The Board traveled US-95 north to Bonners Ferry. It met with local officials who provided an overview on transportation issues. Boundary County Commission Chairman Ron Smith expressed concern with the speed limit on US-95 north and south of Bonners Ferry. He believes the 60 mile an hour speed limit should be reduced to 45 due to safety concerns.

Bonners Ferry Mayor David Anderson commented on the growth in the area and the increased traffic on US-95. In the future, he would like the Board to address the traffic in Bonners Ferry, either with a bypass of the community or a four-lane highway. There was also a request for pedestrian pathways.

The Board traveled to the Bonners Ferry Airport where Airport Manager Dave Parker provided an overview on the airport, including coordination with border control and customs and recent improvements made to the facility. He expressed appreciation to the Transportation Department for the technical and financial assistance it has provided. Manager Parker would like to lengthen the runway and secure an instrument approach landing system. He also expressed support to address compatible land use issues at airports throughout the state.

The Board returned to Coeur d’Alene via US-95 south.

WHEREUPON the tour and meeting recessed at 4:45 PM.

July 10, 2008

The Board reconvened at 8:30 AM on Thursday, July 10, 2008, at the Idaho Transportation Department District 1 Office in Coeur d’Alene, Idaho. All members were present.

Chairman Manning welcomed Senator Keough, Representative Eskridge, Representative Frank Henderson, and former Board Member John McHugh to the meeting.

Board Minutes. Member Gagner made a motion to approve the minutes of the regular Board meeting held on June 17-19, 2008 as revised. Member Blick seconded the motion and it passed unanimously.

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

August 20-21, 2008 – District 6

September 17-18, 2008 – District 5

October 14-15, 2008 – District 3

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

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

ITB08-30 to IDAPA 39.02.22 – Rules Governing Registration and Permit Fee Administration; revisions to IDAPA 39.03.06 – Rules Governing Allowable Vehicle Size; Board policy review and update; removal of Rhode Island Street Paving, Spirit Lake, from the Congestion Mitigation/Air Quality Program; and Board Policy B-14-08, Movement of Utilities; and has received and reviewed the contract award information; the administrative and legal settlements of right of way acquisitions; the annual report on railroad grade crossing protection account; and the July 2007 through May 2008 financial statement analysis.

1) Revisions to IDAPA 39.02.22 – Rules Governing Registration Permit Fee Administration. This rule is being revised to state that motor carriers shall not participate in future registration installment payment plans if previous registration installment payment plans have been suspended due to non-payment or payment with insufficient funds checks. This proposal is to ensure that payments of registration fees are received in a timely manner, to deter habitual registration installment plan violators, and reduce the incidence of bad checks to ITD.

2) Revisions to IDAPA 39.03.06 – Rules Governing Allowable Vehicle Size. Revisions are being proposed to this rule to comply with Idaho Code as a result of House Bill 181 approved in 2005. The modification relates to the legal overhang limit from the end of a vehicle.

3) Board Policy Review and Update. Board Policy B-31-01, Port of Entry Program, is being revised to bring it up to date and accurately reflect proper verbiage. Board Policies B-31-02, Roving Port of Entry Program; B-31-03, Joint Ports of Entry; and B-31-05, Emergency Vehicle Operations, are being updated for current signature and date with no other changes being proposed. Board Policy B-31-04, Commission of Department Employees as Peace Officers, is being amended to clarify restrictions against carrying firearms or other weapons. B-31-06, Permit Vendors, is being updated to clarify and correct type of permits to be sold as well as proper remunerated funds to vendors. Revisions to B-31-07, Overlegal Permit Operations, are being proposed to clarify maps to be established and cite proper Idaho Code references.

4) Removal of Rhode Island Street Paving, Spirit Lake, from the Congestion Mitigation/ Air Quality (CMAQ) Program. The City of Spirit Lake’s Rhode Island Street Paving project, key #9729, was scheduled for construction in FY08 in the amount of $322,000. The intent was to pave approximately 3,000 feet of dirt road through town. The City has requested the removal of this project from the Program due to its inability to finance the required match. No agreements have been executed nor funds obligated. Staff intends to use the money from this project to cover cost increases to other CMAQ projects in District 1.

5) Revisions to Board Policy B-14-08, Movement of Utilities. Because B-14-08 was last signed in 1997, staff reviewed it to ensure it is still applicable and current. No changes are being proposed, other than updating the signature and date.

6) Contract Awards. Keys #9214 and #10534 – District 4 Pavement Striping and District 3 Pavement Striping. Low bidder: Interstate Barricades - $497,433.

Key #11490 – FY08 District 1 Districtwide Sealcoats. Low bidder: Poe Asphalt Paving, Inc. - $2,078,354.

Keys #11029 and #11485 – US-95, Lewiston Hill Southbound Lanes and Port of Entry to Top of Lewiston Hill, District 2. Low bidder: Poe Asphalt Paving, Inc. - $2,527,091.

Key #7673 – Aviation Way, Caldwell, District 3. Low bidder: McAlvain Excavation, Inc. - $645,042.

Key #9812 – Broadway Avenue, Rossi Street to Ridenbaugh Canal Bridge, District 3. Low bidder: Central Paving Company, Inc. - $1,022,697.

Key #9700 – I-84, Statewide Sign Upgrades, Districts 3 and 4. Low bidder: Specialty Construction Supply - $557,617.

Key #11005 – I-84, Garrity Interchange to Ten Mile Road, Median, District 3. Low bidder: Thueson Construction Inc. - $6,388,164.

7) Administrative and Legal Settlements of Right-of-Way Acquisitions. During the period of January 1 through June 16, 2008, the Right-of-Way Section processed 41 parcels. There were 13 administrative settlements and 5 legal settlements during this time frame.

8) Annual Report on Railroad Grade Crossing Protection Account. As of June 15, 2008 the Railroad Grade Crossing Protection Account had $456,432 available to obligate. During FY09, the Safety – State Rail Program for Statewide Railroad Crossing Improvements was programmed for $225,000 to correct deficiencies at crossings. Additionally, $25,000 will be obligated for administration of the Rail-Highway Safety Education Grant for Operation Lifesaver. In 2006, there were 22 total rail/highway collisions with 3 fatalities.

9) July 2007 through May 2008 Financial Statement Analysis. Total federal aid was $40.1 million ahead of the year-to-date projections. Highway Distribution Account year-to-date revenue was $2.1 million ahead of the revised forecast. Expenditures for personnel were less than budgeted through the month. During May, $418,000 in salary savings spending authority was transferred to Highways Operating Expenses. Non-construction operating expenditures reflected a 2.6% positive variance. In contract construction, the federal program was ahead of projections by 17% and the state program behind by 2%.

Federal aid revenue to the State Aeronautics Fund was $125,000 below year-to-date projections. Aviation fuel tax revenue received through May was 12%, or $173,249, more than projections. Miscellaneous revenue was 11% below the year-to-date forecast. Overall expenditures were 11.6%, or $261,000, less than budgeted.

In the GARVEE Capital Projects Fund, $69.6 million of the $213 million, including interest earnings, from Bond Series 2006 and $8.2 million of the $179 million from Bond Series 2008 A have been expended. During May, the $589,296 monthly payment of the state share of the debt service payment was made from the GARVEE Debt Service Fund.

Board Items. Chairman Manning said the majority of his activities have been related to Idaho’s Transportation Funding Conferences planned throughout the state. He also participated in the I-84, Franklin Interchange dedication ceremony in Caldwell earlier this week.

Director’s Report. Director Lowe confirmed the date of the transportation summit, being coordinated with Senator Crapo’s Office and the Governor’s Office, on August 26. The event will be held in Boise, although the location and the agenda have not been finalized.

An earlier Legislative Services Office finding related to aircraft operations has been closed, according to Director Lowe. A cost/benefit analysis should be finalized next month.

Director Lowe said the consultant for the legislative audit of ITD has not been selected. The Division of Highways is scheduling a peer review through the American Society of Civil Engineers. The report should be ready before the next legislative session.

Director Lowe reported that the Division of Motor Vehicles won two awards at the recent American Association of Motor Vehicle Administrators’ conference. The award-winning Public Service Announcements on winter driving and motorcycle safety were shown to the Board.

Adopt-A-Highway. Member Coleman recognized the Diablos 4-H Horse Club for its participation in the Adopt-A-Highway Program. He expressed appreciation for the valuable service to the state the group has officially been providing on US-95, mileposts 436.8 to 438.9, since 1991; although it has been picking up litter since the late 1970s.

Delegation – City of Sandpoint. Sandpoint Mayor Gretchen Hellar asked Member Coleman to meet with city officials, business representatives, and interested individuals on a regular basis during construction of the US-95, Sandpoint North and South project. The complex project will have a significant impact on the community and Mayor Hellar would appreciate being kept informed of the status of the project and how problems are being mitigated. She believes the status reports will also be beneficial for planning purposes.

Chairman Manning thanked Mayor Hellar for appearing before the Board.

Delegation – BCATT. Ponderay City Clerk Nancy Piatt welcomed the Board to northern Idaho and thanked it for visiting Bonner County yesterday. She relayed BCATT’s continued support for the Sandpoint Byway project. She also acknowledged Idaho’s transportation funding shortfall. BCATT members are planning to attend the Transportation Funding Conference next week and want to provide assistance with identifying solutions to the funding concerns.

Chairman Manning thanked City Clerk Piatt for her remarks and for BCATT’s continued involvement in and assistance with transportation issues.

Delegation – Molly O’Reilly. Ms. O’Reilly provided a brief overview on the Safe Routes to School Program and emphasized that as a member of that Advisory Committee, she has a statewide perspective on the pedestrian needs. Although Ms. O’Reilly understands the transportation funding constraints, she believes it is imperative to fund the Enhancement Program and provide transportation options. She encouraged the Board to provide more funding for bicycle/pedestrian pathways and public transit.

Several Board members acknowledged the need for a multi-modal system, but emphasized that the highest priority at this time is to maintain and preserve the existing transportation system. Chairman Manning expressed appreciation for Ms. O’Reilly’s support for alternative transportation and for her efforts to promote transportation options.

Chairman Manning welcomed Representative Marge Chadderdon to the meeting.

Delegation – City of Dover. Dover City Councilmember Maggie Becker thanked the Board for visiting Dover yesterday and viewing the US-2, Dover Bridge. She acknowledged the Department’s funding shortfall, but encouraged the Board to find innovative ways to fund the Dover bridge project. She relayed safety concerns with the existing deficient structure.

Chairman Manning thanked Councilmember Becker for her remarks.

Delegation – City of Rathdrum. Rathhdrum City Administrator Boyer expressed Mayor Holmes’ regrets that he was unable to attend the meeting. Administrator Boyer thanked the Board for traveling SH-41 and visiting Rathdrum yesterday. The community’s population has been growing and traffic on the north-south highway has increased 153% in the last 10 years. He encouraged the Board to address safety and congestion concerns on SH-41. Bridging the Valley is the City’s second priority. Officials are working on securing a federal grant for the Main Street Underpass project, and if the grant is received, they would like the state to provide the matching funds. Administrator Boyer said the third priority is funding for the Enhancement Program. He expressed appreciation to the Board for the pathways it has funded in the community.

Chairman Manning thanked Administrator Boyer for his presentation.

Delegation – City of Post Falls. Post Falls Mayor Clay Larkin thanked the Board members for their time and expressed appreciation for District 1 staff’s assistance and the good working relationship the two entities have established. He added his support for improvements to SH-41 to address safety and congestion concerns. Mayor Larkin also provided an update on the Greensferry project. The Environmental Impact Statement is almost complete and the Record of Decision should be issued soon. At that time, the City is planning to approach the Board with funding for final design, whether the recommendation is an overpass or interchange on I-90. He would like to continue partnering with ITD on this important project. Mayor Larkin also expressed appreciation to the Board members for their service to the state.

Chairman Manning encouraged Mayor Larkin to continue working with District Engineer (DE) Damon Allen on transportation issues. He also said the Department is reviewing projects to ensure their practicality and whether costs can be reduced. With limited funding, efforts are being made to ensure each dollar is spent as efficiently as possible. Chairman Manning also thanked Mayor Larkin for his comments and his partnership on transportation issues.

US-95 Access Study. Two years ago, the Board requested a long-term plan to increase mobility on US-95 from I-90 to Wyoming Avenue, according to DE Allen. Due to a number of turnovers at the state and local level, the study was not completed by July 1, 2008, as initially requested. DE Allen said a new steering committee has been formed to review access and mobility issues. Six alternatives are being analyzed. The committee plans to have its findings ready for Board consideration later this year.

Rule Change in Real Property Management, IDAPA 39.03.45. Right of Way Supervisor Bob Snyder requested amendments to IDAPA 39.03.45 – Rules Governing Sale of No Longer Useful or Usable Real Property. Previously, ITD’s surplused property valued under $10,000 was offered to contiguous property owners first. If no adjacent landowner purchased the property, it was offered at public auction. Property valued over $10,000 was initially offered to public entities for acquisition, and then made available at a public auction. Legislative action eliminated the $10,000 cap, so contiguous landowners are now to be given first option at acquiring all surplused property. IDAPA 39.03.45 is being revised to comply with Idaho Code. Other minor clean up is also being proposed.

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

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

ITB08-31 changes to administrative rules; and

WHEREAS, the Board finds the requested changes to the administrative rule provides adaption to the recent legislative changes and revised statute.

NOW THEREFORE BE IT RESOLVED, that the Board approves the recommended changes to administrative rule: IDAPA 39.03.45 – Rules Governing Sale of No Longer Useful or Usable Real Property; and

BE IT FURTHER RESOLVED, that the Board directs staff to promulgate temporary rule making effective July 1, 2008 and proceed with regular rule making at the same time for the changes as listed above for the administrative rule.

Professional Services Agreements and Term Agreement Work Task Report. Acting Chief Engineer Loren Thomas reported that $6,127,800 in new professional service agreements and work tasks were processed from May 29 through June 20. The agreements were issued for various reasons, including resources not available in-house and special expertise was required. Seven supplemental agreements to existing agreements were processed in the amount of $646,615 during this period.

2009 Legislative Idea Review. Acting Budget, Policy, and Intergovernmental Relations Manager (ABPIRM) Tim Greeley presented the 2009 legislative ideas. The license plate fee increase for manufacturing costs concept proposed last month has been withdrawn. Staff believes additional work is needed on that proposal. ABPIRM Greeley said the ideas the Board approves will be submitted to the Division of Financial Management (DFM). Draft legislation on the ideas DFM approves will be submitted to the Board for review and approval in September.

Member Blick expressed frustration with the proposal to implement Commercial Drivers’ License provisions of the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users. He believes it is a federal mandate and that there are too many unnecessary federal guidelines regarding trucking issues.

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

RES. NO. WHEREAS, the Idaho Governor’s Office has requested that state agencies submit proposed 2009

ITB08-32 legislation to the Division of Financial Management for review and approval; and

WHEREAS, the Idaho Transportation Department Executive Team has approved the “Legislative IDEA Submittal Forms” as to concept and has submitted them to the Idaho Transportation Board for review and approval prior to submission to the Division of Financial Management.

NOW THEREFORE BE IT RESOLVED, that the Board approves submittal of the “Legislative IDEA Submittal Forms”, as shown as Exhibit 361, which is made a part hereof with like effect, to the Division of Financial Management, and upon approval, the development by ITD staff of draft legislation to be included as part of the Governor’s 2009 legislative package, dependent upon subsequent review and approval by the Board and the Division of Financial Management.

The motion passed 5-1 with Member Blick dissenting.

State by State Passenger Car Registration and Fuel Tax Comparison. Doug Benzon, Economics and Research Manager (ERM), completed a review of all states’ annual motor vehicle registration fees and fuel taxes. Registration fees were calculated for a one-year renewal in the District of Columbia and the county seat of the most populous county in each of the Untied States. A 2007 Toyota Camry was used for comparison purposes. This car was selected because it was the most registered passenger car in Idaho last year.

ERM Benzon said Idaho’s total annual registration and state/local fuel tax costs ranked 32^nd nationally at $229.08. Idaho’s annual registration fee of $73.08, which includes Ada County fees, ranked 34^th nationally with the average being $185.38. Idaho’s fuel tax of 26 cents per gallon (which includes the temporary 1 cent per gallon transfer fee, a portion of which funds the Petroleum Clean Water Trust Fund) ranked 22^nd, with the U.S. average being 25.99 cents.

Discussion followed on other funding mechanisms that states have implemented, such as a personal property tax or sales tax. It was suggested that a breakdown of the per person cost or per vehicle cost or the number of lane miles in each state may be useful. Another important message is the cost to operate and maintain ITD’s current system. ERM Benzon was asked to provide information on all transportation revenue sources for the surrounding states.

Chairman Manning thanked ERM Benzon for the informative report and extensive efforts on this research.

Utilization of Runaway Truck Ramp. Last month Idaho State Police (ISP) coordinated filming a truck driver utilizing a runaway truck ramp on US-95 north of Lewiston. Member Sweeney said ISP intends to distribute the video nationally as a training and educational tool. The Board viewed the DVD of this event.

Executive Session on Legal and Personnel Issues, Section 67-2345(a), (b), (d), and (f), Idaho Code. Member Blick made a motion to meet in executive session at 11:25 AM to discuss legal and personnel issues. Member Coleman seconded the motion and it passed 6-0.

A discussion was held on legal matters related to the US-95, Sandpoint North and South project; and matters exempt from public disclosure related to contract negotiations.

A discussion was held on personnel issues related to the filling and evaluation of a public office.

The Board came out of executive session at 12:50 PM. No decisions were made.

Old/New Business. DE Allen said a team has been established to review the US-95, Garwood to Sagle corridor in response to the Board’s action last month to suspend design on this GARVEE project. A number of options are being evaluated, with safety and capacity the highest priorities. The team is planning to present its findings to the Board next month.

Member Blick believes the US-2, Dover Bridge needs to be replaced; however, he suggested reviewing the current plans and determining if the estimated cost of $29 million could be reduced. Member Coleman noted that the design plans are for a four or five lane structure. He questioned the capacity needs of the bridge and asked staff to justify the additional lanes. The consensus of the Board was to have DE Allen provide a thorough overview on the proposed Dover Bridge project next month.

Member Miller believes a number of rural intersections could be improved fairly inexpensively. He asked staff to consider funding safety-improvement projects, such as turn lanes, at rural intersections. Director Lowe said the Districts were asked to review its list of projects and that a number of intersection projects have been submitted. She has also discussed scheduling rural intersection improvement projects in the Safety Program with staff.

WHEREUPON, the Idaho Transportation Board’s regular monthly meeting officially adjourned at 1:05 PM.

_______________signed________________

DARRELL V MANNING, Chairman

Idaho Transportation Board

Read and Approved

August 20, 2008

Rigby, Idaho