go into that scheduling those meetings very soon, and then perhaps we can get to a point where we're all working at exactly the same mission in this and understanding what the outcome is we are trying to achieve, I would also add that, that we are embarking on the process of the race that we have identified so far to a move us closer to those goals. They as to the paving I think M-Net has presented they are accurately the likelihood that we will be able to use the new paving season which is just beginning to make some real progress on those goals. Thank you sir.
Thanks sir. And we have a [xx] the department, starting with [xx] administrator for the Techno services division. [xx] Thank you Mr. Chairman, co-chairs, members of the committee I appreciate your time today, I will try to be brief so as to afford plenty of opportunity for questions. This is a snapshot of what Mr. Horde and I will be talking about, I will talking about technical services portion primarily a brief overview of what technical services does and talk a little bit about some enhancement to project delivery that we're embanking upon, and then spend a good amount of time on a current starting levels proposed staffing level and future plans to include outsourcing. Technical services really expanded the garment to continuum of transportation trial life cycle but really our focus is in the planning and the design for functions, most of our functions conclude with the award of construction contract. Technical services really exists to provide both programmatic and project delivery functions. These will include contract lettings planning and design functions and all other technical support services quite frankly all modes across the departments. technical services consist of 14 discreet business functions. Again, spanning from early planning efforts, and into construction for some, broadly categorized as the program delivery and project delivery. Here's, in a nutshell, the units that comprise technical services. About 21/2 months ago, a large portion of pre-construction was moved to technical services. That's to include roadway design, project development, environmental analysis, geo-technical engineering and hydraulics roadway, not only doing in-house roadway design work, but also municipal project reviews, writing, setting up standards and policy for the department municipalities and consultants alike, and of course review of consultant work products, and management of roadway consultant contracts, and Fedia gets into a whole host of things such as planning documents, and all the environmental services that feed those planning documents such as historic resource surveys, archaeological resource surveys noise studies threatening endangered spices, wet land streams mitigations permits and a whole host of other environmental services, design build and priority projects have been pulled out of the old group transportation program management and they currently report directly to me of course the design built program, mismanaged their priority projects most notably in terms of P3 and sponsorships and other special project management functions, transportation program management then is a combination of our research and development group, our value management group which looks at value in engineering studies, new products approval and resource conservation as well as our local programs group which administers funds to localities and sets up the municipal agreements for those localities. And finally schedule management, looking at in nursering and being accountable for all of our project delivery schedules. Professional services are those that activities that set up the consulting contracts due to the consultance selections estimates and so forth. Also location survey for photogrammetry provides for mortal services, and a contracts standards group essentially does the estimates, the bidding documents, the advertisements and the letting of construction contracts. This graphic just demonstrates that although we focus on planning and design, a number of our programs span all aspects for instance, P3 projects we get involved in underneath the documents in some cases lead those neath the documents and then we're still very much involved during the construction of a P3 or design board project. Sponsorship on the other hand, we're very much involved in the research and implementation of sponsorship's and in the procurement of those sponsorship contracts, once that is awarded then we bow out and the business unit responsible for the sponsorship takes over. This graphic is meant to demonstrate a couple of things. A number of the business units in technical services feed the design. So you have investigative services such as programmatory and location service. You've got your professional services that
sets up the consulting contracts and then the environmental analysis in geo-technical fields investigations all feed the design efforts whether they be roadway, hydraulic designs or structures or other. Those designs then culminate in a set of contract plans that are put together by the roadway design group and ultimately culminate in the taking of bids and the awarding of contracts. On the project delivery side we have a work going on. We've just introduced new, what we call networks in our scheduled management system that are targeting a 25% reduction in the amount of time it takes to get to right away or the amount of time it takes to get to a construction contract. We're very excited about this. New location projects we're looking at about two and a half to three years reduction in time and on widening projects we're looking at a good two years. On bridge projects particularly express design build we've gotten to the point where from the time we get a phone call about about a bridge needs to be replaced, we can get through beneath all the investigative work and get to a design build contract in about 10 months. We are also looking to improve our projects schedule stability. Not only just about doing things faster but it's about eliminating activities that don't add value to the process. So doing things faster and doing fewer things are important to the stability, FTI certainly has helped in terms of predictability and stability of our program we're also looking at minimizing the number of 11 power changes that have a ripple effect over earlier elements of design such as late utility coordination efforts or traffic control efforts that actually affect the design. Part of our new network changes fundamentally changing the way how we've scheduled projects and managing to deliver those projects. Overlapping activities such as those that we've seen, designed and build.commonly beginning a utility cordination efforts earlier, acquiring certain right away parcels earlier so that the construction can begin on those parcels. Of course we talked about implementing our new scheduling framework and our networks, and that includes intermediate delivery dates, not just when do we get to ride away or when do we get to a construction left, but also when do we get through the first nith[sp?] the document or the second nith[sp?] the document, so that we can track better where our pitfalls are. In terms of overlapping [xx] there is some risk there, but we're not shying away from that risk, we're actively trying to mitigate and manage that risk as we go through that project delivery process. At the tail end of the consultant selection period there is a leg time between time that a consultant is elected and that consultant gets a notice to proceed and ultimately starts receiving we start receiving invoices for that work. We'll work which tried to reduce that cycle time as well. In the world of design build, we continue to expand design build as legislatively required we've learned a lot from design bill a lot of activities occur in parallel rather than an linear fashion here are some statistics that you can peruse over 100 projects now about $5 billion worth of work in the next year we are are at probably another 700 to $800 million worth of work designed will. We're seeing a lot innovation through alternative technical on such we have a number for projects that have received an awards through innovation and Mike and his staff and our staff are working to incorporate some of those innovations each traditional design [xx] projects and nation[p?] express design bill this has been used for about 440 bridges as May of this year currently at about 400 bridges were currently letting in the next two months, another 40 or 45 about 320 million dollars worth of bridges small contracts that bundle eight or 10 bridges usually contracts are about five to eight to nine sometimes $10 million dollars a piece and has been widely accepted by the industry as a good approach for delivering this small bridge projects. We're also implementing technology such as DocuSign, so that I can sit on desk and documents electronically and pass them through the work flow that way. Enterprise content management is a web-based interface that we're developing so that all of our documents are housed in one place and are accessible not only to our contractors and to our in-house can also track in sounds as well resource agencies, so that a coordination that is necessary with our resource agencies, federal highways administration DWQ and others can occur on a web based platform. We're submitting all the permanent applications
to the core and DWQ electronically now, and we're also looking at using geographic information systems, to be able to do a lot of the work from our desk rather than having to do field investigations. We're improving our co-ordination in terms of programmatic agreements both with the federal highway, and other environmental agencies to provide more delegated authority to the department, so decisions can be made more rapidly. The MC plug playing mapping program is a great example that, where we produce the time to get our letters of map provisions much faster, probably 30%, 40% faster than we used to be able to do, and of course, improving outsourcing, including the use of authentic consultants, increase in the outsourcing of eligible work particularly in the areas of Pdn roadway. Design Chief Deputy Secretary, Tennyson, mentioned that virtually every new start project, the directive is to outsource that work, both through Fedia, and roadway design, and then the leg through hydraulics, and geo-technical, and other such units will follow. Technical services were about 744 time [xx] got arranged there because there are also some positions that you opened some reporting that are full time students co-ops that are largely vacant, but sometimes used in the summer. Less than 10% of those employees are charged to our administrative budget, more than 90% charged to the projects themselves whether they be state or federally funded and some are such as the contracts standards group that work on hundreds of projects at a time charged to a function that smears across all projects. So take for the moment the outsourcing rate calculation out of the discussion I just want to show you the next two slides some recent trends what we're seeing, the top left draft you see highlighted in purple is our project development and environmental analysis group. These are actual dollars out the door to consults[sp?] and you can see a difference between the 12 and 14 roughly two and a half times the number of dollars going out the door to roadway I've seen a dramatic increase from 2012. Now as I point back to the graphic that demonstrated the unit speeding other units. The planning work is spiking now. We anticipate the roadway designs work will be spiking in the next year to 18 months as that planning work finishes and the roadway design work get's going in earnest. This graphic is another way to look at it, from our financial accounting system this is the number of new contract assignment that we've had per fiscal year for the last three and a half years. Again look back at fiscal year 12, I believe the number for [xx] was 26, new contract assignments to consultance, cheques to prove that with fiscal year 15 today 312 of new contract assignments this is a leading indicator these are not expenditures, these are new contract assignments. So what we expect is those expenditures to go way up. in the months and years to come and that's across the board, roadway design in fiscal year 12, had six new contracts assignment to consultants, compare that to the current year date to year 15 of 157 new contract assignments. We've already let to contract to a consultant about 60 new start projects under FTI and we're looking in the next six months, again the directive is to outsource virtually everything that can be outsourced, particularly in the [xx] and we're expecting another 120 contract assignments to go out of the door in the next four to six months. Matter of fact I just signed 50 for this month's board agenda. I did put together a fresh perspective on issues related to outsourcing and I've look forward to future discussions about that, but I really look at this as a three legged stool. The first leg, I've already shown you, the recent trends. The second leg was a lot more in depth. I asked all of our business units to look at the functions that they do. I don't want to know about the Eastern region, that tells me where it's done, it doesn't tell me what it is that's done. So I asked them to look from a functional perspective rather than an organizational or reporting structure perspective, and I asked them to lay out their major functions that they do, and for each function, assigned a number of full time equivalence that work on that function, then break
it down by whether or not that function can be outsourced or not. By and large, procurement function should not be outsourced. They cannot be outsourced, can have to be overseen by the department. Obviously review of consultant work products, plans, special provisions, and other such activities have to be reviewed by the in-house staff, and certainly setting policies and standards for not only the DOTP, but municipalities and consultants have to be maintained in-house. So they demonstrated what these functions were, whether they could be outsourced, whether they could not, and then we looked at what is the vision for technical services. If we would outsource every single dime of outsource-able work, how many employees would we still need? And I'm pleased to say that the proposed cuts that we're talking about, in a minute, with this presentation, take a huge step towards that vision. The third leg of the [xx] I looked at the outsourcing rate calculation and again I look forward to discussions about this but I ran 29 different scenarios, different permutations of including design build not including design build, including FTEs that do outsource-able work versus all FTEs as is currently included and so I can go through and run scenarios. What would it take how many positions would need to be cut to make the goal? How much more balance would have to go out the door to meet the goal or various permutations thereof. So that was pretty opening for me in terms of the calculation. [xx] his design build makes a 7%-10% positive impact on the calculation. The beer[sp?] last year would have met the goal. There was one eligible expense including the calculation that was an IT charged topedia[sp?] and it was just one small charge about $900, 000 that got through our examination and had that not been included [xx] wouldn't have to go last year. So where are we headed in the near term? Railway design currently has 115 full time employees some of those are vacant. However, we're talking about reducing the number of filled F-I-L-L-E-D not field but filled positions. Currently there are 66 full time equivalents in roadway design that were originally passed with performing the house design work. We're looking at cutting half of those immediately. That is not to say that 33 will remain during in-house design work. By and large, most of those, if not all of those will actually be revealing consulting plans because of all the new contract assignments we've got going out the door. The last staffing report, from last year was about 25 FTEs, and many of those were being re-allocated to other areas. These are cuts that we're proposing. It does affect all levels of roadway design, and our targetive span of control is 5:1. Fedia current full time equivalence of 125, we're proposing 20 FTEs cut, again, filled positions. The last staffing report, reported about five, that were being shifted from one place to another. We're actually looking at eliminating 20 in the near term. Again, these are not low level staffers, these are supervisors, and even up to the manager level, and targeting Hispanic control five to one, targeting some in the environmental not so serious but predominantly in the planning document preparation groups that can be easily and is easily being outsourced. Four other units are affected inthe proposed cuts, while hydraulics follow suit after roadway, we're looking at a 7% reduction in staff there, 7% reduction in staff and geotechnical, and a 9% reduction in both location surveys and photogramatory units. Again, all these are filled positions. Mr. Chairman, that concludes my remarks. Doesn't talk. Thank you for your presentation Yeah, the total is 81, 81 proposed. And for your information, the ultimate vision of the technical services is a at 620 total which will be 120 total cuts so we're making, we're getting two-thirds of the way there in the near term. [xx] Good morning, Chairman Allan, all chairs and members of the committee.
I am [xx] Chief Engineer for CDOT, before I start my presentation, I just wanted to know that there are two copies of the highway maintenance improvement programme that are sitting at the end of the table right in front of Representative Ford and if you would like to take those and pass those around for looking at [xx] the presentation, you're welcome to. Yes, sir. We will provide every member a copy, thank you. OK, my presentation today will first focus on budget of the division of highways and transition to staffing as we forward through the presentation. Like Rodger Slide[sp?] what he said at the areas of responsibility for technical services a light shows the primary responsibilities of the division highways which include construction, and maintenance, and operations of a roadway facilities. We also cover project design and planning any division that those are relatively modern activities compared to our construction and maintenance activities. This is a schematic of the organization of the division of highways. We exist to manage the state highway operations. We consist of nineteen discrete business units, with work spanning from design and planning to construction to maintenance operations of the system. The business units and the chief engineer's office can be characterized as field operations which is the 14th transportation divisions and central support staff which provide technical support to the divisions. Moving on to budget our 2015 maintenance allocation was just North of a billion dollars. This child provides the other budget it amounts for contracts resurfacing payment preservation, the bridge program and a couple of other off the top allocation and emergency state wind programs that are scarced along with the allocation formals and subsequent slides. contract reserves in payment preservation at Bridge program are necessarily wide items in the budget. Contract reserves $408 million, for this past fiscal year payment preservation was $65 million, and the bridge program was about $170 million. The funding formula for distribution or allocation of these funds to the divisions is a fairly simple ratio of division assess needs to state-wide assess needs. For the statewide programs and emergencies, this comprise of state and federal obligations, like inmate labour and for asset maintenance and operations programs costs, this covers the cost of our maintenance condition assessment, which assesses the condition of our shelters, our ditches, our pipes and our signs on the system and then there is a finding in there for our research and development and also for addressing emergencies that are unanticipated, like a bridge washout due to a storm or for height failures that periodically occur on the highway system. Moving on to the divisional off the top allocation, this is a direct allocation to the division that is requested by estimate division every year, that pays for traffic signal operations management electricity for traffic control devices, redway lighting, rest areas and welcome center operations, cartrail repair and even river fairies. And then the general maintenance formula that you see at the bottom of the slide are distributed to the divisions the general maintenance funds which are primary, secondary and general maintenance reserve. That's about $351 million that is a ratio of the divisions assessed aids which is the payment, and the [xx] elements minus condition assessment elements plus non assessed needs which include letter pick up more in, and other items, minor items that're micronically measured. This slide is straight out well all the maintenance operations performance appraisal review it shows the payment condition on our primary system and it shows how allocation to the division has a direct impact on condition. You know that division seven has 80% good pavements on their primary system. That means primary roadways have low severity of cracking and low structural failures.
You notice nine other divisions are in the blue. The Score is from 70 to 79%, which means there is some severity of cracking on their primary system and there does exist some structural failures that need to be improved. Four divisions, divisions 11, 13 and 14 and division three, have payment conditions on the primary system of less than 70%. Part of this analysis says we must recognize the variables that lead to these discrepancies in performance across the state. There are reasons that this particular divisions currently rank poor compared to others, as far as this particular condition measure. Divisions 11, 13 and 14 experience harsh winter weather every year. So they are subject to a lot of free-style cycles which is very detrimental to payment. And then division three, has very poor soil conditions and also has a high water table that allows a lot of water intrusion into the payment structure itself and causes problems for them. We recognize these challenges, and we're going to take action to provide allocated amounts for contract resource and payment preservation that will fix these deficiencies in these four divisions. We also apply the same philosophy relative to allocation for our bridge structures. Allocation reform results in getting all of our inventory of assets in a good condition which overall decreases our maintenance cost in the long run. Basically it's cheaper to maintain assets that are in good condition. This is a review of our administrative budget in the divisional highways. There are 339 positions funded out of the highway fund at a total of approximately $21 million. These include some central office position in the chief engineer's office, our facilities management unit, our roadside environmental unit and office positions in the divisions and the districts and the field offices 129 positions are funded out of the highway trust fund at a total of $7 million. These include both central and division offices in the functional areas of structure management, utilities, materials and tests, right-of-way construction, mobility and safety. These are the essential units here in Raleigh. Now transitioning from the budget to the staffing, I wish to review the transportation division's core services. Number one always is safety of the highway. We respond to emergency events including hurricanes, snow and ice storms. We deliver projects. We maintain and repair and replace assets and we respond to citizen complaints and concerns to ensure optimal customer service. Here is a high level org chart depicting the functional areas under the the Division of Highways. If you did the simple math, and add of course the business units, it doesn't sound 8, 685. The reason for that is because it does not include the chief engineers office and transportation engineering associates, that should be included in that 8, 685 number. The transportation engineer associates are recent college graduates that we have fired onto our training program, see why the staff of division and to work and into entry level engineer positions. This is Division of Highways historical staffing levels. You'll note that in 2010, the divisional highway staff number was about 10, 200 employees. Over the past several years we've eliminated 1, 236 positions, through legislated mandates 2010. So this puts the current number 8, 696 in the Division of Highways parallel to what Roger had to his slide deck the division of highway and outsourcing trends is demonstrated on this particular slide, on the left hand of the paragraph is the dollar amounts of payments per to consultants by the units, on the right hand side you'll notice that our consultant payments are outstanding and in the bottom table I obviously it's a summation of the dollar amounts for each business unit they were currently paying to outsource. I will note that in the case of structure management and the divisions there has been some decrease in consultant payments over the past two years the reason
for this is as Roger referenced in his design Bill comments we did express the design and build delivery method on about 450 bridges that are traditionally would appear in less other than divisions, so we wont be able to count that in payments for the division and structure managing units. Now in the next slide you want to see my plan, the increased outsource of the functions performed in the central units. Observe or regard the legislator's mandate for the right over a reduction of eight full-time employees is needed to meet the 80% target for this particular fiscal year and the central units and there they survey our delay, I will ask my unit directors to look at the functions that they currently do form in their units. And so, examine those and determine whether they can be outsourced to private consultants, or was there a match form in their units? And so you are available to do that. Get me that information in essence to results of that particular exercise. We look at the increase, the and this is the result of that particular exercise. We're looking to increase the outsource and the functions that are already well developed in the private sector and the central units. This will result in a post production of 52 full time equivalent positions. We are going to explore and grow outsourcing of other functions. We want to develop industries and develop skill sets where none exist right now in the private sector. This will result in an additional proposed reduction in the central office of 34 full time equivalents. The timeline is a staggered implementation beginning July 1st, 2015 in the new fiscal year with most of the reductions complete by July 1st 2016. Part of the reason for the time lag is we need time to advertise for services, prepare contracts and write specifications for the work that we're going to outsource. We also need to gauge the market for interest, and there will also be a period of time that we need to train consultants as needed to take on the new work that we're proposing to outsource. This graphic demonstrates the [xx] in staffing reductions, per fiscal year and by annum 2016, the initial reductions, Asset management is eight positions, field support 34, transportation and safety mobility 10, for a total of 52, likewise in 2017, as we develop contracts, develop specifications, test the market, and develop training, we will eliminate 10 positions in asset management, 12 positions of field support, and 12 positions of transportation and safety and mobility or total reduction of 34 positions. Now moving to the transportation divisions. I'll cover two significant work functions that're responsibility of the divisions. Inspection over cited projects during construction and the routine maintenance activities on our highways, I'll present staffing changes that will reduce and realign staff with the goal of increasing performance across all the divisions, the changes that I'm about to go over are being discussed, and finalized with all the division engineers for implementation. This division has a staff that administers contract construction projects. At any given time we can have up to 600 construction projects statewide. These employees ensure that plans are followed, and that we end up with a quality product through inspection, a test in the critical materials. They also track work completed, and process payments to contractors. In addition, some of them serve as the primary contact for the general public, and adjacent property owners that have questions or concerns about impacts of the projects. Statewide, we currently have 900 full time employees responsible for administration of contract construction projects. I've established an outsourcing target of an average of 50% for construction inspection resources, and we'll accomplish this by reduction of the number of full time positioned staff to the department. outsourcing an average of 50% is a proper balance to ensure we have and maintain a trained and skilled private sector workforce, to compliment our staff while allowing the department to maintain a core group of inspectors when institutional knowledge of a specification and plan requirements. To establish the number of inspectors required for project oversight on a statewide basis, we looked at the three year work plan it's in the draft STIP. Then when we used
a calculator at the construction unit, one of the business units simliar divisions uses to estimate the number of inspectors required on a particular type of project. What that yielded was is that we need an average of 1, 258 inspectors, full time equivalents to inspect our contract construction work over -the next three years. To get to our 50% goal, well let me back up the black solid line in the graph is the number of inspectors needed for the workload projection over the next three years. You'll note that in the early years in 2016, and early 2017, there's a fairly significant peak of resources needed to do contract inspection work, and then it trails off a little bit as the program decreases some in late 2017, early 2018. So my proposal was to, in looking at outsourcing an average of 50% of the work, is to reduce our staff, our full time equivalent staff, in the divisions to 629 full time equivalents, and then make up the difference and our need with consultant inspectors which is the harsh part of the graph. This is of right now about division. The green bars sum to the total need of 1, 250 in inspectors, reflect the projected work load in each division. The red bar shows the division compliment of the instructors and the blue bars are the target's division compliment to achieve the 50% outsourcing. The chart at the bottom demonstrates by division a change that needs to be implemented to reach the 50% goal. United States of Divisions one, six and nine they actually increase positions to be able to get to the compliment. In summary with regard to inspection's staff we will reduce the title compliment of inspectors state wide. 131 full time equivalent positions. Many divisions already have vacant inspector positions that can be eliminated move to receiver divisions. The remaining positions will be eliminated by June 30th of the 2016. With regard to our construction supervisor advisers in the field. It is beneficial to maintain project supervision responsibilities mostly with DOT staff, this is necessary for a couple of reasons. First our contracted industry partners have expressed that they prefer to have NCDOT representative in charge of the work. This has historically resulted in quicker decisions on the project also since we are outsourcing 70% or our preconstruction design services having it deployed representative on site minimizes the potential conflicts. Thanks you of interest. Should the same firm be providing the inspection services, that provided design services? For example, if there was a plan error on the plan sheets, we want to make sure that the resolution of that plan ever was in the best interest of the department and the tax payer. I'll note here also that our inspector to superviseor ratio results in a span of control of nine to one, with the numbers presented Now transition into the highway maintenance staff the pavement and roads maintenance cruise perform the functions that are listed on this particular slide [xx] preservation in process have been was fully outsource function by 2018. There are also all the other functions more than the repair and moving that is completely performed by private contractors. The number that you see to the right of activities or the current percent outsourcing that we do in division for those particular activities moving on to bridge crews, the a countys number mainatain those items by joint replacement and then washing the bridges that are currently outsourced and almost all of our large pipe replacement are currently done by a contract to [xx] We are aggressively developing details and specification, package the source of contract mechanism to explore increased outsourcing of many routine bridge maintenance items and look to bring that online in the next few months. As we explore outsourcing more of these routine highway maintenance items, we
have an eye on the work that is optimal[sp?] best to contract out. These are basically low risk items that both parties, to the state and to the contractor, that are easily described, easily quantified and activities that have large quantities of work associated with them. Ideally the work will need little to minimal oversight and the outcome can be easily verified. For instance, mowing we already contract out, but that is pretty easy to inspect, the grass is either cut or it's not. At the bottom of the slide you'll see growth opportunities that we have identified for outsourcing in our maintenance operations. Pipe replacements, routine sign installation, signal preventive maintenance, routine bridge maintenance and traffic control are items that we think have promising growth opportunities. As we work on growing outsourcing, we need to make sure we have the right staff and the right location. In the same way that we need to allocate funds to maximize performance, we need to allocate the work force to achieve maximum results. We did this exercise that had a lot of data inputs to it that included embattory quantity, embattory condition or roadway condition or roadway quantity, traffic volumes, and snow and ice expenditures were just a few of the data points that was put into the calculator. We looked for a national standard with our Transportation Research Board partners and with our American Association of State Highway and Transportation official partners across the nation. We canvassed the nation trying to find a national standard for staffing highway maintenance, but we were unsuccessful[sp?] in finding one, so we decided to invent or come up and build our own calculator so after consideration of several approaches including allocation based on a [xx] approach or a per capita approach. We concluded we needed to do this detailed analysis based on inventory and current condition. This analysis is complete and for that I will provide the results and implementation plan of the next few slides. Our detailed analysis to allocate staff to each county in the state, not to the division based on the three inventory categories. Recent inventory items in the calculator, we included the current condition of those particular assets. For pavement we use [xx] on the interstate primary and secondary systems, these were done individually. We looked at vehicle miles traveled on the particular inventory, and we looked at average annual snow and ice expenditures. For bridge assets we used the bridge count, which is a number of bridges in that division, the bridge deck area in those divisions, the number of cobalts that are require to be maintained and the average Annual bridge inspector identified for our audit maintenance item count, and we used the maintenance condition assessment items of lane striping, small pipes, and shoulder condition as part of the calculator. These are the results of the analysis the current staff complemented in each division is shown in blue, and just as this other side, these are compliments of transportation supervisor, the transportation of workers, in each particular division. The current staff scaffold like I said is shinny blue, the analysis results from the calculator is shinning green that represents the realignment of highway maintenance staff that will maximize what force performance and increase our system performance. You'll notice some divisions go down as far as their total number of staff needed, and they're some divisions that go up to balance where the need is based on amateur condition, and based on other perimeters that were used in the analytical tool Implementation plan, hardly 567 CW transtation worker and transtation supervisor positions are vacant out of the 4272 that we have. A plan to maintain high restrictions for June 30th of 2016 [xx] we have the historical attrition rate of 8.5% of this particular class of employee that will yield approximately 310 more vacancies over this one-year period. And then I will move to abolished or move, relocate vacant positions in accordance with the [xx] condition analysis tool. Exercise will be complete by July 1st of 2016 and balance in the TWs and the TSs across the divisions. Each of the steps include; implementing performance targets and holding staff accountable, we'll implement
outcome targets for division staff that will promote consistent performance among divisions and hold division staff accountable for expectations. Then we will implement, I'll implement next to have maximum flexibility, we're going to take advantage of contractor availability and work. We have not historically outsourced, just like pavement preservation that we had not historically outsourced we did rebuilding a market, we're building an industry that will respond to those outsource of opportunities. Also, we will continuously evaluate the effectiveness of our staffing and the work of our contractors to optimize performance on our system, increase in the utilization of the private market, reducing our force structure, realigning our business units for optimum efficiency, setting targets, and measuring against these targets for accountability. This is part of what we consider to be foreign reform lastly, I will monitor and compare division performance when increased frequency to ensure that future allocations of staff are funded in line need across the state and across the divisions. Throughout this presentation, I've identified areas where we recognize the need to improve the associated plans to address our shortcomings and our implementation timelines, so to continue active management the division highways, I intend to provide a safe and efficient highway network that is high quality that we and all the citizens of the State are proud of and can rely everyday for their transportation needs. So that concludes my presentation. Any questions on this? For all the presentations, we'll have a few more slides on how highway maintenance improvement program but any questions so far? Representative Tom Thank you Mr. Chairman Is there an overall strategic plan in which you're operating under to do talked about a lot of spots that you know that you're missing that you need to identify some goals and we need to move some people, then there's a lot movement of biotrition, hiring restrictions, vacant positions, but one of the most devastating things in any organizations to morale is when you've got a lot good people which DOD has a lot of good people, and then you have some people that aren't so good and aren't meeting those performance levels which doesn't seem to be any part of how you're addressing, staffing, from what I saw I may have missed it, it's a long report. Is there an overall strategic plan that you've implemented that shows us how we're going to move down the spot? That's a great question Representative Tine. There is an overall strategic plan, and the fact that division engineers are going to have accountability targets set for them. They're going to have those incorporated into their new performance management system that we're going to kick off July 1st of this year, the NCVIP, and then they'll be held to those standards and those performance targets. [xx] Is that something and we may, I'm playing catch-up in my new role so it may be something that we already have, but is there a draft that the committee could review in regards to that strategic plan? Yes Sir, we are developing those targets presently and I will be more than happy to provide you that strategic plan within the next several weeks. Representative Torbett? I'm trying to look a little bit into the horizon. What I might suggest that you and Chairman Tine meet much sooner than a couple of weeks and kind of collaborate on this? Yes. Thank you so much. Is that OK with you? Yes Sir, and thank you. Thank you so much. Thank you. Further questions before we move to the last few slides? OK, Mr. Olden. Thank you Chairman. The next few slides are just a quick overview of the Highway Maintenance Improvement Program that was being passed around for your perusal during the course of the presentation. Obviously general statutes states that the Board of Transportation will publish a Highway Maintenance Improvement Program. It is a three year pavement plan, and I'll refer to it as the Highway Maintenance TIP, which it is.
It includes rehabilitation, resurfacing and preservation candidates that the department and the divisions will complete over the next three years. It is based on previous fiscal year contract resurfacing and pavement preservation funds, and it will be posted on the web by April 1st, tomorrow actually, for everyone to review. This slide demonstrates the other than HRP. Her tables in the HRP include the year the work is supposed to be completed, the specific road way sections to NH county then we'll have a particular treatment applied to them, whether it's rehab, preservation or resurfacing. And the type of treatment to be applied and then the estimated cost of the application that treatment to bring that roadway condition up to a good level. That concludes the HRP presentation sir. OK. Any questions on the last few slides? Any questions from the presentation overall if there's any time? So one of the difficult things, thank you Mr, Chairman, so one of the difficult things as we work through this process to end up more efficient and more paving on the ground is knowing where we are and having the data that we need in order to make good decisions and then reporting those under consistent basis so employees and personnel and leadership and then also oversight, put people in the legislature are all on the same page, what efforts are being done for data collection improvement at this time? So I'll do me a couple, and that our data collection presently is not where want it to be, and I'm going to work with our [xx] staff in the divisions to improve the data to improve the fidelity of the data enable to give us true snapshots of what I our conditions are and the directions and targets that we need to see to improve the exposed conditions. Currently we gather data our maintenance condition assessment's done on a bi-annual basis. We currently do our payment conditions survey on annual basis. I'm looking at doing our maintenance condition assessment that's a statistical analysis, and estimates the condition of everything that is not payment or bridge related on an annual basis as opposed to a bi-annual basis, and then feed that data back to the divisions, use the calculator over the staff tool that we developed to look at where the need is, and where the money, where the budget needs to go to improve that need and then move people to actually address that need in those particular divisions. Have we identified, and I appreciate your comments, I think we all know that we need to get better at some of the reporting so that we can make better decisions but, have we identified as we look at this new IT platform at the state level in regards to how we consolidate or don't consolidate different things. Have we identified inside of DOT the problem, is it a systems problem or is it a processes problem is it a garbage in-garbage out problem? We've identified where we are today, not expecting to be fixed tomorrow, but have we really zeroed in on what the problem is as we try and create some of these answers? Very good question, I think it's probably a little bit of everything that you've just mentioned. It's definitely a garbage in, garbage out, it's systems are not talking to each other or not communicating with each other. It's looking at one data set in our SAP Accounting System and there being a different data set in our Maintenance Management System. So the Root Cause Analysis is ongoing, and we are going to fix those issues and bring fidelity to our data. Our systems need to communicate the input that we've put into the, systems that were used, needs to be correct and he needs to give us output relative to condition that's true, I mean, that's round truthed, and based on that condition then we can allocate money and resources to those particular areas and set targets for improvement that the division engineers will have in their performance plan.
Thank you Mr chairman [xx] great and wonderful, but one piece that I like to ask that'll see if we've taken any steps forward, we've had conversations in the past weeks, months that kudos on the staff, kudos on looking at the right size of BOT for the next decade, or next score of years, I appreciate that more than you'll ever imagine. We'll also talk about if we're going to put this much focus on. What purpose are we putting on in the street to beef up the quality, the overall right quality or however you gauge the quality of what? taxpayers are paying for in turn would sleep because we all and I keep telling you listen, we've all driven down roads and may be the thought at least comes in my mind, I hope you did not have to pay for this and it's not a whole lot, I'm not saying it's run every hill and hamlet across every state, but what are we doing to ensure that the quality of the system and the quality of the surface to the point that it doesn't make that, then tax payers get their money back? Great question, great observation Representative Tolbert. A good quality pavement or a good quality construction project starts with good tight specifications and a contract that holds a contractor's speed to the prior relative to the quality of the work. So it's a combination of specifications contract specificity relative to quality and also training enterprise as far as our people are inspectors whether they'll be consultant inspectors or whether they'll be state inspectors. Training of our supervisory staff, our construction supervisors and also training of the contractor and also working with our industry partners to facilitate and amplify the need for quality control and the application of pavement on our roadway services, I agree with you. There's nothing more frustrating than to ride a recently resurfaced road and it had bumps in it or it had tears in the mix or have some sort on indication that the quality of mix is nor appropriate for what we've paid for. We also have specification or these incentives for putting poor quality work in and we include those in our contracts. And there are many contractors that have had troubles with our mixed designs or had trouble with our laydown that they put a poor product down. They either are penalized for each ton of mix that is not in compliance with the specifications or they're required to remove the mix from the roadway and put new down at their expense. Follow up? And we are up against time in a few minutes. Excellent and which leads to my final thing. We talk about the right side and we talk about improving and enhancing the quality that tax payer deserve, much less to expects. Let's look at a third patch up, how fast are we relaxing the times for new innovative technology that can be used in daily application, example we talked about ground penetrating radar that's mounted on the vehicle that rides over a bridge and gives to the dad a need to repair and improve that bridge without having shutting down lane traffic for a couple of days, for example. There's technologies out there, that's just one and I hope we have or we are looking at the science part of the point that we're applying these new technologies once proven in a much faster methodology because the technology is shifting faster than perhaps what we're allowing for applications. So we have a five year process, technology may be altering every multiple two or three years, so I want to make sure we are rapidly and aggressively looking at applications that in essence state dollars can improve the overall product, reduce the term. Can you touch on the science a little bit, please? Thank you and you are correct that the technology is advancing in great leaps and bounds relative to the assessment tools and the data collection tools that are available to the department. I went to a seminar about two years ago where there are a lot of consultancy and contractors
that were there demonstrating their ability to gather data related to payments to bridges at 55, 60 miles an hour and give us the [xx] to that data. I think that's part of our overall strategic plan or reform is incorporating those efficient safe data collection methods, and our business processes using that data for what it's intended to. Determine on what the condition of our system is and then push resources, allocate resource, and people and money to improve those particular assets because like I said in the presentation a good road is a much cheaper and less expensive road to maintain. Fair roads and poor roads, those are the ones that cause us trouble those data collection elements, Jenefier Rabanberg[sp?] and [xx] unit and her staff, they constantly are looking for utilization those particular high tech type data delivery methods. They're also data gathering methods. It also goes to deploying technology out to our field forces and utilizing technology on a more regular basis and how they plan to work, how they gather data at their work, the iPads were used in those as part of our construction inspection program now. Inspector takes pictures of work, sends it back to the construction supervisor, gets a decision back in two minutes. They gather quantities, put them right into that head. We want to expand that practise and to our maintenance forces where they are actually maybe reading barcodes off the materials that they're incorporating into the work, so it decreases the human element of the data collection to the point where there's more fidelity in the data, I think. President Martin. Thank you sir, I think [xx] for getting that. He'd like to see if you use drones and those motorized [xx] let the [xx] committee on the use of your microphones. Also my committee members apparently we're on the air. Representative Martin, so, but thank you very much. Any further questions, we're up against the whole time constraints, the committee is adjourned. Thank you. Sure, thank you. I'll talk with you about that in the senate. I think