WHEREUPON the meeting recessed at 4:00 PM.

October 15, 2008

The Board reconvened at 8:30 AM on Wednesday, October 15, 2008, in Boise, Idaho. In addition to the members present on October 14, Bruce Sweeney, Member, District 2, was also present. Representative King was also present for the majority of the meeting.

Board Minutes. Member Coleman made a motion to approve the minutes of the regular Board meeting held on September 17-18, 2008 as submitted. Member Blick seconded the motion and it passed unanimously.

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

November 19-20, 2008 – Boise

December 10-11, 2008 – Boise

January 21-22, 2009 – Boise

Consent Calendar. Member Blick made a motion, seconded by Member Miller, to approve the following resolution:

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

ITB08-47 approves the revisions to Board Policy B-23-03, Workplace Violence and the annual report on speed zone changes by city ordinance; and has received and reviewed the Highway Safety Performance Plan federal FY09 document; contract award information; the professional services agreements and term agreement work task report; the program and district obligation graphs and tables, monthly status report; and the July through August 2008 financial statement analysis.

1) Revisions to Board Policy B-23-03, Workplace Violence. Revisions were made to B-23-03, Workplace Violence to reflect clearer wording. The Human Resources Manager works closely with the Legal Section on investigations and any complaint of workplace violence so that the information is protected on a need-to-know basis.

2) Annual Report on Speed Zone Changes by City Ordinance. Throughout the state, there are 59 locations in 30 cities where cities have imposed speed limit changes that have gone against the recommendations of the Department since legislation was enacted in 1997 allowing incorporated cities to establish speed limits within their jurisdiction on sections of the State Highway System. Authority to establish speed limits within highway sections with access control Types 4 and 5 is retained by ITD. The results from studies done since implementation of city-imposed speed limits through 2008 suggest drivers are more inclined to disobey city-imposed speed reductions. The data shows better conformance to speed limits established by standard engineering practices. No definite conclusions can be made on collisions due to limited information available. Upon approval, the report will be distributed to all municipalities referenced in the report, the Association of Idaho Cities, and all state legislators.

3) Highway Safety Performance Plan Federal FY09 Document. The Office of Highway Operations and Safety presented the Highway Safety Performance Plan for federal FY09 at the August Board meeting. The plan was adopted by the Board; however, because the entire document was not provided at that time, staff submitted the FY09 Plan in its entirety to the Board. The document is on file in the Office of Highway Operations and Safety.

4) Contract Awards. Key #9866 – SH-25, Milepost 18 to Junction 1-84, District 4. Low bidder: Kloepfer, Inc. - $1,387,579.

Key #9432 – 15^th Avenue Pedestrian/Bike Facility, Post Falls, District 1. Low bidder: Interstate Concrete & Asphalt Company - $587,794.

Key #9753 – SH-41 and SH-53 Pedestrian Pathways, Rathdrum, District 1. Low bidder: Super Grade, Inc. - $208,542.

Key #9519 – Star Road, Ada County, District 3. Low bidder: WF Construction & Sales LLC - $111,330.

The low bid on keys #11517 and #11487 – FY09 Districtwide Pavement Maintenance and Milepost 89 to Goose Heaven Road, District 1, was more than ten percent over the engineer’s estimate, requiring justification. The major differences between the engineer’s estimate and the low bid were in the Plant Mix Scrub Coat Incl. Asphalt and Additives and the Superpave HMA Pav. Incl. Asphalt and Add CL SP-3 items. The engineer’s estimate was based on the Average Unit Price Report and additional reviews of recent bids on similar projects. Staff believes the most significant differences between the bid prices and the engineer’s estimate are due to short supply and high demand for asphalt based products and the additional cost for late period bidding and contractor anticipated late season paving. Staff does not believe rebidding the project would be beneficial and would like to award the pavement maintenance work this year. Low bidder: Hap Taylor & Sons, Inc. dba Knife River - $2,737,664.

The low bid on key #9174 – SH-8, Veatch Street to White Place, Moscow, District 2, was more than ten percent over the engineer’s estimate, requiring justification. The source of the engineer’s estimate was the Bid History Price Report within the Estimator program and the Average Unit Price Report for similar jobs within the District. The S405-25A Superpave HMA Pav Incl Asphalt & Add item accounted for the majority of the difference between the engineer’s estimate and the low bid. Staff does not believe readvertising the project would result in better bids and recommends awarding the contract. Low bidder: Motley-Motley Inc. - $1,595,348.

Key #11062 – US-95, Snake River Bridge, Homedale, District 3. Low bidder: Braun-Jensen, Inc. - $638,815.

5) Professional Services Agreements and Term Agreement Work Task Report. From September 1 through September 29, $5,615,814 in new professional services agreements and work tasks were issued. The majority of agreements was issued due to resources not available in house and special expertise was required. Five supplemental agreements to existing agreements were processed in the amount of $1,363,216 during this period.

6) Program and District Obligation Graphs and Tables, Monthly Status Reports. As of September 30, $361.6 million had been obligated for highway projects in the Statewide Transportation Improvement Program, or 95.5%. The total amount obligated for construction projects was $300 million, excluding GARVEE projects. Obligation information by program and district and project status reports for 2008 projects were also presented.

7) July through August 2008 Financial Statement Analysis. Federal aid revenue was $18 million behind year-to-date projections. Revenue to the Highway Distribution Account was $457,347 behind the forecast. Expenditures for personnel costs were less than budgeted. Total non-construction year-to-date operating expenditures reflected a 9.2% positive variance. In contract construction, the federal program was behind projections by $18 million and the state program was ahead of projections by $408,115.

Federal aid revenue to the State Aeronautics Fund was $66,400 below year-to-date projections. Aviation fuel tax revenue was $83,800 ahead of projections. Miscellaneous revenue was $2,600 ahead of the forecast. Overall expenditures were more than the allotment.

In the GARVEE Capital Projects Fund, $142.3 million of the $213 million, including interest earnings, from Bond Series 2006 and $11.5 million of the $179 million from Bond Series 2008 A have been expended. During August, $207,806 was transferred to the GARVEE Debt Service Fund for the monthly state share.

Vice Chairman McClure commented that motorists are more inclined to disobey speed limits established via city ordinance than by engineering and traffic studies. Chairman Manning concurred and indicated it is better to establish speed limits based on the 85^th percentile speed.

Member Coleman questioned the federal aid revenue, which is below the year-to-date projections. Administrator, Division of Administration (ADA), Dave Tolman responded that the federal government reimburses the Department after work is completed. He is not as concerned with the federal revenue as the state revenue. Member Gagner asked about the Department’s expenditures in the State Highway Fund. ADA Tolman said the Department has carryover authority from the prior fiscal year. The carryover amount has been declining in recent years.

The motion passed unanimously.

Board Items. Chairman Manning said the majority of his activities continue to be related to funding the state’s transportation system. He also met with an auditor involved in the legislative-authorized review of the Department. Chairman Manning distributed suggested topics for the Board workshop. Discussion followed on plans for the workshop. The consensus of the Board was to change the date from November 19 to December 10 to accommodate conflicts.

Member Miller reported that the I-86, American Falls overpass has been hit again. ITD recently completed repairs from damage done in June. He said that staff will request funding the additional repairs later in the meeting. Discussion followed on the process to collect from motorists’ insurance carriers when drivers hit and damage ITD structures. The Board asked staff to review the current procedures and determine if improvements could be made to that process.

Member Miller also commented on several issues related to tribes. ITD is in the process of improving a portion of US-95 near Worley and will relinquish the route to a tribe upon completion of the US-95, Worley North project. A tribe in eastern Idaho is proposing a new interchange on I-15 to access a proposed casino and gas station. He questioned the Department’s policy when working with tribes. Director Lowe responded that staff will provide an overview on the various agreements between ITD and tribes at a future meeting.

Director’s Report. Director Lowe reported that several staff members will be attending the annual American Association of State Highway and Transportation Officials conference, which starts this week. A summary on the conference will be presented to the board next month.

Director Lowe recently issued an executive memorandum instructing divisions to identify actions for each of the focus areas that it will perform to contribute to the Department’s mission and vision. She will present those to the Board at a future meeting.

Director Lowe provided an update on the American Society of Civil Engineers’ peer review. Teams will be visiting each District and Headquarters in the next several weeks. A preliminary report is expected by the end of November or early December.

Director Lowe distributed a draft report on ITD’s needs for maintenance management and pavement management software tools. Estimated costs for these systems are between $3 and $5 million. Member Gagner commented on District 6’s current pavement management system and questioned the costs for a new software system. Research Program Manager (RPM) Ned Parrish said the costs are not strictly for pavement management software, but include other components. The proposed system would integrate with the Department’s financial system and also with the Geographical Information System. He believes this is a better system and that District 6’s program may not be the best system for the entire state. However, the report is still under review and Member Gagner’s comments will be taken into account. The final report will be presented at a future Board meeting.

Member Coleman requested an estimate on the return on investment for this system. Member Miller expressed support for pavement management, but believes the Department’s staff is knowledgeable and should be the subject matter experts rather than a consultant from another state.

Adopt-A-Highway. Chairman Manning recognized Tammy Streeter for her participation in the Adopt-A-Highway Program. Ms. Streeter has adopted milepost 66 to 67 on SH-55, mileposts 14 to 18 on US-20, and mileposts 77 and 78 on SH-21. She adopted the highway miles in memory of family members. Chairman Manning thanked her for her valuable service.

Delegation – City of Marsing. Marsing Mayor Keith Green thanked the Board members for their time. He expressed concern with pedestrian traffic in downtown Marsing. He has contacted the District staff and discussed a pedestrian-activated light; however, there is no funding for the proposed project. He said drainage on SH-55 is a concern, as a crown has developed due to the highway being resurfaced over the years. Lastly, Mayor Green proposed partnering with ITD on a rest area. Marsing has an established park along the river that he believes would be an ideal location for a rest area. Mayor Green noted that the site is near the intersection of US-95 and SH-55 and along a scenic byway. The city has sewer and water capability and is willing to maintain the facility.

In response to Chairman Manning’s question on whether Mayor Green has discussed the rest area proposal with ITD staff, Mayor Green responded no. Some discussion followed on the City of Marsing’s speed limits and the importance of enforcement.

Vice Chairman McClure expressed support for partnering on a rest area. Although the Board had to reduce funding to the Rest Area Program due to revenue shortfalls, he believes this proposal has merit and needs to be explored. The consensus of the Board was to have staff work with the City of Marsing on the proposed rest area partnership.

Chairman Manning thanked Mayor Green for his remarks.

Avalanche Forecasting and Mitigation. Region 2 Engineer (RE) Tom Points summarized efforts to mitigate avalanches on SH-21 near Canyon Creek. This area is recognized and documented across the country as a very high hazard location due to 54 avalanche chutes between mileposts 96 and 105. An avalanche mitigation program was approved in 2005. He emphasized that safety is a high priority and elaborated on the safety measures.

RE Points said the United States Department of Agriculture Forest Service issued a permit last year to allow ITD to trigger avalanches in a controlled manner. He summarized the use of explosives during the 2007-2008 winter season to initiate avalanches to reduce road closures and improve highway safety. A combination of forecasting and control work in the canyon resulted in the highway being closed 30 ½ days, which is nearly half of the yearly average and which is the goal of the avalanche program. This is especially significant due to the above-average snowfall in 2007-2008, which was responsible for more than 50 avalanches in the Canyon Creek area. RE Points also noted with the decrease of road closures last season, the amount of traffic increased on the highway by an average of 12.4%. The avalanche program personnel and equipment were also utilized across the state to help mitigate avalanche hazards in northern and eastern Idaho. He added that the program goals are to secure a snow cat, establish better access to slide paths, and construct a tram line for delivering explosives.

In response to Member Blick’s question on the average daily traffic count, RE Points said he did not have those figures with him, but he believes it is around 400 in summer and lower in winter, possibly around 50. Member Blick insinuated that the avalanche mitigation program is expensive on a per vehicle basis. RE Points said the District is monitoring costs and wants to operate the program efficiently.

Vice Chairman McClure expressed support for ITD to control slides. He asked if the Department is saving money on snow removal. RE Points believes it is more cost-efficient to remove snow during controlled avalanches. He also mentioned that the road remains open more, the program is more efficient for the District, and it provides a more stable situation.

Chairman Manning thanked RE Points for the update on this program.

I-86, East American Falls Interchange (Hit #2) to FY09 State Board Unallocated Program. Chief Engineer (CE) Tom Cole said the I-86, East American Falls Interchange was struck by an over-height vehicle in June. Repairs were made to the structure in August. Last month, another over-height vehicle hit the overpass, causing extensive damage to the same outside girder. The truck had been issued an over-height permit requiring use of the on/off ramps at this interchange, but the driver failed to do so.

CE Cole said staff analyzed the damage and determined that the beam and its tributary area needs to be replaced at an estimated cost of $185,000. Traffic is presently restricted to a single lane due to the extent of the damage. CE Cole requested Board Unallocated funds to repair the structure, with the intent to reimburse the fund from the driver’s insurance carrier.

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

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

ITB08-48 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 I-86, East American Falls Interchange was struck by an over-height truck on September 25, 2008; and

WHEREAS, the District Design and Headquarters Bridge Sections have developed plans to repair the bridge at an estimated total cost of $185,000; 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, $485,000 of funds in the FY09 Board Unallocated Program are available; and

WHEREAS, the Department anticipates reimbursement 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 $185,000 to repair the I-86, East American Falls Interchange.

Unfunded Projects Ready for Construction during 2009 Construction Season. As statewide discussions continue on the need for additional funding for transportation, the question has come up as to what projects could be under construction during the summer of 2009 to utilize additional revenue that may result from the next legislative session. CE Cole said ITD is committed to placing as much money as possible on the road. Staff conducted an in-depth review of all project development activities sufficiently underway to potentially advance projects to the point of construction by the beginning of the summer 2009 construction season.

CE Cole presented a list of unfunded projects that the Districts will have ready for construction next summer. The list includes approximately $50 million in restoration, $20 million in preservation, $1.6 million in safety, and $137.5 million in expansion projects.

In response to Member Gagner’s question on the priority, CE Cole responded that preservation projects will be a higher priority than expansion projects.

Chairman Manning thanked CE Cole for the report and for his efforts on this.

Surrounding State Transportation Revenue Comparison. Economics Research Manager (ERM) Doug Benzon provided a comparison of the percentage of highway revenues received by the surrounding states and Idaho by revenue type. Some of the funding sources for surrounding states include general funds, lottery proceeds, royalties, and mineral leases. The Board requested additional information, including a breakout of local funding sources and whether mass transit funding was included in the data.

Chairman Manning thanked ERM Benzon for the informative presentation.

Transportation Development Agreements – Update. Senior Transportation Planner (STP) Sonna Lynn Fernandez said one of the most pressing issues facing many government agencies in Idaho today is how to fund and build infrastructure and related services posed by new development. Every land-use decision has an effect on transportation. Access to and from any development can increase congestion, reduce safety, and diminish traffic flow.

STP Fernandez said ITD has taken steps to establish voluntary, informal partnerships with local governments. To solidify these partnerships and better coordinate land-use and transportation planning, ITD has instituted a formal discussion process with local land-use agencies and developers through negotiated Transportation Development Agreements (TDA). This process was created from sections of Idaho Code. The purpose is to encourage intergovernmental coordination, to mitigate traffic-related impacts caused by development, and to provide an additional finance tool for transportation improvement projects. The components to the process are land-use agency cooperative agreements, transportation development agreements, and developer financial agreements.

Pam Golden, District 3 Development and Access Management Engineer (DAME), summarized efforts on a pilot project in District 3, focusing on Avimor’s development along SH-55. Tier 1 of the transportation studies process, which reviews the needs and their constraints, identified an additional $300 million in improvements in the area. In response to Member Gagner’s question on identifying the proportionate share, DAME Golden responded that determining which party is responsible for which costs is part of Tier 2: Planning Level Alternative Analysis. She acknowledged the difficulty of identifying those responsibilities. In response to Member Blick’s comment on ITD’s responsibility to make highway improvements now while the developer’s costs will incur incrementally as the development occurs, DAME Golden said that not all of the highway projects are needed at this time. As development occurs, road improvements will be needed. She acknowledged the concern with timing, but added that there are a number of options being explored.

Avimor President and General Manager Dan Richter expressed appreciation for the good working relationship he has established with ITD. He estimates full build out of the planned community along SH-55 will take thirty years or more, with a total of 6,600 homes plus commercial developments. He said Avimor wants to pay its fair share for infrastructure improvements, but acknowledged the difficulty with determining each party’s proportional responsibility. Mr. Richter also said the company is committed to assisting ITD with identifying funding sources for the state’s infrastructure responsibilities.

Member Blick thanked Mr. Richter for his comments and commended Avimor’s commitment to partnering with the state to address the infrastructure needs. Member Miller also expressed appreciation for Avimor’s partnership and the TDA process. He added that small communities also need assistance with growth and development issues, not just the larger cities. STP Fernandez concurred and said one of the goals is to assist all local agencies with development. The TDA was developed as a model. It will be tailored to address each community’s specific needs and circumstances.

Chairman Manning thanked staff for the presentation on TDAs and Mr. Richter for his comments.

Annual Report on ITD’s Research Program. RPM Parrish summarized the Department’s Research Program. The Research Advisory Council selected research projects in FY08 that address the Department’s strategic goals and initiatives. Some of the activities conducted in FY08 included finalizing master cooperative research agreements with Idaho’s three universities; meeting with staff at each university to review program procedures; strengthening the program budget and financial management; responding to requests for research information for funding options; researching the effective use of passing lanes on two-lane roads; and researching the relationship between vehicle speed and road damage.

The FY09 budget is $1.4 million, according to RPM Parrish. Some of the projects to be completed in FY09 include the study on costs/benefits of pavement marking methods; review methods to improve the concrete pavement mix design and mitigate alkali-silica reaction; examine methods to improve chip seal treatments; and develop testing tools for traffic signal controllers. The goals for FY09 are to finalize program procedures, plan a peer exchange, develop an online library for ITD research reports, provide additional search tools to help staff find research information from other states, conduct a research conference to gain consensus on priorities, begin publishing a semi-annual electronic newsletter, and facilitate the transfer of the T2 Center to the Local Highway Technical Assistance Council.

Member Miller asked if an audit system has been established to ensure accountability on research projects. RPM Parrish said that a master agreement is developed for each project and an ITD project manager oversees each project to ensure it is on track. In response to Member Miller’s question on the ability to terminate research projects if they are not being completed, RPM Parrish responded yes, ITD can terminate for non-performance.

Chairman Manning thanked RPM Parrish for the update on the Research Program.

Executive Session on Legal Issues, Section 67-2345, (d), and (f), Idaho Code. Member Blick made a motion to meet in executive session at 12:05 PM to discuss legal and personnel issues. Member Miller seconded the motion and it passed 6-0 by individual roll call vote.

A discussion was held on legal matters related to the issuance of GARVEE bonds, the termination of a contract for convenience, and a transportation development agreement.

The Board came out of executive session at 1:25 PM. No decisions were made.

WHEREUPON, the Idaho Transportation Board’s regular monthly meeting and tour of District 3 officially adjourned at 1:25 PM.

_______________signed_______________

DARRELL V MANNING, Chairman

Idaho Transportation Board

Read and Approved

November 20, 2008

Boise, Idaho