Idaho Transportation Department

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

December 12-13, 2012 – Boise

January 16-17, 2013 – Boise

February 20, 2013 – Boise

Consent Calendar. Vice Chairman Coleman made a motion, seconded by Member Horsch, and passed unopposed, to approve the following resolution:

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

ITB12-51 approves the certification of receipts and disbursements and has received and reviewed the contract award information, the professional services agreements and term agreement work task report, and the report of speed minute entry changes for October 2012.

1) Certification of Receipts and Disbursements. The FY12 certification of receipts and disbursements cash basis, as shown as Exhibit #421, which is made a part hereof with like effect, was submitted for Board approval in conformance with the requirements of Section 40-708, Idaho Code. The total receipts were $593,634,800; disbursements were $592,617,300; and the cash balance as of June 30, 2012 was $49,436,600.

2) Contract Awards. Key #11550 – I-90, SH-3, FY13 District 1 Sign Upgrades. Low bidder: Specialty Construction Supply, LLC – $959,016.

Key #13348 – FY12 Ada County Highway District Overlays, District 3. Low bidder: C & A Paving Company, Inc. - $1,594,170.

Key #12366 – SH-44, State Street Intelligent Transportation Systems, SH-16 to 16^th Street, Boise, District 3. Low bidder: Quality Electric, Inc. – $489,855.

Key #11109 – US-26, Idaho National Laboratory Junction to Junction SH-39, Bingham County, District 5. Low bidder: Intermountain Slurry Seal, Inc. - $1,274,185.

Keys #11655 and #11641 – US-30 and US-89, Clay Street to 3^rd Street, Montpelier and Sunnyside Road to Lund Road, District 5. Low bidder; Intermountain Slurry Seal, Inc. - $628,801.

The low bid on keys #12120 and #12447 – I-15 and I-86, FY13 District 6 Pavement Striping and FY13 District 5 Pavement Striping was more than ten percent over the engineer’s estimate, requiring justification. The difference between the engineer’s estimate and the low bid was in the Pavement Marking Interstate item. Staff believes it underestimated this item. Additionally, the high quantity of a single pay item and the cost of fuel may have contributed to the higher bid. Low bidder: Streamline Markings, Inc. - $880,872.

3) Professional Services Agreements and Term Agreement Work Task Report. From October 1 through October 29, 19 new professional services agreements and work tasks were issued, totaling $2,763,800. Five supplemental agreements to existing agreements were processed in the amount of $459,221 during this period.

4) Speed Minute Entry Changes for October 2012. The following speed minute entry changes were made in October in Districts 1, 3 and 4:

Beginning Ending Speed Limit

Route Milepost Milepost Old New

US-2 6.610 6.910 35 45

SH-57 1.000 1.400 35 40

US-95 477.720 478.420 45 55

US-95 395.230 396.120 25 35

SH-5 0.000 0.670 25 35

SH-5 11.660 12.030 35 45

I-184 forward 0.000 3.620 55 60

I-184 forward 3.620 3.810 55 60

US-20 forward 47.570 48.050 55 60

I-184 reverse 0.000 3.620 55 60

I-184 reverse 3.620 3.740 55 60

US-20 reverse 47.490 48.050 55 60

US-93 ascending 50.000 50.896 60 50

US-93 descending 50.000 51.000 60 50

SH-75 110.286 110.423 45 55

SH-75 110.901 111.200 25 35

SH-75 112.440 112.633 25 35

SH-75 112.633 112.802 35 45

SH-75 112.802 113.000 45 55

Director’s Report. Director Ness reported that the US-2, Dover Bridge project has been completed and was dedicated last month.

Mike Cram from the Internal Review Office received a national award from the American Association of State Highway and Transportation Officials’ (AASHTO) Administrative Subcommittee on Internal and External Audit. The award recognizes Mr. Cram’s participation on a team that developed the National Compensation Matrix.

Director Ness presented the annual report, or Accountability Report. The document focuses on the goals of having the safest transportation system possible, providing a mobility-focused transportation system that drives economic opportunity, and becoming the best organization by continually developing employees and implementing innovative business practices. The Five Year Investment Plan is being finalized and should be available next week. It is an external document detailing the FY13-17 projects in the ITIP in non-technical terms.

The Idaho Traffic Safety Commission met last week and reviewed its goals, according to CD Stokes. Although the state’s year-to-date traffic fatalities are higher than last year, they are below the five-year average. He also mentioned various activities related to the economic opportunity goal: a tour of the Union Pacific intermodal freight facility in Salt Lake City, Utah with partners from the Departments of Agriculture and Commerce; participation at an Economic Development Conference; and ITD is on the agenda at the Pacific Northwest Economic Region conference this week.

Tax Commission Use of Highway Funds. Mark Stones, Bureau Chief with the Idaho State Tax Commission, summarized the Tax Commission’s involvement in highway funds. Some of its functions include licensing, processing returns, auditing, and collections. Some of the audits it performs are on fuel distributors and for the International Fuels Tax Agreement and International Registration Plan. Although the Tax Commission does not have extensive authority regarding dyed diesel fuel, it follows up on leads of abuse. Further testing for illegal use of dyed fuel requires a law enforcement presence. Mr. Stones also mentioned the motor fuels tax evasion project, which started in 1992. During the past 20 years, a total of $939,590 has been spent by the Tax Commission. The majority of those funds were used for personnel costs. Some money was also spent on training and miscellaneous office expenses. The Tax Commission’s efforts have resulted in almost $7 million recovered, or a return on investment ratio of 7.37.

Chairman Whitehead thanked Mr. Stones for the informative presentation.

Monthly Financial Statements. MTI Krause reported that net cumulative obligations were $63,200,000 for October, the first month in the new federal fiscal year. Of the net obligations, $65,300,000 had a budget scheduled on October 1. The original budget cost associated with these scheduled obligations was $73,000,000. Net cumulative obligations are 90.9% higher than October’s historical trend of $33,100,000.

Controller Gordon Wilmoth said FHWA Indirect Cost Allocation revenue through September was $9,930,000, which was above the projected amount of $8,460,000. Miscellaneous state funded revenue of $9,250,000 was $965,000 above the forecast. Highway Distribution Account revenue, excluding ethanol exemption elimination, was $44,430,000. The projected revenue was $44,122,000. Revenue from the ethanol exemption elimination was $4,075,000, which was .1% below the projected amount. Revenue to the State Aeronautics Fund from aviation fuels was $503,000, resulting in a 13% positive variance.

Total expenditures in the American Recovery and Reinvestment Act Title XII Fund for highway projects were $174,132,000, while $178,800,000 had been appropriated. Expenditures for public transportation were $8,845,000 of the $9,200,000 available.

Senior Budget Analyst Joel Drake reported on revisions to the FY14 budget request. During October, an additional $91,700 was added to operating expenditures for the Statewide Cost Allocation Plan, for services provided by other state agencies, including treasurer fees, state controller fees, attorney general fees, and insurance.

Annual Report of the Dealer Advisory Board (DAB). DAB Member Bobby Petersen reported on the activities of the DAB, focusing on legislative issues. A review of the dealer bond levels was completed. The current bond level of $20,000 has been in place for more than 20 years. Amendments to Idaho Code to require continued education for all licensed wholesale vehicle dealers in the state will be proposed in 2013. Some work has also been done to address the “principal place of business” definition in Idaho Code, but the DAB has not reached a consensus on that issue yet.

Chairman Whitehead thanked DAB Member Petersen for the report and for the DAB’s assistance on motor vehicle issues.

Federal Gross Weight Formula. Motor Carrier Services Manager (MCSM) Reymundo Rodriguez summarized the Federal Gross Weight Formula, also known as Federal Formula B. It is a mathematical formula used by federal and state departments of transportation to determine the appropriate maximum gross weight for a motor vehicle based on axle number and spacing. The formula is part of the federal size and weight regulations regarding interstate commercial traffic. It is necessary to prevent heavy vehicles from damaging roads and bridges.

Chairman Whitehead thanked MCSM Rodriguez for the informative presentation.

129,000 Pound Trucks Pilot Project. Highway Operations Engineer (HOE) Greg Laragan provided the draft 129,000 pound Truck Pilot Project report. The pilot project, authorized by the legislature to allow 129,000 pound trucks on a limited number of state highways, requires a final report in January 2013. Data from other states that allow 129,000 pound weight limits was reviewed. The national research indicates that axle weight is a more significant determinant of flexible pavement damage than gross vehicle weight, increased truck size and weight limits are predicted to increase bridge-related infrastructure costs, results relating truck configuration and safety are inconsistent, and increased truck size and weight limits result in industry cost savings. HOE Laragan noted that Idaho’s findings are essentially the same as other states: no measurable effects on pavements or bridges were observed, crash rate comparisons were inconclusive, and participating companies reported economic benefits from operating at the higher weight limits.

Chairman Whitehead thanked HOE Laragan for the draft report, which is to be reviewed and considered for action next month.

Annual Update on ITD’s Research Program. Research Program Manager (RPM) Ned Parrish reported on the Research Program. The budget for FY13 is $1.4 million. Federal statutes require that 2% of funding for roads and bridges be used for planning and research. Some state match is required. He summarized some of the research projects. Media messages were developed to reduce impaired driving, safety impacts of the differential speed limit were evaluated, methods to determine when to impose load limits during spring break-up were evaluated, and a system to detect or predict avalanches was developed. A customer survey, an evaluation on low-cost methods to improve passing lane safety, and the development of methodology for prioritizing locations for wildlife/vehicle mitigation are some of the projects planned in FY13.

RPM Parrish said FHWA changed its program for funding for universities. Previously, the National Institute for Advanced Transportation Technology, housed at the University of Idaho, received research funds. Now, there is a regional approach. The Pacific Northwest Transportation Consortium, or PacTrans, includes universities from the Pacific Northwest: Alaska, Washington, Oregon, and Idaho. He added that Chairman Whitehead and he serve on the PacTrans External Advisory Board.

Chairman Whitehead expressed support for PacTrans. It eliminates duplication and provides the Department with more resources. He thanked RPM Parrish for the report and for his efforts on this important program.

IPLAN Spending Authority Increase Request. Erika Bowen, Planning/Program Management Manager (PPMM), provided an update on IPLAN. The AASHTO Technology Information Group will meet with staff tomorrow. Work is continuing on draft documents for data standards and requirements and data sets for inclusion have been requested.

PPMM Bowen provided a detailed estimated return on investment. Potential savings from FY07-11 total $2.2 million, or $460,000 per year. Some of the specific areas where savings are expected are in construction change orders, the issuance of over legal permits, and in preparing environmental documents. She proposed three options for proceeding with IPLAN: Board authorization for funding two additional phases and funding all of the remaining items on the contract.

Member Kempton questioned the advantages of options 2 or 3 for continuity purposes. PPMM Bowen responded that each phase will have specific deliverables. When options 1 or 2 are close to completion, staff could request more spending authority from the Board to continue with additional phases.

Member Gagner referenced the anticipated return on investment and asked if the expected savings would offset the costs of the entire IPLAN project. PPMM Bowen said the return on investment projects savings of $460,000 annually. The total cost to develop IPLAN is just over $450,000 plus approximately $30,000 for-going costs, such as software, each year.

Vice Chairman Coleman expressed support to complete the project, with the understanding that staff will provide reports to the Board and if deliverables are not met, the project could be terminated. He believes IPLAN will be beneficial.

Vice Chairman Coleman made a motion to approve the following resolution with Option 3, authorizing staff to complete the original contract. Member Gagner seconded the motion and it passed unopposed:

RES. NO. WHEREAS, IPLAN is a web-based portal linking directly to the Idaho

ITB12-52 Transportation Department’s authoritative data sources; and

WHEREAS, IPLAN will enable all ITD staff and external customers to easily view data previously inaccessible to them; and

WHEREAS, IPLAN will bring greater efficiency to the planning and decision-making process, as well as strengthen outside partnerships through earlier and better methods of communication; and

WHEREAS, potential uses of IPLAN include becoming a geospatial analysis tool, a spatial data library, a computational engine and a public involvement portal; and

WHEREAS, the Idaho Transportation Board has considered three funding options to further progress the development of IPLAN.

NOW THEREFORE BE IT RESOLVED, that the Board authorizes the Planning/ Program Management Section to move forward with Option 3.

Option 1: Authorizes staff an additional $100,000 to develop a Data Standards Document, a Requirements Document, and Solution Recommendations. Once the additional $100,000 is expended, staff will report to the Board on the progress of the project and the Board will then decide whether it will continue with the contract.

Option 2: Authorizes staff an additional $180,000 to develop all of the items in Option 1 along with the development of a Data and Services Document [data priorities, processes, connections, etc.], a Marketing Document, and a Spatially Enable Project Tracking and Project Scheduling Systems (pending Linear Referencing System completion). Once the additional $180,000 is expended, staff will report to the Board on the progress of the project and the Board will then decide whether it will continue with the contract.

Option 3: Authorizes staff an additional $356,676 to develop all items in Options 1 and 2 as well as all of the items remaining in the original contract, which includes: Configuration of IPLAN, Acceptance Testing, Production Site, System Support, and Training.

Chairman Whitehead thanked PPMM Bowen for the presentation and for her efforts on this important project.

Presentation of American Road and Transportation Builders’ Association (ARTBA) Award. Dave Butzier, consultant with URS and project manager, provided a history of the US-95, Sandpoint Byway project, which spanned about 50 years. Due to the complexity of the project and the potential for it to be contentious and controversial, a concerted effort was made to provide extensive public outreach. He acknowledged the public involvement efforts of Barbara Babic, ITD Public Information Specialist, and Susan Kiebert, hired by URS, and presented them the ARTBA award, recognizing their significant accomplishments in public involvement.

Chairman Whitehead congratulated Ms. Babic and Ms. Kiebert and thanked them for their efforts.

Policy Introduction. Member Kempton, Chair of the Board Subcommittee on Policies, presented three policies for review: B-01-01, Public Convenience; B-01-02, Budget Preparation; and B-01-03, Annual Report. DAG Allen elaborated on the policies, including legal authority for the policies and the Subcommittee’s desire to require Board review and approval of the annual report prior to its submission to the Governor. He also questioned the necessity of B-01-01. Without objection, the Board concurred with the introduction of these policies for review.

Executive Session on Personnel and Legal Issues. Member Gagner made a motion to meet in executive session at 11:35 AM to discuss personnel and legal issues as authorized in Idaho Code Section 67-2345(b), (c), (d), and (f). Member Horsch seconded the motion and it passed 6-0 by individual roll call vote.

A discussion was held on personnel and legal matters.

The Board came out of executive session at 1:35 PM. No final actions or decisions were made.

Monthly Update on Garnet Project. 3M representative Mike Ristau said a new plan has been developed for Phase 1 of the Division of Motor Vehicles’ modernization project, also known as Garnet. He acknowledged that the schedule has risks, including unknown factors, no contingency has been built into the plan, and staff vacation time is not reflected in the schedule.

Mr. Ristau reported that the business requirements for Phase 2 are being finalized. Over 2,800 hours in change requests have been incorporated into the project schedule. A full re-plan will be developed for Phases 2 and 3. Phase 3 is significantly behind schedule. Although additional staff members have been added to the project, staffing needs will be reviewed and necessary resources will be provided to ensure the deadline, mid-summer 2014, is met. Collaboration will continue to determine how the schedule can be accelerated to mitigate risks.

Member Vassar noted the two-year time frame for the design phase. She asked if ITD made changes to the product and if the Request for Proposal was well defined. Mr. Ristau replied that some changes were made to transactions, but that 3M had different assumptions regarding the design. The scope was high-level. There was uncertainty with the details, which are now creating some concerns and delays.

In response to Member Gagner’s question on the progress, Mr. Ristau said he believes good progress is being made. He added that a lot of work still needs to be done.

Chairman Whitehead thanked Mr. Ristau for the update.

Idaho Freight Study. Freight Study Project Manager (FSPM) Maureen Gresham presented the final recommendations from the freight study. The recommendations are to create an institutional framework for communication, collaboration, and partnership; align transportation policy and projects with economic development strategies; facilitate the efficient movement of freight; strategically invest in a freight corridor network and in new and/or expanded multi-modal facilities and connections; expand sources for freight infrastructure funding; and collect and analyze freight related data.

In response to Member Gagner’s question on funding the recommendations, FSPM Gresham replied that no funding is being requested at this time. The intent is for staff to move forward on the recommendations. Member Gagner asked for additional information on the proposal to establish an advisory committee. FSPM Gresham responded that the group could report to the Board. Vice Chairman Coleman asked if the advisory committee may be a cross-over with the Trucking Advisory Council. FSPM Gresham replied that she is not sure how the committee would work, but envisions multi-modal representation, including trucking and airports. Member Vassar noted that Commerce has a big role in this.

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

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

ITB12-53 to facilitate the efficient and effective movement of freight; and

WHEREAS, Moving Ahead for Progress in the 21^st Century recommends state departments of transportation plan for and facilitate the movement of freight; and

WHEREAS, it is the intent of the Idaho Transportation Board to encourage partnerships between various transportation stakeholders that further safety, mobility, and economic opportunity; and

WHEREAS, the Department initiated a statewide analysis of freight that included participation from a diverse range of stakeholders; and

WHEREAS, the Freight Study culminated in the development of a consensus based vision for freight movement in, out, and through Idaho and six key recommendations.

NOW THEREFORE BE IT RESOLVED, that the Board endorses the process and results of the Idaho Freight Study, which is on file in the Division of Transportation Performance, and authorizes staff to move forward with implementing the recommendations.

Chairman Whitehead thanked FSPM Gresham for the report and her work on this study.

Old Business. Acting Right-of-Way Manager Jason Brinkman presented the proposed new Board Policy, B-03-13, Management of Department-Owned Property, in legislative format. He highlighted a couple of changes made to the policy since it was presented last month. Member Kempton added that DAG Allen will incorporate language related to access. The Board had no objections.

WHEREUPON, the Idaho Transportation Board’s regular monthly meeting officially adjourned at 2:25 PM.

_____________signed_______________

JERRY WHITEHEAD, Chairman

Idaho Transportation Board

Read and Approved

December 12, 2012

Boise, Idaho