JAC Index01152016am1 Agenda Department of Transportation AandI – Capital Construction ER means Exception Request Gov means Governor 1/15/2016 9:34:27 AM Chairman for the day is Co-chairman Ross Richards: Roll Call - All present Ross: Welcome and explanation. Panos: Director of Wyoming Department of Transportation, introduced staff: Freier, Haller, Ratlif, Schultz, Loftin, Byrne, Fredrick, Explanation of Agency – largest in the state. 1917 began, one of the oldest agencies. Budget has two parts, Commission and Legislative. We will discuss the legislative. Functions: Transportation construction, operations, law enforcement, drivers’ services. 45M hits to website during the storm before Christmas, aeronautics 1/15/2016 9:40:45 AM Rodney Freier, DOT Budget Manager: handout 045-143- Budget presentation. Page 1 anticipated revenue for the entire dept. Harshman: Statute .10 passed. 100% was going to pavement. Statute has expired. Is that still the practice of the commission and the department? Freier: Yes. We only make contractor payments out of that fund. Harshman: Do not need to run another statute? Freier: Correct. Harshman: UW study. 300 fuel distributers, only 50 were in state. After the .10 fuel tax addition, cost of gas only increased .01. Hibbard: Correct. Explanation Harshman: Split? Freier: 57.5% to highway fund. I do not have the percentages. I have the total numbers on a slide Hibbard: 72M collected. 47.5 is WYDOT share, remainder distributed to municipalities and a small part to Dept. of Parks. Harshman: Every penny of that 47M is going for pavement jobs? Freier: Correct Burns: Pie chart Hibbard: Large green square is highway user fees that are constitutionally protected. 1/15/2016 9:47:41 AM Freier: Red is registrations, 66M total. Driver’s license is 4.3M; Vehicle Fees is for overweight fees, special permit revenue, 11M Hastert: Is there a deficient in driver’s license division? Fees do not cover expenses? Freier: Correct. Costs about 8 M and only collect 4.3M Freier: Federal mineral royalties 66M and severance taxes 6.7M; GF of 34M. Other is flight revenue, equipment sales, and insurance reimbursements. Largest piece is federal aid. Burkhart: What does the new transportation bill mean for Wyoming? Panos: Huge win for all states to create stability in the funding stream over the next 5 years. Average increase identified for Wyoming over the next 5 years will be about 15% of the monies received. About 20M to us each year. Average of 20M. Public transit, adds about 18%, so more dollars provided to counties and cities for public transportation. Other items in bill like dollars for surveying unpaved roads and freight component. Federal delegations, previous director and DOT staff did a remarkable job at staying present on the windows of opportunity. Ross: Have you received any of the 15M yet? Panos: not yet. In 2012, part of the 2 yr. funding bill was to remove AML funds from states. It is recovered under this bill for previous money withdrawn and additional money for next 5 years. 300M. Money will come in right away. Helpful to our budget. In past, money has been utilized for transportation priorities. Ross: When do you anticipate receiving money? Panos: unknown, will follow up. Connolly: 20 M per year or biennium? Panos: Each year, 15% on average. Will come in irregularly for 5 years Connolly: priority list already? Ability to swap GF money for this increase in federal funds. Panos: Yes, we have a long list of priority projects that are shovel ready. 150 under construction. 300 in design, 100 back before design ready to go. Investment over 10 years about 3B. Same amount as for public education. 64M short in terms of money to preserve that investment. Without those dollars, that investment will degrade. In our budget proposal and gov. recommendation, there is about 25M to help clear the gap. Federal money will help. Still a bit short. 1/15/2016 9:59:59 AM Hastert: Federal monies. Can Wyoming get money for safety projects? Panos: yes, we successfully compete for grants. Hastert: Dollars for maintenance. Panos: Robust increase in grant programs so there is more money to go after. We will be competing with other states. Hastert: Third lane on I80 could be argued that it is a safety factor? Pinch point. Truck traffic growth. Panos: Federal planning program for capital improvement on highway system. There is not that kind d of project in the STIP (Surface Transportation Improvement Plan). 1/15/2016 10:04:01 AM Freier: skip page, page 2 Funding to Cities and Counties: Roads and highways, Airports, Mass transit. Perkins: Fuel tax went into effect a few year ago but flat amounts? Freier: Fuel tax is not included here. It is 613 motor fuel fund. No GF’s go out. Hibbard: Within WYDOT budget, these are the allocations that go out to the local government. It does not include the funds that wydot spends. Burns: Restriction of funds for local govt? Freier: Typically through grant project Burns: site specific? Freier: yes Panos: audit system in place for performance and use of public money Burns: How many cities have transit services? Panos: Casper, Cheyenne in form of buses. In rural areas, in form of senior transportation. Almost all counties have some form. 1/15/2016 10:08:03 AM Freier: page 3 – Gasoline projections. Numbers and percentages. State Highway fund 45M, LUST money 3.4 DEQ gets a like amount of that money. Counties 10M; state county 11M or 14%. Cities at 11.9M or 15%. State parks invoice us for off-road vehicles, motor boats and snowmobile. Perkins: Distinction in State/County and counties bars? Hibbard: counties green band is for maintenance.. State/county purple bard is for improvement program. Perkins: bid process? Hibbard: explanation Panos: DOT connected to cities and counties and to state agencies. Robust Partnership. Burkhart: UW technology transfer? Freier: of benefit, county road inventory and other research from UW. 1/15/2016 10:12:25 AM Freier: page 4 Diesel fuel distribution: 63M to state highway fund ; SHF is 2% - amount did not change. LUST 8.4M counties 16.9M or 20%; Cities 4.2M Burns: Why is more money going to LUST from diesel than gasoline? Freier: Hibbard: one penny is tax on all fuel. Gasoline side does not have as much highway usage. 4m per penny difference. Burns: red diesel versus clear diesel Hibbard: yes Burns: reaching end of LUST Panos: Better for DEQ to answer. Can follow-up Hibbard: DEQ testified that they anticipate this to ramp down. Will shift some money from LUST to landfill account. LUST penny will still be collected. 1/15/2016 10:16:15 AM Freier: Page 5 Expenditures. Highway improvement is fixing roads 336.3M; Regular/Special maintenance/Operations.- is 109M Panos: This year we will spend 5M for sand. Freier: planning/administration 26.9 M; Capital expenditures are buildings, fleet vehicles. Other includes license plate production, transit, wyolink and salecx.. Burns: Does WYDOT care about the different license plates? Loftin: At one time we had embossed plates, expensive to change. Now we have flat plates. Cost to design and programming is $8000. Freier: 8.2M for drivers’ license program, revenues of about 4 m; Administration of 1.7M. Aeronautics includes flight operations and airport improvement. Law enforcement is 43M per years. 1/15/2016 10:21:33 AM Freier: page 6, Better getting federal funds. 29% state funds , 64% federal funds. Burns: Why do we have a better ratio than other states that have the reverse? Hibbard: Wyoming relies more heavily on federal funds because we don’t have the state dollars that other states do Burns: federal fund relatively similar. WE rely on them more Hibbard Panos: Formula vs. grant driven. Formula keeps the money in Wyoming and other rural states. Connolly: If we put in more state funds, would that leverage more federal funds under the new program? Panos: no but it would for the grant program Freier; National average is 60% state and 40% federal. Burkhart: Fredrick: Federal funds can be spent on federal and state highways. You may be referring to how we are spending x. Stubson: direct appropriations Panos: 23m per year or 46M per biennium Stubson: straight appropriation Panos: part of our standard budget. WE have a STIF with projects. This is more of a direct appropriation Burns: Wyoming had federal funds diverted. New act still in effect, list? Panos: Yes still in effect and we can get you a list. Also of diversion to other funds Hibbard: open container set aside. 11.5M per year is diverted to open container repeat offender. WyDot can use those funds for safety related items. WyDOT does not lose the funds. Panos: Will get you a list. Harshman: 13M? Hibbard: two set asides or sanctions, avg 11.5M, 1.5 M has other priorities. Ross; 1/15/2016 10:30:13 AM Freier: page 7 63.7M needed to maintain highway in condition today, to protect investment Page 8 – Percentage of road miles in poor condition. In 2013, if we had not received fuel tax, red line shows how the trend line would have increased. Page 9 – Road deterioration vs. Time. – critical to do timely maintenance instead of spending more dollars in reconstruction. Every dollar spent. Ross: Every dollar delayed will cost 4 to 8 dollars later. Hastert: Wyoming had lower price. Not much of an impact. Freier: Will provide in a follow up 1/15/2016 10:33:10 AM Break 1/15/2016 10:46:11 AM Meeting resumed a few minutes ago Panos: No travel adjustments, increase or decrease for Chapter 17. Accurate budgeting. net to zero is a chapter 17 adjustment . Transfer of one position. Go through budget, will skip wyolink. Going through net to zero and chapter 17 Richards: Voluminous document that is only on sharepoint. 1/15/2016 10:50:43 AM Break 1/15/2016 10:51:30 AM Panos: page 4 – Current Governor’s request, additional 25M Nicholas: Has the Governor made any modification based on transportation bill? Panos: No. Budget published already. The governor’s recommended 25M will help cover some of that gap. Increase in federal funds form surface transportation bill at avg. of 20 M per year will cover some of gap. The 25m is essential. Legislative budget discussion, seeking spending authority. 1940 employees, 563 on this side. 1/15/2016 10:54:16 AM Panos: page 5 Greear: Comment on hiring freeze, vacancy reports, recap. Panos: Asked by governor’s office to provide focus towards hiring freeze. 120 positons for estimated 9m savings. 33 legislative - 87 are commission. Hibbard: air service enhancement administrator is the only GF position Greear: So the 563 are not in our purview Hibbard: They are but only one if GF. Panos: The remainder are funded by user fees, federal funds. Greear: Recap of GF to 260,000 does not go to series 100? Hibbard: Correct. Explanation of GF. The only position GF is the air service enhancement. Greear: If we cut positions and save a million dollars, does it make the roads in my counties better. Panos: if positions had association with road program and we were going to transfer the money to the road program. Burkhart: Highway patrol troopers vacancies Panos: Focusing on recruitment. Long process. Need for new positions and reclassify positions. Port of entry and dispatch Ross: how many vacancies in highway patrol? Freier: 23 as of this week. 1/15/2016 11:01:36 AM Panos: page 6. % at 85 rule – operational risk for losing people. Page 10, 11 – Priorities. Freier: page 10 is commission side priorities. Page 11 is the same for the legislative side Panos: page 11 is highway patrol side . Ross: Is SALECS about to go away? Hibbard: No Panos: page 12 is administration and regulatory. Cost of registration of a vehicle has not increased since 1973. Cost of business has gone up. Human resources group handles 500 cases individually, double what other agencies are managing in terms of case load. Office services. Management services group help up with government relations. 4 in office. Procurement services has remarkable buying power, public affairs, 5 attorneys assigned to us out of the AG office. 3 versions of budget book in front of the director, changing to the one we have. Page numbers will be the same from her on out. Panos: page 11 – air service enhancement. We have a problem of retaining air service. This is our tool. 5.4M request, gov rec. Hibbard: Original was 5.4M. 2.8M is std. budget. ER for 5.4M. Air service enhancement folks believe they could reduce it to 2.7M. Climate of GF’s, Governor recommended leveraging airport improvement and air enhancement program together. Received 7 M in additional federal funds for airport improvement. Have ability to transfer within the division that 2.7M. If there upcoming issues, will be addressed in the supplemental budget. Nicholas: One page follow-up. Hibbard: I will see you have it. Panos: page 12 – Commission ER requests. Ross: will go through as we go through budget? Freier: page 12 is request for budget authority Page 13 is ER for GF. Burns: Does DOT work through ETS. Freier: We pay ETS for services Panos: yes, robustly. We have ETS office in WYDOT headquarters. We are the largest client of ETS. Ross: if you want to point out something on page 13 or address as we go through budget Panos: Page 15 – Administration – Public affairs takes care of hits on website. Storms, 12 employees take the calls, The phone does not stop ringing throughout the storm. It takes a toll on the staff. Moniz: Budget shows 15 employees in this division, only 1 is GF. How are these employees funded? Hibbard: recommend moving into units an explaining Panos: Adminstration, page 18, legal services, Hibbard: Panos: Focus on ER only? Do not bypass ER. Ross: Panos: ER for IT Freier: Internal IT costs allocated across the agency, increase spending authority . one laptop. Hibbard: WyDot does internal cost allocation. Future units can say it is the same request. 1/15/2016 11:21:21 AM Freier: page 18 and 19 – no ER for legal services . Panos: page 21 Internal revenue – 6 laptops. Burkhart: Computer purchases. 5 year cycle. Other agencies are on 4 year cycle Freier: We use computers two years beyond warranty as accost savings. Burkhart: We jack up the good parts, throw out the bad parts. The whole budget is full of requests for computer equipment. Freier: We try to use them for 5 years. Hibbard: DOT replaces the CPU on rotation but monitors stay on desk until they failure Panos: Same for our vehicles. I have the same computer John Cox had for his duration. Greear: ETS positions – how does that impact the employee count? Hibbard: Direct bill event takes place inside wyodot. Takes place in division 0400 unit 0407 Greear: page 23 – Giving positions back to WyDot. Hibbard: page 23 – limited number of IT people are wydot positions on commission side Greear: not seeing on this side of the budget Hibbard: indirect cost allocation. Have to make sure it is done correctly or federal govt. can challenge. Perkins: Internal Review dept. Results of reviews? Panos: Will give you the report, produced monthly. Ross: page 24 Address travel 1/15/2016 11:29:10 AM Freier: no increases or decreases to the travel budget Panos: page 26 public affairs – Freier: ER for 1 CADD and 2 desktops Burns: page 28 public affairs, supplies are 265000 what is that? Panos: Maps, Freier: ER is IT allocation discussed previously Panos: Appreciate advice and guidance. Perkins: In charge of STIP program Panos: yes 1/15/2016 11:31:49 AM Freier: page 29, administrative services, ER for computer Next ER is internal IT allocations. Page 32 finished support services Page 33 Driver’s services. Cost increased, funded by highway funds. Loftin: Progress with the lines. Technically compliant with real ID, have gone through one cycle, should see decrease in time with each customer. Shifted positions . Perkins: What is technically compliant? Loftin: All the citizens have gone through the process and presented the documents required. Some exceptions. Military exceptions. Freier: page 35 ER for programming cost increase, highway fund ER for replacement computers, 90, sit in driver’s services offices. Panos: We have 29 driver’s services locations. Freier: ER for internal IT cost allocation Page 37-38 Motor vehicle services page 39 std. budget. ER for software. Commission funds Ross: What is it? Panos: connects us to other states. Ross: to know suspensions, Panos: in part yes. Freier: ER replacement computers, 14 desktops for motor vehicle services offices. Last is IT allocation Perkins: Software page 39 narrative. Loftin: explanation of software. Will get $1M per year for more vehicle enforcement. Core compliant for availability of motor carrier funds. Freier: ER 1/15/2016 11:42:14 AM Freier: Human resources, laptop, desk top replacement. Internal IT allocation Burkhart: 20,000 for instate and 30,000 for out of state. Explanation for that amount. Panos: Std. budget amount, has not changed. Locations with employees at district offices, conducting training and attending training. Work with other states’ agencies Hibbard: requirement for recruiting at job fairs. Perkins: nature of supplies? Freier: office supplies Panos: we will get a run- down of details Hibbard: Statically on 7 employees, fair analysis but handling 5000 employees explains the difference. Freier: page 51 Perkins: cost allocation? Administrative services, statewide clearing Hibbard: 0407 – plans DOT has to put together and available to contractors Panos: converting records to electronic form and going through archives to preserve them. Look at a bridge that is 50 years old, can’t read the records, making them electronic. 1/15/2016 11:47:10 AM Freier: Page 53 – statewide cost clearing 0400 – cost of doing business with other agencies. Panos: 15M – providing support to a lot of state agencies Freier: Page 55 – internal allocation Page 58 procurement - desktop Burns: Better breakdown for supplies for all the divisions. Panos: we can Hibbard: human resources, office administration, office management support the entire organization so small number does not correlate to supply amount. Freier: page 61 Strategic performance improvement. Page 64 fuel tax administration ER for computer equipment and allocation. Page 68 Law enforcement ER for CADD upgrade Burkhart: page 69 – narrative – Can this be linked into Wyolink? Running dual systems Haller: yes. They are two disparate systems. Communicating information to server, requires connectivity and uplink. It is different than wyolink which is typically voice. The reports we are talking about are data. Freier: will be using federal funds Perkins: E citation? Haller: Many vendors have found that e-citations is a separate system, so they recommend other vendors to customers. Perkins: 400,000 for component. Is it the right product? Why spend the money if going to a different system? Haller: current E-citation was customized and will no longer be supported by Intergraph. Perkins: beta tested? Haller: Talking to other agencies that have used new products. 1/15/2016 11:55:11 AM Freier: page 71 – patrol car cameras, video evidence. ER for replacement of cameras Ross: Do all the cars have cameras. Haller: yes, all vehicles performing enforcement actions Burns: will be hooked up to microphone> Haller: yes, mics are synced. Ross: body cameras? Haller: I believe so, in the future. Currently we record 98% of activity with highway patrol, using the dash camera. Perkins: part of a rotation? Haller: Will follow-up. Perkins: Are you contemplating going to body cameras? How do you cost effective that? Panos: Analysis of new technology are based on cost-benefit to the function. In Law enforcement, team evaluates if we should pilot new technology. Same process with body cameras. Freier: federally funded ER for Replacement of computer, internal cost allocation Page 74 Panos: transfer to homeland security Page 78 ports of entry. ER for computer and for internal cost allocation. Panos: Burns: Cost and revenue share with states Freier Panos: Capitol renovation security services, providing security during move and while relocated. Pass over wyolink Freier: page 95 Aeronautics administration. ER for computer and internal It cost allocation Aeronautics division – ER for air service enhancement. Gov rec to cut that. Byrne: 5.1 M request based on anticipated need. Grant request from Cody, Sheridan, Gillette, Rock Springs and Jackson Connolly: explain gov rec beyond the denial, transfer of the budgets. Byrne: use money within AIP, which has money available Connolly: is that a B-11? Hibbard: Within the same division, would track with B-11 for transparency, unit has authority to do it. Burns: Hibbard: Byrne: Gives commission flexibility, would prefer that. 1/15/2016 12:07:28 PM Freier: page Ross: returning money Freier: page 112. Std. budget 1/15/2016 12:08:18 PM Break for lunch, then return to do WyoLink. Return at 1:15 1/15/2016 12:08:42 PM