Kansas Legislative Research Department February 8, 2019

MINUTES

JOINT LEGISLATIVE TRANSPORTATION TASK FORCE

October 24, 2018 Fort Hays State University Memorial Union Ballroom (2nd Floor) 700 College Dr., Hays, KS

Members Present Senator Carolyn McGinn, Co-chairperson Representative Richard Proehl, Co-chairperson Senator Senator Senator Mike Petersen Senator Senator John Skubal Representative J. R. Claeys Representative Shannon Francis Representative Adam Lusker Representative Troy Waymaster Mary Birch Richard Carlson Jon Daveline Max Dibble Lindsey Douglas Ty Dragoo Chad Girard Steve Hewitt Mike King Kenzil Lynn Alise Martiny Cameron McGown Josh Roe (substituting for Jackie McClaskey) Donald Roberts Andy Sanchez Steve Sloan Kip Spray Bridgette Williams Sam Williams Jerry Younger

Members Absent Representative Henry Helgerson Jim Allen Matt Allen Mike Brown

Staff Present Jill Shelley, Kansas Legislative Research Department Aaron Klaassen, Kansas Legislative Research Department Whitney Howard, Kansas Legislative Research Department Katelin Neikirk, Kansas Legislative Research Department Adam Siebers, Office of Revisor of Statutes Connie Burns, Committee Assistant

Conferees Julie Lorenz, Burns & McDonnell David Simmons, Design-Build Coordinator, Missouri Department of Transportation Ron Seitz, Director of Engineering and Design, Kansas Department of Transportation (KDOT) Scott King, Chief, Bureau of Road Design, KDOT David Jacobson, Director of Engineering, Kansas Turnpike Authority Norm Bowers, Local Road Engineer, Kansas Association of Counties Phillip Smith-Hanes, County Administrator, Ellis County John Braun, President-elect, American Public Works Association – Kansas Chapter William Greving, Commissioner, Phillips County Board of County Commissioners Ken Tharman, Superintendent, Northern Valley USD 212 Nick Poels, Executive Director, Phillips County Economic Development; and Mike Posson, Executive Director, Norton City/County Economic Development Duane Vollbracht, Chairman, Gove County Board of County Commissioners Chris Herrick, Director of Planning and Development and Interim Director of Fiscal and Asset Management, KDOT Al Reif, Commissioner, Osborne County Board of County Commissioners Aaron Steinert, Commissioner, Russell County Board of County Commissioners Brent Trout, City Manager, City of Topeka Tyson McGreer, City Manager, City of Colby Rick Worrel, National Director, American Council of Engineering Companies of Kansas Representative Ken Rahjes, 110th District Joel Skelley, Director of Policy, KDOT

Others Attending See Attached List.

Morning Session

Welcome

Co-chairperson Proehl called the meeting to order at 10:03 a.m. and welcomed the Joint Legislative Transportation Vision Task Force (Task Force) members and guests to Hays. He stated the Task Force has held meetings in every region in the state. Co-chairperson McGinn stated the Task Force has two more regional meetings, in Olathe and Manhattan, and the

Kansas Legislative Research Department 2 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 remaining two-day meeting will be held in Topeka and will focus on Task Force deliberations and recommendations. She noted Task Force members could direct additional requests for information to staff.

Topics for Today and Future Meetings

Julie Lorenz, Burns & McDonnell, provided information on the topics for this and future meetings (Attachment 1). She stated upcoming topics will be a preservation funding update; selection criteria and priority formulas; the economic impact of transportation; and transportation development districts and cost-sharing programs.

Ms. Lorenz provided a review of transportation legislation for 2018. She noted there are 252 transportation ballot measures for 2018, of which 125 are routine local transportation measures in Michigan and Ohio, and 127 are new ballot measures across the country. She stated the most common ballot measure is for roads. She noted 93.0 percent of ballot measures have been approved so far and 84 ballot measures, including one to increase fuel taxes in Missouri, will be voted on in November. She also stated the top funding sources for statewide measures are motor fuel tax and bonding.

Ms. Lorenz provided information on enhancements to the transportation calculator. She stated adjustments to the calculator include: separate axes for good and poor performance, updated pavement and bridge performance curves, and an increased ability to invest more in preservation. She noted the calculator also has tolling functionality, ten-year revenue and expenditure totals, and assumptions.

Alternative Delivery and Project Partnerships

David Simmons, Design-Build Coordinator, Missouri Department of Transportation (MoDOT), provided information on alternative delivery and project partnerships (Attachment 2). He noted design-build is an alternative procurement process, consisting of a two-step competitive negotiation with proposals based on definitive performance criteria. During the process, engineers and constructors are selected based on qualifications and awards are selected on a best-value basis. The process allows the owner of the project to contract with one singular point of responsibility under one contract.

Mr. Simmons noted MoDOT’s first design-build project was a project on I-64 in 2005. He stated MoDOT completes approximately 400 projects per year. He noted 13 design-build projects have been completed since 2005, 1 or 2 a year, with $1.6 billion in contracts. He stated a design-build project under construction is the I-435 South Loop Link in Kansas City.

Mr. Simmons noted the typical characteristics of project delivery method selection are the complexity of the project; opportunity for contractor innovation; schedule and speed of the project; manageable risks, such as utilities, rights-of-way purchasing, and environmental constraints; staff availability for these projects; and market and industry input. He noted completed projects include corridors, including the I-64 corridor in the St. Louis area, which cost $420.0 million and was completed within three years; major bridges, including the US-69 Fairfax Bridge, in partnership with the Kansas Department of Transportation (KDOT); bridge bundling, including the Safe and Sound Bridge Improvement Program, which replaced 554 poorly-rated bridges under one design-build contract; and small projects, including the MO-141 and I-44

Kansas Legislative Research Department 3 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 interchange improvement project in the St. Louis area to enhance mobility and safety along the corridor.

Mr. Simmons provided additional information on MoDOT’s experience with alternative delivery methods. He stated contractor innovation has been key to the design-build program and MoDOT has been able to incorporate some of the innovations into additional projects. He noted MoDOT has saved millions of dollars on projects and those projects have been completed in a more efficient manner. He also noted alternative contracting requires flexibility, confidentiality, and empowering the people working on these projects with contracting partners to have decision-making authority. He advised of the importance of reviewing design-build programs from other state departments of transportation and guidance from the Design-Build Institute of America and the Federal Highway Administration.

Mr. Simmons addressed questions and concerns from the Task Force on the process for design-build projects. He noted MoDOT has a target of 10.0 percent of its construction program to be completed via alternative contracting, but the agency has met this goal only three of the past five years. He also stated the agency utilizes federal funds for these projects, so it is unlikely the agency could have a different rating system for in-state and out-of-state contractors. He noted sufficient staff must be available to provide oversight.

Ron Seitz, Director of Engineering and Design, KDOT, provided information on the KDOT and Kansas Turnpike Authority (KTA) experience with design-build transportation projects (Attachment 3). He stated Kansas has two design-build projects: KTA’s bridge-raising project and KDOT’s Johnson County Gateway. He noted KTA’s bridge-raising project used an engineer- procure-construct (EPC) method. He stated original estimates were $500,000 per bridge for those identified by the KTA’s 2016 long-term needs study, but the KTA was able to raise these 10 bridges at a cost of $400,000 per bridge in 18 months; with the additional savings, KTA raised an additional bridge.

Mr. Seitz stated KDOT’s first design-build project was the Johnson County Gateway project. He noted the Transportation Works for Kansas (T-Works) legislation authorized KDOT to utilize design-build for one demonstration project in Johnson or Wyandotte County. KDOT chose the Johnson County Gateway, which is the interchange of I-35, I-435, and K-10 in Johnson County. He noted the project included the construction of 27 new or rehabilitated bridges and 56 lane miles, which took two and a half years to complete at a cost of approximately $300.0 million. He stated the project was completed one year faster than originally estimated using the design-build method and road closure time was reduced by about 54.0 percent. He stated that the design-builder brought national expertise, but the builder staffed a significant portion of the team using local design and construction firms.

Mr. Seitz noted in 1993, Virginia was the only state to authorize design-build, but the majority of states now allow for some level of authorization for design-build. He noted KDOT’s authority was limited to the one project under T-Works; the agency would need enabling legislation for broad alternative procurement options. He stated KDOT anticipates continuing to use the traditional design-bid-build process for a majority of projects, but desires alternative procurement as a tool for KDOT, which KDOT could utilize on a project-by-project basis. He noted the Kansas Department of Administration uses alternative procurement for facility infrastructure and alternative procurement is widely adopted strategy employed by the private sector in other industries.

Mr. Seitz stated alternative delivery methods would be beneficial during emergencies, such as a bridge collapse; to take advantage of economic development opportunities; and for

Kansas Legislative Research Department 4 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 projects in high-traffic or freight-intensive locations. He stated KDOT would not use alternate delivery on routine projects, such as chip and seal and light overlay projects; projects with little or no potential for innovation; or projects with lesser traffic impacts. He also stated the major barrier for alternative delivery is funding because funding commitments must be made early in the process, often two or three years in advance.

Mr. Seitz addressed questions and concerns from the Task Force on the process for design-build projects and KDOT staffing. He stated currently, KDOT completes 30.0 percent of project design in-house and 70.0 percent is outsourced to the private sector. He noted if KDOT staff continues to decrease, KDOT will have to contract out more traditional projects to the private sector.

In response to a question regarding rating for in-state and out-of-state contractors, Scott King, Chief, Bureau of Road Design, KDOT, stated the federal statutes do not permit KDOT to rate contractors based on their location.

In response to a question regarding cost-savings for contracts, David Jacobson, Director of Engineering, KTA, stated 75.0 percent of savings during the building process under EPC contracts remain with KTA, while 25.0 percent are remitted to the contractor.

Stakeholder Meeting Update

Mr. Seitz provided a summary of the stakeholder meeting on local programs and rural mobility held prior to the full meeting of the Task Force. He stated the counties value their partnership with KDOT. He noted the counties would like more local control over revenues and how they spend their money, and the property tax lid is a particular challenge to the counties. He stated the counties would like reinstatement of the Kansas Local Bridge Improvement Program and the Revolving Loan Fund. He noted the stakeholders discussed the distribution of the Special City and County Highway Fund (SCCHF) and would like distributions of motor fuels tax based on vehicle miles traveled and suggested the number of heavy vehicles be a factor. He stated there was some interest in replacing motor fuels taxes with fees based on vehicle miles traveled. He also noted the importance of a needs study to develop data on the local network.

Local Roads

Norm Bowers, Local Road Engineer, Kansas Association of Counties, provided information on county roads (Attachment 4). He stated local roads make up 93.0 percent of the road miles in Kansas; counties are responsible for 115,000 miles of Kansas roads and 18,050 bridges. He noted counties are responsible for roads outside of cities that are not on the state highway system. These county roads are essential to agriculture, rural residents, oil and gas, aggregate production, and wind power. He stated more than half of the vehicle miles traveled are on the local road system and nearly every trip begins and ends on a local road.

Mr. Bowers stated each of the 105 counties in the state has its own transportation needs, with population, population shifts, local industry, climate, and terrain as contributing factors to those needs. He stated the counties support a safe and well-maintained state highway system and the counties have been supportive of transportation programs. He noted the rural counties are struggling to maintain their roads in reasonable condition, while the more populous counties have a broader tax base to provide these services.

Kansas Legislative Research Department 5 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 Mr. Bowers noted the challenges for road maintenance include static budgets with higher costs, larger and heavier farm equipment traveling on roads and bridges, and an increase in truck traffic because of increased agricultural production and railroad abandonment. He noted counties have had to offset static budgets by reducing road department staff, converting asphalt to gravel roads, converting gravel roads to dirt roads, reducing mowing and other maintenance, and closing bridges, which ultimately results in roads in worse condition.

Mr. Bowers noted the county is directly responsible for the condition of county roads and the level of road maintenance should be made at the local level based on needs and available funding. He stated county roads are funded by local funds, predominantly property tax, the SCCHF, and the Federal Fund Exchange Program. He provided the history of the SCCHF, noted population trends since 1910, and noted the relationship between population shifts and property tax regarding rural roads. He provided information on a proposed special county road fund, which would be financed by a mill levy on property in the unincorporated area only, for use only on rural roads. He stated this proposal would be a county option with a vote of citizens in the unincorporated area and would be a specified levy for a specified time.

Mr. Bowers provided information on bridges, noting there are 19,300 city and county bridges. He stated more than one-third of local bridges have weight limits and will not safely carry loads weighing the legal limit and a quarter of the bridges are more than 75 years old. He noted there is a need to replace 257 bridges a year, but the counties can replace only 115 bridges per year, which leads to a deficit of 142 bridges per year. He stated an additional $60.0 million a year is needed to replace 142 more bridges a year, at a cost of $417,000 per bridge. He stated there is a state program for rail, public transit, and airports, but no state bridge program. He noted the counties are in favor of reinstating the Kansas Local Bridge Improvement Program.

Mr. Bowers addressed questions and concerns from the Task Force on county roads and bridges. He stated he is not aware of any data related to the impact of the property tax lid on county transportation projects and most roads must remain open to provide access to property.

Task Force Discussion

Ms. Lorenz suggested the Task Force members consider the length of the next transportation program, such as a traditional ten-year set program, a rolling five-year plus five- year program, or a five-year plus two-year program.

The Task Force members were provided with an updated information request document (Attachment 5).

Approval of September 20, 2018, Minutes

Co-chairperson Proehl stated the Task Force was provided with a copy of the September 20, 2018, minutes and he would entertain a motion for approval.

Representative Lusker moved to approve the September 20, 2018, minutes as written; Senator Billinger seconded the motion; the motion carried.

Co-chairperson McGinn recessed the meeting at 11:50 a.m. for lunch.

Kansas Legislative Research Department 6 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 Afternoon Session

Co-chairperson Proehl reconvened the meeting at 12:35 p.m.

Local Input Testimony

Phillip Smith-Hanes, County Administrator, Ellis County, provided information on roads in Ellis County, specifically 230th Avenue near US-183 (Attachment 6). He noted in 2013, KDOT committed $1.5 million in economic development funding to Ellis County for improvements to 230th Avenue, as part of a project with total costs of $11.05 million. He stated the project has not been completed after five years because the KDOT funds were targeted for an intersection improvement tied to a truck stop, and no truck stop has been among the developments on 230th Avenue to date. He requested restrictions be removed so KDOT would be allowed to partner with local communities to address economic development needs in those communities.

John Braun, President-elect, American Public Works Association (APWA) – Kansas Chapter, provided information on the transportation projects and efforts the Kansas Chapter supports (Attachment 7). He noted, to keep a modern, safe, and reliable transportation system, the Kansas APWA recommends restoring and protecting funding for KDOT; augmenting transportation funding to modernize the transportation system and grow the economy; and continuing funding for KDOT local programs.

K-383

William Greving, Commissioner, Phillips County Board of County Commissioners, provided information on K-383 (Attachment 8). He stated K-383 was initially constructed in the 1930s and the entire portion of the 25-mile road has no shoulders beyond the edge of the pavement. He noted traffic volumes have increased over the past 80 years, especially heavy truck traffic which has increased 28.0 percent since 2008. He stated K-383 modernization was a T-Works project that was in the final stages of planning with bid letting dates for the Phillips County portion scheduled in 2018 and the Norton County portion in 2019, but this project has been delayed due to lack of funds. He described local efforts to simplify right-of-way acquisition.

Ken Tharman, Superintendent, Northern Valley USD 212, provided information on the safety concerns related to K-383 (Attachment 9). He stated he also is a volunteer emergency medical technician and has responded to many accidents on this stretch of road over the years, including one involving a school bus. He stated K-383 is too weak and narrow for the traffic that is being carried on this road and noted it connects I-80 and I-70.

In response to questions from the Task Force, KDOT officials noted right-of-way for the K-383 project would need to be purchased for the project to begin.

Nick Poels, Executive Director, Phillips County Economic Development, and Mike Posson, Executive Director, Norton City/County Economic Development, encouraged the Task Force to designate the K-383 modernization project in Norton and Phillips counties as a top priority for safety and rural economic stability (Attachment 10).

The Task Force requested a list of all fatality and accidents on highways and roads of delayed T-Works projects.

Kansas Legislative Research Department 7 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 Written-only testimony was provided by the Phillips County Board of County Commissioners in support of the US-383 modernization project (Attachment 11).

K-23

Duane Vollbracht, Chairman, Gove County Board of County Commissioners, appeared before the Task Force on K-23 (Attachment 12). He stated many roads and bridges are past their intended lifespans, loads and equipment are larger, and about 3,000 miles of state highways do not have shoulders. He requested the 11-mile section of K-23 north of Gove to I-70 be widened.

In response to questions, Mr. Seitz noted modernization of K-23 north of Gove to Hoxie was not part of the original T-Works program. He stated the project was a candidate for the program, but did not rise to the level of need to be funded.

In response to a question regarding testimony there are 3,000 miles of state highways without shoulders, Chris Herrick, Director of Planning and Development and Interim Director of Fiscal and Asset Management, KDOT, stated KDOT would research this information.

US-281

Al Reif, Commissioner, Osborne County Board of County Commissioners, spoke on US- 281 (Attachment 13). He stated US-281 from the south city limits of Osborne to the junction of US-281 and K-18 on the north city limits of Luray was built from 1938 to 1949. He noted this portion of road has not had any upgrades to the road bed, shoulders, ditches, or road alignment since that time. He noted the guard rails in some places are so low that they pose a danger to drivers and farm equipment 18 feet wide shares a roadway only 24 feet wide with other traffic. He also provided information on K-181 and County Road 388 in Osborne County.

Aaron Steinert, Commissioner, Russell County Board of County Commissioners, appeared before the Task Force on US-281 (Attachment 14). He asked the Task Force to keep this modernization project at the forefront of the projects to be considered. He noted portions of the roadway are sliding into the ditch and must be repaired often.

Additional Conferees

Brent Trout, City Manager, City of Topeka, spoke on the I-70 Polk-Quincy Viaduct (Attachment 15). He stated the uncertainty of where the final location of the highway will be has led to a lack of development along the right-of-way area. He stated numerous accidents have occurred and a tremendous amount of interstate commerce truck traffic goes through Topeka each day.

Tyson McGreer, City Manager, City of Colby, appeared before the Task Force to discuss transportation projects important to Colby (Attachment 16). He requested the completion of the rebuild of the outside lanes of west K-24; evaluation and the building of a safer and more efficient intersection at Willow Street and K-25, rehabilitation of Country Club Drive, which connects K-24 to I-70, including the intersection of K-24 and Country Club Drive; and an extension of new roads onto Country Club Drive for economic development. He noted rail and airport improvements also are important to Colby.

Kansas Legislative Research Department 8 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 Rick Worrel, National Director, American Council of Engineering Companies of Kansas (ACEC-KS), appeared before the Task Force to discuss alternative project delivery (Attachment 17). He stated ACEC-KS supports the procurement of design professional services using qualification-based selection, supports the continued use of design-bid-build, supports granting KDOT broader authority to deploy alternative delivery methods, affirms the potential benefits of alternative delivery, and believes KDOT’s primary challenges are tied to funding and not to project delivery.

Representative Ken Rahjes, 110th District, shared his thoughts on the future of transportation in Kansas (Attachment 18). He noted the importance of completing the K-383 modernization project. He strongly encouraged completing the projects that were already identified by T-Works, then working on a new plan that focuses on safety, traffic flows, and economic impact.

In response to a question, Representative Rahjes stated it would be important for dollars to flow to the 110th District if there was a surcharge or increase in fuel tax.

Written-only testimony was provided by:

● Edward DeSoignie, Interim Director, Economic Lifelines, regarding preservation (Attachment 19); and

● Stacie Schmidt, Executive Director, Smoky Hill Development Corporation, regarding local programs and T-Works funding (Attachment 20).

US-54, Pratt Bypass

Written-only testimony supporting this bypass was provided by:

● Bill Keller, President, Stanion Wholesale Electric Co., Inc. (Attachment 21); and

● Howard Loomis, Chairman, The Peoples Bankshares LTD (Attachment 22).

Closing Remarks

Co-chairperson McGinn suggested the Task Force members direct information requests to staff.

Ms. Lorenz stated there would be a stakeholder meeting in Olathe on urban mobility.

The Task Force requested additional information on:

● A breakdown of the motor fuel tax;

● If FedEx and UPS vehicles are registered in Kansas and how fleets are registered;

Kansas Legislative Research Department 9 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018 ● What states have fees for hazardous materials on trucks; and

● How adjustments for inflation are calculated from year-to-year, the factors for inflation for the last ten-year program, and the actual inflation in Kansas for both revenues and expenditures.

In response to a question, Joel Skelley, Director of Policy, KDOT, stated commercial motor vehicles are not charged differently according to what they are hauling.

Co-chairperson Proehl thanked Fort Hays State University for the use of its facility.

The next Task Force meeting will be November 8, 2018, in Olathe, at the Kansas State University Innovation Campus.

Co-chairperson Proehl adjourned the meeting at 2:06 p.m.

Prepared by Connie Burns Edited by Whitney Howard and Jill Shelley

Approved by the Committee on:

February 8, 2019 (Date)

Kansas Legislative Research Department 10 Joint Legislative Transportation Vision Task Force Minutes for October 24, 2018