PDOT Capital Program Review and Productivity Analysis

One year ago gas prices were $2.79 a gallon.

$3.60 per gallon: That was the price of gas on May 8, 2008; the day I called for a review of budgets for selected proposed city transportation projects in the pipeline. Higher fuel costs drive up the cost of construction materials that drive up project costs.

Now, gas prices are well over $4.00 a gallon.

The 150% increase in gas prices over the last 12 months has Portlanders and their families feeling pinched. As drivers cut back on driving and buying fuel it means less revenue for the Portland Office of Transportation, also known as "PDOT."

PDOT's is looking at making reductions of $ 4 Million in services over the next 5 years, based on current revenue forecast.

The higher cost PDOT must pay for construction supplies combined with lower gas tax proceeds is a double budget whammy. We are currently looking at cost reduction options for transportation projects that are experiencing significant increases and will continue to seek opportunities for outside funding to bring projects back into balance.

Attached are the results of our review of budgets for proposed city transportation projects in the pipeline.

Relevant Documents

• 5 year Capital improvement project list showing and overall increase of 17 % for construction related costs
• Productivity and Fuel Reduction Study
• Selected plans for projects impacted by the current reduction in revenue

 Related Blogs

• http://www.commissionersam.com/node/3686 

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