REGULAR MEETING AND DISTRICT SIX TOUR

OF THE IDAHO TRANSPORTATION BOARD

August 20-21, 2008

The Idaho Transportation Board met at 8:30 AM, on Wednesday, August 20, 2008, in Rigby, Idaho. The following principals were present:

Darrell V Manning, Chairman

Monte C. McClure, Vice Chairman– District 3

Jim Coleman, Member – District 1

Bruce Sweeney, Member – District 2

Gary Blick, Member – District 4

Lee Gagner, Member – District 6

Pamela Lowe, Director

Scott Stokes, Deputy Director

Karl Vogt, Deputy Attorney General

Sue S. Higgins, Secretary

Executive Session on Legal Issues, Section 67-2345(f), Idaho Code. Member Gagner made a motion to meet in executive session at 8:30 AM to discuss legal issues. Vice Chairman McClure seconded the motion and it passed 5-0 by individual roll call vote.

A discussion was held on legal matters related to the US-95, Garwood to Sagle project.

The Board came out of executive session at 8:40 AM. No decisions were made.

Board Minutes. Member Gagner made a motion to approve the minutes of the regular Board meeting held on July 9-10, 2008 and the minutes of the special Board meeting held on July 29, 2008 as submitted. Member Sweeney seconded the motion and it passed unanimously.

Board Meeting Dates. The following meeting dates and locations were scheduled:

September 17-18, 2008 – District 5

October 14-15, 2008 – District 3

November 19-20, 2008 – Boise

Consent Calendar. Vice Chairman McClure made a motion, seconded by Member Blick, and passed unanimously, to approve the following resolution:

RES. NO. NOW THEREFORE BE IT RESOLVED, that the Idaho Transportation Board

ITB08-33 approves the revisions to IDAPA 39.03.17 – Rules Governing Permits for Manufactured Homes, Modular Buildings, and Office Trailers; revisions to IDAPA 39.03.22 – Rules Governing Overlegal Permits for Extra Length Vehicle Combinations; revisions to Board Policy B-03-01, Acquisition and Disposal of Real Properties and their Improvements; revisions to Board Policy B-01-15, Release and Restriction of Department Records; and the FY08 account write off; and has received and reviewed the annual report of Department activities to the Board of Examiners; the summary of FY08 actual vs. budgeted out-of-state trips and cost; the return check report for FY08; the annual report on performance measures on contracts and procurements; the contract award information; and the program and district obligation graphs and tables, monthly status report.

1) Revisions to IDAPA 39.03.17 – Rules Governing Permits for Manufactured Homes, Modular Buildings, and Office Trailers. Currently, the transport of manufactured homes, modular buildings, and office trailers is prohibited when wind speeds exceed 20 miles per hour. This restriction was established for the safety of the operator and the traveling public. It was based on the light weight and fragility of the structures that was the industry standard when the rule was previously promulgated. The weight and construction of these structures has improved sufficiently to withstand greater wind speeds. IDAPA 39.03.17 is being revised to raise the wind speed limit to 30 miles per hour. Also, to provide consistency for the industry and compliance personnel, the wind-velocity exemption for hauling these structures on a five-axle truck tractor or semi-trailer combination is being eliminated.

2) Revisions to IDAPA 39.03.22 – Rules Governing Overlegal Permits for Extra Length Vehicle Combinations. Revisions to this rule were initially approved by the Board in December 2007. Due to in-house procedural issues and editing errors at the Department of Administration, staff opted to withdraw the original submission and thoroughly review the rule. The amendments to the rule now are the same as those presented to the Board in December 2007. They bring the rule into compliance with Idaho Code. The revisions ensure that vehicles manufactured to operate with single tires on multiple axle configurations are allowed to continue to operate in that manner without having to invest in major equipment changes; clarify that permitted longer combination vehicles with multiple axle configurations may operate with single tires on those multiple axles as long as the 600 pounds per inch width of tire is not exceeded; and clarify that single tires may be used on single axles as long as the tires are 15 inches wide or wider.

3) Revisions to Board Policy B-03-01, Acquisition and Disposal of Real Properties and their Improvements. B-03-01 is being revised to increase the administrative settlement limit requiring Board approval from $100,000 to $200,000. The limit has not changed in more than 10 years. This policy revision was one of the recommendations proposed in May when staff reviewed escalating right-of-way costs and possible remedies to address those concerns.

4) Revisions to Board Policy B-01-15, Release and Restriction of Department Records. This policy was last reviewed in 1998. The proposed changes are to add specific Idaho Code references for the Department to be in compliance with law and references for certain records that are exempt from the Public Records Law.

5) FY08 Account Write Off. ITD policy requires that all uncollectible accounts exceeding $1,000 be reviewed and approved for write-off by the Board. The Director or a designee reviews and approves for write-off all accounts less than $1,000. For FY08, staff determined 119 accounts totaling $75,164.17 to be uncollectible. It requested Board approval to write off 24 accounts totaling $49,051.59, as shown as Exhibit 362, which is made a part hereof with like effect. A total of 95 accounts in amounts less than $1,000 have been determined as uncollectible. The total of these accounts is $26,112.58. The outstanding receivables are more than three years delinquent and are related to damage claims, registrations, and mileage tax fees. Customers are not allowed to do business with ITD until their deficiencies are paid or statute of limitations is reached.

6) Annual Report of Department Activities to the Board of Examiners. ITD requested Board of Examiners’ permission to pay comp time balances in excess of 240 hours for twelve FLSA non-covered employees totaling $71,052.44. This request was made in response to Senate Bill 1252a, which sets a new 240 hour cap on comp time balances for FLSA non-covered employees classified as Administrative or Professional. The law also states that if an employee has a balance of 240 hours or more as of the first pay period of FY09, then additional comp time would not accrue, and requires that previously earned comp time balances above 240 hours as of the last pay period of FY09 be forfeited. The Board of Examiners deferred approval of ITD’s request until later in FY09.

7) Summary of FY08 Actual vs. Budgeted Out-of-State Travel. In FY08, an estimated 308 out-of-state trips were taken totaling $272,813. The budgeted amount was $410,355. There were 62 direct reimbursement trips, although those expenses are not reflected in the total expenditures or budgeted amount.

8) Return Check Report for FY08. During FY08, $48,291,344 in checks were received, while 174 checks, or 0.32%, totaling $153,566 were returned. Collection of returned checks equaled $132,275 for an annual collection rate of 86%.

9) Annual Report on Performance Measures on Contracts and Procurements. A summary of the procurement and contract services for FY08 was provided. A total of 24,454 purchase orders were processed in the amount of $67,421,400. The number was an increase of 3.4% over the previous fiscal year. A total of 44 professional services agreements in the amount of $1,010,613 and 103 contracts in the amount of $13,106,140 were processed. Additionally, 159 informal bids, 99 requests for proposals, and 240 master agreements were issued.

10) Contract Awards. Keys #9765 – Pancheri Bridge to South Pedestrian Path, Idaho Falls, District 6. Low bidder: H-K Contractors, Inc. – $539,183.

Key #11486 – US-2, Dover Bridge to Sandpoint, District 1. Low bidder: Interstate Concrete & Asphalt Company - $538,629.

Key #11013 – I-90, Wolf Lodge Creek Bridge, Kootenai County, District 1. Low bidder: Penhall Company - $571,576.

Key #9772 – I-90, Golconda Overpass Road Interchange, Shoshone County, District 1. Low bidder: Penhall Company - $1,314,980.

Keys #9449 and #9464 – SH-57, Lower West Branch to Upper West Branch Priest River and Junction US-2 to Lower West Branch Priest River, District 1. Low bidder: Interstate Concrete & Asphalt Company - $5,896,360.

Key #9337 – US-12, Woodland Road to Milepost 70, Idaho County, District 2. Low bidder: Poe Asphalt Paving, Inc. – $1,744,286.

Key #11518 – I-84, Orchard Street Interchange, New York Canal, District 3. Low bidder: Concrete Placing Company, Inc. - $4,638,355.

Key #10940 – I-84, Franklin Boulevard Interchange Bridge, Nampa, District 3. Low bidder: Concrete Placing Company, Inc. - $3,099,218.

Key #9733 – I-84, Garrity Boulevard to Meridian Road, Incident Management System, District 3. Low bidder: Power Plus, Inc. - $246,623.

Key #11491 – I-86, Raft River to Rockland Interchange, Eastbound, Power County, District 5. Low bidder: Multiple Concrete Enterprises Inc. - $2,412,422.

Key #9997 – SH-52, Oregon State Line to Junction US-95, District 3. Low bidder: Staker & Parson Companies dba IS&G – $1,698,554.

Key #9334 – SH-41, Intersection Prairie and Hayden Avenues, Kootenai County, District 1. Low bidder: Thorco, Inc. – $128,740.

Key #11010 – US-95, Junction SH-53 to Ohio Match Road, Kootenai County, District 1. Low bidder: Central Washington Asphalt, Inc. – $12,197,905.

Key #9996 – SH-55, Deinhard Lane to Zachary Road, McCall, District 3. Low bidder: Valley Paving & Asphalt Inc. – $943,764.

The low bid on key #11494 – US-30 and SH-50, FY08 District 4 Districtwide Sealcoats, South was more than ten percent over the engineer’s estimate, requiring justification. The Engineer’s Estimate was prepared utilizing the Average Unit Price Report and pricing was reviewed for District 4 bids of similar work and quantity. The major differences are in asphalt, fog coat, and mobilization. Because staff does not believe re-advertising the project would improve the cost or provide a savings and due to the urgency of the project, staff recommended awarding the contract. Low bidder: Kloepfer Inc. - $1,152,017.

Key #7222 – Bear Lake Outlet Canal Bridge, District 5. Low bidder: Cannon Builders Inc. - $1,023,235.

The low bid on key #11475 – FY08 District 4 Districtwide Sealcoats was more than ten percent over the engineer’s estimate, requiring justification. The Engineer’s Estimate was prepared utilizing the Average Unit Price Report and pricing was reviewed for District 4 bids of similar work and quantity. The major difference was in the asphalt item. Because staff does not believe re-advertising the project would improve the cost or provide a savings and due to the urgency of the project, staff recommended awarding the contract. Low bidder: Emery, Inc. - $835,978.

Key #10446 – US-95, Milepost 210.5 Landslide, Idaho County, District 2. Low bidder: Hap Taylor & Sons, Inc. dba Knife River – $2,150,617.

Key #9687 – CSI Student Safety Initiative, District 4. Low bidder: Hap Taylor & Sons, Inc. dba Knife River - $695,391.

Key #8811 – SH-55, Mission Street Turn Bay, McCall, District 3. Low bidder: Valley Paving & Asphalt Inc. – $360,464.

Key #9195 – Intersection Linden Street and 10^th Avenue, Caldwell, District 3. Low bidder: Staker & Parson Companies dba IS&G - $460,915.

11) Program and District Obligation Graphs and Tables, Monthly Status Reports. As of July 31, $262.9 million had been obligated for highway projects in the Statewide Transportation Improvement Program, or 69.4% of the planned amount. The total amount obligated for construction projects was $222.9 million, excluding GARVEE projects. Obligation information by program and district and project status reports for 2008 projects were also presented.

Board Items. Chairman Manning said the majority of his activities have been related to Idaho’s Transportation Funding Conferences. He commended staff for its exemplary efforts to prepare for and execute these successful meetings. He also met with the Community Planning Association of Southwest Idaho to discuss funding issues.

Director’s Report. Director Lowe announced that the Department won an ACEC award for the District 1, US-95, Setters to Belgrove project.

Director Lowe reported that bids for the I-84, Garrity to Meridian project opened yesterday. As an efficiency measure, the bidding process allowed for an alternate of either asphalt or concrete. The low bid, utilizing asphalt, was below the engineer’s estimate.

The peer review being conducted by the American Society of Civil Engineers is progressing well, according to Director Lowe. She also reported that the auditors have been selected to perform the legislative-required audit of the Department. Staff met with the auditors and is starting to gather requested information.

Director Lowe provided the dates for the legislative outreach meetings scheduled in each District. The meetings will focus on efficiencies and the peer review.

Director Lowe distributed the draft agenda for the August 26 transportation summit. The final transportation funding conference is scheduled that afternoon. She was pleased with the attendance at the first six sessions. The Department has received a number of comments. Overall, she believes there is support to increase funding for transportation.

Director Lowe reported that Idaho ranked 14^th overall in performance and cost-effectiveness in the 17^th Annual Report on the Performance of State Highway Systems, prepared by David Hartgen. Last year, Idaho ranked 10^th. The lower rating is partly due to the state’s rural and urban interstate condition and urban interstate congestion. Idaho also ranked 36^th in fatality rates per 100 million vehicle miles traveled.

Adopt-A-Highway. Member Gagner thanked the General Federated Women’s Club, Rexburg Civic Club, for its participation in the Adopt-A-Highway Program. He expressed appreciation for the valuable service to the state the group provides. It adopted a portion of US-20, milepost 330 to 331.9, in 2006.

Delegation – Right Truck for Idaho Coalition. Roy Eiguren provided an update on the Right Truck for Idaho Coalition’s Congressional efforts to authorize a pilot project to allow vehicles up to 129,000 pounds on certain Idaho Interstates. The legislation has been drafted. If this legislation is approved, Mr. Eiguren believes a concurrent resolution providing funding for the pilot project will also be approved. He asked the Board to support this congressional proposal.

Member Neil Miller, District 5, joined the meeting during this presentation.

In response to Chairman Manning’s question on how this proposal differs from the existing pilot project on select state and local routes, Mr. Eiguren replied that there is no difference other than the higher weights would be allowed on Interstate routes. The Coalition would like more routes available for economic purposes.

Vice Chairman McClure commented that Idaho is a bridge state. He asked how the Coalition feels about allowing 129,000 pound vehicles traveling through Idaho. Mr. Eiguren responded that ideally, it would like 129,000 pound vehicles allowed throughout the country. The emphasis for now is to allow these weights in the intermountain west. It is taking this issue incrementally.

Member Sweeney made a motion to support the proposed Congressional authorization of a pilot project allowing 129,000 pound vehicles on select Idaho Interstates. Member Gagner seconded the motion.

Member Miller asked about the pilot project being revenue neutral. If 129,000 pound vehicles consume more fuel, revenue from fuel taxes may increase; however, if the number of trucks traveling on the state’s routes decrease because fewer trucks are needed to transport the same amount of product, revenue from registration fees may decrease. Motor Vehicle Administrator Alan Frew did not have that information, but stated that staff would see if it could evaluate the revenue impacts.

The motion passed 5-1 with Member Miller dissenting.

US-95, Garwood to Sagle, District 1. District 1 Engineer (DE) Damon Allen summarized the US-95, Garwood to Sagle project, which was initiated in 2002. In June, the Board requested that staff suspend design activities until the value engineering study could be evaluated. A review team was established and has completed the review of the study. In total, the value engineering study evaluated the 31-mile corridor, focusing on improving safety, reducing congestion, maximizing the number of miles that can be constructed, and utilizing value engineering and the practical design theory.

Based upon the team’s review DE Allen reported that the team recommends updating the Final Environmental Impact Statement (FEIS) to include the build of additional four-lane divided highway between Ohio Match Road and Parks Road, a four-lane undivided highway between Parks Road to the Granite Segment, and additional interchanges at Chilco Road, Bunco Road, and potentially SH-54. In addition the FEIS will include evaluation of frontage roads and additional right-of-way purchases. Although some improvements in the Sagle area are included, complete right-of-way acquisition for the Sagle portion of the ultimate build out is not included. The timeline for the FEIS is December 31, 2008; Federal Highway Administration review of the FEIS by February 15, 2009; publish the FEIS in March with a record of decision in May 2009; complete the Chilco mainline and Chilco Interchange plans, specifications, and estimates (PS&E) packages by January 2010 and spring 2010, respectively; and complete the Athol and Granite PS&E package by fall 2010.

Chairman Manning thanked DE Allen for the thorough presentation. Member Coleman thanked DE Allen and the team for their work on this project, particularly in the short time frame. Member Gagner added appreciation for Member Coleman’s involvement on this effort.

US-2, Dover Bridge. Assistant District 1 Engineer (ADE) Andrea Storjohann elaborated on the plans to replace the US-2, Dover Bridge. Some of the factors contributing to the cost are the difficult location, including crossing a railroad track; the high water table and poor soil type; and road work associated with the project. Improvements have been made to US-2 west of the bridge and a project is in Horizons to improve and widen the highway to the east. The Dover Bridge project was designed to tie into a five-lane highway.

Member Coleman questioned the transition plans and whether the bridge could be reduced from five lanes to four lanes. ADE Storjohann believes access to Dover has to be considered and a narrower structure may impact access. DDIR Stokes noted that elevation is an issue; however, he believes staff can re-evaluate the transition plans and structure width. He also emphasized the safety considerations, such as including acceleration and deceleration lanes.

Chairman Manning thanked ADE Storjohann for the overview on the Dover Bridge.

Idaho Traffic Crash Report. Highway Safety Manager (HSM) Mary Hunter summarized the Idaho Traffic Crashes 2007 Report, which provides data of Idaho’s traffic crash problems and illustrates progress being made. Some of the highlights from the report include: Idaho’s fatality rate per 100 million vehicle miles traveled was 1.59; the number of fatalities resulting from motor vehicle crashes decreased 6%, from 267 in 2006 to 252 in 2007; just over 40% of the motor vehicle fatalities were the result of impaired driving; Idaho’s observed seat belt use decreased slightly to 78%; aggressive driving was a contributing factor in 54% of the crashes and was a factor in 43% of the resulting fatalities; and 17 pedestrians and 2 bicyclists were killed in motor vehicle crashes.

Highway Safety Performance Plan FY09. HSM Hunter said the goal of the Highway Safety Grant Program is to reduce deaths and serious injuries resulting from traffic crashes by implementing programs to address driver behaviors. The program provides grant funding for highway safety programs that address Idaho’s unique circumstances and particular highway safety needs. She presented the FY09 Highway Safety Performance Plan, as recommended by the Traffic Safety Commission. The National Highway Traffic Safety Administration 402 grants total $2,189,705. Based on Idaho’s highway safety needs some of the focus areas are planning and administration, impaired driving, occupant protection, police traffic services, community traffic safety projects, and paid advertising. The other grants included in the Plan, totaling over $2 million, are for data records, alcohol impaired, racial profiling, and motorcycle safety.

Member Gagner made a motion, seconded by Vice Chairman McClure, and passed unopposed, to approve the following resolution:

RES. NO. WHEREAS, Idaho experienced 26,452 reportable traffic crashes and 252 traffic

ITB08-34 deaths in 2007; and

WHEREAS, the economic cost of traffic crashes in Idaho for 2007 was over $2.8 billion; and

WHEREAS, Idaho’s fatality rate for 2007 was 1.59 fatalities per 100 million annual vehicle miles traveled, which is higher than the estimated national rate of 1.44 fatalities per 100 million annual vehicle miles traveled; and

WHEREAS, the Idaho Transportation Department’s goal is to reduce the number of fatalities to 168 traffic deaths in 2012; and

WHEREAS, the National Highway Traffic Safety Administration (NHTSA) has allocated almost $4 million in funding for Idaho to reduce traffic deaths and serious injuries; and

WHEREAS, the Idaho Traffic Safety Commission and the Office of Highway Operations and Safety have developed the Highway Safety Performance Plan for FY09 to reduce Idaho traffic deaths; and

WHEREAS, the Highway Safety Performance Plan is required by NHTSA in order to receive funding.

NOW THEREFORE BE IT RESOLVED, that the Idaho Transportation Board adopts the Highway Safety Performance Plan, which is on file in the Office of Highway Operations and Safety, for federal fiscal year 2009.

Professional Services Agreements and Term Agreement Work Task Report. Chief Engineer Tom Cole reported that $1,378,050 in new professional service agreements and work tasks were processed from June 23 through July 31. The agreements were issued due to resources not available in house and special expertise was required. Seven supplemental agreements to existing agreements were processed in the amount of $519,100 during this period.

Employee Presentations. Assistant District 6 Engineer Karen Hiatt presented safety and service awards to District 6 employees. Chairman Manning thanked the employees for their dedication and service to the state.

Executive Session on Legal and Personnel Issues, Section 67-2345(a), (d), and (f), Idaho Code. Vice Chairman McClure made a motion to meet in executive session at 11:50 AM to discuss legal and personnel issues. Member Coleman seconded the motion and it passed 6-0 by individual roll call vote.

A discussion was held on legal matters exempt from public disclosure related to contract negotiations; the US-95, Sandpoint North and South project; the I-90, Beck Road Interchange; and the US-95, Garwood to Sagle project.

A discussion was held on personnel issues related to filling public offices.

The Board came out of executive session at 2:15 PM. No decisions were made.

FY08 Adjustments to the Federal-aid Formula Highway Program. Dave Amick, Manager, Transportation Investments (MTI), requested approval to modify the FY08 Federal-Aid Formula Highway Program based upon project readiness and available funds. As of August 4, there are $206.5 million of commitments against the total $226.1 million. Staff is requesting $19.6 million for cost increases for FY08 projects and to advance one preservation project. Staff has requested $48.2 million in redistribution of obligation authority to fund additional projects. MTI Amick summarized the program adjustments, anticipated project removals and delays, and list of additional project requests. There is no guarantee that any of the projects will be advanced or delayed, and although the list is prioritized, the projects would be advanced on a first-come first-served basis. The STIP that will be presented to the Board for approval next month will reflect the final project adjustments.

Member Sweeney made a motion, seconded by Vice Chairman McClure, and passed unopposed, to approve the following resolution:

RES. NO. WHEREAS, it is in the public interest for the Idaho Transportation Department

ITB08-35 to accomplish a current, realistic, and fiscally constrained Highway Capital Investment Program; and

WHEREAS, it is the intent of the Idaho Transportation Board to effectively utilize all available federal-aid highway funding; and

WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act - A Legacy for Users (SAFETEA-LU) requires that a priority list of projects covering a four-year period be provided in a Statewide Transportation Improvement Program (STIP); and

WHEREAS, as of August 4, 2008, the balance of available funds is $19.6 million; and

WHEREAS, projects have been identified that will delay or be removed from FY08 totaling $30.9 million; and

WHEREAS, projects have been identified requiring cost increases of $8.7 million; and

WHEREAS, a prioritized list of projects has been identified that are ready should additional funding become available; and

WHEREAS, the result of these proposed delays, cost increases, and advances will fully utilize estimated FY08 federal-aid highway formula obligation authority and equity bonus funds of $241.1 million; and

WHEREAS, the Department requested $48.2 million in redistributed FY08 formula obligation authority from other states.

NOW THEREFORE BE IT RESOLVED, that the Board authorizes staff to delay or remove projects in the list entitled “Anticipated Removals and Delays” and advance projects in the list entitled “Additional Requests”, as shown as Exhibit 363, which is made a part hereof with like effect, in priority order as projects are delivered and as funding becomes available through Redistribution of Federal Formula Obligation Authority; and

BE IT FURTHER RESOLVED, that staff is authorized to make the appropriate changes to the FY08-12 STIP in accordance with the provisions of SAFETEA-LU.

Add I-84, Mountain Home Overpass to FY09 State Board Unallocated Program. MTI Amick reported that a commercial vehicle struck the I-84 eastbound Mountain Home Overpass in July 2007, causing damage to the structure. Staff determined that the structure was safe for traffic, but repairs to the steel girders and cross frames and new paint were needed. During development of the repair plans, staff determined that the damages were more significant than originally assessed. The estimated cost to repair the overpass is $200,000. MTI Amick requested Board approval of FY09 State Board Unallocated Program funds to repair the structure.

Vice Chairman McClure suggested establishing a revolving fund to finance these types of projects.

Vice Chairman McClure made a motion, seconded by Member Coleman, and passed unopposed, to approve the following resolution:

RES. NO. WHEREAS, it is in the public’s interest for the Idaho Transportation Department

ITB08-36 to publish and accomplish a current, realistic, and fiscally constrained Capital Investment Program; and

WHEREAS, it is the intent of the Idaho Transportation Board to effectively utilize all available federal and state highway funding; and

WHEREAS, the eastbound bridge of the I-84, Mountain Home Overpass was struck by a truck on July 12, 2007; and

WHEREAS, the District Design and Headquarters Bridge Sections have developed plans to repair the bridge at an estimated total cost of $200,000; and

WHEREAS, the District has fully programmed all of its capital investment funds in FY09; and

WHEREAS, $2,000,000 is set aside annually for use by the Board for such unforeseen events in the State Board Unallocated Program; and

WHEREAS, $450,000 of funds in the FY09 Board Unallocated Program are available; and

WHEREAS, the Department anticipates reimbursement in State FY09 by the insurance carrier of the motorist who caused the damage to this structure.

NOW THEREFORE BE IT RESOLVED, that the Board authorizes the use of FY09 State Board Unallocated funds in the amount of $200,000 to repair the I-84, Mountain Home Overpass.

Performance Measurement Report due to Division of Financial Management by September 3, 2008. Intermodal Planning Manager (IPM) Patricia Raino presented the draft 2009 Performance Measurement Report, per Idaho Code. The report contains some of the performance measure data submitted in the FY09 Strategic Plan. The “performance highlights” section focuses on efficiency and customer service.

Chairman Manning thanked IPM Raino for the presentation.

GARVEE Financing Authorization. Administrator, Division of Administration (ADA) Dave Tolman summarized the 2008 legislative action authorizing an additional $134 million in GARVEE bonds, bringing the total GARVEE bond amount to $597 million. A Board resolution is required authorizing ITD to work with the Idaho Housing and Finance Association on the next series of bonds. The next bond series issue is anticipated to include the unissued $71 million from the 2007 legislative authorization and the additional $134 million from the 2008 session for a total of $205 million. It is anticipated that this issue will be sold towards the end of 2008. This follows the Board philosophy to not issue bonds before the need to award contracts.

Vice Chairman McClure made a motion, seconded by Member Coleman, and passed unopposed to approve the following resolution:

RES. NO. WHEREAS, the Idaho Transportation Department (ITD) strives to make available

ITB08-37 to the citizens of Idaho the finest transportation system via new construction projects and management of statewide assets and has authorized the use of a Grant Anticipation Revenue Vehicle (GARVEE) bonded program; and

WHEREAS, the use of future federal funds today will save the state money in the future; and

WHEREAS, Title 40, Chapter 3 and Title 67, Chapter 62 of the Idaho Code, as amended (the “Act”), authorizes the Idaho Housing and Finance Association (IHFA), to issue bonds for the purpose of funding a highway capital improvement program (the “GARVEE Program”) for financing all aspects of the construction of highway projects eligible for federal reimbursement as recommended and approved by the Idaho Transportation Board (ITB); and

WHEREAS, the ITD, the ITB, and the IHFA have entered into a Master Financing Agreement with respect to the bonds; and

WHEREAS, issuing such bonds promotes the purposes of the GARVEE Program, is in the public interest, serves a public purpose, increases commerce, promotes the health, welfare and safety of the people of the State of Idaho, and constitutes a proper exercise of the authority particularly set forth in the Act; and

WHEREAS, the legislation has passed and the Governor has signed House Bill 657 GARVEE Bonding Authorization authorizing ITB’s request for bonding authority under Idaho Code Section 40-315(4) (the “House Bill”) and IHFA intends to issue certain tax exempt bonds, Federal Highway Trust Fund Series, during state fiscal year 2009 in an amount not to exceed $134,000,000 (the “Bonds”), in order to provide funds to finance the GARVEE Program for those projects (the “Projects”) referenced in the House Bill and other related legislation and this resolution shall serve as evidence of the Board’s intention to proceed with issue of the Bonds up to the amount stated and to reimburse its expenditures for the Projects from the proceeds of the Bonds; and

WHEREAS, there will be prepared a Preliminary Official Statement relating to each series of the bonds and the distribution thereof to potential bond purchasers and the distribution to all actual purchasers of the bonds of a final Official Statement relating to the bonds to be authorized; and

WHEREAS, other bonding documents will also be needed to be executed setting forth the applicable series of bonds.

NOW THEREFORE BE IT RESOLVED, by the Board as follows:

1. Pursuant to the Act, the Board approves the Projects and recommends to IHFA the financing thereof through the issuance of the Bonds in an aggregate principal amount not to exceed $134,000,000 ; provided that: (a) the ITD and the ITB have entered into the Master Financial Agreement and a supplement thereto relating to the Bonds; [this has already been approved] and (b) the ITD has provided to the IHFA all of the certificates, documents and information required under Idaho Code Section 67-6210(k).

2. The Chairman and/or Director is hereby authorized and directed, for and in the name and on behalf of the ITB to execute the following bonding documents and any other documents required for the closing of the bonds setting forth the terms of the applicable series of bonds together with such additions or changes in the form thereof as may deem necessary or advisable, such approval to be conclusively evidenced by the execution of said bonding documents as so added to or changed.

Final Official Statement

Supplemental to Master Financial Agreement

Master Trust Indenture

Series Trust Indenture

3. Further, the Board and ITD will keep books and records of all expenditures and will make a reimbursement allocation, which is a written allocation that evidences the use of proceeds of the Bonds for Project expenditures no later than 18 months after the later of the date on which the expenditure is paid or the related Project is placed in service or abandoned, but in no event more than three years after the date on which the expenditure is paid. Finally, that this resolution evidences the Board’s intent and reasonable expectation under Treas. Reg. Section 1.150-2 (d)(1) to use the proceeds of the Bonds to pay certain costs of the Projects and to reimburse the Board and ITD for expenditures for the costs of the Projects paid prior to the issuance of the Bonds to the extent permitted by federal tax regulations.

FY08 Financial Statement Review. Controller Gordon Wilmoth summarized the FY08 financial statement. The trend for ITD’s total revenue continues to increase slightly every year. Total federal aid was $314 million. Revenue to the Highway Distribution Account was $186.4 million, which was slightly more than the forecasted amount. The indirect cost recovery rate was 11.9%, with a total recovery in FY08 of $32.9 million. The balance in the long-term investment fund was $41.4 million on June 30, 2008. The average return in FY08 was 4.13%. The majority of expenditures were for contract construction. Personnel costs were less than budgeted. Total non-construction operating expenditures reflected a 2% positive variance.

Controller Wilmoth reported that revenue to the State Aeronautics Fund was 1.2% below the forecast of $1.978 million. Overall expenditures were 43.2% below the budgeted amount.

Revised Six Year Capital Facilities Program. ADA Tolman said the facility program has been revised using the philosophy “best value” within the available budget. Revisions were made by collaborating with District staff with the goal to achieve a sustainable design that maintains and extends the useful life of the Department’s buildings. A major change in the program is the removal of the bonding requests for a new District 3 location and a new Headquarters building that totaled $63 million. ADA Tolman noted that the alteration and repairs and statewide preventative maintenance budgets have been increased so the Districts can update or replace higher maintenance or inefficient facility components or needed safety revisions. New sand sheds will continue to be a priority to meet environmental and efficiency commitments. A reduction of $77.2 million was realized from the August 2007 Board-approved six-year building program to the current proposal.

FY10 Proposed Budget Request. Senior Budget Analyst (SBA) Joel Drake summarized the proposed FY10 budget request. He said there were minimal changes to the draft presented to the Board in June. Some of the highlights of the budget request in the amount of $510 million include 1833.5 full-time positions, a 3% change in employee compensation increase, a $1.9 million increase for employer costs for health insurance, $21.6 million for replacement equipment, and $291.5 million for construction. SBA Drake said the FY10 revenue forecast is $225.3 million from state sources and $303 million in federal revenue. He added that no GARVEE bonding authority is included at this time; however, staff will seek Board direction next month on the GARVEE Program.

Member Gagner made a motion, seconded by Member Coleman, and passed unanimously, to approve the following resolution:

RES. NO. WHEREAS, the FY10 Idaho Transportation Department budget request will be

ITB08-38 prepared in accordance with instructions in the Division of Financial Management’s Budget Development Manual; and

WHEREAS, the Idaho Transportation Board has reviewed the FY10 budget request summary.

NOW THEREFORE BE IT RESOLVED, that the Board agrees with the budget request estimates and guidance provided as presented in the Department Summary and Certification, submitted for approval August 21, 2008, as shown in Exhibit 364, which is made a part hereof with like effect, and authorizes the estimates and guidance provided to serve as the basis for the budget request to be submitted to the Division of Financial Management and Legislative Services Office on or before September 2, 2008.

39.04.04 – Rules Governing Idaho Airport Aid Program. Aeronautics Administrator John DeThomas said the 2007 legislative audit found that the Division of Aeronautics was not in compliance with Rule 39.04.04 in that the Division was allowing small airport supplies to be provided to Idaho public airports without a written request from the airports. This rule is being revised to reflect the current practice of providing supplies with written, electronic, or telephonic requests. Other minor changes are also being made for clarity, but no significant operational changes are being proposed.

Vice Chairman McClure made a motion, seconded by Member Sweeney, and passed unanimously, to approve the following resolution:

RES. NO. WHEREAS, the Idaho Transportation Board has the authority to approve

ITB08-39 requested changes to administrative rules; and

WHEREAS, the Board finds the requested changes to the administrative rule provide clarification and update procedures to the rules governing the Idaho Airport Aid Program.

NOW THEREFORE BE IT RESOLVED, that the Board approves the recommended changes to administrative rule IDAPA 39.04.04 – Rules Governing Idaho Airport Aid Program, which defines requirements for the distribution of Idaho Airport Aid Program grant funds; and

BE IT FURTHER RESOLVED, that the Board directs staff to proceed with regular rule making for the changes as listed above for the administrative rule.

Member Coleman commented on the number of administrative fees specified in Idaho Code. Staff was asked to review all of the administrative fees and where they are identified.

Old/New Business. Member Blick said the Filer Highway District has made improvements to 2400 East. Earlier this year, the Board approved funding improvements in the amount of $430,000 due to the impacts the completed US-93, Twin Falls Alternate Route, Stage 1 project is having on the local route. The local entity’s project totaled $544,000. It is requesting Board assistance for the additional $114,000. Member Blick supports providing additional financial assistance because the improvements were needed because the US-93, Twin Falls Alternate Route, Stage 2 project has not been constructed.

Member Coleman asked if savings from another project may be a funding source. DE4 Devin Rigby responded that the recently-completed SH-77, Albion Hill project realized almost $70,000 in savings, although there are still some payments that will need to be made.

Member Blick made a motion to utilize $50,000 in savings from the Albion Hill project and $64,000 in Board Unallocated Funds to reimburse the Filer Highway District for the additional costs to improve 2400 East. Vice Chairman McClure seconded the motion.

Member Coleman commented that this route will continue to see increased traffic. He does not want to set a precedent. Member Sweeney concurred. He asked if ITD will be expected to provide additional assistance for these local roads. DE Rigby replied that the intent is for the respective local jurisdictions to be responsible for the maintenance of 2400 East Road and Pole Line Road.

The motion passed unanimously.

Member Coleman made a motion, seconded by Member Gagner, and passed unopposed, to approve the following resolution:

RES. NO. WHEREAS, the Idaho Legislature has adopted Idaho Code Section 63-3641,

ITB08-40 which authorizes developers of retail commercial shopping complexes making improvements to state highways to recoup the costs of such improvements from sales taxes that the complex collects; and