ർARYLAN൳ංRANSPORTATION Ꭽ UTHORITY

Fiscal Year 2008 Annual Report KEEPING CONNECTED KEEPING MARYLAND The Maryland Transportation Authority (Authority) is an independent State agency established in 1971 to finance, construct, manage, operate and improve the State’s toll facilities, as well as to finance new revenue- producing transportation projects for the Maryland Department of Transportation.

The Authority’s seven toll facilities – a turnpike, two and four bridges – help keep traffic moving in Maryland. All of the Transportation Authority’s projects and services are funded through tolls and revenues paid by customers who use the agency’s facilities.

For more than 35 years, the Maryland Transportation Authority has provided Maryland’s citizens and visitors with safe and convenient transportation facilities. We are committed to quality and excellence in customer service, and we rely on our organization’s values, traditions and – most important – our employees to achieve these goals. Table of Contents

1 A Message from the Governor A Message from the Governor 2 Governing Members 3 Vision, Mission & Values 4 A Message from the Chairman It has been a challenging year for the Maryland Transportation Authority – a year in which our hard-working employees dedicated and, in some cases, 5 A Message from the Executive Secretary even sacrificed their lives to make our State a safer, stronger and more 6 Our Facilities secure place to live, work and raise our families. Our hearts go out to the 7 Facilities Map loved ones of those we lost, and our tremendous gratitude goes to those who have worked to strengthen our State, helping us to fulfill the greatest 8 Capital Investments responsibility that we have in our One Maryland, which is to ensure the 9 Safety safety of our citizens. 10 Open Road Tolling 11 I-95 Express Toll LanesSM and Thanks to the efforts of everyone at MDTA, we are making progress Intercounty Connector toward the goals we share by investing in priorities like Statewide radio 12 E-ZPass® interoperability, because the ability to communicate across every first-responder agency in our State means more lives can be saved. Together with the Authority, we’re building one of the most 13 Toll Violation Enforcement effective systems in the nation by combining resources that had previously been spread across 14 Hatem Bridge Preservation a number of different agencies. 15 Bay Bridge Preservation

The Authority has contributed vital resources toward this effort, and we commend Executive Secretary 16 Law Enforcement Ron Freeland, MDTA Police Chief Marcus Brown and their staffs for their cooperation, insight and 17 Homeland Security dedication to advancing the common good as One Maryland. We’re working to make every roadway, 18 Customer Service neighborhood, county and municipality in our State safer. 19 Smart, Green & Growing On behalf of the citizens of Maryland, I am pleased to share with you this annual report of the 20 Harbor ’s 50th Anniversary Authority’s fiscal year 2008 operations. I hope you will find this report informative as we look ahead 21 Maryland’s Highway Centennial to a new year, as well as new opportunities for making our State even stronger. 22 Financial Report

Martin O’Malley Governor

1 John D. Porcari Governing Members Chairman

The Maryland Transportation Authority is a group of eight citizens appointed by the Governor with the advice and consent of the State Senate. This group, representing Maryland’s geographic regions, serves as our policy-setting, decision-making and governing body. Maryland’s Secretary of Transportation presides as the Authority’s Chairman. Each Member serves a four-year term, and term expirations are staggered. Members are eligible for reappointment to the Authority; however, since 2007, there is a limit of three consecutive terms.

Left to right:

Peter J. Basso Appointed August 2007 Richard C. Mike Lewin Appointed August 2007 Walter E. Woodford, Jr., P.E. Appointed July 1991 John D. Porcari Chairman Rev. Dr. William C. Calhoun, Sr. Appointed May 2007 Michael J. Whitson Appointed May 2007 Mary Beyer Halsey Appointed February 2008 Isaac H. Marks, Sr., Esq. Appointed May 2007 Louise P. Hoblitzell Appointed July 1983

2 Our Vision Creating EZ Passage Throughout Maryland.

Our Mission The Authority will be financial stewards of our dedicated revenue sources to provide vital transportation links that move people to promote commerce in Maryland by: • Creating and maintaining a transportation network of highways, bridges and tunnels where safety and efficiency are priorities. • Operating and securing our facilities with innovative technologies. • Financing transportation facilities that offer convenient choices to travelers.

Our Values

S Service E Employee Empowerment and Accountability R Responsiveness V Vigilance I Integrity C Communication E Equal Opportunity

3 A Message from the Chairman

One Maryland.

This is an underlying theme of Governor Martin O’Malley’s Administration, and a goal to which we are committed at the Maryland Transportation Authority.

Transportation plays a vital role in bringing together One Maryland, and the Authority’s toll facilities certainly provide the critical links in keeping Maryland connected. From E-ZPass® and enhanced law-enforcement efforts to preservation projects, I-95 Express Toll LanesSM and the Intercounty Connector, the Authority has sought and implemented new ways of managing congestion and providing safe and secure transportation facilities for all Marylanders.

We are committed to Governor O’Malley’s vision of securing and building a sustainable Maryland and, with the support of the Governor and the Authority’s eight governing Members, we will meet the challenges that lie ahead. We will continue to build on this vision using sound fiscal planning and stewardship to meet the transportation needs of our citizens for years to come.

Thank you for your support of the Maryland Transportation Authority as we continue to serve our customers safely and efficiently in everything we do.

John D. Porcari Chairman

4 A Message from the Executive Secretary

I am pleased to share with you the Maryland Transportation Our Management Authority’s 2008 annual report. With strong and effective leadership from its Chairman and Members, Committee the Authority is working diligently to meet the challenges set forth by Governor O’Malley to provide a safe and secure transportation Gregory A. Brown system and to fulfill our mission of “Creating EZ Passage Throughout Chief Administrative Officer Maryland.” While we face these challenges during demanding economic Randolph P. Brown, P.E. times, we will maintain the Authority’s tradition of service and fiscal Director of Operations responsibility. The Authority will work harder and more efficiently than Marcus L. Brown Chief of Police ever by taking advantage of the newest technology, business practices, David W. Chapin workforce development and community partnerships to help ensure Special Projects Coordinator continued success. Valerie Johnston Smith Principal Counsel Our 1,700 employees are key to this continued success and play a vital role David K. Greene in maintaining fiscal responsibility while helping ensure our seven facilities Director of Strategic Development serve the millions of motorists who travel them each year. Our focus Beverly Hill Director of Procurement & Statutory remains clear – keeping Maryland connected through a safe, secure and Program Compliance world-class transportation system. Geoffrey V. Kolberg, P.E. Chief Engineer Thank you for your support of the Maryland Transportation Authority. Jody D. McCurley Director of Audits Deborah E. Sharpless Chief Financial Officer Dennis N. Simpson Acting Director of Capital Planning Ronald L. Freeland Cheryl M. Sparks Executive Secretary Director of Communications Simela Triandos Acting Chief Planning Officer 5 Our Facilities The construction of Maryland’s toll facilities is financed through revenue bonds. The outstanding principal and interest due each year is paid from all revenues collected from the Authority’s toll facilities. Toll revenues are the primary source of funds. The Authority’s revenues from all seven toll facilities are combined for operating, maintaining and making capital improvements to these facilities. The agency’s strong bond ratings secure its position to finance transportation solutions for Maryland’s citizens. This year, the Authority received underlying AA ratings from all three bond rating agencies.

Vital Links in Maryland’s Transportation Network

William Preston Lane Jr. and most scenic over-water structures. John F. Kennedy Fort McHenry Tunnel Memorial (Bay) Bridge The original span was built in 1952 Memorial Highway (I-95) (I-95, I-395) (US 50/301) and provides a two-lane roadway Opened in 1963, the John F. The largest underwater highway The Bay Bridge crosses the for eastbound traffic. The parallel Kennedy Memorial Highway is a tunnel, as well as the widest vehicular Chesapeake Bay along US 50/301. structure opened in 1973 and has 48-mile section of I-95 from the tunnel ever built by the immersed-tube Its dual spans provide a direct three lanes for westbound travelers. northern Baltimore City line to method, the Fort McHenry Tunnel connection between recreational and During periods of heavy eastbound Delaware. Tolls are collected in the opened to traffic in November 1985. ocean regions located on Maryland’s traffic, one lane of the westbound northbound direction only at the The eight-lane tunnel is nearly two miles Eastern Shore and the metropolitan bridge is reversed to carry eastbound toll plaza located one mile north of long and connects the Locust Point and areas of Baltimore, Annapolis and travelers (“contra-flow” operations). the Millard Tydings Memorial Bridge Canton areas of Baltimore, crossing Washington, D.C. At 4.3 miles, the FY 2008 traffic volume – over the Susquehanna River. under the just south of 26.7 million vehicles. spans are among the world’s longest FY 2008 traffic volume – historic Fort McHenry. The tunnel is a 29.3 million vehicles. vital link in I-95, the East Coast’s most important interstate route.

FY 2008 traffic volume – 44.8 million vehicles. 6 Hampstead Jarrettsville 140 Westminster Bel Air North

New Windsor Westminster South 83 Bel Air Fallston 1

Pleasant Hills Bel Air South Cockeysville Reisterstown Long Green 95 Lutherville-Timonium Owings Mills Oakland Towson Carney Perry Hall Eldersburg 695 Joppatowne Sykesville Parkville Randallstown Pikesville Overlea 40 Francis Scott Key Bridge Milford Mill Rossville Lochearn Baltimore Middle River (I-895) (I-695) 70 Essex Catonsville The 1.4-mile, four-lane tunnel handled This outer crossing of the Baltimore Ellicott City Arbutus its first vehicles in November 1957. Harbor opened in March 1977 as the 895 Edgemere Designated I-895, the facility crosses final link in I-695 (the Baltimore Columbia Linthicum 20 Beltway). Including the bridge and 95 under the Patapsco River and connects Dorsey major north/south highways and many connecting roadways, the project is Ashton-Sandy Springs Savage-Guilford Severn 10.3 miles in length, crossing over the North Laurel South Gate arterial routes in Baltimore City’s Laurel Lake Shore industrial sections. Patapsco River. Fort Meade Severna Park South Laurel Odenton Arden On The Severn FY 2008 traffic volume – FY 2008 traffic volume – Beltsville Herald Harbor 25.8 million vehicles. 12.3 million vehicles. Arnold Silver Spring Crofton Greenbelt Parole Adelphi College Park Chillum Bowie Grasonville Riva Annapolis 50 Hyattsville East Riverdale Bay Ridge Londontowne Highland Beach Kentland Palmer Park Selby-On-The-Bay Mayo Coral Hills Kettering Walker Mill Suitland-Silver Hill Forestville Hillcrest Heights Andrews AFB Glassmanor Morningside Shady Side Upper Marlboro Forest Heights Camp Springs Deale Oxon Hill 301 210 Friendly Clinton

Thomas J. Hatem Governor Harry W. Nice Tantallon North Beach Brandywine Memorial Bridge (US 40) Memorial Bridge (US 301) Accokeek Chesapeake Beach The oldest of the Authority’s Opened in December 1940, this Waldorf facilities, this 1.3-mile, four-lane bridge 1.7-mile, two-lane bridge is located on Bryans Road St. Charles opened in August 1940. It spans US 301 and spans the Potomac River White Plains Eagle Harbor the Susquehanna River on US 40 from Newburg, Md. to Dahlgren, Va. La Plata Prince Frederick between Havre de Grace and Perryville President Franklin D. Roosevelt Hughesville 231 in northeast Maryland. participated in the facility’s Port Tobacco Village Charlotte Hall Golden Beach FY 2008 traffic volume – groundbreaking in 1939. Long Beach-Calvert Beach 11.1 million vehicles. FY 2008 traffic volume – 6.8 million vehicles. 2

7 8 KEEPING MARYLAND CONNECTED ൸ winter 2009,fourrampsin the ETLsprojectopened. Progress Continues Through fall2008and -95 Express -95 Toll Lanes SM Development andEvaluationProgram: • ConstructionProgram: 24projects witha • components forthesix-yearprogram: Lanes. Projects are organizedbythree major Intercounty ConnectorandI-95 Express Toll large-scale constructionprojects likethe from smallfeasibilitystudies of $25,000to Program consistsof240projects thatrange participation ratesintheState. the Authority, whichhasoneofthehighest MBE participationgoalsare a priority for with MinorityBusinessEnterprises(MBE). is anunprecedented opportunitytopartner theextensiveprojects athand,thereWith capital program ismore than$1billion. to come. facilities toserveMarylandersforyears $4 billionandcontinuestopreserve existing ✪ than $21million. nine projects withatotalvalueofmore total valueofapproximately $3.3billion. Our ConsolidatedTransportation In FY2009,theAuthority’s annual Capital Investments Program (CTP)ismore than Consolidated Transportation The Authority’s current six-year Upgrades totheNiceBridgetoll • Cleaningandpaintingportionsof the • Replacementofthe1.5-miledeck of • Interchange improvements toMD24 • RehabilitationofI-95souththeFort • projects are plannedandunderway: Preservation andimprovement MinorProjects Program: 207projects • E-ZPass traffic growth andanincrease in plaza –neededtoaccommodate future in FY2009. underway andtheproject will begin bound BayBridge.Engineeringis structural steelsurfacesofthewest- began inspring2008. the HatemBridge.Construction interchange. capacity, operationandsafetyatthe Improvements willprovide enhanced at I-95willbegininFY2009. Washington Boulevard. McHenry Tunnel from JohAvenue to $640 million. with atotalvalueofapproximately ® usage –beganin late2008. Studiesto improve commercial-vehicle • The Authorityisinplanningstagesto • TheI-95Section200PlanningStudy is • Project Planningisunderwayfor • and EvaluationProgram: Highlights oftheDesign the Authority’s facilities. inspection facilities are inprogress atall for theredevelopment process. soliciting inputfrom theprivatesector 45-year-old MarylandHouse–andis 33-year-old ChesapeakeHouseandthe redevelop bothI-95travelplazas–the expected tobecompletebyfall2009. MD 22inHarford County. Thestudy is in Baltimore Countytojustnorth of milesofI-95from northofMD43 16 safety canbeimproved throughout the examining howtraffic congestion and expected tobecompletebyfall2009. the two-lanebridge.Thestudyis and future traffic andsafetyneedsat investigate optionstoaddress existing Nice BridgeImprovement Project will Authority’s secondoldestfacility. The improvements totheNiceBridge, ✪ Safety

As the Authority improves Speed Enforcement Courtesy Patrols provide 24-hour Maryland’s highways, tunnels Speed enforcement efforts have increased at coverage at the Bay Bridge and the two and bridges, it’s committed to the Bay Bridge during the Bay Bridge tunnels; operate 16 hours a day, seven days keeping motorists, employees and construction Preservation Project to encourage motorists a week at the Kennedy Highway and workers safe and to keeping traffic moving to obey the posted speeds, especially in 16 hours a day, five days a week, at the in work-zone areas. Public outreach for work zones and during two-way traffic. Key Bridge. In FY 2008, patrols assisted ඁafety a Top Priority ongoing construction projects incorporates In addition, “Your Speed Is” radar signs drivers of nearly 32,000 disabled vehicles. safety messaging for the “Stay Alert So No were positioned along the westbound span VRTs generally respond to disabled vehicles One Gets Hurt” campaign. of the bridge to make drivers more aware within five minutes, and about 90% of In partnership with the State Highway of the speeds they were traveling. these vehicles are back on the road within The Authority makes every Administration, the campaign provides 10 minutes. effort to prevent traffic fatalities motorists with tips to drive safely through Courtesy Patrols and injuries by enforcing motor construction work zones and ties into the Courtesy Patrols, staffed by Vehicle Recovery vehicle laws and coming to the “Choose Safety for Life” campaign: Technicians (VRTs), are vital to improving • Slow down. service and safety on our roadway, especially aid of stranded motorists. • Watch for construction workers/ with the many work zones Authority-wide. equipment. By assisting drivers of disabled vehicles with • Pay attention to work-zone signs. gasoline, flat tires and other minor repairs, • Avoid distractions, like using cell phones patrols minimize the risk for crashes and or text messaging. potential congestion from stopped vehicles – a necessity for facilities without roadway shoulders like the Bay Bridge.

9 ✪ Open Road Tolling

need photo

Open Road Tolling (ORT) is Video tolling, often used in conjunction As technology advances, the Authority ሣ the latest advancement in with ORT, is a technique for collecting tolls continues to look at ways to improve its tolling industry technology using video or still images of a vehicle's operations and maintain state-of-the-art and affords motorists the full benefits license plate to identify the vehicle for facilities. ORT studies are underway at of electronic toll collection by allowing payment. This allows drivers without E-ZPass the Authority’s current facilities, and in the ංoll Industry transactions to occur while driving at transponders to use the . The system interim, lanes at the Fort McHenry Tunnel highway speeds. Overhead or roadside looks up the vehicle registration information and the John F. Kennedy Memorial Highway Advancements antennae read the E-ZPass® transponder from the State database and sends a bill to were recently converted to higher-speed mounted inside vehicles, and a computer the driver’s address. lanes. When the I-95 Express Toll LanesSM system automatically deducts the cost of and the Intercounty Connector open to The I-95 Express Toll LanesSM the trip from motorists’ prepaid accounts. traffic, they will utilize ORT only. ORT helps to dramatically decrease vehicle and Intercounty Connector

KEEPING MARYLAND CONNECTED KEEPING MARYLAND queuing at toll plazas and to relieve projects will utilize Open Road congestion, which promotes safety, saves Tolling (ORT) technology when motorists money, reduces pollution and they open to traffic. Shown improves the overall quality of life for above: artist rendering of an commuters and communities. ORT gantry with overhead antennae to read E-ZPass transponders.

10 ✪ I-95 Express Toll LanesSM and Intercounty Connector

In FY 2008, the Authority made general-purpose ramps at the I-95/I-695 and While the Authority is financing the ICC significant progress on the I-95 I-95/I-895 interchanges. The ramps are slated and will own and operate the facility, the State Express Toll LanesSM (ETLsSM) to open late 2008/early 2009. Highway Administration (SHA) is acting on the Project, including the opening of three The ETLs are expected to open to traffic Authority’s behalf in project development. new overpass bridges and the start of by 2016. Toll rates on the ETLs will vary Construction is well underway and the construction along three miles of mainline by vehicle type, time of day and distance westernmost segment – the 7.2-mile ංhe site of the I-95 between and traveled, and will be reviewed periodically to Contract A – is on schedule to open in late Kenwood Avenue. assure relatively congestion-free travel. 2010. Contract C, from US 29 to I-95, has been ETLs interchange at I-695 Designed to ease congestion and awarded and is currently under construction. improve safety on the most congested Intercounty Connector With these contracts in motion, the main part portion of I-95 north of Baltimore City, the Maryland continues to make of the new highway – from I-370 to I-95 – is One of the most complex ETLs project will offer drivers the choice to now committed to construction. progress on one of its top interchanges in the country – travel in one of four general-purpose lanes, transportation priorities – the Intercounty With the projected opening as they do now, or pay a toll to travel in Connector (ICC). The ICC will be an 18-mile drawing near, the Authority’s Division of where a new, reconfigured one of two adjacent Express Toll Lanes that toll highway in the Washington, D.C. metro Communications has begun developing its four-level interchange will be managed to maintain relatively region that will link the I-270/I-370 corridor marketing strategy for the Washington, D.C. is in progress. congestion-free conditions. The project area in Montgomery County to the I-95 and US 1 area to educate motorists about congestion is approximately 10 miles in length and corridors in Prince George’s County. pricing and to encourage E-ZPass usage. stretches from just south of the I-95/I-895 Designated MD 200, the ICC will be the interchange in northeast Baltimore to just State’s first congestion-priced facility and first north of MD 43 in White Marsh. toll facility that fully utilizes ORT. Toll rates In winter 2007, replacement of the have not yet been established, but will be Rossville Boulevard, Joppa Road and set at levels that effectively spread usage to Cowenton bridges were completed. During keep the ICC free of congestion during peak 2008, the ETLs project team made significant periods. Tolls will be collected via E-ZPass® progress on construction of four new and video-tolling methods. 11 ✪ E-ZPass®

More than 813,000 • Additional, higher-resolution digital A six-year, $100 million contract for E-ZPass® Maryland cameras in the toll lanes help staff program development and operations was transponders are on the more easily identify toll violators’ awarded to Dallas-based ACS State and move, and nearly 60% of all traffic at license plates during the image-review Local Government Solutions. Authority facilities uses E-ZPass electronic process. With the new technology, some of ൴ඈ- Pass toll collection. In calendar year 2007, • New LED displays in most toll lanes the toll lanes at the Fort McHenry Tunnel E-ZPass traffic volumes increased 3%. The provide customer feedback. and John F. Kennedy Memorial Highway Service Fort McHenry Tunnel, Baltimore Harbor • Toll collectors now use an updated are being converted to higher-speed Tunnel and Francis Scott Key Bridge average system to classify vehicles and accept E-ZPass lanes. 62% E-ZPass usage – a significant benefit to payments, helping control toll- With E-ZPass use on the rise, the easing congestion and improving the drive transaction time and improve Authority recently completed for our customers. traffic flow.

KEEPING MARYLAND CONNECTED KEEPING MARYLAND substantial E-ZPass system In its continuing efforts to create • New software enhances staff’s EZ Passage throughout Maryland, the capabilities to manage accounts and upgrades aimed at enhancing Authority completed a variety of E-ZPass system technology for faster and more customer service and improving upgrades aimed at enhancing customer effective response to customer and operations at its facilities. service and improving operations at its system needs. seven toll facilities: • A redesigned and more user-friendly ezpassmd.com debuted in spring 2008.

12 ✪ Toll Violation Enforcement

The Authority strengthened its violators – individuals and businesses – The violation rate for total toll transactions toll-violation enforcement efforts owing the Authority more than $300,000. remains less than 1%. However, this equates this year and continued targeting The LPR technology also alerted of stolen to approximately $5 million owed to the drivers who repeatedly refuse to pay license plates, stolen vehicles, suspended Authority annually. Currently, there are more required tolls and fees at Maryland’s seven registrations and suspended operators. than 1,500 chronic violation accounts in toll facilities. These chronic toll violators are In conjunction with the mobile units, Maryland: nearly 40 owing more than $10,000; ංeam Effort registered vehicle owners who have more the enforcement team conducted seven toll the average owing $2,500. Approximately 80% than three Maryland toll violations and have plaza exercises throughout FY 2008. During of toll violation revenue is being recovered. accrued more than $1,000 in violation tolls these exercises, officers issued 64 traffic and administrative fees. The Authority is citations and 124 warnings, apprehended Authority Police and Operations the only member of the E-ZPass® Interagency two chronic toll violators driving with teams used innovative Group currently utilizing this innovative suspended vehicle registrations and took technology to capture 52 technology to step up its toll-violation three commercial vehicles and two drivers chronic toll violators in FY 2008. enforcement efforts. out of service. The enforcement team, comprised of The Authority’s Division of Communications representatives from Operations and MDTA continued the “Update Your Account” Police, uses License Plate Recognition (LPR) multi-media campaign to reduce the number technology – character recognition software of accidental violations caused by customers – to detect license plates of chronic toll who fail to keep their account information violators. LPR technology also allows the user current. The campaign reminded E-ZPass to access criminal information from the account holders to update their account National Crime Information Center. when their credit card expires or their In FY 2008, three mobile LPR units address or vehicle information changes. rotated among Authority facilities and one fixed unit operated at the Bay Bridge. These units combined identified 52 chronic toll 13 ✪ Hatem Bridge Preservation

The Thomas J. Hatem Memorial Weathering and daily wear from The Authority’s Engineering, Capital Bridge is the oldest of 11 million vehicles a year have taken their Planning and Communications divisions did Maryland’s toll facilities. toll on the bridge deck. In spring 2008, the extensive outreach to local communities The four-lane bridge, located on US 40, Authority began work on the Hatem Bridge prior to the start of work, including several opened to traffic in August 1940 and Preservation Project to extend the life of the public meetings. Throughout the project, atem Bridge spans approximately 1.5 miles across the bridge. Work involves complete replacement motorists can get details about construction ൷ Susquehanna River between Havre de of the bridge deck, substructure (concrete progress, alternate routes and work-zone Preservation Project Grace and Perryville in northeast Maryland. piers) repairs and installation of a new safety and sign up for email alerts at The bridge is a critical route for residents, permanent concrete jersey barrier in the hatembridge.com. The Authority also visitors and businesses in Cecil and center of the bridge. Throughout the established 1-888-MDTA-411 (638-2411), Work to preserve and extend the Harford counties. three-year project, one lane will remain open a toll-free hotline for 24/7 Hatem Bridge in each direction, except during scheduled traffic information for the duration of life of the Hatem Bridge began

KEEPING MARYLAND CONNECTED KEEPING MARYLAND deliveries of construction materials. the project. in spring 2008 and will continue for three years.

14 ✪ Bay Bridge Preservation

The Authority and its partners the bridge – of the westbound span. The Authority’s Division of Communications American Bridge and URS are Concrete deck panels, ranging in size from has done extensive outreach to the making significant progress on 15 to 49 feet long and weighing 43,000 to Baltimore, Annapolis and Eastern Shore Phase II of the Bay Bridge Preservation Project. 90,000 pounds, are being fabricated off-site areas with community events, email blasts The preservation project utilizes the and are barged to the bridge for installation. and through local media outlets. most advanced technologies and engineering The project also incorporates painting The Authority’s Government and ay Bridge techniques to extend the life of the bridge’s structural steel in these areas of the bridge Community Relations section coordinates the Ꭾ westbound span – a vital link between the and replacing steel railings along the bridge. Bay Bridge Reconstruction Advisory Group Preservation Project Eastern and Western shores of Maryland. In addition, high- and low-voltage wiring, (BBRAG), a citizen-based group that provides The project’s first construction season conduit and overhead lane signals on both feedback about the Bay Bridge Preservation was a success due to scheduled overnight the eastbound and westbound spans are Project. BBRAG members represent the two Hundreds of complex tasks are closures of the westbound span – which being replaced. counties connected by the bridge (Anne coordinated by construction minimized impacts to traffic. During Arundel and Queen Anne’s counties) and FY 2008, construction crews replaced 72 commuters from both the Western and crews each night. In FY 2008, of the 144 concrete deck panels in the Eastern shores. The group meets monthly to crews replaced 72 of the 144 suspension section and opened 100% assess operational challenges, discuss public concrete deck panels in the on-time for morning rush hour. The project outreach opportunities and serve as a forum suspension span and opened took a planned “summer vacation” to for bridge traveler’s concerns. 100% on-time for morning accommodate peak traffic heading to rush hour. Eastern Shore beach destinations. Construction resumed in the fall. The preservation project involves full- depth, pre-cast concrete deck replacement work in the suspension and through truss deck sections – the areas where drivers can see structural steel overhead when crossing 15 ✪ Law Enforcement

The nationally-accredited During the fiscal year, the Commercial areas: education, engineering, Maryland Transportation Vehicle Safety Unit inspected 22,622 enforcement and emergency Authority (MDTA) Police force is vehicles, finding 5,909 vehicles overweight. medical services. one of the largest law-enforcement agencies The unit took 3,853 vehicles and 2,142 • The MDTA Police was recognized by in Maryland, with more than 600 sworn drivers out-of-service to help preserve our the Transportation Security ൻaw Enforcement and civilian professionals. Every day, officers roadways and facilities. Administration (TSA) for their keep millions of Maryland’s citizens and Other law-enforcement highlights: law-enforcement support. visitors safe and secure as they use vital • Officers enhanced traffic safety with • The MDTA Police detachment at BWI transportation assets like Authority toll “Smooth Operator,” “Chiefs’ Thurgood Marshall Airport received an Authority Police targeted drug facilities, the and BWI Challenge,” “Click It or Ticket” and award from the U.S. Department of traffickers using I-95 and Thurgood Marshall Airport. “Operation Obey the Sign or Pay the State, Diplomatic Security Service, I-895 to infiltrate Maryland’s The MDTA Police uses innovative Fine” campaigns. for providing exceptional protection

KEEPING MARYLAND CONNECTED KEEPING MARYLAND programs, including Interagency Traffic • The MDTA Police took first-place services to its office members. neighborhoods with illegal drugs Initiatives and DUI and security check points, honors for their occupant-protection • Twenty-six new MDTA Police officers and confiscated 206 pounds of to increase traffic and criminal enforcement. and traffic-safety efforts in the graduated from the MDTA Police marijuana and 856 combined In FY 2008, officers made 596 criminal Maryland Chiefs’ Challenge and third- Academy in February 2008. grams of heroin, cocaine, crack arrests, issued more than 9,000 seatbelt place honors in the International and methamphetamine. warnings and citations and arrested Association of Chiefs of Police Special 928 subjects for suspected DUI offenses. Law Enforcement Challenge. The Homeland Enforcement and Traffic • In May, MDTA Police joined (HEAT) Team confiscated $813,318; Lt. Governor Anthony Brown to launch 206 pounds of marijuana; and 856 the “Choose Safety for Life” campaign combined grams of heroin, cocaine, to help make Maryland roads safer and crack and methamphetamine during more secure by focusing on four key drugs and weapons arrests.

16 ✪ Homeland Security

Governor Martin O’Malley has Maryland Transportation Authority and Security Inspectors and officers. State made homeland security a top Maryland State Police will fund the initial and local law enforcement officers, priority for the state of Maryland. phases of the statewide project. who operate in the airport environment MDTA Police work directly with the The MDTA Police recognizes the as an additional layer of security, also Maryland Emergency Management Agency need for interagency communication and comprise VIPR teams. (MEMA) to provide incident management coordination at the scene to be able to • In May, the MDTA Police Command ൶overnor O’Malley and terrorism prevention services to the support incident responders and command Post was activated for the MEMA citizens of Maryland. Officers also partner and control operations. To fulfill this need, Hurricane Zoe exercise. Officers also Announces Statewide aggressively with federal, State and the Authority has acquired a Mobile staffed the State Emergency Operations Communications local officials as part of the Maryland Command Vehicle, furnished with Center at MEMA. Interoperability Coordination and Analysis Center and the state-of-the-art communications equipment. • The MDTA Police, in conjunction with Joint Terrorism Task Force. This vehicle is used by MDTA Police and the Maryland Aviation Administration, On July 10, Governor Martin O’Malley Operations and key public-safety officials conducted an Emergency Preparedness announced the development of the during emergency incidents and public- Exercise (EPEX) involving commercial air The Authority is helping fund Maryland State Communications safety operations. carrier and Boeing 757 aircrafts. A total the program to allow first Interoperability Program and signed an Other homeland-security highlights: of 167 passengers and crew members responders, public-safety officials Executive Order that establishes a Statewide • The HEAT Team continues to oversee were on board for the exercise. and law enforcement communications interoperability plan. This security and law-enforcement patrols of plan will enable emergency first responders, MARC rail transportation. to communicate reliably public-safety officials and all law enforce- • MDTA Police worked with the and rapidly. ment agencies to communicate reliably and Department of Homeland Security immediately, thus enhancing public safety Visible Intermodal Protection and throughout the State. Construction of the Response (VIPR) Team deployments. new 700 MHz system will take place in VIPR teams consist of Behavior Detection phases over the next five to eight years. Officers, Federal Air Marshalls, Explosives The Maryland Department of Transportation, Detection Canine Teams, Transportation 17 ✪ Customer Service

The Authority’s Division of In addition, nearly 6,000 baybridge.com Customers can interface directly with Communications helps keep visitors have registered for email alerts. The service representatives by phone and email customer service at the forefront Division of Communications generates to establish and make changes to toll of everything the agency does. Most the email alerts, providing information accounts; make payments to replenish an notably, the communications team is about significant delays related to incidents account; pay for unpaid toll transactions; ඀ound-the-Clock devoted to providing Bay Bridge drivers the or lane closures. request new, replacement or additional tools to plan their daily commute or summer The success of 1-877-BAYSPAN helped transponders; report account problems; ask Customer Service travels with a mix of public relations, fuel development of 1-888-MDTA-411 questions or file compliments or complaints. advertising and grassroots marketing. (638-2411), a hotline for 24/7 Hatem Bridge Behind the scenes activities include The 1-877-BAYSPAN (229-7726) traffic information. With the Hatem Bridge issuing statements and invoices; processing The 1-877-BAYSPAN (229-7726) hotline for 24/7 Bay Bridge traffic Preservation Project well underway, the violations for unpaid toll transactions; information is an invaluable resource for Authority wanted to provide the same level managing transponder inventory and hotline gives commuters and

KEEPING MARYLAND CONNECTED KEEPING MARYLAND travelers and commuters. Through intense of customer service to its travelers customer fulfillment; posting toll travelers 24/7 Bay Bridge traffic public outreach efforts with print and radio in the north as it does for those at the transactions to accounts and reconciling conditions. BAYSPAN received advertisements; billboards; Ocean City, Md., Bay Bridge. toll revenue and transactions from MDTA more than 831,000 calls bus wraps and Eastern Shore events, The E-ZPass® Customer Service Center facilities and other E-ZPass agencies. in FY 2008. motorists were encouraged to call the staffs approximately 85 customer service hotline before they left for their trips. representatives, account specialists, financial In FY 2008, the hotline received more than analysts, IT system administrators, trainers 831,000 calls. and quality assurance specialists who perform many functions to support customers and their toll activities.

18 ✪ Smart, Green & Growing

The Authority has taken its at the Maryland House and Chesapeake In April, the Engineering Division environmental commitment to a House travel plazas on I-95. sponsored a one-day training exercise in higher level with the establishment The Authority’s Engineering Division is cooperation with the Chesapeake Bay of an environmental office in the Division of actively involved in environmental efforts, Foundation. The training provided Authority Operations to ensure compliance with local, particularly through its management of the employees with a first-hand look at the State and federal regulations. Authority’s National Pollution Discharge connections between the Bay and its ൴nvironmental While environmental compliance is Elimination System (NPDES) permit. tributaries – including the creeks, streams essential, proactive environmental Numerous activities related to the NPDES and wetlands that highway projects often Outreach Efforts stewardship opportunities also are being permit are underway, including a Geographic must impact – and explored the positive pursued. Currently, biodiesel is dispensed at Information System database and mapping of effects that our environmental and all of the Authority’s maintenance facilities, the agency’s stormwater drainage network, conservation programs can have on Authority employees celebrated and an E-85 Ethanol dispenser is installed at creating an inventory and inspection these systems. Earth Day by distributing tree the Baltimore Harbor Tunnel facility. Plans for protocol for our stormwater management a more aggressive agency recycling program facilities, developing facility stormwater seedlings and environmental also are being developed. To celebrate Earth pollution-prevention plans and stenciling information at the Maryland Day, operations staff distributed seedlings storm drains with “Don’t Dump, House travel plaza on I-95. and literature on stormwater management Chesapeake Bay Drainage.”

19 ✪ Baltimore Harbor Tunnel’s 50th Anniversary

On November 29, 2007, the The tunnel was an instant success. It debuted at the Baltimore Harbor Tunnel Authority celebrated the 50th eliminated 51 traffic signals for through- in 1999 as the M-TAG system, easing Anniversary of the Baltimore traffic in , provided a congestion for Baltimore commuters. In Harbor Tunnel. The tunnel opened cross-harbor route for local commuters and 2001, the tunnel began offering E-ZPass®. November 29, 1957, and was heralded diverted up to 40 percent of commercial- More than 60% of the drivers at the ൺeeping Maryland widely as breaking the “Baltimore vehicle traffic from local streets. Baltimore Harbor Tunnel pay their tolls with Bottleneck” for the first time ever. For years, Today, the Baltimore Harbor Tunnel E-ZPass, helping to keep the "Baltimore Connected traffic had crawled through Baltimore’s joins the Fort McHenry Tunnel and the Bottleneck" a thing of the past. narrow streets, then the only direct route Francis Scott Key Bridge in creating a Innovative transportation, incident- between and the South. network of Baltimore Harbor crossings that detection, law-enforcement and security The Baltimore Harbor Tunnel In 1957, the tunnel was considered an provide convenient and safe transportation technology make the Baltimore Harbor celebrated its 50th Anniversary engineering marvel. Each of its 21 twin-tube for local and interstate traffic. The Baltimore Tunnel a vital transportation link where

KEEPING MARYLAND CONNECTED KEEPING MARYLAND in November 2007. The tunnel sections is 300 feet long (the size of a Harbor Tunnel connects major north/south safety and efficiency are priorities. The football field) and was built in shipyards and highways and many arterial routes in Baltimore Harbor Tunnel has more than has been considered a vital launched like a ship. Tugs then towed the Baltimore City’s industrial section. 200 employees, who serve Maryland’s transportation link since sections to the construction site. The tunnel In 2007, nearly 26.3 million vehicles citizens each day including toll collectors, breaking the “Baltimore was built using the open-trench method – traveled through the Harbor Tunnel. That police officers, courtesy patrols and Bottleneck” in 1957. prefabricated sections were sunk in a trench translates to 72,000 vehicles each day, more vehicle recovery teams, maintenance and dredged in the Baltimore Harbor’s bottom, than doubling the original estimated volume automotive crews, telecommunications and and the sections were joined under water. of daily traffic. Electronic toll collection administrative staff.

20 ✪ Maryland’s Highway Centennial

In 2008, the Authority joined the In November 2008, Maryland Public Donald C. Fry State Highway Administration Television aired the world premiere of the President, Greater Baltimore Committee (SHA) in celebrating 100 years of documentary, Moving Maryland Forward, Nelson Castellanos Federal Highway Division Administrator Modern Road Building in Maryland. The which explores the hard road Maryland has Timothy Maloney State Roads Commission – predecessor to traveled from centuries ago to the founding Maryland General Assembly (1979-1995) both the Authority and SHA – was created of the State Roads Commission in 1908, to William K. Hellmann 100 Years of Modern on April 30, 1908. All of the Authority’s toll its present state of national leadership in Transportation Secretary (1984-1987) facilities, with the exception of the Francis transportation. The documentary offers O. James Lighthizer Road Building Scott Key Bridge and the Fort McHenry some fascinating lessons in how Maryland Transportation Secretary (1991-1994) Tunnel, were built by the State Roads came to be known as the home of some of David Winstead Transportation Secretary (1995-1998) Commission. the best maintained highways in the nation. David W. Edgerley The Authority joins the State The Centennial is a celebration for It includes rarely seen footage of Maryland’s Secretary, Department of Business & Economic Development Highway Administration to everyone who contributed to Maryland’s highways and bridges in various stages of Walter E. Woodford, Jr., P.E. commemorate 100 successful excellent highway system. The Centennial construction, as well as interviews with a Maryland Transportation Authority Member theme, “Customer Driven, Now More Than wide variety of the State’s transportation Timothy Campbell years of customer-driven road Ever,” reflects the tremendous effort our movers and shakers of the last 50 years. Executive Director, Maryland Aviation Administration building and transportation employees give in public service every day. The documentary also will appear in print in Ronald L. Freeland management. Maryland Transportation Authority Executive Secretary The celebration kicked off in January 2008 a coffee-table book. John Kuo with a ceremony recognizing former Motor Vehicle Administrator Governor Harry R. Hughes’ decades of Maryland Highway Centennial Executive Committee Members include: Neil J. Pedersen service to the citizens of Maryland. During State Highway Administrator the event, the southbound I-95 Welcome Governor Harry Hughes James J. White Center in Laurel was named in his honor. Honorary Chairman & Transportation Secretary (1971-1977) Maryland Port Administration Executive Director John D. Porcari Paul Wiedefeld Transportation Secretary and Centennial Chairman Maryland Transit Administrator Anne Ferro President & CEO, Maryland Motor Truck Association 21 The following are excerpts of the Maryland Transportation Authority’s financial statements for the year ended June 30, 2008. The Authority’s financial statements were audited by Clifton Gunderson LLP. Their opinion, issued on December 1, 2008, concluded that the Authority’s statements present fairly, in all material respects, the financial position of the Authority as of June 30, 2008, and the changes in its financial position and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. A copy of the Authority’s complete financial statements, including the accompanying footnotes which are an integral part of the financial statements, can be obtained on the Authority’s website at www.mdtransportationauthority.com.

Financial Section Contents

23 Statement of Net Assets – Assets 24 Statement of Net Assets – Liabilities and Net Assets 25 Statement of Revenues, Expenses, and Changes in Net Assets 26 Statement of Cash Flows 27 Revenue, Expenses, and Net Income 28 Assets, Liabilities, and Net Assets 28 Toll Revenue 28 Toll Composition

22 STATEMENT OF NET ASSETS AS OF JUNE 30, 2008 (IN THOUSANDS)

ASSETS

Current Assets Cash and cash equivalents $ 76,269 Restricted cash and cash equivalents 471,897 Investments 181,751 Restricted investments 460,846 Intergovernmental receivable 820 Inventory 4,576 Accounts receivable 20,347 Accrued interest 15,176 Direct financing leases receivable 45,921

Total current assets 1,277,603

Noncurrent Assets Capital assets, non-depreciable Land 305,062 Construction in progress 557,194 Capital assets, net of accumulated depreciation 1,556,846

Total capital assets 2,419,102

Intergovernmental receivable, net of current portion 7,908 Direct financing leases receivable, net of current portion 396,555 Contractor deposits 19,897 Other Assets 7,778

Total noncurrent assets 2,851,240

Total Assets $ 4,128,843

23 STATEMENT OF NET ASSETS - (CONTINUED) AS OF JUNE 30, 2008 (IN THOUSANDS)

LIABILITIES AND NET ASSETS

Current Liabilities Accounts payable and accrued liabilities $ 150,285 Intergovernmental payables 35,937 Unearned revenue 16,139 Current portion of bonds payable 49,446 Current portion of accrued annual leave 493 Current portion of accrued workers' compensation costs 1,166

Total current liabilities 253,466

Noncurrent Liabilities Contractor deposits 19,897 Accrued annual leave, net of current portion 6,847 Accrued workers' compensation costs, net of current portion 6,357 Bonds payable, net of current portion 1,859,403

Total noncurrent liabilities 1,892,504

Total liabilities 2,145,970

Net Assets Invested in capital assets, net of related debt 1,678,752 Restricted for: Debt service 129,750 Capital expenditures 96,994 Unrestricted 77,377

Total net assets 1,982,873

Total Liabilities and Net Assets $ 4,128,843 24 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2008 (IN THOUSANDS)

Operating Revenues Toll $ 275,579 Concession 8,069 Intergovernmental 105,603 E-ZPass® 7,970 Other 4,405 Total operating revenues 401,626

Operating Expenses Collection, police patrol, and maintenance 130,940 Major repairs, replacements, and insurance 53,319 General and administrative 32,692 Depreciation 59,616 Total operating expenses 276,567

Income from operations 125,059

Non-operating Revenues (Expenses) Investment revenue 6,878 Restricted interest income on investments 23,700 Interest on direct financing leases 839 Restricted interest on direct financing leases 23,662 Interest expenses (49,154) Total non-operating revenues 5,925

Change in net assets 130,984

Total Net Assets – Beginning of Year (As Restated) 1,851,889 Total Net Assets – End of Year $ 1,982,873

25 STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2008 (IN THOUSANDS)

Cash Flows from Operating Activities Supplemental disclosure of significant noncash capital Receipts from toll collections and ticket sales $ 273,087 financing activities - unpaid additions to capital assets $ 37,492 Receipts from concessions and other revenue 20,258 Supplemental disclosure of significant noncash capital Receipts from other governmental agencies for services 105,284 investing activities - unrealized gain or loss $ (4,735) Payments to employees (81,380) Payments to suppliers (111,161) Net cash provided by operating activities 206,088

Cash Flows from Noncapital Financing Activities Debt interest payments (24,376) Debt principal payments (14,880) Net cash used in noncapital financing activities (39,256)

Cash Flows from Capital and Related Financing Activities Reconciliation of Operating Income to Net Cash Capital debt interest payments (32,849) Provided by Operating Activities Capital debt principal payments (31,542) Operating income $ 125,059 Bond proceeds 859,123 Depreciation 59,616 Purchase of capital assets (548,288) Net cash provided by capital financing activities 246,444 Effect of Changes in operating assets and liabilities: Cash Flow from Investing Activities Intergovernmental receivables 929 Purchase of investment (5,392,426) Inventory (1,562) Proceeds from sales of investment 4,970,277 Accounts receivable (312) Interest income 84,587 Accounts payable and accrued liabilities 16,734 Payment for direct financing capital lease assets 18,023 Intergovernmental payables 763 Net cash provided by investing activities (319,539) Deferred revenue 2,492 Accrued annual leave 505 Net Increase in Cash and Cash Equivalents 93,737 Accrued workers' compensation costs 1,864 Cash and Cash Equivalents, Beginning of Year 454,429 Cash and Cash Equivalents, End of Year $ 548,166 Net Cash Provided by Operating Activities $ 206,088

26 REVENUE, EXPENSES, AND NET INCOME YEAR ENDED JUNE 30, 2008, 2007, 2006 (IN THOUSANDS)

2008 2007* 2006* Operating revenue Toll revenue Two axle vehicles $ 188,948 $ 190,096 $ 187,060 Commercial vehicles 86,631 88,501 87,267 Total toll revenue 275,579 278,597 274,327

Other operating revenue 126,047 141,378 109,219 Total operating revenue 401,626 419,975 383,546

Operating expenses 276,567 314,318 294,267 Income from operations 125,059 105,657 89,279

Non-operating revenues (expenses) 5,925 (8,420) 9,171 Change in net income 130,984 97,237 98,450

Net assets, beginning of year 1,851,889 1,754,652 1,656,202 Net assets, end of year $1,982,873 $1,851,889 $1,754,652 *as restated

27 ASSETS, LIABILITIES, AND NET ASSETS YEAR ENDED JUNE 30, 2008, 2007, 2006 (IN THOUSANDS)

2008 2007* 2006*

Current assets $1,277,603 $ 759,064 $ 615,123 Noncurrent assets 2,851,240 2,339,201 2,046,807 Total assets $4,128,843 $3,098,265 $2,661,930

Current liabilities $ 253,466 $ 185,550 $ 153,623 Noncurrent liabilities 1,892,504 1,060,826 753,655 Total liabilities 2,145,970 1,246,376 907,278 Net assets $1,982,873 $1,851,889 $1,754,652 *as restated

Toll Revenue Toll Composition

$ 300,000 % 100% 250,000 32% 32% 31% $87,267 $88,501 $86,631 80% 200,000 60% 150,000 68% 68% 69% 40% 100,000 $187,060 $190,096 $188,948 20% IN THOUSANDS 50,000 Y YY0% YYY Yr 2006 2007 2008 Yr 2006 2007 2008

● Two axle vehicles ● Commercial vehicles ● Two axle vehicles ● Commercial vehicles

28 In service to the Maryland Transportation Authority

Trustee --The Bank of New York Mellon Independent Auditors --Clifton Gunderson LLP

Maryland Transportation Authority 2310 Broening Highway, Suite 150 Baltimore, Maryland 21224 410-537-1017 • 410-537-1022 (fax) • 410-355-7024 (TTY) • 1-866-713-1596 (toll-free) e-mail: [email protected] Martin O’Malley, Governor

Anthony Brown, Lt. Governor

John D. Porcari, Chairman

www.mdtransportationauthority.com • www.baybridge.com • www.ezpassmd.com