IBTTA BOARD BOOK VOLUME 1
September 13-14, 2019 Halifax, Nova Scotia CANADA
Revised September 5, 2019 IBTTA Board of Directors and Committee Meetings September 13-14, 2019 Halifax, Nova Scotia CANDAD Table of Contents
Chapter 1: Basic Information 1. Schedule ...... 4 2. Roster of Board and Committees ...... 5 3. Strategic Plan ...... 15 4. Three-Year Plan ...... 26 5. Deliverables as Part of 3-year Plan ...... 48 6. 2020 Conference Schedule ...... 56
Chapter 2: Executive Committee 7. Agenda ...... 58
Chapter 3: Membership Committee 8. Agenda ...... 59 9. Membership Committee Meeting Notes August 7, 2019 ...... 60 10. Summary of Dues Collections and Related Reports ...... 62
Chapter 4: Past Presidents Advisory Council 11. Agenda ...... 73 12. 2020 Presidential Initiative: Tolling Immersion Program ...... 74
Chapter 5: International Committee 13. Agenda ...... 76
Chapter 6: Finance Standing Committee of the Board 14. Agenda ...... 77 15. Mission Statement ...... 78 16. Investment Policy ...... 80 17. 2019 Finance Committee Goals ...... 89 18. Slide Presentation on Internal Controls Assessment and Risk Assessment ...... 91 19. Internal Controls Assessment Memo ...... 99 20. Risk Assessment Memo ...... 110 21. Risk Assessment Action Plan ...... 119 22. Schedule for Approving 2020 Budget ...... 124
2 Chapter 7: IBTTA Board of Directors 23. Agenda ...... 127 24. Young Professionals Council Paper ...... 128 25. Resolution on New Members ...... 129 26. Presentation to National Governors Association on Priced Managed Lanes...... 130 27. Third Party Validators ...... 137 28. Global Tolling Newsletter ...... 141 29. Resolution of Appreciation for Tim Stewart ...... 155 30. Minutes of IBTTA Board Meeting May 2019 ...... 156
Later Distribution 31. June 30, 2019 IBTTA Financial Statements ...... 32. Proposed IBTTA 2020 Budget ...... 33. Minutes of Finance Committee Meeting May 2019 ...... 34. Foundation Board Agenda ...... 35. Minutes of Foundation Board Meeting August 2019 ...... 36. Peer Exchange Program Paper ......
3 Schedule of the IBTTA Board of Directors and Committee Meetings in Prince George Hotel September 13-14, 2019
FRIDAY, SEPTEMBER 13, 2019 9:00am – 11:00am Executive Committee (BY INVITATION) (Balmoral, 2nd Floor) 9:00am – 11:00am Council of Platinum Sponsors (BY INVITATION) (Regency, 1st Floor) 11:00am – 12:00pm Executive Committee and COPS together (BY INVITATION) (Regency, 1st Floor) 12:00pm – 2:00pm Executive Committee Lunch (BY INVITATION) (Gio Restaurant, 1st Floor) 2:00pm – 3:00pm Foundation Board (Windsor, 1st Floor) 3:00pm – 4:00pm Membership Committee (Windsor, 1st Floor) 4:00pm – 5:00pm Past President Advisory Committee (Windsor, 1st Floor) 7:00pm – 10:00pm Dinner for Board, Past Presidents and Honorary Members (BY INVITATION)
SATURDAY, SEPTEMBER 14 7:30am – 9:00am Breakfast (Regency, 1st Floor) 9:00am – 10:00am International Committee (Windsor, 1st Floor) 10:00am – 12:00pm Finance Standing Committee of the Board (Windsor, 1st Floor) 12:00pm – 1:00pm Lunch (Terrace Restaurant, 1st Floor) 1:00pm – 5:00pm IBTTA Board of Directors Meeting (open to all members) (Windsor, 1st Floor)
4 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
AUDIT COMMITTEE James D. Carone New Jersey Turnpike Authority [email protected] John Lawson Virginia Department of Transportation [email protected] Julià Monsó Cintra [email protected] Kathryn O'Connor Rhode Island Turnpike and Bridge Authority [email protected] DEBORAH SHARPLESS Maryland Transportation Authority [email protected] Bruce Van Note Maine Department of Transportation [email protected] AWARDS COMMITTEE Rachel E. Bell Kansas Turnpike Authority [email protected] Jessica Z. Carson E-470 Public Highway Authority [email protected] Thomas Delaney Atkins N.A. [email protected] Bill M. Halkias HELLASTRON [email protected] DAVID MACHAMER Oklahoma Turnpike Authority [email protected] John Mike Perceptics, LLC [email protected] Ken Philmus Conduent Transportation [email protected] David Pope Silicon Transportation Consultants [email protected] BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE TERM PRES Christopher Tomlinson State Road & Tollway Authority [email protected] 1st VP Samuel Johnson Transportation Corridor Agencies [email protected] 2nd VP Mark Compton Pennsylvania Turnpike Commission [email protected] INT’L VP Malika Seddi ASFA [email protected] IPP Tim Stewart E-470 Public Highway Authority [email protected] 2020 Diane Gutierrez-Scaccetti State of New Jersey Department of Transportation [email protected] 2021 Bill Halkias HELLASTRON [email protected] 2022 James Hofmann North Texas Tollway Authority [email protected] 2019 John Lawson Virginia Department of Transportation [email protected] 2019 Julià Monsó Cintra [email protected] 2019 María Moreno SEOPAN [email protected] 2021 Mark Muriello The Port Authority of New York & New Jersey [email protected] 2021 Kathryn O'Connor Rhode Island Turnpike and Bridge Authority [email protected] 2022 Patty Rubstello Washington State Department of Transportation [email protected] 2020 Massimo Schintu AISCAT [email protected] 2020 Malika Seddi ASFA [email protected] 2020 Juan Toledo Miami-Dade Expressway Authority [email protected] 2019 Gary Trietsch Harris County Toll Road Authority [email protected] 2019 Bruce Van Note Maine Turnpike Authority [email protected] 2020 Joseph Waggoner Tampa-Hillsborough Expressway Authority [email protected] COMPENSATION POLICY COMMITTEE
1 5 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Samuel Johnson Transportation Corridor Agencies [email protected] TIM STEWART E-470 Public Highway Authority [email protected] Christopher Tomlinson State Road & Tollway Authority [email protected] EMERGING TECHNOLOGIES COMMITTEE Joseph Averkamp Parsons Corporation [email protected] Mary J. Biswell Oklahoma Turnpike Authority [email protected] Mark Cantelli Conduent Transportation [email protected] Jeffrey Dailey Central Texas Regional Mobility Authority [email protected] Mike Davidson RK&K [email protected] Michael J. Davis RS&H [email protected] Thomas Delaney Atkins N.A. [email protected] Federico Di Gennaro AISCAT (Associazione Italiana Società Concessionarie Autostrade e Trafori) [email protected] Jose Dios New Jersey Turnpike Authority [email protected] Robert Frey Tampa-Hillsborough Expressway Authority [email protected] JAMES HOFMANN North Texas Tollway Authority [email protected] Andy Lelewski North Carolina DOT, Turnpike Authority [email protected] Marwan F. Madi CDM Smith [email protected] Dimitrios Mandalozis AEGEAN MOTORWAY S.A. [email protected] Matt Milligan Milligan Partners LLC [email protected] Titus Moore Fagan Consulting [email protected] René Moser ASFINAG [email protected] Suzanne Murtha AECOM [email protected] John O'Neill Maryland Transportation Authority [email protected] Lev Pinelis Transurban [email protected] Dick Schnacke TransCore, LP [email protected] Shannon Swank BancPass, Inc. [email protected] Robert Taylor Pennsylvania Turnpike Commission [email protected] Benton Tempas Northwest Parkway LLC [email protected] Frank Velez North Texas Tollway Authority [email protected] BIG DATA WORKING GROUP Jeff Dailey Central Texas Regional Mobility Authority [email protected] Michael Davis RS&H [email protected] Neil Gray IBTTA [email protected] Ken Juengling Pennsylvania Turnpike Commission [email protected] Suresh Kakarla TollPlus LLC [email protected] Pat Louthan North Texas Tollway Authority [email protected] MARWAN MADI CDM Smith [email protected] Said Majdi TollPlus LLC [email protected] Rob Marsters PTC [email protected]
2 6 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Matt Milligan Milligan Partners LLC [email protected] Titus Moore State Road & Tollway Authority [email protected] Steve Novosad HNTB Corporation [email protected] Matt Putterman Transurban [email protected] Joseph Soliz CVO Holding Company, LLC [email protected] Benton Tempas Northwest Parkway LLC [email protected] Matt Usher CVO Holding Company, LLC [email protected] Frank Velez North Texas Tollway Authority [email protected] CONNECTED AUTONOMOUS VEHICLES WORKING GROUP Joe Averkamp Parsons Corporation [email protected] Larry Bankert Michael Baker International [email protected] Marco Barbarossa Jacobs Engineering Group [email protected] Cheryl Bolin HNTB Corporation [email protected] Michael Boone HNTB Corporation [email protected] Barry Brandt RK&K [email protected] Jim Burnett RK&K [email protected] Mark Cantelli Conduent Transportation [email protected] Patrick Chuang Transurban [email protected] Dan Corey AECOM [email protected] Jeff Dailey Central Texas Regional Mobility Authority [email protected] Bernd Datler ASFINAG [email protected] Mike Davis RS&H [email protected] Federico Di Gennaro AISCAT [email protected] Mark Dunzo Kimley-Horn [email protected] Bob Edelstein AECOM [email protected] Jacqueline Erhart ASFINAG [email protected] Bob Frey Tampa-Hillsborough Expressway Authority [email protected] Neil Gray IBTTA [email protected] Gibran Hadj-Chikh Parsons Corporation [email protected] Bill Halkias HELLASTRON [email protected] James Hofmann North Texas Tollway Authority [email protected] Dennis Jernigan North Carolina DOT, Turnpike Authority [email protected] Brian Kelley Ohio Turnpike and Infrastructure Commission [email protected] George Kiousis HELLASTRON [email protected] Christina Kopp Tampa-Hillsborough Expressway Authority [email protected] Steve Kuciemba WSP USA [email protected] Madi Marwan CDM Smith [email protected] Megan Mohan Maryland Transportation Authority [email protected] Julià Monsó CINTRA [email protected]
3 7 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
René Moser ASFINAG [email protected] Roxanne Mukai Maryland Transportation Authority [email protected] Mark Muriello The Port Authority of New York & New Jersey [email protected] Suzanne Murtha AECOM [email protected] Steve Novosad HNTB [email protected] Donna Obuchowski Tampa-Hillsborough Expressway Authority [email protected] John O'Neill Maryland Transportation Authority [email protected] Tom Owen ETC Corporation [email protected] Raj Paradkar Kimley-Horn [email protected] Jason Pavluchuk Carma Technology Corporation [email protected] Leigh Petschel Transurban [email protected] LEV PINELIS Transurban [email protected] John Reese Miami-Dade Expressway Authority [email protected] Rob Rich Metropolitan Transportation Commission [email protected] Stacia Ritter Pennsylvania Turnpike Commission [email protected] Javier Rodriguez Miami-Dade Expressway Authority [email protected] Paul Satchfield Florida's Turnpike Enterprise [email protected] Nanette Schieke Maryland Department of Transportation (MDOT) [email protected] Dick Schnacke TransCore, LP [email protected] Wendy Shafer TTI Consulting [email protected] Mike Shannon Florida's Turnpike Enterprise [email protected] Tanya Sheres Transurban [email protected] Alex Shirshov Transurban [email protected] Craig Shuey Pennsylvania Turnpike Commission [email protected] Allie Slizofski Drive Engineering [email protected] Matt Smith Michael Baker International [email protected] Paul Steinberg Carma Technology Corporation [email protected] Sabu Stephen North Texas Tollway Authority [email protected] Jennifer Stueber Ohio Turnpike Commission [email protected] Shannon Swank [email protected] Bancpass Bob Taylor Pennsylvania Turnpike Commission [email protected] Sean Tihal Stantec Consulting Services Inc. [email protected] Juan Toledo Miami-Dade Expressway Authority [email protected] Mario Toscano Drive Engineering [email protected] Noah Tunick Metropolitan Transportation Commission [email protected] Frank Velez North Texas Tollway Authority [email protected] Patrick Vu Silicon Transportation Consultants [email protected] Joe Waggoner Tampa-Hillsborough County Expressway Authority [email protected] Jeff Weiss Gannett Fleming [email protected]
4 8 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Jim Wilson TransCore, LP [email protected] Tony Yacobucci Ohio Turnpike Commission [email protected] DRONE WORKING GROUP Jeff Dailey Central Texas Regional Mobility Authority [email protected] MIKE DAVIDSON Pennsylvania Turnpike Commission [email protected] Troy Davidson North Texas Tollway Authority [email protected] Federico Di Genarro AISCAT [email protected] Jose Dios New Jersey Turnpike Authority [email protected] Nikolaos Efstathopoulos IBI Group (Associate Director) [email protected] Neil Gray IBTTA [email protected] Dimitri Mandalozis HELLASTRON [email protected] Rene Moser ASFINAG [email protected] Suzanne Murtha AECOM [email protected] John O’Neill Maryland Transportation Authority [email protected] Mark Pavageau North Texas Tollway Authority [email protected] Frank Velez North Texas Tollway Authority [email protected] INNOVATION WORKING GROUP Trey Baker WSP [email protected] Mary Biswell Oklahoma Turnpike Authority [email protected] Mark Cantelli Conduent Transportation [email protected] Eric Coraggio Transurban [email protected] JEFF DAILEY Central Texas Regional Mobility Authority [email protected] Federico Di Genarro AISCAT [email protected] Jose Dios New Jersey Turnpike [email protected] Bob Frey Tampa-Hillsborough Expressway Authority [email protected] Neil Gray IBTTA [email protected] Sean Hill Delaware River Joint Toll Bridge Commission [email protected] Andrew Joyce CVO Holding Company, LLC [email protected] Christina Kopp Tampa-Hillsborough Expressway Authority [email protected] Marwan Madi CDM Smith [email protected] Matt Milligan Milligan Partners LLC [email protected] Titus Moore State Road & Tollway Authority [email protected] Rene Moser ASFINAG [email protected] Steve Novosad HNTB Corporation [email protected] John O’Neill Maryland Transportation Authority [email protected] Lev Pinelis Transurban [email protected] Paul Satchfield Florida's Turnpike Enterprise [email protected] Robert Taylor Pennsylvania Turnpike Commission [email protected] Frank Velez North Texas Tollway Authority [email protected]
5 9 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Mia Zmud Central Texas Regional Mobility Authority [email protected] TOLLING & CUSTOMER MANAGEMENT WORKING GROUP Mark Cantelli Conduent Transportation [email protected] JoAnn Carlisle TollPlus LLC [email protected] Manish Chourey Conduent Transportation [email protected] Eric Coraggio Transurban [email protected] Jeff Dailey Central Texas Regional Mobility Authority [email protected] Chris Garlick AECOM [email protected] Neil Gray IBTTA [email protected] Andrew Joyce CVO Holding Company, LLC [email protected] Wanda Klayman IBTTA [email protected] Andy Lelewski North Carolina DOT, Turnpike Authority [email protected] Marwan Madi CDM Smith [email protected] Dimitri Mandalozis HELLASTRON [email protected] Russ McCarty Jacobs Engineering Group [email protected] Tom Owen ETC Corporation [email protected] Lev Pinelis Transurban [email protected] Bob Redding Fagan Consulting [email protected] Craig Salmon Transurban [email protected] SHANNON SWANK BancPass, Inc. [email protected] Frank Velez North Texas Tollway Authority [email protected] TOLLMINER WORKING GROUP Stephan Andriuk Miami-Dade Expressway Authority [email protected] Max Artman Tampa-Hillsborough Expressway Authority [email protected] Joseph Averkamp Parsons Corporation [email protected] Rachel Bell Kansas Turnpike Authority [email protected] Michael Catolico Illinois Tollway [email protected] Martin Chism ITR Concession Co LLC [email protected] William Cramer IBTTA [email protected] Scott Doering Cubic Transportation Systems, Inc. [email protected] Jeff Gerbracht Bay Area Toll Authority, Metropolitan Transportation Commission [email protected] Neil Gray IBTTA [email protected] Rafael Hernandez Tampa-Hillsborough Expressway Authority [email protected] James Hofmann North Texas Tollway Authority [email protected] Samuel Johnson Transportation Corridor Agencies [email protected] Andrew Joyce CVO Holding Company, LLC [email protected] Brian Kelley Ohio Turnpike and Infrastructure Commission [email protected] Michael Kolb TTI Consulting [email protected] Pat Louthan North Texas Tollway Authority [email protected]
6 10 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Cathal Masterson Transport Infrastructure Ireland [email protected] Alvin Milner State Road & Tollway Authority [email protected] Christopher Mwalwanda CDM Smith [email protected] Jason Myers E-470 Public Highway Authority [email protected] CINDY NORCROSS IBTTA [email protected] Kenneth Pierce Transport Infrastructure Ireland [email protected] Lev Pinelis Transurban [email protected] David Pope Silicon Transportation Consultants [email protected] Meysam Rouhnavaz State Road & Tollway Authority [email protected] Casey Self Perceptics, LLC [email protected] Michael Severance Washington State Department of Transportation [email protected] Joseph Soliz CVO Holding Company, LLC [email protected] Megan Stewart Kansas Turnpike Authority [email protected] Francis Tang RS&H [email protected] Frank Velez North Texas Tollway Authority [email protected] Jeff Weiss Gannett Fleming [email protected] Jim Wilson TransCore, LP [email protected] FINANCE STANDING COMMITTEE OF THE BOARD SUSAN BUSE (Vice Chair) SBuse Consulting [email protected] JJ Eden North Carolina DOT, Turnpike Authority [email protected] Lisa Lumbard Central Florida Expressway Authority (CFX) [email protected] Donna Manuelli New Jersey Turnpike Authority [email protected] Charles D. McManus Stantec Consulting Services Inc. [email protected] Francis K. O'Connor Atkins N.A. Fran.O'[email protected] Kent Olson Kansas Turnpike Authority [email protected] Mary Jane O'Meara HNTB Corporation [email protected] Terri Slack CDM Smith [email protected] Steven W. Snider Halifax Harbour Bridges [email protected] Timothy Sturick Thousand Islands Bridge Authority [email protected] Darby Swank Kapsch TrafficCom [email protected] Gary Trietsch Harris County Toll Road Authority [email protected] Kary H. Witt HNTB Corporation [email protected] Anthony D. Yacobucci Ohio Turnpike and Infrastructure Commission [email protected] GEORGE ZILOCCHI HNTB Corporation [email protected] FINANCE - INVESTMENT SUBCOMMITTEE SUSAN BUSE SBuse Consulting [email protected] Lisa Lumbard Central Florida Expressway Authority (CFX) [email protected] Charles D. McManus Stantec Consulting Services Inc. [email protected] Amy Potter Transportation Corridor Agencies [email protected]
7 11 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Timothy Sturick Thousand Islands Bridge Authority [email protected] GOVERNMENT AFFAIRS COMMITTEE José Alvarez Illinois Tollway [email protected] Larry Bankert Jr. Michael Baker International [email protected] Nic Barr ITR Concession Company LLC [email protected] James J. Beattie CDM Smith [email protected] Susan A. Buse SBuse Consulting [email protected] Buddy Croft Rhode Island Turnpike and Bridge Authority [email protected] Tim J. Gatz Oklahoma Turnpike Authority [email protected] Jordi Graells AECOM [email protected] Mark Hicks RS&H [email protected] Merryl Mandus State Road & Tollway Authority [email protected] Frank G. McCartney [email protected] Marty Milita Duane Morris Government Strategies [email protected] Julià Monsó Cintra [email protected] María Moreno SEOPAN [email protected] Mark F. Muriello The Port Authority of New York & New Jersey [email protected] Ken Philmus Conduent Transportation [email protected] Edward Regan CDM Smith [email protected] Juan Toledo Miami-Dade Expressway Authority [email protected] JOSEPH WAGGONER Tampa-Hillsborough Expressway Authority [email protected] Kary H. Witt HNTB Corporation [email protected] George P. Zilocchi HNTB Corporation [email protected] IBTTA FOUNDATION BOARD OF DIRECTORS Frank G. McCartney FGM Consulting [email protected] Teri England Red Fox ID LTD [email protected] Mike Heiligenstein Central Texas Regional Mobility Authority [email protected] Patricia M. Horan GeoPat Consulting LLC [email protected] Priya Jain Atkins N.A. [email protected] Marcelle S. Jones Stantec Consulting Services Inc. [email protected] Christine Keville Keville Enterprises Inc. [email protected] Philip D. Miller WSP USA [email protected] René Moser ASFINAG [email protected] Rosa C. Rountree Egis [email protected] Lisa P. Thompson HNTB Corporation [email protected] INTERNATIONAL COMMITTEE Snehal Ambare HNTB Corporation [email protected] Carlos Campo WSP USA [email protected] Josef A. Czako Moving Forward Consulting UG (Ltd.) [email protected]
8 12 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
Francesco Del Pizzo Telepass SpA [email protected] Alain Estiot AETC [email protected] Jordi Graells AECOM [email protected] Alenka Košič DARS d.d. [email protected] Pascal Lemonnier Egis [email protected] Philip D. Miller AECOM [email protected] María Moreno SEOPAN [email protected] René Moser ASFINAG [email protected] Massimo Schintu AISCAT [email protected] MALIKA SEDDI ASFA [email protected] Emanuela Stocchi AISCAT [email protected] MEMBERSHIP COMMITTEE Rachel E. Bell Kansas Turnpike Authority [email protected] SUSAN BUSE (Vice Chair) SBuse Consulting [email protected] Michael J. Davis RS&H [email protected] Robert Fischer New Jersey Turnpike Authority [email protected] ROBERT HORR Thousand Islands Bridge Authority [email protected] Tyler Milligan Milligan Partners LLC [email protected] Francis K. O'Connor Atkins N.A. Fran.O'[email protected] Patty Rubstello Washington State Department of Transportation [email protected] Malika Seddi ASFA [email protected] Linda M. Spock Spock Solutions, Inc. [email protected] Benton Tempas Northwest Parkway LLC [email protected] NOMINATING COMMITTEE Buddy Croft Rhode Island Turnpike and Bridge Authority [email protected] Mike Heiligenstein Central Texas Regional Mobility Authority [email protected] Robert G. Horr Thousand Islands Bridge Authority [email protected] JAVIER RODRIGUEZ (Vice Chair) Miami-Dade Expressway Authority [email protected] Steven W. Snider Halifax Harbour Bridges [email protected] TIM STEWART E-470 Public Highway Authority [email protected] Emanuela Stocchi AISCAT [email protected] PAST PRESIDENTS ADVISORY COUNCIL Susan A. Buse SBuse Consulting [email protected] Lisa C. Callahan [email protected] Santiago Corral [email protected] Buddy Croft Rhode Island Turnpike and Bridge Authority [email protected] Henri Cyna COFIROUTE [email protected] Ronald J. Delaney [email protected] John T. Driscoll
9 13 IBTTA Board Committees As of September 5, 2019 * UPPER CASE = CHAIR (Subject to Change)
First Name Last Name Organization Name Email Address
James L. Ely HNTB Corporation [email protected] R. D. Fogo [email protected] E. R. Foley Jordi Graells AECOM [email protected] Mike Heiligenstein Central Texas Regional Mobility Authority [email protected] Robert G. Horr Thousand Islands Bridge Authority [email protected] Allan V. Johnson [email protected] Stephen F. Mayer Niagara University [email protected] Frank G. McCartney [email protected] William J. Miller [email protected] Mary Jane O'Meara HNTB Corporation [email protected] Javier Rodriguez Miami-Dade Expressway Authority [email protected] Franco Schepis Steven W. Snider Halifax Harbour Bridges [email protected] TIM STEWART E-470 Public Highway Authority [email protected] EMANUELA STOCCHI (Vice Chair) AISCAT [email protected] Paul E. Violette [email protected] Russell I. Wilcox [email protected] Kary H. Witt HNTB Corporation [email protected] Harold W. Worrall PayTollo [email protected] George P. Zilocchi HNTB Corporation [email protected]
10 14 IBTTA Strategic Plan Adopted by the Board August 29, 2015
(Editor’s Note: This strategic plan builds upon the work conducted by the IBTTA board of directors and interested parties during the board meetings in January 2015 and April 2015 and in subsequent correspondence between members and staff. The IBTTA Board of Directors adopted the plan below on August 29, 2015 recognizing that it is a living document and subject to ongoing review.)
O VERVIEW On April 24, 2015, a strategic planning group consisting of Board members, other key stakeholders, and senior staff of the International Bridge, Tunnel and Turnpike Association (IBTTA) met to update its long-range strategic direction. Carolyn Lugbill, CAE, a Senior Consultant of Tecker International, LLC and president of Going Global Matters led the group through the planning process. This planning document defines IBTTA’s clear strategic direction. It is the planning group’s consensus on what will constitute the Association’s future success. It answers the following two fundamental strategic questions: 1. Why will IBTTA exist in the future? Its reason for being and core purpose. 2. Where is IBTTA going? Its future direction and goals. Planning Strategically: The existence of this strategic direction and its successful implementation signals the leadership team’s desire to lead IBTTA strategically. Developing a strategic direction is not a one-time event, but an ongoing commitment and process. The strategic direction represents a compass that will be used to guide and focus IBTTA’s future strategic decision- making and ongoing operational work. Strategic Focus: Organizational strategic focus or intent is very important. One of the challenges that IBTTA faces is the fact that there is more it can do for members and key stakeholders than it has resources to accomplish. The temptation to do everything can often lead a not-for-profit organization to try to be all things to all people. Planning strategically is the counter to the all-things syndrome. It is about identifying a limited number of goals that IBTTA must undertake to move successfully into the future. Strategic Approach/Philosophy: The approach in defining the new strategic direction was not to identify what IBTTA wants to continue doing today (its current operational plan). Rather, the leadership team determined what the Association is not doing today, but must engage in to be successful in the future. This strategic direction is not about business as usual — it is about the change needed to
15 stay relevant! This separates the strategic plan from the operational plan. Both are important. The strategic direction is a constant reminder, as the leadership team oversees the development of the annual operational plan, of what must be changed to stay relevant to what members are seeing in their real world. Updating the Strategic Plan: A strategic plan can only stay current and relevant if IBTTA insures that the plan is updated. It is the leadership team’s working document. Therefore, the governing body has both the right and the responsibility to: 1) change the strategic plan any time it needs to be changed based on sound reasoning and assessment; and 2) Update the plan regularly on an ongoing basis.
Long-Range Strategic Planning Horizon (10 to 30 Year Envisioned Future) A 10 to 30 year planning horizon was developed, which consists of IBTTA’s core ideology and 10 to 30 year envisioned future. Core Ideology/Mission clarifies what must be preserved in an environment of increasingly rapid and unpredictable change. Core ideology consists of IBTTA’s core values and core purpose. The core purpose describes IBTTA’s very reason for being or existing — why the organization will or should exist into the future (10 to 30 years). What would be lost if it ceased to exist? What sense of purpose will motivate members to dedicate their creative energies to IBTTA and its efforts over a long period of time?
IBTTA’s Core Purpose: Mission To advance transportation solutions through tolling.
Core values are a small set of timeless, guiding principles that do not require external justification. They only have intrinsic value and importance to IBTTA and its members. Core values are so fundamental that they seldom change — if at all. They define the behavior required in order for the organization to achieve its core purpose. Core values are so deep- seated and valid that IBTTA would preserve the core values even if it were admonished for having these values.
IBTTA’s Core Values We are:
• Ethical
16 • Collaborative • Collegial • Credible • Accountable • Innovative • Inclusive • A knowledgeable resource
The 10 to 15 year envisioned future consists of a single, big audacious goal (B.A.G.) or vision. The B.A.G./vision is a goal (that is, IBTTA’s vision statement) that stretches beyond IBTTA’s current three to five year goals. Because it is “audacious” it represents a significant challenge and its achievement will require IBTTA to move outside of its comfort zone. It is clear and compelling to all members. It has a clear finish line which will take both time and hard work to accomplish. The goal should stimulate leadership activity, commitment and participation beyond IBTTA’s present leadership. It helps to set the direction for the succession of future three to five year strategic plans. IBTTA can only manage one B.A.G. at a time.
IBTTA’s B.A.G. IBTTA will be recognized as the leading voice to advance transportation solutions through tolling.
A vivid description shows what IBTTA and user financed roads will look like when the association successfully achieves its Big Audacious Goal. The following description helps to clarify what is intended by the goal and provides measureable indicators of achievement.
In 2025:
Overall, the world has better, safer highways, bridges, and tunnels. • There will be national and multinational interoperability. • Congestion pricing will have been embraced by more urban areas, particularly in Tier 1 Regions, (i.e., New York, Chicago, etc.). • Tolling has become a broadly accepted method of funding transportation solutions. • States have the legal authority to toll interstate highways, if they so choose. • Tolling should be considered for all new capacity. • Road Usage Charging (RUC) or Vehicle Miles Traveled (VMT) fees will be in place in some
17 U.S. states. • On board technology in connected vehicles will allow any jurisdiction to toll any road or implement RUC. • Tolling will be a leading solution for congestion relief and for enhancing mobility through new capacity. • Transportation pricing is in place in all metro regions. • There will be more intelligent roads that interface with connected vehicles, creating more desirable options and resulting in fewer incidents. • The user experience is much more personalized and specific, being able to meet users’ expectations.
IBTTA has: • Members from every entity that collects and/or supports the collection of tolls. • An internationally recognized image and brand. • A high level of collaboration with other associations. • A $1,000,000 foundation endowment. • 3,000 delegates at its Annual Meeting. • A current and accurate data clearinghouse of industry information. • Every Department of Transportation (DOT) or Ministry of Transportation (MOT) as a member. • Increased financial strength in support of the organization’s goals. • Developed a well articulated public education campaign. • 20% of its membership from major regions in Asia (i.e., India, China, Japan, etc.) and South America and Europe.
Strategic Long-Range 3 to 5 Year Goals The following represents IBTTA’s goals that encompass its three to five-year direction. These goals are outcome-oriented statements that lead IBTTA towards its envisioned future. These goals are not in any order of priority. All of the goals will need to be accomplished, if IBTTA is to fully achieve its three to five-year quest.
In 2020:
Goal A: Transportation policies will facilitate tolling and other forms of user charging.
18 Goal B: Continental interoperability of electronic toll collection (ETC) is functionally possible.
Goal C: IBTTA members, stakeholders and nonmembers will find indispensable value in the association’s programs, products, services, and meetings.
Goal D: IBTTA will be recognized for having a current and accurate clearinghouse of “key” industry data.
Goal E: IBTTA will be known for having an effective functioning “SWAT” team of tolling experts/champions/advocates/ evangelists to effect positive outcomes in transportation.
L ONG-R ANGE G OALS & S TRATEGIES Strategies indicate how IBTTA will organize, focus and expend its resources and actions to maximize its effectiveness and efficiency in achieving its three to five year goals. The strategies must be reviewed and updated on an annual basis. The strategies were rated in importance of when they should be undertaken (implementation timing). The three ratings include:
High: Work on this strategy must be undertaken in the next program/fiscal year. Medium: Work on this strategy should be undertaken in the next program/fiscal year if at all possible. Low: Work on this strategy can wait until a subsequent program/fiscal year if necessary.
Indicators of Achievement are used to determine the overall progress toward a goal. They indicate how close IBTTA is to achieving a goal as it executes the individual strategies for each goal. They measure goal achievement, not strategy achievement.
Goal A: Transportation policies will facilitate tolling and other forms of user charging.
Strategies: A1. (High) Encourage the removal of barriers to tolling.
19 A2. (High) Develop multi-state educational program pilots to increase the understanding and need for tolling and other forms of user charging to: • better inform the general public, media, key stakeholders and policy makers. • establish education programs that define appropriate uses of toll revenue. • provide outreach to other bodies interested in sustainable and economic growth. • identify worldwide best practices that encourage information exchange. • clarify the message A3. (Medium) Sustainability, economic growth, and environmental concerns – congestion tolling is a tool for these issues Indicators of Achievement: An increase in: ⇒ tolling on existing lanes of US Interstate highways ⇒ electronic tolling on-board units ⇒ awareness of real costs of transport infrastructure ⇒ membership and advocacy for tolling solutions ⇒ strategic partnerships that advance tolling solutions for members as well as non- members ⇒ partnerships for economic and mobility enhancements around the world The existence of: ⇒ specific educational materials for political decision makers, stakeholders, media and the general public. ⇒ Information on user pays principle and cost transparency of transport infrastructure ⇒ Partnerships with tolled as well as non-tolled entities advancing transportation solutions through tolling ⇒ Restrictions lifted on the use of tolling at the federal, state and local levels to address transportation and economic development opportunities
Goal B: Continental interoperability of electronic toll collection (ETC) is functionally possible.
Strategies:
20 B1. (High) Develop a consensus definition of what interoperability would be from the customers’ and operators’ perspective, including: • identifying all the constraints to be overcome. • dealing with technical issues– standardization. • Dealing with data exchange issues – availability of a harmonized/standardized data exchange hub as a solution. • Addressing legal issues. • working through contractual challenges. • aligning and consolidating IOP initiatives. • developing an operating plan for North America IOP solution. Indicators of Achievement: An increase in: ⇒ sufficient standards established, for example: • DSRC communication protocols, and • License plate standards. • Data exchange hubs to minimize costs of transmission and data exchange • Regional solutions that bridge to national interoperability • Market demand and user support by entities and suppliers for interoperability The existence of a: ⇒ consensus definition of what IOP should be from membership: • Single tag for user • License plate tolling • Single invoice for the user • Expansion of regional hubs that can be linked nationally ⇒ Plan for IOP – concept of operations for a uniform North American System and agreement and support from membership.
Goal C: IBTTA members, stakeholders, and nonmembers will find indispensable value in the association’s programs, products, services, and meetings.
Strategies:
21 Meetings/Committees C1. (High) Review and update the meeting schedules (correct days and times) to dramatically reduce meeting schedule conflicts. C2. (Medium) Send marketing/meeting information to other agencies; include session summaries with measurable performance results that can be learned. Leadership Development C3. (Medium) Develop meetings for all levels, and put in place new leadership development programs for young professionals C4. Review the Leadership Academy by developing: • program targets; • ways to improve the experience; • ways to make the experience more consistent; and • A mid-level management academy. • Web-based learning opportunities from some of the material presented at the leadership academy Products and Services C5. (High) Develop new products, programs and services that create new sources of net non-dues revenue. C6. (High – 2011) Improve the overall quality of data through standardization (data committee and staff). C7. (Medium) Develop publications that members want and need (survey members on their wants and needs). C8. (Medium) Create a Speakers Bureau. Indicators of Achievement: An increase in: ⇒ membership and membership retention. ⇒ non-dues revenue. ⇒ meeting participation. ⇒ paying non-members at meetings and programs. ⇒ attendance and participation of young professionals. ⇒ the level of engagement of governing bodies members (not just at Annual Meeting). ⇒ participation in and consistency of programs at the Leadership Academy. ⇒ hits on IBTTA’s website resources.
22 A decrease in conflicts with competing meetings. The existence of: ⇒ publications used by members (e.g., equal billing to “MUTCD). ⇒ improved quality/definitions – “standardize” IBTTA data. ⇒ a Speaker Bureau available as a resource. ⇒ a high quality Leadership Academy experience. Goal D: IBTTA will be recognized for having a current and accurate clearinghouse of “key” industry data.
Strategies: D1. (High) Identify “key” industry data to be compiled and tracked and what will not be tracked. D2. (Medium) Establish team of staff and member participants to develop strategy for compiling and updating data including frequency, response incentives, etc. D3. (Medium) Publish stories on how data has been used to positively impact the advancement of worldwide tolling and tolling organizations. Indicators of Achievement: An increase in: ⇒ public awareness and understanding of the toll industry business ⇒ knowledge of key industry data and interpretation of trends and actual developments ⇒ Consensus on “key” data is achieved and provided to member organizations ⇒ Responses by member organizations to “key” data requests ⇒ Use of data to positively impact tolling and tolling organizations ⇒ Non-member organizations and outlets are publishing and using “key” data ⇒ Hits on data by members and requests from non-members is tracked and increases shown ⇒ The existence of a: ⇒ Database properly filed and used ⇒ Ideal graphical means of presentation and comparison ⇒ Expanded use of “key” data by both member and non-member organizations ⇒ Increased participation by member organizations to provide and update “key” industry data
23
Goal E: IBTTA will be known for having an effective functioning “SWAT” team of champions/experts/advocates/evangelists to effect positive outcomes in transportation.
Strategies: E1. (High) Enlist “SWAT” team members E2. (High) Develop strategies for communication plan and information to be used by SWAT Team Champions. Keep information updated and available. E3. (Medium) Build succession planning for new SWAT Team Champions Indicators of Achievement: An increase in: ⇒ Calls for and opportunities to provide transportation/tolling advocacy ⇒ Identified SWAT Team Members ⇒ Positive impacts on transportation through SWAT Team efforts ⇒ Collaboration with other industry professionals (AASHTO, AMVA, etc.) on SWAT Team efforts The existence of a: ⇒ Broad acceptance and use of the SWAT team ⇒ Positive contacts with stakeholders by the SWAT team ⇒ Defined number of contacts organized and in the responsibility of the SWAT team ⇒ Identified SWAT Team Champions ⇒ Information/talking points for use by SWAT Team Champions ⇒ Alliances with other industry professionals in combined SWAT Team initiatives ⇒ Collaborative calls, webinars, meetings of SWAT Team Members to discuss and refine outreach/evangelism efforts
A SSUMPTIONS A BOUT THE F UTURE In order to make progress toward an envisioned future, an organization must constantly anticipate the strategic factors likely to affect its ability to succeed and to assess the implications of those factors. This process of building foresight about the future will help IBTTA to constantly recalibrate its view of the relevant future, a basis upon which to update the strategic plan.
24 These seven assumptions were gleaned from the work done in January and listed on the slides presented at the April 2015 Strategic Planning meeting: • There will be an increase in IBTTA membership among cities and departments of transportation. • There will be increased emphasis on transportation solutions that are multimodal. • There will be an increase in the use and integration of mobile-based technology. Moreover, mobile based technology will lower cost and increase revenue. • There will be an increase in the movement away from using fossil fuels for transportation. • There will be an increase in the use of virtual offices and working remotely. • There will be an increase in the use of tolling to support mobility needs, including HOT lanes, transit and other modes. • There will be an increase in attention given to mileage based user fees to replace the gas tax.
The items below are additional assumptions highlighted in table discussions at the Strategic Planning meeting in Portland. • There will be a change in the demographics and needs of our customers. • There will be increased emphasis on getting more throughput out of existing infrastructure capacity through active traffic management and other means. • There will be an increase in transportation solutions that are “multi-party,” (e.g., DOT with a Metropolitan Planning Organization (MPO) that consists of a toll operator with a customer service center and commercial real estate). • There will be an increase in the complexity and diversity of parties involved in financing infrastructure projects. • There will be an increase in the public demanding greater transparency in the allocation of resources for infrastructure funding. • Connected vehicles may change the way the tolling industry does business, and IBTTA will need to be a participant in this dialogue. • Autonomous driving.
# # #
25 IBTTA THREE-YEAR PLAN | 2019-2021
FROM VISION TO REALITY OCTOBER 1, 2018
26 IBTTA Three-Year Plan | 2019-2021 October 1, 2018
Table of Contents
Three-Year Plan in Brief ...... 3 Background ...... 4 What Will the Members Get Out of This Plan? ...... 5 Outcome 1: Strengthening Current Programs and Services ...... 5 Outcome 2: Data and Analysis ...... 6 Outcome 3: Knowledge Transfer ...... 7 Outcome 4: Industry Vision ...... 9 Where We’ve Been and Where We’re Going ...... 11 Three-Year Financial Forecast Narrative ...... 12 Appendix 1: Three-Year Financial Forecast ...... 14 Appendix 2: Dues Philosophy ...... 15 Appendix 3: Proposed 2019-2021 Dues Structure ...... 16 Appendix 4: North American Operators $0 to $125 Million ...... 17 Appendix 5: North American Operators $125 Million to $2 Billion ...... 18 Appendix 6: Biggest Changes You’ve Observed Since You Joined the Industry ...... 19 Appendix 7: Key Issues on the Minds of IBTTA Board Members ...... 20 Appendix 8: Major Accomplishments 2013-2017 ...... 22
27 IBTTA THREE-YEAR PLAN IN BRIEF
What Is This Plan?
• It is a vision of what IBTTA wants to become in the next three years. • It is a request for additional staff and funding to strengthen the programs and services we offer now and begin to achieve the new outcomes our members want. • It is a proposed budget for 2019 and a rough outline of budgets for 2020 and 2021. • It is an acknowledgment that we have “hit a wall,” that our current staff, consultant, and technology resources are fully engaged, and we cannot make new gains without additional resources. • It is a description of the tremendous opportunities that lie ahead for IBTTA and its members. • It is a description of the investments we need to make over the next three years to do what’s most important to serve our members in keeping with our strategic plan.
What Will the Members Get Out of This Plan?
• OUTCOME 1: STRENGTHENING CURRENT PROGRAMS AND SERVICES. These include meetings, advocacy, and communications. • OUTCOME 2: DATA AND ANALYSIS. A fully mature TollMinerTM data product with key information on every toll facility and operator in the world. • OUTCOME 3: KNOWLEDGE TRANSFER. Developing a more systematic way of capturing the knowledge that resides in the minds of individual experts and practitioners in the IBTTA community and making that knowledge more accessible to all members. • OUTCOME 4: INDUSTRY VISION. Integrating our industry more appropriately into the fabric of the larger transportation community.
How Will We Pay for These New Investments?
This plan proposes a dues increase phased in over three years. See APPENDIX 1-5 for a full description of the three-year financial forecast and dues increase.
28 BACKGROUND
This document outlines a plan for IBTTA for the next three years, 2019 – 2021. It connects our strategic plan with our vision of the future and the new programs we must advance to stay relevant as an association.
In July 2012, the IBTTA Board of Directors met in Atlanta to discuss the future of IBTTA, its major communications campaign, and how to pay for it. After months of discussion and deliberation, the Board realized that while IBTTA had a strategic plan, it didn’t have the resources to implement it. Our major objective in 2012 was to launch an ongoing, proactive, and permanent communications campaign to position tolling in a positive light and give it a seat at the table for important policy discussions. We’ve been successful in doing that.
This moment in 2018 feels a lot like 2012 in terms of the opportunities and challenges we face. Back then, we rose to the challenge of creating and launching a communications campaign that everyone agrees we should have been doing for years but we simply didn’t have the money to do. The results of our communications campaign over the last six years prove that when we commit to do something and dedicate appropriate resources to do it, we can be successful.
Now we’re called again to advance with even greater vigor the major goals of our strategic plan, which are to:
• Enhance our clearinghouse of key industry data – TollMiner. • Create indispensable value for members and stakeholders in our programs, products, services, and meetings. • Advance policies that facilitate tolling and other forms of user charging. • Effect positive outcomes in transportation.
We have a highly motivated, talented and energetic staff that is committed to the membership and mission of IBTTA and functions as a team. Nowhere is the dedication of staff more apparent than in the results it has delivered over the past five years. As dedicated and capable as our staff is, it is also now stretched to the limit of its abilities. We have hit the proverbial wall. We have grown the work of IBTTA significantly over the last five years while growing the staff size only marginally. Therefore, if we want to do more and offer more programs and services that are essential to members, we need more resources including people, technology and systems.
29 WHAT WILL THE MEMBERS GET OUT OF THIS PLAN?
OUTCOME 1: STRENGTHENING CURRENT PROGRAMS AND SERVICES.
Anyone who has spent any time with IBTTA knows what we’re good at. We excel in putting on world class meetings that are known for excellent, relevant content, high production value, and valuable networking opportunities. We excel in advancing an industry-wide communications campaign that has helped foster more positive news coverage of our industry. We excel in advancing government affairs efforts which, combined with our communications campaign, have created a public policy environment more favorable to tolling. These programs are IBTTA strengths. Under this three-year plan, we intend to build on these strengths.
While our meetings, communications, and advocacy efforts are appreciated and well received, there is always room for improvement. To strengthen the content and execution of our meetings, we must:
• Develop a broader view of tolling and its future to attract a wider mix of delegates representing ITS, transit, state departments of transportation, metropolitan planning organizations, international and other audiences. • Reach beyond traditional speakers to include new voices from academia, think tanks, local governments, environmentalists, and catalysts of the new economy. • Reach deeper into member organizations to attract young professionals and encourage IBTTA stalwarts to engage the next generation of leaders who have a different perspective on the industry. • Focus more attention on alternative ways to delivering educational content to serve those with limited ability to travel. • Expand content delivery methods that encourage more interactivity and participant driven learning. • Expand and support international membership outreach and the needs of non-US based members.
How Members Benefit. Members will come away from IBTTA education programs with a better chance to address challenges at home because of access to a wider spectrum of experts, more robust webinars and distance learning, new voices, and more timely and interactive content delivery.
30 OUTCOME 2: DATA AND ANALYSIS. A fully mature TollMiner data product with key information on every toll facility and operator in the world.
Good data helps us manage and grow every aspect of our work: communications, advocacy, business development, marketing, meetings, and the day to day operations of all our businesses.
Two years ago, we began to build TollMiner, IBTTA’s data visualization tool. Our goal is to have it become the most important and effective repository of toll industry information for the benefit of our members and others who need it. Because of the information we’ve collected in TollMiner to date, we know that there are 129 distinct tolling entities in the US operating 332 separate toll facilities with 6,027 center line miles in 35 states. We also know there are 46 priced managed lane facilities in 11 states covering 644 center line miles operated by 25 distinct entities.
We didn’t know these things two years ago and this is just the beginning. We know them today because we went out and meticulously collected the data from publicly available sources and from our members and put them into a robust data visualization tool. Now our members can know, on a daily basis, the extent of tolling in the US. We are increasing our knowledge about the industry every day, adding new data elements such as traffic and revenue figures for each toll operator.
This is a painstaking and laborious process. There are no shortcuts in collecting, cleaning, verifying, and displaying accurate data. How long does it take to plan and conduct the decennial US Census? Years. In a similar way and with limited resources, we have begun to collect the most important data on tolling. The members appreciate that we’re making progress and that we have much more to do.
We can feel the opportunity but are stifled by the lack of resources. Wouldn’t it be great if someday we have relevant data on every toll facility and operator (members and non- members) from around the world? It’s a lofty goal, but eminently achievable with the right resources.
How Members Benefit. With our tolling data visualization tool TollMiner we have identified more than 60 “use cases” or questions that we can now answer about every toll agency and facility in the U.S. We have also identified nearly two dozen more use cases that we intend to answer in the next couple of years. We will continue to work on expanding not only our data set but also the use cases and analytical tools that will help toll agencies, consultants and vendors to see their own metrics in relation to others and make better business decisions. This, we believe, will be a major benefit to our members.
31 OUTCOME 3: KNOWLEDGE TRANSFER. Developing a more systematic way of capturing the knowledge that resides in the minds of individual experts and practitioners in the IBTTA community and making that knowledge more accessible to all members.
In the partnership between members and staff that defines IBTTA, we provide indispensable value to members and stakeholders in countless ways. From our 5-6 educational meetings each year, to our advocacy and government affairs efforts, to our communications campaign, TollMiner, daily newsletter and more, IBTTA is an ongoing collaboration that transforms member needs into solutions.
Addressing Current Issues
While emerging issues are often fun to explore, they often compete with efforts to resolve issues that are vital to current tolling operations.
For example, some experts have pointed out that critical back office, toll lane, call center, and related technology systems at many toll agencies are either reaching end of life or becoming obsolete. From this perspective, one can argue that while we must examine the new needs of the future (CAV, MaaS, RUC, etc.), we can’t ignore the need to maintain and upgrade current systems that keep toll agencies in business.
To best serve our members, we need to be nimble and agile. We need to be poised to help them not only address current challenges (maintain and upgrade current systems, etc.) but also help them figure out how to address new developments. IBTTA is like a horseback rider standing on two different horses at the same time: one horse represents the present and the other represents the future. While we run the risk of falling off, we must continue to ride them both.
Deeper peer to peer networking beyond formal meetings
Late last year, we asked IBTTA board members to talk to us about key issues on their minds. One item that came up repeatedly was the idea of creating opportunities for peer networking and exchange outside of formal meetings. One board member said:
“Peer to peer interaction is key. We need to make sure we have other channels of communication open to our peers in the industry. We have subject matter experts in different disciplines in our organization, but a lot gets lost. How do we add to what we’re currently doing to get higher levels of communication among other agency staff?”
A key role for IBTTA in the coming years is to help our members cope with current and future operational issues by developing the capability to bring experts together, curate and disseminate appropriate information about effective practices, and provide a forum for members to incubate new ideas. One example of how IBTTA is already fostering this type of
32 collaboration is through the active and robust CAV Working Group. Working Groups enable our members to build strong bonds and learn from one another, especially those who are not able to travel to in-person meetings. Also, under the leadership of First Vice President Chris Tomlinson, IBTTA is developing a peer to peer exchange pilot program that will launch in 2019.
Addressing Emerging Issues: Example – Connected and Automated Vehicles
On June 23, 2018, the IBTTA Board held a three-hour long discussion in Harrisburg, PA on the future of Connected, Automated, Shared and Electric (CASE) Vehicles. According to the post- board meeting survey, 17 of 17 Board members responding were satisfied or very satisfied with the CASE vehicle discussion. In response to the question “What was your favorite aspect of the Board meeting?” 8 of 10 Board members mentioned the CASE discussion, future vision, emerging issues, or “looking at new ways to improve transportation.” It appears that board members like to be engaged in these discussions and believe that focusing on the future is one of their main roles.
The discussion at the board meeting was a natural culmination of discussions about connected and automated vehicles that have been percolating in IBTTA and the industry for several years. IBTTA’s Platinum Sponsor Advisory Council has been looking at the issue for more than a year. And IBTTA’s CAV Working Group, which formed in June 2017 and has held monthly conference call since then, also set the stage for the board discussion. All of these discussions are natural outgrowths of the fact that several toll agencies are conducting CAV testing on their facilities including truck platooning and partial or fully autonomous vehicle testing.
We believe that CAV will have a significant effect on the operations and future financing of toll facilities. As one of the presenters on a CAV session said at the Portland Finance Summit in July, “Everyone is going to change their behavior, but they are not all going to change their behavior in the same way.” As an association, we need to have a much better understanding of those changes in behavior, how they will affect the tolling industry, and how we can positively affect federal and state policy discussions to recognize the needs of toll operators in this area.
How Members Benefit 3. Knowledge transfer is about developing a more robust and systematic way of capturing the knowledge that resides in the minds of individuals in the IBTTA community (experts, practitioners, etc.) and making that knowledge more accessible to all members. Acting independently, individual members could spend millions of dollars acquiring the knowledge and skills to effectively address the current and emerging issues they confront. As IBTTA board member Mark Compton put it, “If I do it myself, it costs more and won’t go anywhere.”
33 OUTCOME 4: INDUSTRY VISION. Integrating our industry more appropriately into the fabric of the larger transportation community.
Transportation is changing extremely rapidly. We have seen more rapid change in transportation in the last five years than we’ve seen in the previous 10 years. And that accelerating pace of change is likely to continue. APPENDIX 6 contains a rollup of some of the biggest changes our members have observed since joining the industry.
In November 2016, IBTTA convened a “Transportation Visioning Summit” with leaders of 18 transportation-related associations and societies. The purpose of the summit was to develop a vision for a federal transportation program that addresses current and future challenges. While the summit did not conclude with a single vision, the event is considered an important step in advancing a common vision among major transportation groups.
That summit touched on a wide range of important issues including autonomous and connected vehicles, smart cities and smart design, the future of freight and goods movement, and making the case for infrastructure investment. As robust as the discussions were at the time, no one in that day-long meeting of transportation leaders used the expression “mobility as a service.” And, yet, today it’s hard to read an article about transportation without constantly coming across that phrase.
Indeed, two new associations have recently sprung up with “mobility as a service” in the name. One is called the Mobility as a Service Alliance, which Ertico formed as a public private partnership primarily serving Europe. The other is called the Mobility as a Service Association formed by tolling and ITS industry veterans Jack Opiola and Tim McGuckin.
Are these new associations our competitors? Who knows. The important thing to note is that change is happening very rapidly, and we should be asking ourselves some important questions:
• What is the significance of Mobility as a Service (MaaS) to the tolling industry? • What effect will connected and automated vehicles have on transportation in general and tolling in particular? • What is the future of Road Usage Charging and which institutions – states, telecom companies, toll operators – will take the lead in advancing RUC? • How will global efforts to address climate change affect automobile design and production and what influence will these changes have on our industry? • What effect will all of these changes have on our industry’s appetite for credit and the decisions of rating agencies?
These are existential questions. Our members are rightfully concerned about the future (and their livelihood) because of rapid changes and uncertainty.
34 But these are also times of great promise. For individuals and institutions that position themselves to embrace change, the future can be bright. We at IBTTA want to help our members experience a bright future, whether road funding and finance continues in its present form or it takes on a completely different form.
Looking to the future, we need to prepare IBTTA to continue to be relevant to our members. One board member recently observed:
“Digitalization of information and introducing new means of payment are huge issues for us. If we don’t reflect on this, then other industries like telecom will do it for us. It will be a hurricane for the whole world of transportation. Are we prepared just to be in charge of the maintenance of assets?”
APPENDIX 7 contains a rollup of other key issues on the minds of Board members.
How Members Benefit. IBTTA members benefit when their association follows the advice of hockey great Wayne Gretzky to “Skate to where the puck is going, not where it has been.”
35 WHERE WE’VE BEEN AND WHERE WE’RE GOING
Like a well-run toll agency that understands the importance of maintaining existing assets, we need to invest in IBTTA to maintain the asset we’ve built over the years.
In the past several years, we’ve focused on growing the membership and committed ourselves to a steadily growing effort to directly respond to member requests for better data, which has culminated in TollMiner. At the same time, we have worked very hard to stringently manage expenses. There is a strong recognition among the Board and members that costs will increase even if we just “stay the course” on current operations. Chris Tomlinson expressed it well during the June Board meetings in Harrisburg when he said, “looking out over three years in all of our organizations the one thing you can count on is that costs escalate over time.”
During that same Board meeting, we identified many IBTTA programs or activities that didn’t exist as recently as five years ago. APPENDIX 8 contains a rollup of major accomplishments from 2013-2017. We support all of those activities today without having had a dues increase since 2015.
Beyond maintaining the current asset we’ve built, we also need to upgrade and improve the asset to support the growing list of things our members are asking us to do to respond to future challenges like Data, CAV, MaaS, RUC, etc. In response to June Board Survey question, “What program or activity do you most believe IBTTA should STOP doing?” one board member responded simply, “There is no program/activity to stop.” In other words, “keep doing what you’re doing, and do all these new things, too!”
NEW DIRECTIONS IN 2019-2021 In this plan, we have described in four broad categories the outcomes that we believe IBTTA should focus on over the next three years:
• Outcome 1: Strengthening current programs and services. These include meetings, advocacy, and communications. • Outcome 2: Data and analysis. A fully mature TollMiner data product with key information on every toll facility and operator in the world. • Outcome 3: Knowledge transfer. Developing a more systematic way of capturing the knowledge that resides in the minds of individual experts and practitioners in the IBTTA community and making that knowledge more accessible to all members. • Outcome 4: Industry vision. Integrating our industry more appropriately into the fabric of the larger transportation community.
How did we identify these specific outcomes? We asked for and listened to inputs from members who have completed post-meeting surveys over the last two years; the IBTTA board in one-on-one interviews and in group discussion at board meetings; member who have
36 participated in conference planning meetings or served on meeting planning groups; all of the committees serving IBTTA in any capacity, including board committees, functional committees, platinum sponsors, and the IBTTA Foundation Board; and IBTTA staff.
THREE-YEAR FINANCIAL FORECAST NARRATIVE The three-year financial forecast in Appendix 1 is intended to help IBTTA achieve the major outcomes that we’ve outlined in this document. Here we describe the basic assumptions and drivers of this forecast.
REVENUES
Membership Dues: Membership revenues will be driven by the dues structure described in Appendix 3. There are different percentage increases for different classes of members. If you think of 100% of the dues increase happening over three years, 50% of the increase takes effect in 2019; 30% of the increase takes effect in 2020; and the final 20% of the increase takes effect in 2021. This model assumes that the number of members stays constant. It also assumes that the toll revenues of Active members remain constant. In other words, we do not project that a toll operator will move from one dues category to another. Obviously, we expect the number of members to increase. However, to be conservative, we neither assume an increase in the number of members nor a movement of members from a lower dues class up to a higher dues class based on a toll revenue increase.
Meetings (Registration, Sponsor, Exhibit): This model assumes that meeting revenues increase 5% per year for the period 2018 through 2021.
EXPENSE
Personnel and Benefits: This model assumes an annual market adjustment in salaries of 3% per year for the period 2018 through 2021. In 2019 we add two staff: one administrative staff to support activities throughout the company; and one research associate to help with data analytics (TollMiner). In 2021 we add another staff to help with TollMiner consulting services, analysis, products, etc.
Communications: This model assumes a 5% increase in the cost of communications consulting costs in 2019 and a 2% increase each in 2020 and 2021.
Data Analytics: This model assumes we add a consultant subject matter expert and technology in 2019 that continues in 2020 and 2021. There is a 2% increase each in 2020 and 2021.
37 Public Affairs: This model assumes we add a consultant subject matter expert who works in 2020 and 2021 on research and writing in the run up to federal transportation reauthorization.
Member Services: This model assumes a 2% increase per year for the period 2018-2021.
Revenue Generating Meetings: This model assumes a 2% increase per year for the period 2018-2021.
Board and Administrative Meetings: This model assumes a 2% increase per year for the period 2018-2021.
Office Administration: This model assumes a 2% increase per year for the period 2018-2021.
38 APPENDIX 1: THREE-YEAR FINANCIAL FORECAST
Description of Items 2018 Budget 2019 Dif '19 - '18 2020 Dif '20 - '19 2021 Dif '21 - '20 Association Income Membership Dues $ 2,798,957 $ 3,176,733 $ 377,776 $ 3,436,248 $ 259,515 $ 3,612,728 $ 176,481 Meetings (Registration, Sponsor, Exhibit) 2,357,321 2,478,121 $ 120,800 2,602,027 $ 123,906 2,732,128 $ 130,101 Total Income $ 5,156,278 $ 5,654,854 $ 498,576 $ 6,038,275 $ 383,421 $ 6,344,857 $ 306,582
Association Expense Personnel & Benefits $ 2,372,266 $ 2,731,434 $ 359,168 $ 2,813,377 $ 81,943 $ 3,041,778 $ 228,401 Program Related - - - Communications 257,550 269,850 12,300 275,247 5,397 280,752 5,505 Data Analytics 175,000 325,000 150,000 331,500 6,500 338,130 6,630 Public Affairs 60,000 60,000 - 136,200 76,200 138,924 2,724 Member Services 287,350 293,097 5,747 298,959 5,862 304,938 5,979 Revenue Generating Meetings 1,322,700 1,349,154 26,454 1,376,137 26,983 1,403,660 27,523 Board and Administrative Meetings 91,450 93,279 1,829 95,145 1,866 97,047 1,903 Office Administration 507,103 517,245 10,142 527,590 10,345 538,142 10,552 $ 5,073,419 $ 5,639,059 $ 565,640 $ 5,854,155 $ 215,096 $ 6,143,371 $ 289,217
Association income over expense before investment income $ 82,859 $ 15,795 $ (67,064) $ 184,120 $ 168,325 $ 201,485 $ 17,365
SUMMARY OF CHANGES IN REVENUE AND EXPENSE BY MAJOR FUNCTIONAL CATEGORY
2019 2020 2021 REVENUE Membership (Rev) See Appendix 3 See Appendix 3 See Appendix 3 Meetings (Rev) 5% increase 5% increase 5% increase EXPENSE Personnel & Benefits 3% market adjustment 3% market adjustment 3% market adjustment + 2 FTE + 1 FTE Communications 5% increase 2% increase 2% increase Data Analytics Add 1 Consultant SME 2% increase 2% increase Public Affairs No increase Add 1 Consultant SME 2% increase Member Services 2% increase 2% increase 2% increase Revenue Meetings 2% increase 2% increase 2% increase Administrative 2% increase 2% increase 2% increase Meetings Office Administration 2% increase 2% increase 2% increase
39 APPENDIX 2 – DUES PHILOSOPHY
When the IBTTA Board approved a dues increase in 2012, they adopted a dues philosophy to ensure that the dues increase would be appropriate for each category of member. We propose the same dues philosophy for the proposed 2019-2021 dues increase.
Here are the principles of the dues philosophy:
1. All members experience some level of dues increase. 2. Preserve, more or less, the relative share of dues contributed by each of the major classes of members. 3. Obtain the largest portion of the dues increase from the largest agencies and companies that are capable of absorbing the dues increase (e.g. Large and Extra Large North American Active members and Sustaining members). 4. Improve the fairness of the dues structure between the smallest and the largest Active Members in terms of dues paid as a portion of toll revenues.
The chart on the next page shows the effect of the proposed dues increase on every category of member in this order:
• North American Active (toll operator) members • Non-North American Active (toll operator) members • Group Members • Associate Members • Sustaining Members • DBE Members
40 APPENDIX 3: PROPOSED 2019-2021 DUES STRUCTURE increase 20 to '21 increase 19 to '20 0% 0% 0% 7% 4% 2% 10% 5% 3% 10% 6% 4% 11% 5% 4% 10% 5% 3% 10% 5% 3% 16% 8% 5% 20% 10% 6% 30% 14% 8% 36% 16% 9% 10% 5% 3% 10% 5% 3% 12% 4% 3% 15% 8% 5% 20% 10% 6% increase 18 to '19 2% 4% 9% 995 2,500 3,000 22,000 22,388 29,000 32,000 34,000 36,000 46,000 49,000 56,000 60,000 21,000 30,000 10,400 21,000 187,000 120,000 186,000 312,000 735,000 2,050,341 3,612,728 Total Dues $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Revenue 2021 4% 5% 995 2,440 2,900 9,920 21,300 22,388 28,000 30,900 32,900 34,800 43,800 46,200 51,800 55,000 20,300 29,000 19,800 180,400 116,000 179,800 297,600 693,000 1,947,060 3,436,248 Total Dues $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Revenue 2020 7% 11% 36% 16% 995 2019 2020 2021 2,350 2,800 9,200 20,300 22,388 26,500 29,300 31,300 33,000 40,500 42,000 45,500 47,500 19,300 27,500 18,000 171,600 110,000 173,600 276,000 630,000 1,793,145 3,176,733 Total Dues $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Revenue 2019 995 2,200 2,500 8,000 18,500 22,388 24,000 26,500 28,500 30,000 35,000 35,000 35,000 35,000 17,500 25,000 15,000 155,655 100,000 155,000 240,000 525,000 1,533,937 2018 Dues 2019 Dues 2020 Dues 2021 Dues 2,731,980 Total Dues $ $ $ $
$ $ $
$ $
$ $ $ $ $ Revenue 2018 973 2,200 2,385 8,000 11,121 22,542 24,450 27,122 29,224 31,520 35,000 35,000 35,000 14,150 25,000 15,000 Average Average 2018 Dues $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ DBE Group 97,801 87,672 112,712 108,489 245,000 175,000 105,000 100,000 Sustaining 2,731,980 Med Assoc Med Active N.A. Small Assoc TOTAL 2018 DUES REVENUE DUES Active Non N.A. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5 4 4 3 7 5 3 4 Percent dues increase for median agency member agency for increase median dues Percent 10 22,000 21 233,548 11 346,715 11 155,655 65 155,000 30 240,000 35 525,000 23 22,388 Percent dues increase for smallest agency member for agency increase smallest dues Percent # of # Percent dues increase for 3 largest agency members agency for increase largest 3 dues Percent 241 members $ 995
2,200 2,500 8,000 17,500 25,000 15,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0 25 18,500 50 24,000 75 26,500 100 28,500 125 30,000 300 35,000 700 35,000 DBE 1500 35,000 2000 35,000 Group $Millions Sustaining Med Assoc Med Small Assoc Revenues in America Toll Acitve North Active Non N.A.
41 APPENDIX 4: Proposed Dues Structure, North American Toll Operators ($0 to $125 Million) This chart illustrates the current and proposed future dues structure for North American Active (Toll Operator) Members. We show this level of detail here because the North American toll operator members account for nearly 60% of all IBTTA dues revenue.
The blue line towards the bottom of the chart is the current dues structure. The other lines show proposed dues levels for 2019-2021. To show more detail, this chart includes only members with toll revenues between zero and $125 million. The next chart shows the dues structure continuing above $125 million in toll revenues.
42 APPENDIX 5: Proposed Dues Structure, North American Toll Operators ($125 Million to $2 Billion)
This chart illustrates the current and proposed future dues structure for North American Toll Operator Members with revenues between 0 dollars and $2 billion. The blue line towards the bottom of the chart is the current dues structure. Notice that the information from the previous chart – toll revenues between 0 dollars and $125 million – is compressed into the left side of this chart. Also notice in the current dues structure – the blue line at the bottom – dues are capped above $300 million in toll revenues. The proposed new dues structure would increase the dues for the 15 toll agencies that currently have more than $300 million in toll revenues.
43 APPENDIX 6: BIGGEST CHANGES YOU’VE OBSERVED SINCE YOU JOINED THE INDUSTRY
Exercise conducted during the IBTTA Conference Planning Meeting, July 22, 2018
1. ETC 2. More women 3. Tolling in the news 4. Managed lanes 5. Shared vehicle services 6. AET / Coin toll booths 7. Toll is not a 4-letter word 8. Managed lanes 9. Use of data 10. From a focus on road infrastructure to a focus on mobility services 11. AET and human interaction with customers 12. Congestion management 13. How transportation is funded 14. From finance to mobility providers 15. Evolution of customer experience 16. P3 tolling to implementing projects quicker 17. Conversion to AET and use of managed lanes 18. Customer first operational attitude 19. Technology and materials in roads and bridges 20. Cash was interoperability; now ETC is interoperable 21. Move to AET in some areas; move backwards and away from AET in other places 22. Increasing collaboration in transportation and tolling 23. Manual tolling to AET 24. How we’ve used technology for tolling as a mobility service 25. More collaboration and fewer silos; toll operators are working with DOTs 26. Use of technology 27. Diversity in the workforce 28. People see the benefits of tolls including reliability 29. Tolling is a meaningful solution to transportation 30. From inward to outward
44 APPENDIX 7: KEY ISSUES ON THE MINDS OF IBTTA BOARD MEMBERS
In late November and early December 2017, we spoke by phone with most of our 2018 board members. The goal was simple: check in with each person to see how they were doing and learn about the issues that are top of mind with respect to their operations and IBTTA. Below is a summary of the major issues and themes covered in the calls. Quotation marks indicate a direct quote or a close paraphrase of what someone said.
Deeper peer to peer networking beyond formal meetings • “Peer to peer interaction is key. We need to make sure we have other channels of communication open to our peers in the industry. We have subject matter experts in different disciplines in our organization, but a lot gets lost. How do we add to what we’re currently doing to get higher levels of communication among other agency staff?” • “There is tremendous value in the network of people who are consistently there at meetings. How do you reach deeper into organizations to include more people at meetings?” • “How do we better facilitate conversations among peer groups of people in agencies?” • “How do we engage more people on a peer to peer level within IBTTA?” • “How do we share best practices and failures; could we do a peer exchange as has been done in AASHTO?”
Public Private Partnerships • “How do we make less feasible projects more feasible?” • “There have been a number of valuable public private partnership projects in the works, but politicians have been struggling to jump over the hurdles to bring them to completion. From inception to revenue stream is a long time. State government officials are already backing up from projects that we thought long ago would be successful. I’d like to hear how other states have gotten across the line on newer projects.”
Revenue protection • “What is the cycle for educating agency board members about the world of electronic toll collection.” • “We need more effective reciprocity of violation enforcement across state lines.” • “We don’t want to publicly expose the underbelly of revenue leakage.”
Let’s get practical! • “We keep covering the same topics in the same way at these meetings. Someone talks about an emerging challenge that we need to prepare for without providing a practical, real world action or solution to address it. We need to hear more about the practical aspects of things that are being done.” • “How do we present value to members who cannot make it to meetings?”
45
Connected and Autonomous Vehicles • “What’s our role? Disseminating information, advancing a policy, or developing technologies? What are the consequences for tolling and managed lanes in 10 years?” • “Road operators have not been fully invited into the discussion of CAVs.”
Digitalization of information. • “This is a hot topic. Introducing new means of payment. If we don’t reflect on this, other industries like telecom will do it for us. It will be a hurricane for the whole world of transportation. Are we prepared just to be in charge of the maintenance of assets?”
Opponents and Supporters • “Our legislature is anti-toll.” • “The most helpful thing for me is public acceptance of tolling.”
46 APPENDIX 8: MAJOR ACCOMPLISHMENTS 2013-2017
Communications
• Launched and sustained a very successful communications campaign, “Moving America Forward.” • Built ongoing relationships with national and international media. • Created several data-rich reports, positioning IBTTA as a credible resource. • Launched our daily e-newsletter, IBTTA SmartBrief • Relaunched our Tolling Points blog. • Build a vibrant and robust social media presence on Facebook, Twitter, LinkedIn, and Instagram. • Created a standalone Communications Workshop.
Advocacy and Thought Leadership
• Strengthened public policies that support tolling through the FAST Act. • Held a landmark Transportation Visioning Summit with the leaders of 18 key transportation associations and continued to nurture the relationships we built there. • Reached consensus on how to achieve nationwide interoperability of electronic toll collection. • Established the Platinum Sponsor Advisory Council as a future looking think tank for the association and industry. • Launched a Connected and Automated Vehicle Working Group, a vital forum for sharing knowledge and ideas.
Meetings and Member Service
• Launched the Innovation TECH Talks, one of the most popular and creative features of our successful technology workshops. • Established the Membership Committee and hired new staff, which resulted in a significant increase in membership, sponsorship, and exhibits. • Created TollMiner, our powerhouse of toll industry data, which is still new and has great potential to serve our industry. • Created a Scholarship Program to help support undergraduate students pursuing transportation-related degrees.
47 Deliverables as Part of IBTTA Three-Year Plan Originally presented to the Board October 26, 2018 (Outcomes are written in BLACK. Text in BLUE signifies work to achieve the outcomes.)
During the October 13, 2018 Board meeting, the IBTTA Board adopted this resolution on the three-year plan: Resolved that the IBTTA board adopt the three-year plan as presented and instruct staff and the finance committee to prepare a detailed 2019 budget and implementation plan based on the structure outlined in the three-year plan. Be it further resolved that budgets for 2020 and 2021 will be approved (not now but later) in the normal course of the board’s action in 2019 and 2020.
In response to the Board’s adoption of the 3-year plan, the IBTTA Executive Committee and staff developed the following deliverables, including a measure of success in parentheses at the end of each item. Some items lack a specific quantifiable measure of success either because it is self-evident or a good measure cannot be identified now. We recognize it’s better to have a crude measure of the right thing than a specific measure of the wrong thing.
OUTCOME 1: STRENGTHENING CURRENT PROGRAMS AND SERVICES. These include meetings, advocacy, and communications.
Deliverables:
1. Speakers with New Perspective. Reach beyond traditional industry speakers to include new voices from academia, think tanks, local governments, the technology and mobility community, environmentalists, and others in 2019 meetings. (20% increase in this type of speaker vs 2018.
a. This was a priority for the Orlando Technology Summit (March 2019) planners and feedback from our post-Workshop survey reflected many comments about the number of outside speakers and new thinkers that they heard throughout the Summit. This is one of the overall objectives for all meeting planners.
b. IBTTA’s Communication and Change Management Summit’s Meeting Planning Group has planned a diverse set of speakers from inside and outside the tolling industry, entry level to executive level speakers, a mix of ethnic background and 55 percent of the speakers are women. IBTTA is partnering with the WTS Puget Sound Chapter for the Summit in Seattle.
48 2. International Speakers. Increase International participation in IBTTA meetings and in meeting planning groups to include non-US based speakers with relevance across the industry. (20% increase in this type of speaker vs. 2018).
a. The MaaS track during the Orlando Technology Summit was hoping to have more international expert speakers but unfortunately, most of them were unable to attend without significant funding and/or stipends. We did have many US-based speakers with knowledge of European MaaS.
b. The 2019 Annual Meeting should reflect a larger contingent of non-North American presenters; one of the General Sessions is a large panel of speakers from Around the World reflecting on specific experiences from their countries. Another general session is about Bridge Asset Management, also presented by bridge operators around the world who are part of ISCBOA, our Annual Meeting partner.
3. Students. Encourage members to “sponsor” student attendance at IBTTA technology workshop and annual meeting. (10 students in Orlando; 5 students in Halifax).
a. Eight students registered at the discounted rate for the Orlando Technology Summit. Those eight students and many others came to the Backyard Olympics which was a great way to introduce them to the IBTTA community.
b. We are working with a few students interested in attending the Annual Meeting in Halifax. The Young Professionals Council is also working to encourage student attendance as part of their initiative.
4. Succession. Encourage members to bring young professionals from their organizations to IBTTA meetings. (Hard to measure because we don’t have a baseline of “young” people now).
a. The Orlando Technology Summit brought approximately 25 people to the inaugural meeting of the Young Professionals Council. Tyler Milligan ran the meeting and did the outreach to encourage companies to send new staff. They worked on a Vision and Mission as well as identifying subcommittees and electing Council Leadership.
b. Marty Stone and Tom Knuckey ran a Tolling 101 session as part of the preliminary roundtables during the Orlando Technology Summit. It was very well attended and received great marks in the post-Summit survey. This is something that we’d like to continue since it appeals to both young professionals and newbies to the industry.
49 c. The Young Professionals Council (YPC) will present a proposal to the IBTTA Board for institutionalizing the group’s activities within the IBTTA framework.
d. The YPC is working with the Leadership Academy to create a mentoring program and the Leadership Academy alumni association (newly formed) is finding ways to work with the YPC moving forward.
5. Collaboration. Collaborate with other transportation related groups such as TRB, PIARC, AASHTO, ITSA, ASECAP, ITE, ASCE, ITS America and others in putting on meetings and delivering content.
a. Collaboration activities: Orlando Technology Summit: ATI, TeamFL, TRB, ITS International, PIARC; Finance Summit: TRB Finance Committees. 2019 Maintenance Workshop; no partners yet but working with AMOTIA (asset management association) and many member host agencies in Hampton Roads area. Communications: WTS. Annual Meeting partner is ISCBOA. International Summit of Portugal: ASECAP.
b. IBTTA worked closely with the organization “Infrastructure Week 2019,” to promote Infrastructure Week, May 13-20, 2019, highlighting the benefits of tolling and transportation. One example was an audio podcast focusing on IBTTA Member, WSDOT’s new SR-99 Tunnel.
OUTCOME 2: DATA AND ANALYSIS. A fully mature TollMiner data collection and visualization product with key information on every toll facility and operator in the world.
Deliverables:
1. New Releases and Use Cases. TollMiner will have 2 new releases per year focused on functionality prioritized by member use cases. Identify the use cases and the required data that will help toll operators solve real business problems that help them save money, make money, or increase value to their customers and stakeholders. (Identify three specific data points to be added by June and three more data points to be added by December.)
a. Releases: In June 2019, we released TollMiner 3.0. It added 2018 traffic and revenue (T&R) data and updated 2017 T&R numbers, along with a re-designed database. Also, as new facilities start tolling, they are continually added to the tool.
b. Agency Attributes to address use cases: We are working with the TollMiner Working Group to identify agency attributes that are the most relevant to collect
50 and display in TollMiner. These will allow a user to apply filters to identify agencies that have these attributes. Attributes span technology, operations, violation processing, and infrastructure, and will be included in a 2019 release of the tool.
2. International Data. Expand international representation by partnering with ASECAP to explore the commonalities between US data and ASECAP member data and adding ASECAP data where commonalities exist. (Add data from 6 non-US based toll operators or associations of toll operators).
a. TollMiner was discussed during the May 2019 International Committee meeting. Committee members understand the value of having their data in TollMiner and will be working with IBTTA to provide their information in a readable format. For now, TollMiner contains the facilities, operators, and centerline miles that are part of ASECAP, but does not have additional data including toll collection/pricing methods or T&R data. Maria Moreno from SEOPAN has provided more detailed information on roads operated by Roadis in India, Brazil, Portugal, Mexico, and Spain, so we are making some progress.
3. Staff. Hire, train, and leverage the skills of a research specialist (new staff member) who can explore alternate data sources and help with industry normalization of terminology.
a. In April 2019, we hired Lisa Jewell as a Research Specialist. Lisa has a MS degree in Library Sciences. She’s jumped into working on TollMiner with interest and focus and is showing great promise as a new member of our team.
4. Member Validation. Members are confused about some data questions we pose because some terms (e.g. ORT, AET, priced managed lane) mean different things to different people. In 2019, we will work with members to adopt a process to normalize definitions of terms to reduce confusion and improve data validation efforts.
a. Data Validation. We have built a new Agency Validation interface that allows data to be edited in place and submitted to IBTTA. Once approved by IBTTA, the data is then pushed to the live TollMiner Tool. The new interface is easier to use and allows IBTTA to track the date that an agency approved their data. TollMiner will be adjusted this year to allow a user to visually identify which agencies have validated their data.
OUTCOME 3: KNOWLEDGE TRANSFER. Developing a more systematic way of capturing the knowledge that resides in the minds of individual experts and practitioners in the IBTTA community and making that knowledge more accessible to all members.
51 Deliverables:
1. Agency Peer Exchange Pilot Program. Track and report out on progress being made under the new agency Peer Exchange Pilot Program. Establish guidelines that will be used to support 2020 participants. Also look at ways this could be linked to a similar ASECAP initiative.
a. John Keller, New Jersey Turnpike, made a presentation on this topic during the spring Board meeting in Philadelphia in May 2019. Another presentation will be made to the Board at the September 2019 board meeting with recommendations on continuing the program in 2020.
2. Group Briefings and “Webinars.” Create one or more methods beyond in-person meetings in which executive directors (or people in other disciplines) can carry on a conversation about a specific topic without having to be in the same physical location. Deliver webinar-like programs to promote member sharing and information exchange with the specific intention of serving those with limited travel ability, including non-US members. Specifically, do a bi-monthly group briefing or conversation via skype or other technology platform. (Conduct 3-4 executive director briefing sessions and a combined total of 6 webinar-like programs and group conversations).
a. In April 2019, we opened a Gaggle email discussion group for executive directors and their equivalents at member agencies and concessionaires with some initial discussion on violation enforcement and related issues. Other recent topics have focused on toll leakage and cross state reciprocity, advancing roadway automation readiness, and commercial truck fleet loyalty and discount programs.
b. The International Committee held a Webinar on Managed Lanes on June 18, 2019. Three agency speakers presented their managed lanes models and messaging as examples to emulate at facilities operating in the US and outside of North America. 246 individuals registered for the webinar and 163 attended the live session.
c. We are planning a second International Committee webinar on drone usage in October 2019.
d. On July 17, 2019, the Council of Platinum Sponsors hosted a webinar to discuss the Department of Homeland Security Cybersecurity Framework for Transportation. The webinar was presented by Mark Cantelli, Vice President,
52 Conduent Transportation, and Frank Reid, Senior Cybersecurity Consultant at AECOM.
3. Document Library. Work with members to create a Document Library with identified categories that will be populated with a representative sample of materials in each category from across the membership. Establish a permanent curator and naming conventions for documents with indexing. Access will be granted within member organizations at the subject matter expert level. In 2019, sample RFPs and RFQs will reside in the Document Library. The Document Library will be housed on the website as a member-only benefit. The next category of document samples will include policy documents or org charts and job descriptions, based on 2018-2019 member survey results.
a. The Membership Committee launched the “IBTTA Exchange” also known as the Document Exchange. 197 Documents have been added by members. Categories include Job Descriptions, Organization Charts, Design Specs, Call Center Operations, and Policies. Instead of developing a proprietary software, we are using Box.com to launch this new product. The Committee will continue to gauge the success and work on improvements throughout the year.
b. Round two of the “Master Procurement Calendar” has been published to include procurements through 2021. The team is actively working to identify Procurement Contacts all at member agencies and add their procurement plans to the calendar.
OUTCOME 4: INDUSTRY VISION. Integrating our industry more appropriately into the fabric of the larger transportation community.
Deliverables:
1. Fly In. Hold Washington, DC fly-in to Congress and the Administration in 2019 to advance the tolling agenda.
a. Occurred February 27-28, 2019 with 20 participants (including staff). We attended a portion of the AASHTO Washington briefing and had sit-down briefings with staff of the Senate Environment & Public Works Committee and House Committee on Transportation & Infrastructure.
2. IBTTA Policy Proposal on Reauthorization. Working through the committee structure of IBTTA, develop a comprehensive and concise industry policy proposal in areas of funding, technology, etc. to advance our industry’s position on transportation reauthorization in Congress. Hire technical subject matter expert (outside consultant).
53 a. This is a work in progress. The timetable of reauthorization is uncertain, but we are working on drafting policy position through the Government Affairs Committee.
3. State Advocacy (SWAT – Take it to the States). Establish tangible efforts in 3-4 states identified by the Government Affairs Committee to organize members involved in the state to communicate our coordinated message, to educate and build relationships with state and congressional officials and legislative committees focused on transportation in the state legislature, placing op-ed pieces, doing local television appearances, and building social media efforts in the targeted states. (Measurable efforts in 3 states).
a. Government Affairs Committee has repeatedly discussed this effort and have been working with FHWA staff seeking opportunities to assist any states applying for the ISRRPP program. The sense of the GA Committee and staff is that other opportunities for advancing tolling may bear more fruit.
b. Officials from Connecticut reached out to IBTTA for assistance and Pat Jones testified to the state legislature in support of the Governor’s proposal to re- institute tolling. Other efforts have included meeting with Governor Lamont, writing and publishing op eds, and serving as a resource to supportive local organizations.
c. IBTTA staff have worked with MTA Bridges & Tunnels to convene an “industry day” in support of sharing ideas to advance cordon-based pricing.
d. IBTTA continues to educate and inform members of the media on the benefits of tolling, new efforts on congestion pricing and mobility.
4. Preparation for disruptive technology. Working through the committee structure of IBTTA, develop 1 year, 3 year and 5 year deliverables for the industry at large in the broader areas of MaaS, RUC, CAV, Hyperloop, Blockchain, artificial intelligence and how our industry fits in. We will also determine the roll of the toll agency in these efforts. The effort culminates in an Innovation Summit hosted by agency Chief Technology Officers within the agencies including non-US CTOs. (Innovation Summit to be held after 2019).
a. Emerging Technologies Committee has been created and several new subgroups have been established: Big Data, Drones, Innovation & Strategy role within an agency, and Tolling and customer management. The groups have all held initial formation meetings and are working to develop white papers for Board consideration in early 2020. Existing Toll Miner and Connected & Automated Vehicles (CAV) Working Groups are also meeting and engaging on a regular basis.
54 5. Joint Policy Resolution. Develop a joint policy resolution focused on disruptive technology with other transportation associations and organizations such as TRB, ARTBA, ASCE, AASHTO, ITSA. (Multi-year activity).
55 EVENT SCHEDULE PLANNER 2020
MEETING 2020+ DATES HOTEL CITY WINTER BOARD & COMMITTEE MEETINGS January 8-10, 2020 Hotel Colonnade Coral Gables, FL LEADERSHIP ACADEMY February 23-28, 2020 Westin City Center Washington, DC *ANNUAL TECHNOLOGY SUMMIT April 2-4, 2020 Hilton San Diego San Diego, CA SPRING BOARD & COMMITTEE MEETINGS May 5-7 2020 **Denver Airport Marriott at Gateway Park Denver, CO
*SUMMIT ON FINANCE & POLICY May 7-9, 2020 Hilton Denver City Center Denver, CO 2021 CONFERENCE PLANNING July 11, 2020 Omni Louisville Louisville, KY MAINTENANCE & ROADWAY OPERATIONS July 12-14, 2020 Omni Louisville Louisville, KY FALL BOARD & COMMITTEE MEETINGS September 11-12, 2020 Hilton Austin Austin, TX 88TH ANNUAL MEETING & EXHIBITION September 13-15, 2020 Hilton Austin Austin, TX GLOBAL TOLLING SUMMIT October 18-20, 2020 Hilton Buenos Aires Buenos Aires Argentina
JANUARY FEBRUARY MARCH APRIL* MAY* JUNE S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 1 1 2 3 4 5 6 7 1 2 3 4 1 2 1 2 3 4 5 6 5 6 7 8 9 10 11 2 3 4 5 6 7 8 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 12 13 14 15 16 17 18 9 10 11 12 13 14 15 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 19 20 21 22 23 24 25 16 17 18 19 20 21 22 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 26 27 28 29 30 31 23 24 25 26 27 28 29 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 28 29 30 31
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 1 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 5 6 7 8 9 10 11 2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 12 13 14 15 16 17 18 9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 19 20 21 22 23 24 25 16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 26 27 28 29 30 31 23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31 29 30 27 28 29 30 31 30 31
*denotes a Thursday-Saturday meeting pattern. **contract pending. All meetings are subject to change. Please check www.ibtta.org/events confirmed information.
56 EVENT SCHEDULE PLANNER 2021
MEETING 2021+ DATES HOTEL CITY WINTER BOARD & COMMITTEES MEETING January 13-15, 2021 Hotel Colonnade Coral Gables, FL LEADERSHIP ACADEMY February 14-19, 2021 Westin City Center Washington, DC
FALL BOARD & COMMITTEES MEETING October 8-9, 2021 Marriott Anaheim Anaheim, CA 89TH ANNUAL MEETING & EXHIBITION October 10-12, 2021 Marriott Anaheim Anaheim, CA
JANUARY FEBRUARY MARCH APRIL MAY JUNE S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 1 1 2 3 4 5 3 4 5 6 7 8 9 7 8 9 10 11 12 13 7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8 6 7 8 9 10 11 12 10 11 12 13 14 15 16 14 15 16 17 18 19 20 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15 13 14 15 16 17 18 19 17 18 19 20 21 22 23 21 22 23 24 25 26 27 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 20 21 22 23 24 25 26 24 25 26 27 28 29 30 28 28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 27 28 29 30 31 30 31
JULY AUGUST SEPTEMBER OCTOBER - TBD NOVEMBER DECEMBER S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 7 1 2 3 4 1 2 1 2 3 4 5 6 1 2 3 4 4 5 6 7 8 9 10 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 5 6 7 8 9 10 11 11 12 13 14 15 16 17 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 17 18 18 19 20 21 22 23 24 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 25 26 27 28 29 30 31 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 28 29 30 26 27 28 29 30 31 31
All meetings are subject to change. Please check www.ibtta.org/events confirmed information.
57 IBTTA EXECUTIVE COMMITTEE Agenda Friday, September 13, 2019 9:00am to 11:00am 11:00am to 12:00p with COPS 12:00pm to 2:00pm
1. Call to order
2. Board Feedback on 3-Year Plan
3. 2020 Budget
4. Governance Topics
5. Board Topics
6. COPS Topics
7. Other Business
8. Adjourn
58 IBTTA MEMBERSHIP COMMITTEE Agenda Friday, September 13, 2019 3:00pm to 4:00pm Halifax, Nova Scotia, CANADA
1. Call to Order
2. Chair’s Remarks
3. Approve Minutes from last meeting
4. Membership Dues Collection Report
a. Three- year membership trends overview
5. Review 2019 Goals
a. The Exchange - document library launch
b. Strategic Partnerships
c. International Outreach
d. North American Regional Efforts
e. Support Current Members
6. Other Business
7. Adjourn
59 IBTTA Membership Committee Meeting Notes August 7, 2019 11 AM – 12 PM, EDT
Committee Members Attending:
o Susan Buse, SBuse Consulting o Benton Tempas, Northwest (Vice Chair) Parkway Rachel Bell, Kansas Turnpike o Staff: Authority o Wanda Klayman, IBTTA o Michael Davis, RS&H o Ancilla Brady, IBTTA o Tyler Milligan, Milligan Partners
1. Dues Collection Recap – Ancilla provided an update on membership renewals and new members. Year to date paid membership is $3,130,516 which is $23, 816 ahead of the full year plan of $3,106,700. Additionally, $80,510 in membership renewals payments is committed and $12,975 in new membership payments. Miami Tunnel, Ford and IBM have applied for membership and are invoiced. Membership dues revenue for 2019 is projected to be $100,000 over plan. A membership pipeline of over one hundred Operators and Associate members has been compiled.
2. Update on Sponsorships and Exhibits – Revenue is 98% to full plan of $1,149,000. Many strong leads for Halifax and Lisbon, and a pipeline is established for 2020 meetings.
3. Review 2019 Committee Goals
a. The Exchange – Document library launched in June Connection Member Newsletter and has been featured every month. Exchange is included in the membership benefits ads in the printed program guides for the Maintenance and Communications Summit. A dedicated blast email is planned for early September. In July 43 members accessed the Exchange.
Other planned activities to grow Exchange include:
• Roundtable in Halifax on Sunday – IBTTA team will be providing demos of the Exchange, TollMiner, the Procurement Calendar and promoting the Peer Exchange. • Testimonials for Exchange – collecting member testimonial to promote the benefit.
60 • Development of Drupal, budget for 2020 to update the site for seamless ness and enhanced functionality including searchability.
b. Strategic Partnerships
• Wanda – Denver Finance Summit - ASHTO, TRB are partners
• Launching Meeting Planning Groups earlier that previous years to allow more time for program development and promotion.
• Seeking to partner with Amotia – association for transportation asset management and operations to find a way to engage for Maintenance and Operations Meeting in Louisville, KY in July 2020.
c. International Outreach – The International Committee has divided responsibilities by country top recruit members and invite speakers to the Worldwide Showcase in Halifax. ABCR in Brazil is considering a proposal for Group Membership. The committee presented a webinar on Managed Lanes in June that was well attended and is planning a webinar on drone usage in October.
d. North American Efforts
Tyler – Update on Young Professionals – have received several requests on the website to become engaged. The group is establishing a governance structure, nominations for positions. Platinum sponsors have been discussing membership engagement, succession planning, internship program which compliments the Young Professionals Council. The Leadership Academy Association has committed to create a subgroup for mentoring. Also working to connect interns with a young professional, brings the pieces together to build a cohesive membership within IBTTA. Long-term goal is to keep these talented professionals in our industry.
e. Current Member Support
Susan has been talking to DBEs and has been working to add benefits, Patty has been working on women’s networking group.
4. Other Business
Its budget time, Susan called for ideas to support membership. Mike suggested that since we have a lot of irons in the fire, the Committee should continue to build up established efforts. In 2020, work to embed ideas into IBTTA operations.
5. Next Meeting - In Halifax on Friday September 13th 3:00pm – 4:00pm
61 Membership Committee Meeting
Board of Directors & Committee Meetings September 13, 2019
62 © 2018 IBTTA. ALL RIGHTS RESERVED. Membership Performance YTD
Updated September 4, 2019 Last Year Comparison
Above (Below) 2018 FY 2019 Membership Revenues Renewals YTD PAID New YTD PAID YTD PAID 2019 Budget Budget Renewals 2018 New 2018 Total Operator $2,047,663 $4,700 $2,052,363 $2,021,700 $30,663 Associate $413,095 $43,950 $457,045 $455,000 $2,045 Sustaining $612,000 $36,000 $648,000 $630,000 $18,000 TOTAL $3,072,758 $84,650 $3,157,408 $3,106,700 $50,708 $2,669,090 $113,488 $2,782,578
% Paid to plan 102% Membership Commitments
YTD Pledged Above (Below) 2019 Membership Revenues YTD Pledged Renew New Projection YTD 2019 Budget Budget Operator $31,500 $2,083,863 $2,021,700 $62,163 Associate $2,800 $1,897 $461,742 $455,000 $6,742 Sustaining $0 $0 $648,000 $630,000 $18,000 TOTAL $34,300 $1,897 $3,193,605 $3,106,700 $86,905
% committed to plan 103% 63 © 2018 IBTTA. ALL RIGHTS RESERVED. 2019 Membership Renewals YTD
Member Type # of Members 2018 # Dropped 2019 Retention Rate New in 2019
Operator 92 4 96% 2
Associate 109 12 89% 14
DBE 28 7 75% 12
Sustaining 37 3 92% 3
TOTAL 266 26 90% 31
64 © 2018 IBTTA. ALL RIGHTS RESERVED. Dropped Members YTD
Member Membership Type Reason Alamo Regional Mobility Authority (RMA) Inside North America No tolling Camino Real Regional Mobility Authority (CRRMA) Inside North America No tolling Massachusetts Department of Transportation Inside North America Ontario Ministry of Transportation Inside North America Budget Constraints Advanced Management Consulting LLC DBE/WBE/MBE/SBE Dues Ascend Infrastructure DBE/WBE/MBE/SBE Dues MJ Synergy Group DBE/WBE/MBE/SBE Dues Stokes Creative Group, Inc. DBE/WBE/MBE/SBE Dues The Brand Advocates, Inc. DBE/WBE/MBE/SBE Dues Torri's Legal Services DBE/WBE/MBE/SBE Dues Not attending this year Wilkins Strategies DBE/WBE/MBE/SBE Dues ATANE Associate Dues Legal issues, company rebranded and has new leadership China Highway & Transportation Society Associate Dues Requested IBTTA participate in World Transport Convention Duane Morris Government Strategies Associate Dues Dropped for nonpayment Phoscrete Corporation Associate Dues No longer participating in IBTTA events S&P Global Associate Dues StarStar Mobile Associate Dues Budget, cannot participate in 2019 TollSense LLC Associate Dues App in development, contact in the future TRMI Systems Integration Associate Dues Leadership changes UScontracting, Inc. Associate Dues Cognizant Technology Solutions Associate Dues take a break from IBTTA in 2019. We hope to be back in 2020 Hardesty & Hanover, LLC Associate Dues Nossaman, LLP Associate Dues ETAN Industries Sustaining Dues Not participating in 2019, discuss again in 2020 Morgan Stanley Sustaining Dues not participating in the last few years, dues are now significantly higher 65 Municipal Services Bureau Sustaining Dues Company purchased by Navient, Duncan Solutions will be member © 2018 IBTTA. ALL RIGHTS RESERVED. Member Drops 5-year Overview $
IBTTA DROPPED MEMBERS REVENUE Operator Associate Sustaining Total Dropped Expon. (Operator) Linear (Operator) $196,732 $188,267 $162,784 $148,765 142936 142267 $63,598 $60,000 $59,765 $54,000 $53,289 $49,495 46000 41000 $35,000 $33,598 $30,000 15000 0
2015 2016 2017 2018 2019
66 © 2018 IBTTA. ALL RIGHTS RESERVED. Member Drops 5-year Overview #
IBTTA Dropped Members # 60
50
40
30
20
10
0 2015 2016 2017 2018 2019
Operator Associate Sustaining Total # Dropped Linear (Total # Dropped)
67 © 2018 IBTTA. ALL RIGHTS RESERVED. IBTTA 5-year Membership Revenue Growth
IBTTA Membership Revenue Growth $4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0 2016 2017 2018 2019 2020
NEW revenues Total Rev Linear (Total Rev)
68 © 2018 IBTTA. ALL RIGHTS RESERVED. IBTTA Membership # Trend
Membership Trend # 300
250
200
150
100
50
0 2011 2012 2013 2014 2015 2016 2017 2018 2019
Active Associate Sustaining Total Membership Expon. (Total Membership)
69 © 2018 IBTTA. ALL RIGHTS RESERVED. Members by Dues Category
Member Count Member Revenue
36 $648,000
90 $32,835 33
$430,100
$2,105,863
97
Operator Associate DBE Sustaining Operator Associate DBE Sustaining
70 © 2018 IBTTA. ALL RIGHTS RESERVED. Operator Member Prospects
Focus on Growing Operator Membership . Compiled a prospect pipeline segmented by Operator and Associate Prospects . Identified 76 New or Win-Back Operator Prospects . Recent Operator Recruitment Activity 1. ABCR - Reviewing Proposal 2. Miami Tunnel - Invoiced 3. Santa Clara Valley Transportation Authority – Invoiced 4. Brisa - Declined 2019 Membership 5. Minnesota Department of Transportation – Seeking Leadership Approval 6. Bakwena Platinum Corridor Concessionaire (PTY) LTD 7. Invepar – interested in joining 2020 8. JP Autoceste FBiH – Applied for membership 9. Windsor Detroit Borderlink - Budgeting for 2020
71 © 2018 IBTTA. ALL RIGHTS RESERVED. 2019 Sponsorships and Exhibits
2019 Sponsors & Exhibitors Revenue $1,400,000
$1,200,000
$1,000,000
$800,000
Axis Title Axis $600,000
$400,000
$200,000
$0 Annual Meeting Sponsors Annual Meeting Exhibitors Workshop Sponsors Workshop Exhibitors TOTAL 2019 Budget $212,000 $165,000 $623,000 $149,000 $1,149,000 Actual To Date $249,000 $162,000 $609,000 $142,300 $1,162,300 Axis Title
2019 Budget Actual To Date
72 © 2018 IBTTA. ALL RIGHTS RESERVED. IBTTA PAST PRESIDENTS ADVISORY COUNCIL Agenda Friday, September 13, 2019 4:00pm to 5:00pm
1. Call to Order
2. Catch up and reconnect
3. Honorary Member Candidates
4. Tolling Immersion Program (Samuel Johnson)
5. Book for Future Presidents
6. Other Business
7. Adjourn
73 IBTTA 2020 Presidential Initiative Tolling Immersion Program – Internship and Mentoring
Overview Strategic visioning to support the tolling industry and our members is a key function of IBTTA. Recent discussions with agency executive directors have resulted in the identification of the need for improved succession YOUNG planning within the industry, and improved recruitment of PROFESSIONAL COUNCIL the perspectives, ideas and talent needed for the LEADERSHIP accelerated evolution of transportation. Through the efforts of the IBTTA Foundation and the Council of Platinum Sponsors (COPS), IBTTA has made strides in SCHOLORSHIP Tolling supporting future members and industry leaders through our Leadership Academy, Scholarship Program, the Immersion
recently launched Young Professionals Council (YPC) Program INTERNSHIP and the addition of the Tolling 101 workshop. (TIP)
Leveraging these efforts to create a support platform for
recruitment, retention and development is a key MENTORING TOLLING opportunity for IBTTA. Under the banner of a “Tolling 101 Immersion Program” IBTTA is proposing to pilot two WORKSHOP new components… an Internship Program and a Mentoring Program… to identify a suite of programs to foster future industry leaders. Each distinct in its function but synergistic in the desired outcome.
74 Internship Program IBTTA’s internship program would be distinct but complement our other efforts to attract, retain and foster the development of future industry leaders. The program would be somewhat unique in that it would be a two-part internship where selected candidates would spend part of a summer working for one of the Platinum Sponsors and part working for an Agency. It would also be possible to have a combination where they worked with a system or service provider and then a firm from the consultant/ engineering sector. The program would be flexible as its intent is to provide a purposeful, broad set of experiences within the Agency and private partner’s organizations and could be somewhat tailored to the participant.
Although short-term (9 to 12-weeks), the experience gained in working in the multiple aspects in our industry will provide the participants with career perspectives and increase their value in pursuing employment. Participants may include IBTTA’s scholarship awardees, the Agency and Platinum Sponsor(s) receive value in having a high-caliber intern with a broad perspective of the industry and the fostering future leaders for the industry.
Draft Concept Elements to be refined based on feedback from COPS, Foundation and Past Presidents (PPs)
Work with the Foundation to contact 2019 COPS, Past Presidents and Foundation will scholarship awardees or applicants to make identify what professional development them aware of the internship opportunity and opportunities should be included and when. identify interested participants. Key opportunities may include attending a summer IBTTA workshop, attending a YPC Platinum Sponsors will identify participating firms meeting/event, participating in Tolling 101 and to provide paid internships and assign them to being recognized officially by IBTTA. identify partnering agencies who would also be Connect the intern to a YPC liaison and willing to provide paid internships. Leadership Academy Alumni.
Participating agencies will identify a program Work with the Foundation to include an option leader and develop a work and/or a on the 2020 application for scholarship shadowing program. The paired agencies would applicants to also apply for an internship. We need to develop schedules and any rules propose that applicants who volunteer/commit to associated to their particular programs. participate in the internship program would receive bonus points towards the scholarship award Develop a feedback mechanism for program evaluation. evaluation and continuation.
Mentoring Program The second component would be to identify volunteers from the Past President’s Advisory Council, as well as alumni from the Leadership Academy, to develop mentorship programs and serve as mentors to the interns and YPC members.
While it would be beneficial to the Internship Mentees to have several status calls throughout the duration of their internships, this mentorship program would consist of mentors and mentees committing to a minimum of three contacts. These can comprise telephone calls, WebEx or Skype sessions, and even in person meetings when possible. The idea would be to communicate at each of the following:
Beginning of the internship During the transition from one agency/ company to the other Conclusion of the internship
Depending on the number of Mentor volunteers, notably Leadership Academy alumni, and ratio to mentees, the YPC Mentoring program would be scaled. The mentor volunteers in collaboration with the YPC participants would develop the program. 75
IBTTA INTERNATIONAL COMMITTEE Agenda Saturday, September 14, 2019 9:00am to 10:00am Halifax, Nova Scotia, CANADA
1. Call to Order
2. Chair’s Remarks
3. Webinars
o Managed Lanes – Presented June 18th
st o Drones – Scheduled for October 1
o Future webinar topics of interest to International Members 4. Contact and recruit potential non-US new members
5. Regional contact points for international members to assure connection, exchange and interact with their members
6. Initiating peer to peer exchanges
7. Feeding the IBTTA Toll-Miner with international data
8. Other Business
9. Adjourn
76 IBTTA FINANCE STANDING COMMITTEE OF THE BOARD Agenda Saturday, September 14, 2019 10:00am to 12:00pm
1. Call to Order
2. Chairman’s Remarks (George Zilocchi)
3. Review June 30, 2019 Financial Statements with Year End Projections (Cathy Pennington)
4. Investment Subcommittee Report (Susan Buse)
5. Discussion of DRAFT 2020 Budget (Cathy Pennington, Pat Jones and all)
6. Schedule for Adoption of 2020 Budget (Pat Jones)
7. Presentation on Enterprise Risk Assessment and Internal Controls Assessment (Deb Sharpless and Susan Buse)
8. Status of 2019 Finance Committee Goals (George Zilocchi)
9. Other Business
10. Adjourn
Background materials
• Agenda • Mission • Investment Policy • 2019 Finance Committee Goals • Presentation and Reports on Enterprise Risk Assessment and Internal Controls Assessment • June 30, 2019 Financial Statements • DRAFT 2020 Budget • Schedule for approving 2020 Budget • Minutes of May 19, 2019 Meeting
77 Mission of the IBTTA Finance Standing Committee of the Board Approved by the IBTTA Board of Directors October 13, 2018
The Finance Standing Committee of the Board (the Committee) provides oversight of the finances of IBTTA on behalf of the Board of Directors. It also serves as a resource for the Association’s management.
The specific tasks of the Committee are to:
1. Oversee financial planning.
a. During the strategic planning process, participate in the analysis of the external and internal environment that determines the future course for the organization.
b. During the budgeting process, work closely with senior management to ensure that the process is efficient, includes key elements of the strategic plan, and includes Board decisions and directions.
c. Review and recommend the budget to the Board for approval.
2. Help the Board understand the organization’s financial health. Serve as a communication channel to the rest of the board, translating financial data into meaningful terms that can be understood by those less familiar with financial jargon.
3. Monitor liquidity and adherence to budget by reviewing investment, reserve and budget reports on a regular basis.
4. Ensure protection of association assets through an appropriate system of internal controls (if not addressed by the Audit Committee) and regular review of investments through the Investment Subcommittee
5. Draft organizational fiscal policies to serve as guidelines for management and staff to follow when developing day-to-day procedures. Such policies include investment policies, establishment of reserves, calendar of reporting to the Committee and Board, and financial viability of major new initiatives.
6. Anticipate financial problems by monitoring the external fiscal environment in which the organization operates.
7. Oversee financial record keeping by reviewing and evaluating financial statements on a regular basis.
8. Ensure all legal reporting requirements are met. These include timely filings with the IRS and any necessary state and local filings.
78 9. Sustain the Committee itself. This includes regular evaluations of the Committee’s effectiveness, recruitment of new members, and training of all members in the overall fiscal operations of the Association.
The Finance Standing Committee shall perform such other duties as may be prescribed from time to time by the President and the Board of Directors.
79 International Bridge, Tunnel and Turnpike Association
Investment Policy Adopted by the IBTTA Board of Directors on January 8, 2016 With revisions adopted September 9, 2017
Purpose: The purpose of this statement is to set forth the policy and operational factors governing the investment management of the International Bridge Tunnel and Turnpike Association (IBTTA) Total Operating Reserve.
The Total Operating Reserve will be comprised of a short-term and long-term portfolio. This statement will serve to direct the management of investment assets within each portfolio by the designated investment advisor.
The determination of the amount in the short-term versus long-term portfolio will be determined annually by the Executive Director and submitted to the Board for approval as part of the annual budgeting process.
Operating Reserve – Guidelines and Restrictions
The primary objectives of this portfolio are: • Safety: Investments of the Association shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification along credit and maturity lines is required in order that potential losses on individual securities do not exceed the income generated from the reminder of the portfolio. • Liquidity: The investment portfolio will remain sufficiently liquid to enable the IBTTA to meet all operating requirements, which might be reasonably anticipated. • Return on Investments: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. The management of the portfolio should seek to optimize return while minimizing risk through diversification and asset allocation.
Cash Flow Expectations:
This portfolio provides a short term funding reserve for IBTTA that will be funded and reduced based on the amount of funds in the IBTTA checking account. It is expected that the reserve will receive a large initial contribution then be drawn down over the year. Funds can potentially be needed monthly.
Time Horizon:
80 This portfolio is considered short term in its investment time horizon. Investments should reflect a maturity target of approximately one year. The portfolio will reflect an allocation strictly to ultra short term investments in order to meet any monthly cash flow requirements.
Tax Status:
IBTTA is a nonprofit organization and is thus exempt from taxes. Investment decisions should reflect this tax status when purchasing or selling securities.
Risk Tolerance / Asset Allocation:
This portfolio is classified as conservative based on the stated objectives of preservation of capital and liquidity. The recommended target asset allocation is set to achieve these objectives while maximizing returns.
Asset Class Target Allocation Ultra Short Term Fixed 100% Income
The Ultra Short Term Fixed Income asset class will target a weighted average maturity of no greater than 14 months and a weighted average credit rating of AA, with an emphasis on US Treasuries and Agencies.
Eligible Investments and Restrictions: The following are eligible investments for this investment portfolio: • US Treasuries • US Agencies • Municipal and Corporate Bonds rated investment grade or higher by Moody’s, S&P, or Fitch • Mortgage Backed Securities issued by US Agencies • Dollar denominated obligations of foreign issuers issued in the U.S. • Foreign government and agency obligations • Bonds with a maturity of 2 years or less at the time of purchase • FDIC Insured Certificates of Deposit • FDIC Insured Money Market Accounts • Money Market funds that invest solely in eligible securities listed above, and whose credit quality is such that they must invest exclusively in high-quality securities (generally those that are in the top two tiers of credit quality) • Mutual funds that invest solely in eligible securities listed above • Exchange traded funds that invest solely in eligible investments listed above
Short-Term Portfolio Reserve – Guidelines and Restrictions
81 The primary objectives of this portfolio, in order of importance, are: • Safety: Investments of the Association shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification along credit and maturity lines is required in order that potential losses on individual securities do not exceed the income generated from the reminder of the portfolio. • Liquidity: The investment portfolio will remain sufficiently liquid to enable the IBTTA to meet all operating requirements, which might be reasonably anticipated. • Return on Investments: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. The management of the portfolio should seek to optimize return while minimizing risk through diversification and asset allocation.
Cash Flow Expectations:
This portfolio provides a short term funding reserve for IBTTA to cover expenses related to special projects/initiatives that are not covered by the annual budget, or to replenish the checking account. As such, there are no known cash flow expectations; however, funds may be needed periodically in order to meet these needs. Any change in IBTTA’s need for cash flows from this account should be addressed through a change in this policy statement.
Time Horizon:
This portfolio is considered short term in its investment time horizon. The investment portfolio as a whole should reflect a maturity target of approximately five years or less.
Tax Status:
IBTTA is a non-profit organization and is thus exempt from taxes. Investment decisions should reflect this tax status when purchasing or selling securities.
Risk Tolerance / Asset Allocation:
This portfolio is classified as conservative based on the stated objectives of preservation of capital and liquidity. The recommended target asset allocation seeks to achieve these objectives while maximizing returns and minimizing volatility.
Asset Class Target Allocation Fixed Income 99.0 Cash 1.0
82 The fixed income asset class will target a weighted average maturity of no greater than five years and a weighted average credit rating of no lower than AA.
Eligible Investments and Restrictions:
The following are eligible investments for this investment portfolio: • Cash Equivalents o Treasury Bills o Money Market Funds o FDIC Insured CDs o FDIC Insured Money Market Accounts • Fixed Income Securities (rated investment grade by Moodys, S&P, or Fitch) o U.S. Government and Agency Securities o Fixed Income Securities of Foreign Governments and Corporations (up to 35% of the market value of the fixed income portion of the portfolio) o Corporate Notes and Bonds o Mortgage Backed Bonds o The fixed income portion of the portfolio shall have a weighted average maturity of 3 years or less. o The weighted average credit quality of the fixed income portion of the portfolio shall be not less than an ‘AA’ rating. • Mutual Funds or Exchange Traded Funds (including similar pooled investments and separately managed accounts) shall be selected on the basis that they invest in those securities deemed to be allowable above. • Diversification o No more than 10% of the portfolio combined may be in the securities of any one issuer with the exception of obligations of the US Government and its agencies, and federally insured instruments. o No more than 20% of the portfolio combined may be in the securities of a particular industry.
Benchmarking:
1. The portfolio will be compared to a benchmark comprised of the Barclays Capital Aggregate Bond Index, Barclays Capital Gov. 1-3 Year Bond Index, and the Merrill Lynch Three Month US Treasury Bill Index. Weights will be applied to each index based on the target allocation to each broad asset class.
2. The investment advisor will provide a benchmark for each fund and separately managed account held within the portfolio.
Long-Term Portfolio Reserve – Guidelines and Restrictions
Statement of Objectives: The primary objectives of this portfolio, in order of importance, are:
83 • Safety: Investments of the Association shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification along credit and maturity lines is required in order that potential losses on individual securities do not exceed the income generated from the reminder of the portfolio. • Return on Investments: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. The management of the portfolio should seek to optimize return while minimizing risk through diversification and asset allocation. • Liquidity: The investment portfolio will remain sufficiently liquid to enable the IBTTA to meet all operating requirements, which might be reasonably anticipated.
Cash Flow Expectations:
This portfolio is not expected to be a direct source of cash flow for IBTTA, however, withdrawals from this Reserve may be required in order to fund the Short Term Reserve. As such, an adequate amount of the fixed income portfolio will be held in short term securities. Any change in IBTTA’s need for cash flows from this account should be addressed through a change in this policy statement.
Time Horizon:
This portfolio is considered long term in its investment time horizon. Investments seek long term growth as their primary objective. The funds in this account are not expected to be withdrawn in the next 5 years.
Tax Status:
IBTTA is a non-profit organization and is thus exempt from taxes. Investment decisions should reflect this tax status when purchasing or selling securities.
Risk Tolerance / Asset Allocation:
This portfolio is classified as moderate risk based on the stated objectives of long term growth of assets and preservation of capital. The recommended target asset allocation seeks to achieve these objectives while maximizing returns and minimizing volatility.
Asset Class Minimum Target Allocation Maximum Domestic Equity 26% 32.5% 36.5% International Equity 14% 17.5% 18.5% Fixed Income 39% 49% 59% Cash 0% 1% 2%
84 The fixed income asset class will target a weighted average maturity of no greater than eight years and a weighted average credit rating of no lower than AA.
The domestic and international equity assets classes will reflect an allocation to all nine style boxes based on market capitalization (Large, Mid, Small) and style (Value, Blend, Growth.) The allocation to international equity will also include exposure to both developed and emerging markets.
Return Expectations:
Returns are expected to be commensurate with the risk tolerance and asset allocation of the investments and will reflect the portfolio’s objectives of long term growth and stability. The portfolio performance will be gauged against a designated benchmark and is expected to track those benchmark returns over time.
Eligible Investments and Restrictions:
The following are eligible investments for this investment portfolio: • Cash Equivalents o Treasury Bills o Money Market Funds o FDIC Insured CDs o FDIC Insured Money Market Accounts • Fixed Income Securities (rated investment grade by Moodys, S&P, or Fitch) o U.S. Government and Agency Securities o Fixed Income Securities of Foreign Governments and Corporations (up to 35% of the market value of the fixed income portion of the portfolio) o Corporate Notes and Bonds o Mortgage Backed Bonds o The fixed income portion of the portfolio shall have a weighted average maturity of 10 years or less. o The weighted average credit quality of the fixed income portion of the portfolio shall be not less than an ‘AA’ rating.
• Equity Securities o Common Stocks o American Depository Receipts (ADRs) and Ordinary Shares of Non-U.S. Companies • Mutual Funds or Exchange Traded Funds (including similar pooled investments and separately managed accounts) shall be selected on the basis that they invest in those securities deemed to be allowable above. • Diversification o No more than 5% of the portfolio combined may be in the securities of any one issuer with the exception of obligations of the US Government and its agencies, and federally insured instruments. o No more than 20% of the portfolio combined may be in the securities of a particular industry.
85
The following are not eligible investments for this investment portfolio: Purchasing the following: • Private placement; • Letter stock; • Futures; • Currency forwards; • Options; • Commodities; • Securities whose issuers have filed a petition for bankruptcy.
Making the following transactions: • Short sales • Margin transactions • Any speculative investment activities
Benchmarking:
3. The portfolio will be compared to a benchmark comprised of the Russell 3000 Index, FTSE All World Ex-U.S. Index, Barclays Capital Aggregate Bond Index, Barclays Capital Gov. 1-5 Year Bond Index, and the Merrill Lynch Three Month US Treasury Bill Index. Weights will be applied to each index based on the target allocation to each broad asset class.
4. The investment advisor will provide a benchmark for each fund and separately managed account held within the portfolio.
Rebalancing Procedures:
This portfolio will be rebalanced periodically to assure that the overall asset allocation target of the portfolio is maintained. Events including large deposits or withdrawals and significant market movements may trigger the need to rebalance the portfolio. Regardless of activity the portfolio will be reviewed on a quarterly basis at a minimum to assure the balance is adequately maintained. In order to minimize transaction costs, the manager will evaluate the benefit of rebalancing relative to the transaction cost. The advisor will maintain a rebalancing threshold of +/- 20% of the target allocation percentage for each asset class, with the exception of cash, which will have a rebalancing threshold of +/- 50% of the target.
Total Operating Reserve Guidelines
Monitoring:
The advisor will provide the IBTTA Finance Committee with a detailed report of the portfolio at least quarterly. The quarterly report will outline the following in a simple and graphical way: • What have we invested where?
86 • How has our portfolio performed relative to our investment policy and designated benchmarks?
• What is the change in value of our portfolio over time (a quarter, a year, etc.)?
• What, if anything, should we be concerned about with respect to the market, our portfolio, or any other relevant factors?
Policy Revisions:
This policy will be formally reviewed annually to determine if the objectives, constraints, and allocations are appropriate and consistent with IBTTA’s objectives. Additional conditions under which the policy might be amended include:
• A change in IBTTA’s risk tolerance, timeline, tax status, or cash flow expectations
• Introduction of new investment vehicles
• A change in the objective of the portfolio
The IBTTA Finance Committee will work with the designated investment advisor to review the policy for its appropriateness after such changes, and will amend the policy when necessary.
Duties and Responsibilities:
The following parties to this policy will be charged with certain duties and responsibilities as it relates to management of the portfolio:
International, Bridge, Tunnel and Turnpike Association: Will be required to review and approve this Investment Policy Statement in its entirety. IBTTA will be responsible for working with a Designated Investment Adviser no less than annually to review and amend this policy statement. IBTTA is responsible for selecting an investment advisor who will comply with this policy statement, and is responsible for periodically reviewing the advisor’s compliance with this policy statement.
Designated Investment Advisor: Will be responsible for implementing the investment strategy outlined in this policy statement by selecting investments and external managers that meet the investment criteria within this policy statement. The Designated Investment Advisor will be charged with timely reporting of investment performance to IBTTA. The Designated Investment Advisor is also required to perform all normal due diligence in selecting external investment managers, including a review of their ability to operate within the investment guidelines and restrictions outlined in this policy. The Designated Investment Advisor is responsible for selecting other appropriate parties as needed to implement this policy, including attorneys, custodians, and broker/dealers.
87 Investment Manager: Investment managers will be any party the Designated Investment Advisor selects to invest funds on behalf of IBTTA. For purposes of this policy, Investment Managers include Mutual Fund Managers, Exchange Traded Fund Managers, Separate Account Managers, Money Market Fund Managers, and any other party that the Investment Manager contracts to invest funds on behalf of IBTTA. The Investment Advisor is responsible for assuring that any Investment Manager selected is investing funds in a manner consistent with the eligible investments and restrictions outlined in this policy.
Authority:
IBTTA Board approval is required to make changes to this Investment Policy Statement.
Authorized agents for IBTTA for this account may direct transfers in or transfers out of the account governed by this policy. The authorized agents are: Executive Director of IBTTA and Director of Government Affairs of IBTTA.
Approval
I acknowledge that this Investment Policy accurately represents the guidelines and restrictions to which the International, Bridge, Tunnel and Turnpike Association Total Operating Reserve is to be managed.
______PRINT NAME DATE
______SIGNATURE
______PRINT NAME (Dennis Gogarty) DATE President, Raffa Wealth Management, LLC
______SIGNATURE
Revisions adopted on these dates: April 4, 2014 January 8, 2016 September 9, 2017
88
IBTTA Finance Committee Standing Committee of the Board
2019 Goals & Objectives
GOAL #1
Continue implementation and monitoring of the Three-Year Business/Financial Plan approved in 2018.
First undertaken for financial year 2019 and completed, the three (3) year planning process should be a revolving one, i.e. year 1 (2019) completed with an approved budget, now year 2 (2020) and year 3 (2021) should move up and the next year (in the present case 2022) fill the year 3 slot.
The Board continues to approve each year’s Business/Financial Plan, and the Finance Committee monitors the reasonableness of the financial estimates which comprise the Plan’s framework.
The results of this process provide the Board with an important decision-making tool. Decisions which will determine the future path of our association.
GOAL #2
Complete the Risk Assessment study and follow up on the recommendations contained within.
In 2018 this goal was joined with the Audit Committee Goal recommending an Internal Control Audit be undertaken. Proposals were solicited and received from firms with expertise in these areas. Selection has been made and it is anticipated that their work will commence in early 2019.
This project is anticipated to be finalized at the end of 1st quarter 2019 at which time a report on the association’s Risk Assessment will be prepared and submitted to the IBTTA.
Once received, the recommendations will be reviewed by the Finance Committee and a plan of implementation will be recommended.
89
GOAL #3
Increase the Reserve Ratio to the 50% Goal.
A plan/procedure was prepared in 2018 as to how best to achieve this goal. It was presented in Baltimore to the Finance Committee.
After the 2018 association financial records are finalized, a determination using this procedure will be made as to whether any funds are available to transfer to the Reserves.
CLOSING
The above is in addition the Finance Committee’s annual recommendation of the yearly IBTTA Operating Budget and the monitoring of the financial and investment activities of the association.
George P. Zilocchi December ~ 2018
90 Internal Controls Assessment and Enterprise Risk Assessment
Presentation to IBTTA Board of Directors By Deb Sharpless and Susan Buse September 14, 2019
91 © 2018 IBTTA. ALL RIGHTS RESERVED. Background . IBTTA issued RFP for professional services to perform an Internal Control Assessment (ICA) and conduct an Enterprise Risk Assessment (ERA) in July 2018. . Five proposals were evaluated and a contract was awarded to CliftonLarsonAllen LLP (CLA) in September 2018. Work was conducted through spring 2019; final reports issued in August. . Services were sought to advance the Board’s fulfillment of its fiduciary responsibility by ensuring: . IBTTA is taking appropriate and manageable risks, and . IBTTA’s internal controls are sufficiently robust to protect it against fraud or other financial malfeasance. . IBTTA Management and the Finance and Audit Committee Chairs collaborated through the ICA and ERA process. 92 © 2018 IBTTA. ALL RIGHTS RESERVED. Internal Controls Assessment . Objectives . Evaluate the design and operations of the current internal control state; . Identify improvement opportunities; and . Propose recommendations that improve internal control and/or future mitigate risks. . Key processes and sub-processes assessed
Revenue and Non-payroll Compensation & Investments & Cash Journal Entries & Budgeting Receipts Disbursements & Benefits Management Financial Reporting Accounts Payable Recordation Invoice approval Payroll processing Reconciliations Recurring entries Review and approval approval Check Receipts Invoice payments New hire approval Investment Manual entries Monitoring Allocations Refunds Reconciliations Timecard approval Return on Board of Director Investments review AMS access controls Vendor Service Organization Service Organization 93 management Control Report (SOC) Control Report (SOC) © 2018 IBTTA. ALL RIGHTS RESERVED. Internal Controls Assessment (continued) . Observations . CLA observations were reflective of an overall stable internal control environment; . CLA identified nine observations and provided recommendations for improvement; . Three key themes; and . Improve documentation of review and approvals via policies and procedures . Increase segregation of duties and adopt preventative mitigating controls . Document authorized approved reviews and alternate reviewers . Results align with what would be expected for an organization with the size, maturity, and structure of IBTTA. . Recommendations . CLA recommendations fall into three categories . Automation; . Documentation of Reviews and Identification of Reviewers and Primary and Alternate Approvers; and . Update Policies and Procedures. 94 © 2018 IBTTA. ALL RIGHTS RESERVED. Internal Controls Assessment (continued) . Recommendations (continued) Recommendation Categories Observations Automation Recording Revenue (1); Online Bill Payment System (4) Documentation of Reviews and Check Log (2); Bank Reconciliation (3); Payroll Processing Identification of Reviewers and Review (5); Time Card Approval (6); Journal Entry Creation Primary and Alternate Approvers & Review (7) Update Policies and Procedures Recording Revenue (1); Check Log (2); Budget Modification Review (8); Cash Management Policy (9)
. Management and Management Responses . Management, staff, etc. were engaged, open and cooperative throughout engagement. . Management respectfully did not agree with all recommendations; however, management’s responses were well thought-out and responsive to the recommendations.
95 © 2018 IBTTA. ALL RIGHTS RESERVED. Enterprise Risk Assessment
. Objectives . Conduct a strategic level assessment of IBTTA’s exposure to risk such as financial loss, inefficient operations, legal violations, reputation damage, long-term viability or similar endangerments; . Identify the most likely or imminent risks; and . Start a dialogue between management and governance regarding proper actions to reduce the likelihood and minimize the impact of the prioritized risks.
. Key processes assessed . Methodology . Financial . Proprietary assessment tool . Operational . Objective key trends . Programmatic . Subjective input from . Regulatory/Compliance industry best practices and management interviews . Strategic 96 © 2018 IBTTA. ALL RIGHTS RESERVED. Enterprise Risk Assessment (continued) . Observations . CLA classified risks in quadrants of likelihood (unlikely to imminent) and timing (0-60 months). . They note 4 general responses to any risk: accept and monitor, mitigate, transfer or avoid. . CLA recommends monitoring the middle tier risks in Quadrants I and IV and accepting the very unlikely Quadrant III risks. . They identified 7 risks with higher likelihood and potential for near-term effect (Quadrant II). Financial Operational Programmatic Regulatory/ Strategic Compliance
Fraud Business Continuity/ Market Privacy of Succession Planning: Disaster Recovery Relevance Data Leadership Human Capital: Turnover Security Breach
97 © 2018 IBTTA. ALL RIGHTS RESERVED. Enterprise Risk Assessment (continued) . Action Plan to Mitigate Quadrant II Risks . Continue best practices such as internal controls, standard operating procedures, review and enforcement of policies, employee cross-training, member communication, industry focus groups and periodic evaluation of the Board’s Strategic Plan. . New initiatives: . Conduct internal control assessment every 4 years. . Provide risk training for senior staff. . Develop a Continuity of Operations/Disaster Recovery Plan. . Document types of data maintained by IBTTA, the relevant privacy requirements, and investigate the cost/benefit of a cybersecurity assessment. . Develop a formal succession plan. . Most of the Action Plan strategies will not impact the budget directly. Steps requiring cash outlays will be incorporated into the 3-year plan and budgets. . Additional contracted risk assessments are not anticipated.
98 © 2018 IBTTA. ALL RIGHTS RESERVED. May 3, 2019
Internal Control Assessment Report International Bridge, Tunnel and Turnpike Association
CLAconnect.com
WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING 99
Executive Summary CliftonLarsonAllen LLP (“CliftonLarsonAllen” or “CLA”) performed an internal control assessment for the International Bridge, Tunnel and Turnpike Association (“IBTTA” or “Association”) to assess the design and operation of internal controls. This assessment was performed as a result of IBTTA’s understanding of the importance of internal controls in managing risk and accountability. CLA performed the assessment from March 2019 through April 2019. For each key process CLA haphazardly selected transactions from the period January 1, 2018 thru March 30, 2019 to walkthrough controls.
Objective The objective was to perform an assessment of IBTTA’s internal controls in accordance with the Statement on Standards for Consulting Services issued by the American Institute of Certified Public Accountants, specifically the following:
Perform a current state internal control assessment to evaluate their design and operation. Identify current state process and internal control improvement opportunities. Propose future state changes that may enhance risk mitigation and better support internal control objectives
Observations The assessment resulted in nine observations and recommendations, outlined in the Detailed Observation Listing section. Overall these observations are reflective of a stable internal control environment and offer opportunities to strengthen the current state. The observations followed the following key themes:
Implement policies and procedures for the documentation of review and approvals. Enhance internal controls with increased segregation of duties and additional “preventative” mitigating controls within the payroll processing and journal entry review. Establish an organizational chart outlining approved reviewers, including alternative reviewers.
Conclusion The results of the assessment are primarily reflective of opportunities for IBTTA to enhance the current internal control environment. The results of the assessment align with what we would expect to see for an organization with the size, maturity, and structure of IBTTA. IBTTA has a stable internal control environment, supported by this assessment and the results of the financial statement audit.
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Approach and Scope
We appreciate the opportunity to assist IBTTA’s management as they continue to focus on improvements related to their internal controls. Management, staff, and third party relationships interviewed were a pleasure to work with and open to sharing their opinions and knowledge. Their cooperation was invaluable to the outcome of this project.
Overall, these individuals were very knowledgeable of the processes and procedures for which they are responsible and were able to provide the information needed to complete our assessment procedures in a timely and efficient manner.
Interviews were performed with key managers and stakeholders associated with key process areas. After the interviews, CLA performed assessment procedures; specifically performing walkthroughs of processes which included inquiry, observation, and inspection of documentation. Based on the results of the procedures performed, CLA developed this report to communicate our objectives and scope and provide our conclusion on internal control deficiencies and recommendations.
The following key processes and sub‐processes areas were identified as in‐scope for the internal control assessment, as well as segregation of duties, in each area:
Revenue and receipts o Recording revenue o Check receipts o Refunds o Association Management System (AMS) access controls Non‐payroll cash disbursements and accounts payable o Invoice approval o Invoice payments o Reconciliations o Vendor management Compensation and benefits o Payroll processing approval o New hire approval o Timecard approval o Service Organization Controls Report (SOC) Investments and cash management o Reconciliations o Investment allocation o Return on investments o Service Organization Controls Report (SOC) Journal entries and financial reporting o Recurring journal entries o Manual journal entries o Board of Directors review Budgeting o Review and approval o Monitoring
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Important for Consideration of Management Responses to Assessment Results
Internal controls can be defined as three types: 1. Preventative‐ designed to keep errors from happening; 2. Detective‐ designed to find errors after they have occurred; or 3. Corrective‐ designed to correct any errors found by detective controls.
Although all control types are considered important, if processes only have detective controls in place (and they are manual in nature or their performance is not documented), the organization is still vulnerable. Generally, preventative controls are considered stronger controls and present in robust internal control environments.
Many of the observations we identified were the result of processes lacking preventative type controls. In some instances mitigating controls may have been identified and discussed with management; however, the mitigating controls were typically detective controls versus preventative controls. In addition, mitigating controls did not always contain supporting evidence to allow for verification of the operation of the control; therefore, could not be relied on. If management responses address manual, detective type controls to assist in mitigating risk, we encourage management to consider implementing preventative controls to compliment the manual, detective controls to further reduce risk.
A cost benefit analysis of internal controls is appropriate within every organization. While an objective of the Internal Control Assessment was to communicate internal control improvement opportunities, management and governance should assess risk tolerance and cost in their determination of whether to implement enhancements to IBTTA’s current internal controls.
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Detailed Observation Listing CLA identified nine observations based on the assessment procedures described in the Objectives and Scope section above.
# Best Practice Control CLA Observation CLA Recommendation Management’s Response Activity Recording Revenue:
1 All systems are During the performance of Based on interviews with staff, the Management partially concurs with the integrated and walkthroughs we noted the reports are not uploaded as this recommendations. Management agrees communicate with revenue batch report extracted requires access to a special that streamlining and automating the minimal manual from Pro‐Tech (AMS) is not able QuickBooks application. We recordation of financial activity is more efficient and accurate. Without knowing procedures. Reports are to be uploaded to QuickBooks, recommend IBTTA purchase the the cost implications for the QuickBooks tailored and do not IBTTA’s accounting system. In application to streamline the enhancement needed, management require manual addition, we noted the report process and promote accuracy. We agrees to investigate the cost and adjustments. includes records that are not recommend IBTTA update the benefits. Management concurs with the applicable to the upload process. current report or create a new recommendation to update current Primary goal of system We also identified the policy and report to only include relevant reports to correctly code the receipts to integration is to reduce procedures manual does not receipts. In addition, we improve the accuracy and usefulness of human error. accurately reflect current recommend the policy and the reports. Lastly, management concurs operations. procedure manual be updated to with the recommendation to update its reflect current processes. policies and procedure manual to reflect current processes. It should be noted that updating the manual was part of the Association Management System (AMS) implementation plan as the integration to a new AMS resulted in many of our prior procedures being revised.
©2019 CliftonLarsonAllen LLP | 5 103 # Best Practice Control CLA Observation CLA Recommendation Management’s Response Activity Check Log:
2 All checks received are IBTTA’s Accounting Policies and We recommend the Management concurs with the documented in a check Procedures Manual states implementation of sign‐off recommendations. The check log log. The check log is “review of the check log occurs requirements to support a review reviewers that ensure all receipts are reviewed by someone quarterly”. During the has taken place. Requiring the deposited have begun to initial and date the log at least monthly. Additionally, other than the person assessment we noted the check reviewer to initial and date the log the policy and procedures manual is receiving checks. The log did not contain sign offs will satisfy this recommendation. being updated to reflect the change in review is conducted supporting the timeliness of the In addition, we recommend the procedures and management expects timely and ensures review. While conducting policy and procedure manual be the update to be completed by receipts have been interviews with staff we noted updated to reflect current December 2019. accurately recorded to the reviewer performs a review processes. the accounting system. every six months. This does not agree with the established policy.
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# Best Practice Control Activity CLA Observation CLA Recommendation Management’s Response Bank Reconciliation: 3 All bank accounts are We performed a walkthrough of the We recommend IBTTA develop Management concurs with the reconciled and reviewed on a bank reconciliation process. The compensating controls to ensure recommendation. An monthly basis. The bank reconciliation is clearly no business disruptions during alternative reviewer and reconciliation clearly identified by who and when the times of transition. For example, approver for bank reconciliations has been identifies by who and when reconciliation was prepared, but did the creation of an organization identified (Wanda Klayman or the reconciliation was not contain any documentation to chart to identify alternative Cheryle Arnold). All bank prepared and reviewed. The support review had taken place. reviewers in the event the Director reconciliations now include individuals responsible for Through inquiry the staff shared the of Governmental Affairs is notation of the preparer and approving checks, do not bank reconciliation was probably not unavailable. reviewer performance prepare or review the bank reviewed due to staff transitioning reconciliations. during the time period of the reconciliation.
Online Bill Payment System: 4 Online bill payment systems The current process is functioning as IBTTA has considered the Management concurs with the facilitate the operational designed and was not identified as a implementation of an online bill recommendation. Management effectiveness and efficiency deficiency. However, as stated in the payment system. We encourage has taken the initial steps to of an organization. These Accounting Policies and Procedures IBTTA to act on this inclination. plan for online bill payment processing. Full systems lead to cost Manual, IBTTA may decide to utilize The online bill payment system implementation is expected in reductions and more an online bill payment system to will facilitate seamless payments the Fall 2019. accurate processing. streamline its payment processes of vendor invoices and can lend to and reduce costs associated with the a stronger internal control payment of its vendors. The environment. Due to the inherent assessment revealed this system has segregation duties challenges not been implemented. The process faced by small organizations, this currently being utilized is largely system will allow for the review paper‐based and appears to be and approval of invoices by inefficient and resource intensive. various parties. In addition, it will allow the Board of Directors the opportunity to easily monitor the activity, should this be desired.
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# Best Practice CLA Observation CLA Recommendation Management’s Response Control Activity Payroll Processing Review: 5 Payroll is reviewed During the assessment we We recommend the Association comply Management partially agrees with the by the Deputy noted one instance where with pre‐established policies requiring the recommendations. Management agrees Executive Director the payroll was reviewed Deputy Executive Director review payroll that an alternate reviewer should be prior to payment. after payment to prior to submission to Paychex. In addition, identified (Pat Jones). Although the significance of this review is less critical as employees. we recommend IBTTA update the policy to IBTTA staff are salaried employees and include an organizational chart outlining all therefore their wages do not fluctuate per approved reviewers. This will ensure pay period. Procedures are in place to reviews can be performed by designated ensure only authorized employees are individuals in the event the Deputy listed on the payroll Executive Director is unavailable. register. Management concurs to ensure all authorized reviewers are documented in the manual.
Time Card Approval: 6 Employees record During the review of We recommend the Association comply Management partially concurs with the their time weekly timecards we noted there with pre‐established policies requiring for recommendation. Management concurs and timecards are was no documentation of the review of timecards. that all timecards should be approved to approved by the the performance of the ensure the hours work and leave used is accurately recorded. Management Deputy Executive review. Alternatively, we recommend the policy be doesn’t concur with the alternative Director. The Deputy updated to remove the requirement of recommendation as this would result in Executive Director’s timecard review and approval. This the Deputy Executive Director reviewing timecard is approved procedure appears duplicative of the his/her own timecard. Management will by the Executive Payroll Processing review. ensure all timecards are reviewed by an Director. individual(s) with knowledge of leave In either case ensure performance of the usage by September 2019 (Alternate review is documented. reviewer: Pat Jones).
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# Best Practice Control Activity CLA Observation CLA Recommendation Management’s Response Journal Entry Creation & Review: 7 All journal entries require two During review of IBTTA’s Accounting We recommend updating the Management disagrees with personnel to be involved in Policies and Procedures Manual we current policy to require the review the recommendation because the process. Journal entries noted recurring journal entries do not and approval of all journal entries the requirement to review all are prepared by one person require approval prior to posting. In prior to posting. We also journal entries before they are posted would place an undue and reviewed by a second addition, we noted manual journal recommend the journal entries burden on staff. As an person prior to posting. entries are reviewed and posted by prepared and posted by the alternative, management will the Accountant. Accountant be reviewed by Journal entries are reviewed institute a procedure for a someone other than the for reasonableness and detailed balance sheet review During review of IBTTA’s Accounting Accountant. accuracy prior to posting to by the CEO and Deputy Policies and Procedures Manual we Executive Director whenever a the accounting system. noted monthly financial statements It may not be practical for the balance sheet is issued, which will be presented to the Board of Executive Director or Finance shall be no less than twice per Directors, in which the Executive Committee to perform a more year. Director or Finance Committee will comprehensive review of journal review the validity of the journal entries. However, this review should entries and determine if they are be performed, ideally before reasonable and appropriate in the posting, and include a review of circumstances. In addition, during the supporting information and assessment we noted the packet documentation of the performance provided to the Finance Committee of the review. We recommend did not include support for the journal determining the appropriate person entries. within IBTTA to perform this review and to update the current policies to reflect this enhancement.
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# Best Practice Control Activity CLA Observation CLA Recommendation Management’s Response
Budget Modification Review:
8 Significant budget During analysis of IBTTA’s We recommend the policy Management disagrees with the recommendation modifications Accounting Policies and be updated to allow to allow modifications to an approved budget throughout the year are Procedures Manual we noted that management the discretion within predetermined parameters. Management reviewed by governance it did not address the approval to make budget believes its current practice provides greater control over the budget. Currently, management prior to being adopted process for significant budget modifications within set provides periodic updated budget projections in into a revised budget modifications. dollar thresholds and/or anticipation of scheduled Board meetings several percentages and to require times a year. The projections include input from review and approval of the Chair and Vice‐Chair of the Finance budget modifications above Committee. The current practice is to notify the these thresholds by Chair and Vice‐ Chair of the Finance Committee and governance. Executive Committee of unbudgeted expenditures in excess of 10% of the total budget. Management will discuss the current practice with the Chair and Vice‐Chair of the Finance Committee and Executive Committee to ensure concurrence and document the prospective agreed upon procedure in the policy and procedures manual. Management expects the manual to be updated after the January 2020 board meeting.
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# Best Practice Control Activity CLA Observation CLA Recommendation Management’s Response
Cash Management Policy:
9 Cash management policy During analysis of IBTTA’s cash We recommend revising the Management concurs with the and relating practice management policy and relating cash management policy recommendation. Management will examine its create the opportunity activity during 2018, we noted and practice to more closely current policy to transfer funds into interest to earn a maximum that the activity aligns with the align with IBTTA’s business bearing account(s) quarterly. When evaluating, management will consider the timing of significant amount of interest current cash management policy. model to ensure that spikes in revenue which are largely driven by income without However, the quarterly transfers transfers are made more conferences/summit registrations and annual jeopardizing IBTTA’s referenced in the policy do not frequently during periods member dues invoicing. ability to meet operating reflect the business cycles of when cash collections are expense obligations. IBTTA, and thus do not allow for high. maximization interest income earned.
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CliftonLarsonAllen LLP CLAconnect.com
Date: April 30, 2019
To: Pat Jones, International Bridge Tunnel and Turnpike Association (IBTTA)
From: Marie Caputo and Taylor Powell, CliftonLarsonAllen LLP (CLA)
Re: Enterprise Risk Assessment
PURPOSE
The International Bridge Tunnel and Turnpike Association (IBTTA) engaged with CliftonLarsonAllen LLP (CLA) to conduct a strategic level enterprise risk assessment. IBTTA governance requested an external assessment to gauge the pulse of enterprise risks facing IBTTA. This memo highlights the key aspects of a risk assessment, the approach and methodology used, and the results of CLA’s strategic level enterprise risk assessment.
SETTING THE STAGE FOR RISK ASSESSMENT
An inherent risk evaluation in the context of this strategic level enterprise risk assessment is influenced by industry standards/best practice, IBTTA processes, IBTTA trended financial and non‐financial (demographic) information, and input from senior leadership. Included within the evaluation process is a methodology to reach a quantitative score for each risk sub‐category. While the methodology includes objective measures there is also a component of subjectivity included. See the Approach and Methodology section for additional details.
The results of the risk assessment are not intended to be interpreted in a positive or negative fashion but rather as a barometer of risk. The resulting evaluation is not a positive or negative result and certainly not representative of a finding or deficiency; it is rather a rating in which to establish a starting point to engage in dialogue and discussion between management and governance to understand what action could be taken with the respective risk sub‐categories. Actions include, accept and monitor level of risk, mitigate risk, transfer risk to a third party, or avoid risk all together.
Governance and management play two separate roles within risk management. Governance is the oversight arm and is responsible for determining the entity’s philosophy on the tolerance or acceptance level of risks. The philosophy should consider that some risks will not fall below a certain level regardless of the amount of money spent to mitigate. Management is responsible for internal operations and managing risks in alignment with acceptable ranges.
APPROACH AND METHODOLOGY
The strategic level enterprise risk assessment prioritized the level of inherent risk across 5 risk categories and 26 risk sub‐categories, see Appendix A for a complete list. To complete the risk assessment CLA utilized a proprietary risk assessment tool that uses a three‐prong approach to derive a risk rating. This approach for each sub‐category of risk includes the following inputs:
1. Objective key driver question(s) pertaining to each risk sub‐category.
110 April 30, 2019 Enterprise Risk Assessment Results Page 2
2. Objective key trends, as applicable, pertaining to each risk sub‐category. 3. Subjective input based on industry standards/best practices and input from senior leadership. Interviews included the Executive Director & CEO, Deputy Executive Director, Business Development Director and Manger, Finance Director, and IT Director.
The inputs calculate a risk rating along scales of likelihood and timing. These calculations are then used to create heat maps for each risk category.
Likelihood is defined as the chance that a risk has an adverse effect on IBTTA. The likelihood rating scale is as follows:
5 = Imminent 4 = Very Likely 3 = Likely 2 = Unlikely 1 = Very Unlikely
Timing is defined as how quickly the risk could present an adverse effect to IBTTA. The timing rating scale is as follows:
5 = 0 – 6 months 4 = 6 – 24 months 3 = 2 – 3 years 2 = 3 – 5 years 1 = 5+ years
Impact, or the monetary effect of an adverse event on IBTTA, is another commonly used risk rating in risk assessments. For this particular risk assessment the scope included identification of risk categories (ex. Market Relevance), as opposed to specific risk events (ex. Publication sales reduces by 10% due to lack of perceived relevance). The impact risk factor becomes more difficult to assess within board risk categories as compared to a specific risk sue to the one to many relationship between the two. As such, this methodology assesses the risk category on likelihood and timing risk rating scales.
RISK ASSESSMENT RESULTS
The strategic level enterprise risk assessment presents each risk sub‐category into one of three groupings: significant risks, risks recommended for monitoring, and all others. Each grouping of risk is defined as follows:
> Significant Risks ‐ These are the top rated risks shown as orange in the heat map that may merit more evaluation based on IBTTA’s risk tolerance. > Risks Recommended for Monitoring – These are the middle tier of risks that did not rise to a significant level shown as yellow in the heat map that may merit monitoring based on IBTTA’s risk tolerance. > All Others – These are the remaining risks that comprised the lowest rated risks shown as green in the heat map.
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The significant risk sub‐categories in alphabetic order are shown in the below table. A full presentation of the risk assessment results for each risk category and sub‐category can be seen in the heat maps in Appendix B.
Risk Category Risk Sub‐category Sub‐category Definition The susceptibility of IBTTA for a fraud event due to a control failure, collusion, and/or inadequate prevention/detection Financial Fraud processes. Note: Inherently this is a significant risk for associations the size of IBTTA. Business Continuity / Inability for IBTTA to efficiently respond and continue operations Operational Disaster Recovery after an event that impairs business continuity or disaster. A loss of institutional knowledge, particularly when the Human Capital: Talent / Operational knowledge spans 20+ years, and/or the inability to acquire the Turnover / Vacancy right personnel talent. Occurrence of an adverse security breach, primarily cyber security, in which IBTAA data is compromised. Note: Inherently Operational Security Breach this is a significant risk across all industries and sizes of organizations. IBTTA’s ability to provide relevant products, services, programs Programmatic Market Relevance to meet the demands of the membership. Note: Inherently this is a significant risk for associations. Lack of compliance with regulatory requirements regarding Regulatory / Privacy of Data privacy of data. Note: Inherently this is a significant risk for Compliance associations the size of IBTTA. Personnel vacancies in key positions may negatively impact Strategic Succession Planning IBTTA’s ability to meet Strategic Goals without adequate succession planning.
CONCLUSION
Risks are a natural part of any organization. A prioritized risk listing is intended to provide focus to those areas that may merit evaluation or monitoring. The risk assessment results are not findings nor an indicator that negative events are currently occurring.
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APPENDIX A: LISTING OF RISK CATEGORIES AND SUB‐CATEGORIES
Risk Category Risk Sub‐Category Financial Cost Containment Financial Expense Sustainability Financial Fraud Financial Investments/Endowment Financial Membership Dues Financial Revenue Diversity Operational Business Continuity / Disaster Recovery Operational Human Capital: Talent/ Turnover/ Vacancy Operational Insurance Operational Mission Critical System's Lifecycle Operational Process Efficiencies Operational Security Breach Programmatic Event Success Programmatic High Cost Low Demand Programs Programmatic Market Relevance Programmatic Membership Experience Programmatic Research and Data Quality Regulatory / Compliance Grants and Contracts Regulatory / Compliance Non‐Profit Eligibility Regulatory / Compliance Privacy of Data Strategic Competition Strategic Governance Strategic Legislative‐ Association Strategic Legislative‐ Membership Strategic Strategic Plan Strategic Succession Planning: Leadership
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APPENDIX B: HEAT MAPS
Heat maps are a common graphical display of risks plotting the risk along two axes, likelihood and timing. A standard heat map is divided into four quadrants generally with the top right representing higher significance, the top left and bottom right representing risks to be monitored, and the lower left representing lower significance other risks. See the Approach and Methodology section of the memo for additional details.
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118 International Bridge, Tunnel and Turnpike Association Enterprise Risk Assessment Action Plan – August 29, 2019
The International Bridge, Tunnel and Turnpike Association (IBTTA), engaged the services of CliftonLarsonAllen LLC (CLA) to conduct a strategic level Enterprise Risk Assessment (ERA). The ERA was issued on April 30, 2019 (attached in Appendix). Organizations face risks whether they are known or not. The ERA is a tool that allows the IBTTA to identify risks and group/prioritize the risks based on likelihood and velocity the risks could have on IBTTA’s operations and mission. It is important to note that CLA did not evaluate any risk in detail as applied to IBTTA and their findings do not represent any identified deficiency. Several items include the following phrase in the description: “Inherently this is a significant risk for associations the size of IBTTA.” Nor did CLA quantify the extent of any impact to the operation – minor disruption vs major catastrophe. Management views the ERA as an effective means to facilitate conversations regarding the organization’s risk tolerance and to make sound decisions going forward. CLA notes that there are four general responses to any of the risks: 1) accept and monitor the risk, 2) mitigate the risk, 3) transfer the risk (such as an insurance policy) or 4) avoid the risk. This Action Plan identifies strategies to mitigate the identified higher risks.
When conducting the ERA, CLA performed a quadrant-based analysis that categorized risks based on the likelihood and timing of the risk.
0-6 Months 0-6 I II Timing
III IV 60+ Months 60+
Very Unlikely Imminent
Likelihood
Likelihood was defined as the chance that a risk could have an adverse effect on IBTTA. A five-point scale was used with 5.0 representing imminent and 0.0 representing very unlikely. Timing was defined as how quickly the risk could have an adverse effect on IBTTA. The five-point scale was used with 3-5 representing zero to six months and 0 representing 60 or more months. For illustration purposes, the quadrants are color-shaded based on the severity of the risk. Quadrant II has the highest risk with the timing near-term and the greatest likelihood. Quadrants I and IV have a medium risk. Quadrant III is the
119 lowest risk with the timing long-term and the least likelihood. Greatest emphasis should be given to Quadrant II risks followed by quadrants I and IV. Minimal, if any, emphasis should be given to Quadrant III. This Action Plan identifies strategies to address Quadrant II risks.
When conducting the ERA, CLA examined the level of inherent risk in the organization across five (5) risk categories and 26 risk subcategories.
Risks: Sorted by Category
Risk Category Risk Sub-Category Risk Quadrant Financial Cost Containment I Financial Expense Sustainability I Financial Fraud II Financial Investments/Endowment I Financial Membership Dues III Financial Revenue Diversity III Operational Business Continuity / Disaster Recovery II Operational Human Capital: Talent/ Turnover/ Vacancy II Operational Insurance III Operational Mission Critical System's Lifecycle III Operational Process Efficiencies I Operational Security Breach II Programmatic Event Success I Programmatic High Cost Low Demand Programs IV Programmatic Market Relevance II Programmatic Membership Experience I Programmatic Research and Data Quality III Regulatory / Compliance Grants and Contracts III Regulatory / Compliance Non-Profit Eligibility III Regulatory / Compliance Privacy of Data II Strategic Competition III Strategic Governance III Strategic Legislative- Association III Strategic Legislative- Membership III Strategic Strategic Plan I Strategic Succession Planning: Leadership II
120 Risks: Sorted by Quadrant (Highest to Lowest Risk)
Risk Category Risk Sub-Category Risk Quadrant Financial Fraud II Operational Business Continuity / Disaster Recovery II Operational Human Capital: Talent/ Turnover/ Vacancy II Operational Security Breach II Programmatic Market Relevance II Regulatory / Compliance Privacy of Data II Strategic Succession Planning: Leadership II Programmatic High Cost Low Demand Programs IV Programmatic Membership Experience I Strategic Strategic Plan I Financial Cost Containment I Financial Expense Sustainability I Financial Investments/Endowment I Operational Process Efficiencies I Programmatic Event Success I Strategic Legislative- Association III Strategic Legislative- Membership III Programmatic Research and Data Quality III Financial Revenue Diversity III Operational Insurance III Strategic Governance III Strategic Competition III Regulatory / Compliance Grants and Contracts III Regulatory / Compliance Non-Profit Eligibility III Operational Mission Critical System's Lifecycle III Financial Membership Dues III
121 Quadrant II Risk: Higher Likelihood & Near-Term Effect
Risk Category/Sub-Category: Financial/Fraud Description of Risk: The susceptibility of IBTTA for a fraud event due to a control failure, collusion, and/or inadequate prevention/detection processes. Note: Inherently this is a significant risk for associations the size of the IBTTA. Mitigation Strategies: • Continue to require pre-employment and pre-engagement (with contractor) background checks. • Conduct independent auditor internal control assessments every 4 years or as needed as significant organizational changes occur and implement the recommendations as outlined in Management Response to the May 2019 Internal Control Assessment. • Implement online bill pay and research the potential benefits of implementing Positive Pay. • Ensure policies (ethics, conflict of interest, acceptance of gifts, etc.) are current and reviewed by employees annually. • Provide fraud prevention training to CEO and Deputy Executive Director and other staff as appropriate.
Risk Category/Sub-Category: Operational/ Business Continuity/Disaster Recovery Description of Risk: Inability for IBTTA to efficiently respond and continue operations after an event that impairs business continuity or disaster. Mitigation Strategies: • Develop a Continuity of Operations Plan (COOP) with annual reviews and practice.
Risk Category/Sub-Category: Operational/Human Capital: Talent/Turnover/Vacancy Description of Risk: A loss of institutional knowledge, particularly when the knowledge spans 20+ years, and the inability to acquire the right personnel talent. Mitigation Strategies: • Continue the effort to document Standard Operating Procedures. • Investigate the cost/benefit of establishing a Repository of Knowledge. • Continue to cross-train employees and support shadowing.
122 Risk Category/Sub-Category: Operational/ Security Breach Description of Risk: Occurrence of an adverse security breach, primarily cyber security, in IBTTA data is compromised. Note: Inherently this is a significant risk across all industries and sizes of organizations. Mitigation Strategies: • Investigate the potential benefits and cost for a system vulnerability assessment which identifies and prioritizes weaknesses or security holes in a computer system or network and/or penetration test which simulates a cyber-attack against a computer system to check for exploitable vulnerabilities, understanding that the risks confronted by an association like IBTTA are very different from those confronted by toll operators with millions of accounts and transactions and sensitive data.
Risk Category/Sub-Category: Programmatic/Program Relevance Description of Risk: IBTTA’s ability to provide relevant products, services, programs to meet the demands of the membership. Note: Inherently this is a significant risk for associations. Mitigation Strategies: • Continue to collect feedback from members and conference attendees (e.g., surveys) and incorporate findings into operations plans and the Board’s Strategic Plan. • Continue to communicate and market to current and potential members the services provided by IBTTA. • Periodically conduct focus groups with members and other stakeholders and associations to ensure a continued pulse on the industry and its needs.
Risk Category/Sub-Category: Regulatory/Compliance/Privacy of Data Description of Risk: Lack of compliance with regulatory requirements regarding privacy of data. Note: Inherently this is a significant risk for associations the size of the IBTTA. Mitigation Strategies: • Document types of data maintained by IBTTA and any requirements. • Draft policy and standard operating procedures. • Provide relevant training.
Risk Category/Sub-Category: Strategic/Succession Planning Description of Risk: Personnel vacancies in key positions may negatively impact IBTTA’s ability to meet Strategic Goals without adequate succession planning. Mitigation Strategies: • Develop a succession plan • Continue to employ both an Executive and Deputy Executive Director
123 From: Pat Jones To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Fran.O"[email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Cc: Pat Jones; Wanda Klayman; Cathy Pennington Subject: IBTTA -- Schedule for Approving the 2020 Budget Date: Monday, July 22, 2019 5:11:36 PM
To: IBTTA Board of Directors, Board Nominees, and Finance Standing Committee of the Board
The purpose of this memo is to outline the schedule and procedure we will follow to approve the 2020 budget. Our goal is to complete this task by September 25, 2019. This schedule is similar to the schedule we have followed in recent years except that this year we complete our work a bit earlier. Both the IBTTA Executive Committee and Finance Committee Chair have approved this schedule.
Having a new 3-year plan in place should make our work a little easier. We did a lot of heavy lifting last year to create the 3-year plan and this year we’re mostly tweaking the work we did in 2018. Since we’re only seven months into our 3-year plan, we won’t make major changes to it during this budget cycle. We will consider bigger adjustments to the 3-year plan when the board meets in January 2020 and in subsequent board meetings.
One of the reasons we created a 3-year plan is to lay out the goals and deliverables we want to achieve over the next three years, to match resources with those deliverables, and to have greater predictability about the revenues needed to achieve those outcomes. The budget is a way to allocate the appropriate resources to achieve those outcomes.
The 2020 budget will look a lot like the 2019 budget with some incremental changes. If you put the budgets of the last 10 years side by side, you’ll see a steady, incremental uptick in revenues and expenses, with minor aberrations such as when we terminated the old pension plan.
We invite you to review the schedule and please let us know if you have any questions or concerns.
Key Dates in Approving 2020 Budget
July 17 – August 2: Pat Jones conducts phone calls with individual board members and
124 board nominees to get their input on the 3-year plan and deliverables. The purpose of these calls is to give each board member the chance to understand our progress in achieving the deliverables of the 3-year plan and to suggest minor changes to the plan. These conversations will include discussion of the proposed dues increase for 2020 that is part of the 3-year plan.
August 12 Staff completes update of 3-year plan and deliverables document based on input from current board members and board nominees. The plan update will focus mostly on deliverables for 2020 and 2021. Staff circulates the updated plan to IBTTA Executive Committee, Board, and Finance Committee.
August 26 Staff completes first draft of 2020 budget for review by Finance Committee leaders George Zilocchi and Susan Buse.
September 3 With feedback from Zilocchi and Buse, staff distributes draft 2020 budget to IBTTA Executive Committee, Board, and Finance Committee as part of Halifax Board Briefing Book.
September 10 (Tentative: Finance Committee reviews draft budget with staff by conference call).
September 14 First the Finance Committee (10:30am – 12:00pm) and then the Board (1:00pm – 5:00pm) hold in-person meetings in Halifax to review 2020 budget in detail. At both meetings, we are discussing the budget. No votes will be taken. This in person board meeting is the best opportunity to get a thorough review of the budget and ask questions and have a substantive in person group discussion.
September 25 We hold a joint conference call of the Finance Committee and Board to approve 2020 budget. The Finance Committee will convene, review the budget, make its recommendation to the board, and adjourn. Immediately after that, the Board convenes and acts on the recommendation of the Finance Committee. If all goes well, the 2020 budget is approved.
That’s our schedule for developing and approving the 2020 budget. Please let me know if you have any questions.
Kind regards,
Pat
125
______Patrick D. Jones Executive Director and CEO International Bridge, Tunnel and Turnpike Association 1146 19th Street, NW, Suite 600 Washington, DC 20036 (Cell) 703.587.5683
126 IBTTA BOARD OF DIRECTORS AGENDA Saturday, September 14, 2019 | 1:00pm to 5:00pm | Halifax, Nova Scotia CANADA
1. Call to Order (1:00PM) 2. President’s Remarks (10) 3. Self-Introductions (10) 4. Presentation and discussion of 2020 Budget (90) a. Note: we are discussing the budget. No votes will be taken. This in person board meeting is the best opportunity to get a thorough review of the budget and ask questions and have a substantive in person group discussion. 5. Discussion Items: (2:50PM) a. Enterprise Risk Assessment and Internal Control Assessment (Deb Sharpless and Susan Buse) (20). Note: There will be three (3) written reports: the enterprise risk assessment prepared by the outside accountant; the internal controls assessment prepared by the outside accountant; the report to the board from the Audit Committee and Finance Committee. The last report will contain highlights from the two other reports and a narrative about what IBTTA will do to respond to the recommendations and areas of concern. b. MaaS White Paper and Other Topics (Council of Platinum Sponsors) (20) c. Peer Exchange Program (Mary Sallach) (10) d. Young Professionals Council (Founders Committee) (15) 6. Action Items (10) (3:55PM) a. Resolution on New Members (Rob Horr) b. Resolution on Minutes (Pat Jones) c. Resolution of Appreciation to Immediate Past President Tim Stewart (Chris Tomlinson) 7. Committee and other reports (30) (4:05PM) a. Emerging Technologies Committee (James Hofmann) b. Executive Committee (Chris Tomlinson) c. Foundation Board (Frank McCartney) d. Membership Committee (Rob Horr) e. Past Presidents Advisory Council (Tim Stewart) f. International Committee (Malika Seddi) g. Finance Standing Committee of the Board (George Zilocchi) 8. Other Business (10) (4:35PM) Adjourn (4:45PM)
127 Dear Pat Jones, Chris Tomlinson, and the Board of Directors,
First and foremost, the Young Professionals Council (YPC) would like to thank IBTTA, the Board of Directors, and the IBTTA Foundation Leadership Academy Alumni Association for their support and encouragement this year. The meeting space facilitation, mentorship coordination, and mentions at various events have been critical to helping the YPC get off of the ground quickly.
The YPC is comprised of young professionals from the tolling and transportation industry working together to promote our vision to “Drive the Future of IBTTA.” Our mission is to develop and maintain a community that will enable young professionals and bridge the gap between generations of IBTTA innovators and integrators.
The creation of the YPC began through a shared desire to effectively engage and encourage the future leadership of our industry. The first meeting was held in Orlando, Florida at the IBTTA technology summit. The YPC formed a Founders’ Committee to develop the initial structure and programming for the YPC.
What are we doing?
● Developed a vision, mission, and strategies for the first operating year, ● Developed and deployed structuring, branding, and financing sub-groups, ● Engaged the Leadership Academy Alumni Association for the development of a mentorship program, ● Planning networking/informational meetings in Halifax and Lisbon to recruit additional young professionals in North America and Europe, ● Coordinating with the 2020 IBTTA President in support of a pilot Toll Immersion Program, and ● Develop and distribute media and to engage and inform IBTTA member agencies and companies to recruit additional young professionals.
Where are we going?
● Nominate and elect a YPC leadership team, ● Schedule regional meet-ups, ● Connect mentors and mentees, ● Connect young professionals and tolling interns, and ● Hold IBTTA workshop connected YPC events.
The YPC is working to help create a succession plan for the tolling industry, and act as a hub for industry specific young professional engagement.
128 Resolution to Elect New Members To be adopted by the IBTTA Board September 14, 2019
Whereas Article II Section 2 of the IBTTA Bylaws stipulates that all members “shall be elected to the Association by resolution of the Board of Directors.”
Whereas the organizations listed below have expressed the desire to become members of IBTTA and have paid their dues;
Now, Therefore, Be it Resolved, that the IBTTA Board of Directors elects these organizations to be members in the Association in the membership categories designated.
Organization Member Type City State Country Alex Iljin - tollroad traffic forecasting Associate Melbourne Australia Douglas Stuart LLC Associate Dulles VA United States Amazon Web Services Associate San Diego CA United States Harris & Harris, Ltd Associate Chicago IL United States PRR, Inc. DBE/WBE/MBE/SBE Seattle WA United States
129 There are no free roads! IBTTA prepared this document on priced managed lanes for distribution to Governors and their state policy staff attending the National Governors Association’s Infrastructure Stakeholder Summit in Boston at the Copley Plaza Hotel on August 26-27, 2019.
Toll roads, bridges and tunnels provide an efficient, equitable, and economical solution to today’s transportation challenges. Toll roads generally provide a higher level of safety and security than non-toll roads and can typically be built more quickly and cost effectively than tax-supported roads. While tolls are perhaps a more visible method to pay for roads, bridges and tunnels than taxes paid at the gas pump, it is often easy to forget that all roads – whether toll or tax supported – must be paid for and maintained.
Priced Managed Lanes are a proven tool for reducing congestion in densely populated urban areas and provide a number of benefits including:
• Trip Time Reliability: The traffic metering function of variable pricing promotes predictable travel times.
• Travel-Time Savings: By managing traffic flow, priced managed lanes allow higher speeds than congested general-purpose lanes.
• Enhanced Corridor Mobility: Improved trip-time reliability, higher speeds, travel-time savings, and possible transit improvements all lead to greater mobility at the corridor level.
• Environmental Advantages: Compared to general-purpose lanes, priced managed lanes limit greenhouse gas emissions caused by stop-and-go traffic.
• Travel Options: Priced managed lanes provide Single Occupancy Vehicles (SOV) motorists with the option of paying for a congestion- free, dependable, and faster trip.
• Efficient Use of Capacity: Priced managed lanes provide an opportunity to improve the efficiency of HOV lanes by filling “excess capacity” that would not otherwise be used.
States and cities across the US have implemented an increasing number of Priced Managed Lanes in recent years. The following pages provide detailed information on the growth and use of Priced Managed Lanes. 130 Distribution of Priced Managed Lanes (US) Express Toll Lanes (ETL) and High Occupancy Tolling (HOT)
Distribution of Priced Managed Lanes (By US State) Express Toll Lanes (ETL) and High Occupancy Tolling (HOT)
131
Priced Managed Lanes by US State as of August 15, 2019
California North Carolina Texas (cont’d) • 91 Express Lanes - Orange County • I-77 Express • North Tarrant Express (NTE) I- • 91 Express Lanes - Riverside County 820/SH121/183 TEXpress Lanes • I-10 Express Lanes Maryland • SH-114 TEXpress Lanes (Midtown Express) • I-110 Express Lanes • John F. Kennedy Memorial Highway - • US 290 (Northwest Freeway) HOV/HOT lane • I-15 Express Lanes Express Toll Lanes (ETL) • US 59 (Eastex Freeway) HOV/HOT lane • I-580 Express Lanes • US 59 (Southwest Freeway) HOV/HOT lane • I-680 Contra Costa Express Lanes Minnesota • SH 183 TEXpress Lanes (Midtown Express) • I-680 Sunol Express Lanes • I-35E Express Lanes • Loop 12 TEXpress Lanes (Midtown • Silicon Valley Express Lanes (I-880/237 • I-35W Express Lanes Express) Express Lanes) • I-394 Express Lanes Utah Colorado Texas • I-15 Express Lanes • I-25 Express Lanes • 635 East HOV/Express Lanes (TEXpress Lanes) • I-70 Mountain Express Lanes • 71 Toll Lane Virginia • US 36 Express Lanes • DFW Connector (SH-114) TEXpress Lanes • 495 Express Lanes • I-10 West (Katy Managed Lanes) • 64 Express Lanes Florida HOV/HOT Lane • I-66 Express Lanes Inside the Beltway • I-595 Express • I-30 TEXpress Lanes • I-95 Express Lanes • I-75/Palmetto Express Lanes • I-35E TEXpress Lanes • I-95 Express • IH 45 North (Gulf Freeway) HOV/HOT Washington • Veterans Expressway (SR 589) Express Lanes Lane • I-405 Express Toll Lanes • I-295 Express Lanes • IH 45 South (Gulf Freeway ) HOV/HOT • SR 167 - HOT Lanes • Beachline Expressway (SR-528) Express Lanes Lane • LBJ Express TEXpress Lanes Georgia • MoPac Express Lanes • I-75 South Metro Express Lanes • North Tarrant Express (NTE) I-35W
• I-85 Express Lanes TEXpress Lanes • Northwest Corridor Express Lanes • I-85 Express Lanes Extension Source: IBTTA TollMiner ™ 132 Priced Managed Lanes by State
133 Priced Managed Lane Growth Timeline/Evolution
The first Priced Managed Lane was established in Orange County, California, in 1995. Since 2010, 43 Price Managed Lanes have come online.
134 A Few Examples of the Number of Trips and Transactions on Price Managed Lanes in the US I-95 Express Lanes in Maryland In FY2019: North Bound are 13,400 vehicles per day South Bound are 13,900 vehicles per day
I-495 and I-95 Express Lanes in Northern Virginia Average daily tolled trips on I-95 and I-495 – 96,000
I-85 Express Lanes in Atlanta, Georgia Average daily trips – 32,000
MoPac Express Lanes in Austin, Texas Average daily trips -- 28,000
91 Express Lanes in Orange County, California were the first PML, now expanded to Riverside County, California Average daily trips - 49,268 during the month of June 2019 for the Orange County portion of the highway Average daily trips - 39,974 during the month of June 2019 for the Riverside County portion of the highway
I-95 Express Lanes in Miami and Broward Counties, Florida FY2017 Annual transactions – 50.8 million 135
The International Bridge, Tunnel and Turnpike Association (IBTTA) is the worldwide association for the owners and operators of toll facilities and the businesses that serve tolling. Founded in 1932, IBTTA has members in 23 countries on six continents. Through advocacy, thought leadership and education, members are implementing state-of-the-art, innovative user-based transportation financing solutions to address the critical infrastructure challenges of the 21st Century.
For more information, please contact: Bill Cramer, Communications Director International Bridge, Tunnel and Turnpike Association (IBTTA) [email protected] - 202.210.2962 – www.ibtta.org
136 Third-Party Validators of Tolling
Recently, IBTTA has noticed an uptick of non-tolling organizations, news publications and individuals speak up publicly in support of tolling. We are creating this dynamic list of supporters and will use in a multitude of ways to continue to strengthen our call for creating greater mobility through alternative financing. This list will continue to grow as we identify supporters.
Competitive Enterprise Institute (CEI) Transforming Surface Transportation Reauthorization
The Institute said legislators should eliminate the federal ban on state tolling of interstate highway capacity and pilot mileage-based usage fees as an alternative to gas taxes.
“Since 2008, Congress has bailed out the federal Highway Trust Fund to the tune of $140 billion as motor fuel tax receipts have stagnated while spending has continued to increase. In addition to the revenue-outlay imbalance at the federal level, outdated federal restrictions on highway tolling have denied to states opportunities to tailor transportation policy and funding to fit their residents’ needs. This status quo is not sustainable.”
Competitive Enterprise Institute (CEI ) (Sign-on letter) – Sign on letter to Congress
A sign-on letter to Congress, January 2019, that includes lots of top conservative heavy-hitters who advocate a "user-pay/user-benefit principle" and a move away from reliance on the gas tax, including - National Taxpayers Union, Center for Freedom and Prosperity, Stephen Moore (Trump's failed cabinet nominee), National Black Chamber of Commerce, Taxpayers for Common Sense.
Contact: Marc Scribner ______
The National Academies of Sciences, Engineering, and Medicine - Transportation Research Board (TRB) Consensus Report Renewing the National Commitment to the Interstate Highway System: A Foundation for the Future
“The study committee carried out an intensive analysis of a wide range of options for funding the needed investment in the Interstate Highway System. This analysis considered the options listed below, both individually and in combination, including the advantages, disadvantages, and institutional and policy considerations associated with each. The results of this analysis are reflected in the committee’s recommendations. USER FEE–BASED OPTIONS • Option 1: Increasing motor fuel taxes and other existing federal user fees • Option 2: Allowing states and metro areas to toll existing general-purpose Interstate highways • Option 3: Instituting mileage- based user fees for Interstate use to replace other user fees.”
Contact: Neil Pedersen
137 ______
Committee for Economic Development of The Conference Board Fixing America’s Roads and Bridges: The Path Forward
“Although relying on motor fuel taxes worked well for decades, it now generates inadequate and declining revenues,” the report stated. “The United States needs a stable and predictable source of revenue that meets the operational and maintenance needs of our mature network of roads, bridges, and tunnels.”
Contacts: R. Richard Geddes and Thomas Madison
______
Congressional Research Service Tolling US Highways and Bridges
“At one extreme, it could simply encourage tolling pilot projects on Interstate System highways, of which relatively few have been implemented to date,” the CRS wrote. “At the other extreme, Congress might authorize states to toll federal-aid highways as they see fit, or even require that Interstate highway segments be converted to toll roads as they undergo reconstruction, eventually turning all Interstates into toll roads.”
Contact: Robert Kirk ______
CATO Institute Principles for the 2020 Transportation Reaurthorization
Re-iterated their support of removing restrictions on tolling and encouraging federal government to make it easier for state and local governments to utilize tolling.
Contact: Randall O’Toole ______
Reason Foundation – Long-time tolling advocate
Contacts: Robert Poole and Adrian Moore
Taxpayers for Common Sense Smart Strategies for Infrastructure: Getting it Right for Taxpayers
Get Tough on Transportation Came out in support of "expanding tolling" back in 2014.
138 Pat, you and I, met with the Executive Director, Ryan Alexander
Contact: Ms. Ryan Alexander ______
Op-ed in The Connecticut Mirror We needed highway tolls before, and we need them again
“We needed highway tolls before, and we need them again”
Contact: Richard DeLuca
Opinion Stop Milking the Pennsylvania Turnpike so it Can Stop Milking Drivers
Contact: Paul Muschick, columnist, The Morning Call
Editorial Board – The Washington Post Maryland makes the right call in advancing toll lane construction
New York has a bold plan to ease traffic. Other cities should follow its lead.
Contact: The Washington Post’s Editorial Board
Forbes Gas Taxes Not Long-Term Answer For Infrastructure Funding
“There are alternatives to gas taxes that aren’t impacted by more EVs and that are more connected to road use. Toll roads are already used in many states. In Florida, they generate about 39% of total highway funds. In high-traffic areas, such as many large cities, well-designed congestion taxes raise money and help control traffic flows, thus increasing mobility. This is important since traffic problems reduce employment growth. Importantly, both toll roads and congestion taxes are charged on a per-car basis rather than gasoline use.”
Contact: Adam Millsap – writes about state and local policy and urban economics
Editorial Board - The Kansas City Star Missouri’s highways need help. Voters nixed gas tax hike, but lawmakers can act
“Lawmakers also could siphon off a portion of the internet sales tax for highways, as the report recommends, or begin offering optional express-lane packages to relieve congestion and
139 generate revenue. Imposing tolls on major bridges should be considered and so should mileage- based road user fees. In other words, plenty of options exist.”
Contact: The Kansas City Star Editorial Board
National League of Cities Making Space: Congestion Charging in Cities
“It’s no secret that America’s physical infrastructure and natural environment are under threat,” said Clarence E Anthony, CEO and executive director of the NLC. “The people in our communities deserve better. By piloting new technologies like congestion charging systems, local leaders have the opportunity to find ways to sustainably improve conditions on and around America’s roads.”
Contact: Clarence Anthony, CEO, NLC ______
The Middletown Press – 8/21/19 Op-ed: It’s time to act on tolls
“Why must we collect tolls? Because according to the 2017 report by TRIPnet, a transportation research organization, 57 percent of Connecticut’s roads are in poor condition. Because according to the group’s 2018 report, three out of five Connecticut bridges are more than 50 years old, making our state the 4th worst in terms of aged and dangerous bridges — 8 percent of all of our bridges are rated “structurally deficient,” and those structurally deficient bridges are on average 69 years old. And it gets worse. A list of the 250 most heavily traveled structurally deficient bridges compiled by the American Road and Transportation Builders Association reveals that 25 of them are here in Connecticut.”
Contacts: Gail Berritt is an attorney in Westport; Sean Goldrick is a Greenwich investment professional.
______
The International Union of Operating Engineers, Local 478, in CT are supporters of tolls. Photo of union workers in shirts supporting tolls in The Middletown Press ;inked to the article above. 8/21/19 ______
We can add as well, the more likely transportation organizations such as AASHTO, Eno, ASCE, etc.
140 GLOBAL TOLLING & MOBILITY NEWSLETTER A SCAN OF TOLLING & MOBILITY DEVELOPMENT AROUND THE GLOBE SUMMER 2019
Prepared by: Malika Seddi, IBTTA International Vice President Director of International Affairs, ASFA, Paris, France
141 GLOBAL TOLLING & MOBILITY NEWSLETTER – SUMMER 2019
TABLE OF CONTENTS Africa/Middle East ...... 3 Asia and Oceania ...... 4 Europe ...... 5 North and South America ...... 6 International Industry Events Calendar ...... 8 Glossary ...... 10
Main Sources: IBTTA and IBTTA SmartBrief, ASECAP, Word Highways, Traffic Technology Today, ITS America, Ertico – ITS Europe, Handelsblatt.com.
ABOUT IBTTA The International Bridge, Tunnel and Turnpike Association (IBTTA) is the worldwide association for the owners and operators of toll facilities and the businesses that serve them. Founded in 1932, IBTTA has members in 26 countries on six continents. Through advocacy, thought leadership and education, members are implementing state-of-the-art, innovative user-based transportation financing solutions to address the critical infrastructure challenges of the 21st Century.
142 GLOBAL TOLLING & MOBILITY NEWSLETTER – SUMMER 2019
AFRICA/MIDDLE EAST AFRICAN TRANSPORT NETWORK PROJECTS, 2019 - $430.3B INVESTMENT VALUE, WITH FOCUS ON ROAD, RAILWAY AND BRIDGES Economic growth in the Africa region remains high, particularly in sub-Saharan Africa (SSA), which has some of the fastest growing economies in the world. The International Monetary Fund (IMF) and African Development Bank (AfDB) have both predicted that Africa's overall growth will improve in 2019 and 2020. However, the region's growth prospects continue to be constrained by a lack of infrastructure to support the expansion in trade, both within the region and externally.
Nigeria, with 49 projects, has the highest number of transport projects in the project pipeline, amounting to US$48.3 billion, while Egypt, with 20 transport projects, has the highest value in the pipeline, amounting to US$52.9 billion, followed by Algeria (30 projects valued at US$37.9 billion), Kenya (27 projects valued at US$31.8 billion), Tunisia (nine projects valued at US$21.2 billion) and Tanzania (20 projects valued at US$16.7 billion).
When completed in their entirety, the tracked projects will total over 110,000km in length (54,110km for roads, 55,345km for railway and 599km for bridges) of which 75,297km will be newly constructed, 29,197km will be upgraded and 5,561km will have an element of both construction and upgrade, crisscrossing the African continent.
NEW BUSES LAUNCHED IN ABU DHABI AHEAD OF ROAD TOLLS LAUNCH The government wants to reduce traffic congestion in the capital. Beginning October 15, 2019, four toll gates will be activated at Sheikh Zayed Bridge, Sheikh Khalifa bin Zayed Bridge, Al Maqtaa Bridge and Mussafah Bridge. A total of Dhs4 will be charged every time a vehicle passes through one of the gates between Saturday and Thursday, from 7am- 9am and then from 5pm-7pm. During off-peak hours, Fridays and public holidays the toll will be reduced to Dhs2 and daily maximum fee of Dhs16 will be placed on each vehicle.
Drivers will be required to create an account and top it up with credit to continue driving on the roads in the city before the tolls launch in October.
More details will be announced in the coming weeks ahead of the introduction of the system.
The Department of Transport - Abu Dhabi says the measure aims to reduce traffic congestion and raise the efficiency of public transport services. With this in mind, the Integrated Transport Centre has announced the addition of 40 new buses that will be active in the city from October 11.
The move is part of a Dhs473m investment to purchase 327 new buses to cater to the increased demand for public transport and improve connectivity between different areas of Abu Dhabi.
The new buses will increase the frequency of bus services, especially during peak times, and allow more passengers to use the transport network to navigate the city.
Page 3 143 GLOBAL TOLLING & MOBILITY NEWSLETTER – SUMMER 2019
ASIA AND OCEANIA INDONESIAN TOLL OPERATOR DEVELOPS IOT LAB Indonesia's state-owned toll operator PT Jasa Marga TBk is developing an Internet of Things (IOT) lab in Jakarta to boost research and development innovation. Goals include improving services for toll road users and improving traffic monitoring.
State-owned toll operator PT Jasa Marga TBk has begun the development of an internet of things (IoT) laboratory in the company’s former Jakarta-Tangerang branch office in Jakarta as part of the company’s preparation to enter the Industry 4.0 era. The laboratory would become the center of research and technology development to create new innovations that can provide more benefits for toll road users. The IoT Lab would create the latest technologies that can support Jasa Marga's performance in providing the best services for its users.
In addition to improving services for toll road users, the development of the digital technology within the IoT laboratory is also intended to improve the traffic monitoring system and social media comment center.
Jasa Marga, the country’s largest toll road operator, plans to operate 245 kilometers of new toll roads in Java, Sumatra, Kalimantan and Sulawesi this year. The new toll roads include the Cengkareng-Kunciran (14.2 km), Kunciran-Serpong (11.2 km) and Serpong-Cinere (10.14 km), as well as the Jakarta-Cikampek II elevated toll road (36.4 km), the Pandaan-Malang road (38.49 km) and the Gempol-Pandaan (1.6 km).
AUSTRALIA CONSIDERS TOLL ROAD TO IMPROVE ACCESS TO REMOTE REGION The Dampier Peninsula is a top tourist destination in remote Western Australia, and the country is considering a toll road to make accessing the region easier. The income from tolls could be used to fund improved services for the expected influx of tourists.
NLEX CORP. IS TARGETING TO BEGIN NEXT MONTH THE CONSTRUCTION OF THE TOLL ROAD THAT WILL LINK NORTH LUZON EXPRESSWAY (NLEX) TO SOUTH LUZON EXPRESSWAY (SLEX) IN THE PHILIPPINES The 8-kilometer toll road linking the tail of NLEx Harbor Link Segment 10 in C3 Road, Caloocan City to PUP Sta. Mesa, Manila aims to provide an alternate route for trucks coming from the port area. From Sta. Mesa, vehicles traversing the expressway may connect to the Metro Manila Skyway Stage 3 through an elevated road. The target is to open the expressway by December 2021. Once operational, it is expected to reduce travel time from NLEx to SLEx to 20 minutes from the usual two hours. It will have a capacity of 35,000 motorists daily. NLEX is part of the Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc.
MALAYSIA PLANS TO ACQUIRE FOUR HIGHWAYS IN ORDER TO PREVENT AN INCREASE IN TOLL RATES Deputy International Trade and Industry Minister Ong Kian Ming said the government had shown its commitment to reducing and eventually eliminating tolls, particularly intracity tolls. “So instead of allowing toll hikes to happen or compensate toll companies in lieu of toll hikes, the government is taking the money for compensation to acquire the tolls with a promise of toll discounts during off-peak periods without the increase of toll rates.”
He added that by acquiring these tolls, the temptation to defer compensation for toll concessionaires by extending the length of concessions would also be removed.
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This, he said, was something the previous administration had done when it did not want to pay toll concessionaire’s compensation and instead increased the length of toll concessions by 10 to 15 years.
“This is something which could have taken place if there was no change of government. “Instead, this acquisition of tolls is funded by the proceeds of toll collections with no cost implications to the government. It will not increase our budget deficit.”
Ong said the takeover of tolls would be fully funded by toll collections which would be channeled to a special purpose- vehicle while allowing users to enjoy off-peak discounts.
Putrajaya said in February that it intends to abolish the existing toll mechanism upon successful takeover of the highways and introduce a congestion charge instead.
EUROPE SAFER TRANSPORT PLATFORM The European Investment Bank (EIB) launched the Safer Transport Platform (STP) – Road Safety Advisory. The STP is defined as a “gateway to advisory services to support the uptake of funding and financing opportunities that improve road safety.”
More concretely, the platform is a one-stop shop to EIB advisory services and financial products that aims to offer support to potential promoters from the public and private sectors that would like to invest in road safety, promoted as an area of transport investment. It has also been tasked with carrying out a market assessment “to establish any further investment needs for road safety and appropriate tools to address them," which could open a door for lobbying actions by stakeholders in related sectors.
LAUNCH OF THE CCAM PLATFORM – COOPERATIVE, CONNECTED, AUTOMATED AND AUTONOMOUS MOBILITY The objective of the C-ITS Strategy, adopted on 30th of November 2016, is to facilitate the convergence of investments and regulatory frameworks across the EU, in order to see deployment of mature C-ITS services in 2019 and beyond.
The Cooperative, Connected, Automated and Autonomous Mobility (CCAM) Single Platform, set up by the European Commission consists of an informal group of both private and public stakeholders. The group includes one hundred experts, representing European organizations. The CCAM Single Platform is a joint initiative of Directorate-General for Mobility and Transport (DG) MOVE, Directorate-General for Communications Networks, Content and Technology (DG CNECT), Directorate-General for Internal Market, Industry, Entrepreneurship and SME’s (DG GROW) and Directorate- General for Research and Innovation (DG RTD).
The aim of this platform is to advise and support the EC in the area of open road testing and making the link to pre- deployment activities. Six working groups have been set up to address issues related to data access and exchange, digital and road transport infrastructure, communication technology, cybersecurity and road safety.
THE GERMAN VIGNETTE FOR THE USE BY PASSENGER VEHICLES OF FEDERAL ROADS IS CONTRARY TO EU LAW Since 2015, Germany has put in place a legal framework for the introduction of a charge for the use by passenger vehicles of federal roads, including motorways: the ‘infrastructure use charge’.
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By that charge, Germany intends to move in part from a system of financing by means of taxation to a system of financing based on the ‘user pays’ and ‘polluter pays’ principles. The revenue from that charge will be entirely allocated to financing the road infrastructure, the amount of which will be calculated based on cylinder capacity, the type of engine and the emission standard of the vehicle.
Every owner of a vehicle registered in Germany will have to pay the charge, in the form of an annual vignette, of no more than €130. For vehicles registered abroad, payment of the charge will be required (from the owner or driver) for use of the German motorways. In that regard, a 10-day vignette is available costing between €2.50 and €25, a 2-month period costing between €7 and €50 and annual vignettes are available, at no more than a maximum of €130.
In parallel, Germany has provided that, from the revenue from the infrastructure use charge, the owners of vehicles registered in Germany will qualify for relief from the motor vehicle tax to an amount that is at least equivalent to the amount of the charge that they will have had to pay.
Austria considers that, on the one hand, the combined effect of the infrastructure use charge and the relief from motor vehicle tax for vehicles registered in Germany and, on the other, the structuring and application of the infrastructure use charge are contrary to EU law, in particular the prohibition of discrimination on the grounds of nationality.
Having brought the matter before the Commission for an opinion, which was not delivered within the prescribed period, Austria brought infringement proceedings against Germany before the Court. In these proceedings, Austria is supported by the Netherlands whereas Germany is supported by Denmark.
In today’s judgment, the Court finds that the infrastructure use charge, in combination with the relief from motor vehicle tax enjoyed by the owners of vehicles registered in Germany, constitutes indirect discrimination on grounds of nationality and is in breach of the principles of the free movement of goods and of the freedom to provide services.
NORTH AND SOUTH AMERICA AMERICA’S TRANSPORTATION INFRASTRUCTURE ACT Introduced in the Senate, America’s Transportation Infrastructure Act of 2019 is the largest amount of funding provided for highway reauthorization legislation in history. The bill authorizes $287 billion from the Highway Trust Fund over five years to maintain and repair America’s roads. The legislation includes provisions to improve road safety, accelerate project delivery, improve resiliency to disasters, reduce highway emissions, and grow the economy. Below are a few of the highlights of the bill.
Funds Highways and Grows Economy - The bill provides $287 billion in highway spending from the Highway Trust Fund over five years, of which $259 billion, or over 90%, is distributed to states by formula. The five-year funding level is more than a 27% increase above the FAST Act and will be the largest highway bill in history. The legislation maintains each state’s share of highway formula funding and expands the flexibility and eligible uses of formula funds provided out of the Highway Trust Fund.
Enhances and Improves Road and Bridge Safety - The legislation authorizes over $6 billion over five years, including $3.3 billion from the Highway Trust Fund, for a competitive bridge program to address the backlog of bridges in poor condition nationwide. Every state with a well-justified proposal will receive funding to improve the condition and safety of its aging bridges. In addition, in order to enable agencies to support the large bridge projects that they often struggle to
Page 6 146 GLOBAL TOLLING & MOBILITY NEWSLETTER – SUMMER 2019 complete due to lack of adequate funding, no less than 50% of the program will support bridges with a total project cost larger than $100 million.
VIRGINIA'S I-95 COULD RETURN TO ITS ROOTS AS A TOLL ROAD Interstate 95's Richmond-Petersburg Parkway was the first part of I-95 to open in Virginia in 1958, and did so as a toll road. Planned express lane extensions in Stafford County will also be tolled, but director of engineering King Gee of the American Association of State Highway and Transportation Officials (AASHTO) said tolling should be a larger part of the highway picture.
MEXICO LOOKS TO MAKE PROGRESS ON DELAYED TOLL ROAD PROJECTS Mexico's transport and communications ministry (SCT) has announced plans to resume work on long-running toll highway projects. These include the Barranca Larga-Ventanilla highway, Mitla-Tehuantepec highway and the Atizapan- Atlacomulco Highway, which have all seen significant delays and setbacks due to various obstacles.
GM ADVANCES AUTONOMOUS RESEARCH GM is refining and expanding autonomous-vehicle testing in tricky environments while it awaits federal approval on an exception to rules requiring brake pedals and steering wheels in cars. The company is also focusing on building public trust in its testing, and it has the talent and processes to eventually make safe, reliable autonomous cars, writes Michael Martinez.
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INTERNATIONAL INDUSTRY EVENTS CALENDAR 2019 IBTTA 87th Annual Meeting and Exhibition Halifax, Nova Scotia, Canada, September 15-17, 2019 www.IBTTA.org/halifax
XXVIth World Road Congress - PIARC Abu Dhabi, United Arab Emirates, October 6-10, 2019 www.piarc.org/en/calendar/World-Road-Congresses-World-Road-Association
26th ITS World Congress Singapore, October 21-25, 2019 https://itsworldcongress2019.com
IBTTA Global Tolling Summit Lisbon, Portugal, October 27-29, 2019 www.IBTTA.org/all-events
2020 IBTTA Board of Directors & Committee Meetings Coral Gables, Florida, January 8-10, 2020 www.IBTTA.org/all-events
TRB Annual Meeting Washington, DC, January 12-16, 2020 www.trb.org/AnnualMeeting/Blurbs/177818.aspx
IBTTA Leadership Academy Washington, DC, February 23-28, 2020 www.IBTTA.org/leadershipacademy
IBTTA Annual Technology Summit San Diego, California, April 2-4, 2020 www.IBTTA.org/sandiego
IBTTA Summit on Finance & Policy Denver, Colorado, May 7-9, 2020 www.IBTTA.org/denver
14th ITS European Congress Lisbon, Portugal, May 18-20, 2020 https://itsineurope2020.com
48th ASECAP Study & Information Days Belgium, End of May / beginning of June 2020 (Date TBC) www.asecap.com/asecap-days.html
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IBTTA Maintenance & Roadway Operations Workshop Louisville, Kentucky, July 12-14, 2020 www.IBTTA.org/louisville
IBTTA 88th Annual Meeting & Exhibition Austin, TX, September 13-15, 2020 www.IBTTA.org/austin
IBTTA Global Tolling Summit Buenos Aires, Argentina, October 18-20, 2020 www.IBTTA.org/buenosaires
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GLOSSARY
AA Automobile Association ABB Asea Brown Boveri ADB Asian Development Bank AET All-Electronic Toll AfDB African Development Bank AAF American Action Forum AG Stock company AI Artificial Intelligence ALPR Automatic License Plate Recognition ALO Avenida Longitudinal de Occidente ANPR Automated Number Plate Recognition ARRB Australian Road Research Group ASECAP Association euro penne des concessionnaires d’autoroutes et d’ouvrages à péage – European Association of Operators of Toll Road Infrastructures AV Autonomous Vehicle AVI Automatic Vehicle Identification BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer BPTJ Greater Jakarta Transportation Management Authority CABEI Central American Bank for Economic Integration CAGR Compound Annual Growth Rate CAV Connected and Autonomous Vehicle CCCC China Communications Construction Company CCR SA Companhia de Concessões Rodoviárias CCTV Closed Circuit Control Center CEO Chief Executive Officer C-ITS Cooperative Intelligent Transportation Systems CO2 Carbon Dioxide COP Climate Change Summit CRBC China Roads and Bridges Company CRT Concessionária Rio Teresópolis CSIR Council of Scientific and Industrial Research CSS Customer Service System
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CTR Austin’s Center for Transportation Research DC District of Columbia DDI Diverging Diamond Interchange DG Environment Directorate-General for Environment DG MOVE European Commission's Directorate-General for Mobility and Transport DOT Department of Transportation DPR Detailed Project Report DRC Democratic Republic of Congo DSRC Dedicated Short-Range Communication EBRD European Bank for Reconstruction and Development EC European Commission ECERDC East Coast Economic Region Development Council EETS European Electronic Toll Service EGNOS European Geostationary Navigation Overlay System EIB European Investment Bank EP European Parliament EPC Engineering, Procurement and Construction ERF European Union Road Federation ERP Electronic Road Pricing ETC Electronic Toll Collection EU European Union EV Electronic Vehicles FEMA Federal Emergency Management Agency FETC Far East Electronic Toll Collection Company FHWA Federal Highway Administration FIA Federation Internationale de l’Automobile GALILEO European satellite navigation system GDOT Georgia Department of Transportation GNSS Global Navigation Satellite System GPS Global Positioning System HMI Human Machine Interface HOT High Occupancy Toll HOV lane High Occupancy Vehicle lane IADB Inter-American Development Bank
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IBTTA International Bridge, Tunnel and Turnpike Association IEC International Electro Technical Commission IIRSA Initiative for the Integration of the Regional Infrastructure of South America INEA Innovation and Networks Executive Agency IoT Internet of Things ISO International Organization for Standardization ITC International Trade Commission ITF International Transport Forum ITS Intelligent Traffic System ITSSA Intelligent Transport Society of South Africa JLR Jaguar Land Rover JORR Jakarta Outer Ring Road KFD National Road Fund KPC Kuantan Port City KURA Kenya Urban Roads Authority LAMBDA-V Learning through AMBient Driving styles for Autonomous-Vehicles LTA Land and Transport Authority LTA La Trobe Autonobus MaaS Mobility-as-as-Service MdTA Maryland Transportation Authority MENA Middle East & Africa region MOPC Ministry of Public Works Commission MOT Ministry of Transport MTA Metropolitan Transportation Authority MTM app MyTransport.SG mobile application NHAI National Highways Authority of India NPRA Norwegian Public Roads Administration NTE North Tarrant Express nVDC Vehicle Detection and Classification Sensor OBE/OBU On Board Equipment/On Board Unit OCTA Orange County Transportation Authority OECD Organization for Economic Cooperation and Development ORT Open Road Tolling OUTA Organization Undoing Tax Abuse
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PANYNJ The Port Authority of New York & New Jersey PIARC Association Mondale de la Route – World Road Association PKM Peshawar-Karachi Motorway PPP Public-Private Partnership PT JLJ PT Jalantol Lingkarluar Jakarta QMB Atténuateur d'impact, barrières automatisées et mobiles RACV Royal Automobile Club of Victoria RFID Radio Frequency Identification RGV Rio Grande Valley RIA Road Infrastructure Agency RIDOT Rhode Island Department of Transportation RMS Roads and Maritime Services RSU Road Site Units RTA Roads and Transport Authority RUTA Red Urbana de Transporte Articulado SANRAL South African National Roads Agency Ltd. SCDOT South Carolina Department of Transportation SCT Secretariat of Communications and Transport SLEX-TR4 Southern Luzon Expressway-Toll Road SRTA State Road and Tollway Authority SUMP Sustainable Urban Mobility Planning SwRI Southwest Research Institute TCC Traffic Control Center TEN-T Trans-European Transport Network TMETC Tata Motors European Technical Center TMT Technology, Media and Telecommunications TRA Transport Research Arena TRB Transportation Research Board TRY Turkish Lira TTI Texas A&M Transportation Institute TxDOT Texas Department of Transportation UAS Unmanned Aerial Systems UHF Ultra-High-Frequency UK United Kingdom
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UN United Nations UNECE Economic Commission of the United Nations for Europe US United States of America V2I Vehicle-to-Infrastructure V2V Vehicle-to-Vehicle V2X Vehicle-to-Everything VAT Value Added Tax VW Volkswagen WHSD Western High-Speed Diameter WIM Weigh In Motion
Page 14 154 Resolution of Appreciation to Tim Stewart for his leadership of the International Bridge, Tunnel and Turnpike Association during his term as President in 2018
Whereas, the International Bridge, Tunnel and Turnpike Association is recognized for its prominence and leadership in the worldwide highway transportation field;
Whereas, the continuing advancement of the Association is directly attributable to the loyal and sustained efforts of its Officers and Directors;
Whereas, Tim Stewart served as President of the Association in 2018 with exceptional competence and diligence;
Whereas, his accomplishments as President are particularly characteristic of his dedication to the Association and its membership;
Now, Therefore, Be It Resolved, that the Officers, Directors and Members of the International Bridge, Tunnel and Turnpike Association hereby record their sincere appreciation to Mr. Stewart for his outstanding service and many contributions to the Association.
Thoughtful, poised, and unflappable. Humble, genuine, and down to earth. A gentleman, a consummate professional, and a get ‘er done guy. Those are some of the words colleagues use to describe Tim Stewart. Tim Stewart led IBTTA under the theme “Trust and Accountability.” He believes trust is built by taking time for customers and communities to understand that we offer a dependable, viable solution to meet transportation demand. He also believes that if you trust someone to do something, they have to deliver. So, we build trust by what we do, and by holding ourselves accountable for what we promise to do. As President, Tim cultivated a heightened sense of member engagement through the committees and working groups of IBTTA. He also engaged the Board of Directors in a serious conversation about the future of our industry that led them to adopt a new three-year plan. As one board member said, Tim exemplifies the best characteristics of a leader: kind but firm, open-minded but decisive. According to another, when Tim speaks, people need to listen.
Resolved, that this expression of appreciation be adopted by the unanimous vote of the Board of Directors and a copy of this resolution be incorporated into the permanent records of the International Bridge, Tunnel and Turnpike Association; and
Be It Further Resolved that an appropriate copy of this resolution, signed by the President of the Association, be presented to Mr. Stewart.
Chris Tomlinson, IBTTA President Halifax, Nova Scotia CANADA – September 14, 2019 155 MINUTES International Bridge, Tunnel and Turnpike Association Board of Directors May 19, 2019 Philadelphia, PA
BOARD MEMBERS IN ATTENDANCE: Mark Compton (Second VP), James Hofmann, Samuel Johnson (First VP), Maria Moreno, Mark Muriello, Kathi O’Connor, Patty Rubstello, Diane Scaccetti, Malika Seddi (International VP), Tim Stewart (Immediate Past President), Juan Toledo, Chris Tomlinson (President).
Call to Order President Chris Tomlinson called the meeting to order at 2:02pm and asked for self- introductions.
Council of Platinum Sponsors Report Jim Wilson, Chair of the COPS, needed to depart early, so Chris invited him to give his report. Jim said the COPS are looking at a new area of focus called “New Talent.” He said the council is continuing its work on security and Mobility as a Service. Chris expressed his appreciation for the work of the COPS and looks forward to future actions.
CURRENT ISSUES
Pennsylvania Truckers Lawsuit Mark Compton, Second Vice President, said the Owner Operators Independent Drivers Association (OOIDA) sued the Pennsylvania Turnpike Commission over the $450 million annual payment it makes to PennDOT to support transit in the state. Truckers say that none of their tolls should support anything off the Turnpike. The court ruled that PA Turnpike can continue to make those payments to PennDOT. The truckers filed an appeal the next day. The plaintiffs asked if PA Turnpike is okay with expedited review. A decision on the appeal is expected by November-December 2019. In the meantime, PA Turnpike entered an agreement with PennDOT to withhold this year’s payment until next year. Turnpike would make a payment of $50 million in cash and the rest in bond. If PA Turnpike doesn’t make this payment, then PennDOT could hold Turnpike in default and every board decision after that would need to be unanimous. If the appeals court rules in the plaintiff’s favor, then there would be a cease and desist order. Nobody believes that PA Turnpike will be required to pay back the $6.1 billion that has already gone to PennDOT. Turnpike’s total debt is $11 billion. The debt service on the Turnpike’s $2 billion in annual revenue is $675 million. What would be the replacement revenue if the plaintiffs win? A higher motor fuel tax? Turnpike’s biggest concern is that PennDOT will say that $400 million a year is not the right number, but maybe $300 million a
156 year is. Regardless of when Turnpike stops making payments to PennDOT, it will take Turnpike a long time to climb back to a sustainable debt level.
California Legal Matters on Interoperability Samuel Johnson said that California toll operators are trying to include simple verbiage in federal laws that would preempt states and localities from passing laws that interfere with tolling interoperability. California agencies will ask for support letters from member agencies and will ask other tolling agencies to create awareness about how this will affect other agencies.
NYC Cordon-Based Congestion Charging Pat Jones said that IBTTA had helped the MTA in New York convene and industry day to learn from consultants and vendors about technologies and systems to cordon-based congestion charging zone in lower Manhattan, which would be the first such cordon zone in the U.S. He said that Allison L. C. de Cerreño from MTA and Michael Replogle from New York City DOT will talk more about this project during IBTTA’s Summit on Finance and Policy on Monday. Diane Scaccetti expressed concern about the fairness of the congestion charging plan to toll facility users from New Jersey. Under some proposals, users of certain Hudson River crossings would receive a credit towards the cordon charge while others will not. She said that IBTTA should be careful as an association about taking a position on projects like this. Mark Muriello said that the level of congestion charges and various exclusions and exemptions have not yet been defined but there are, of course, major implications for the region.
MDX Situation Juan Toledo said that MDX is waiting for the governor to take action on the bill to abolish MDX and create a new agency in its place. Once that happens, MDX will file suit. Chris Tomlinson invited both board and non-board members to offer comments.
Several board members said that there is often a lot of discussion in the public about how much money tolling agencies collect but not so much on how it is used. Ed Regan said that this is a very important issues that affects toll rate setting policies. He said if the bill becomes law and withstands legal challenges, it will affect every future bond issuance in the state of Florida. He said it could be a threat to the entire tolling industry.
DISCUSSION ITEMS
Progress on 3-Year Plan Deliverables Pat Jones gave a brief progress report on the first five months of achieving deliverables under new three-year plan and referred to the document on pages 47-52 of the Board Book. He mentioned achievements in all four areas of deliverables including:
157 • Strengthening Current Programs and Services • Data and Analysis • Knowledge Transfer • Industry Vision
2018 Audit Audit Committee Chair Deb Sharpless talked about the 2018 financial audit of IBTTA. She said that no materials weaknesses were identified, and no significant deficiencies were identified. More details are included in her slide presentation (attached).
Chris Tomlinson asked about what to do about selecting future auditor. Deb said that we should use CliftonLarsonAllen for the 2019 statements. The prices that CLA is charging us are extremely competitive. The audit committee will take up the decision about whether to use CLA in the future.
Peer Exchange program John Keller, Executive Director of New Jersey Turnpike, gave a brief report on the progress happening in the two peer exchange programs and expressed a lot of satisfaction with the information exchange and sense of camaraderie that has developed among the various agency personnel.
Procurement Calendar Chris Tomlinson gave a brief report on the Master Procurement Calendar and encouraged all agencies to contribute information about their upcoming procurements.
Resolutions There were appropriate motions and seconds to approved resolutions on:
• Approving New Members • Amending the Audit Committee Charter • Making a contribution to the Long-Term Investment Fund (IBTTA Reserve) • Approving the Minutes of the January 2019 Board Meeting
COMMITTEE REPORTS Nominating Committee Nominating Committee Chair Tim Stewart said the Nominating committee had a robust discussion. They made no decisions about IBTTA officer positions. The committee did make decisions about director positions, but we will not reveal those decisions until all the applicants have been notified. The committee deferred until its next meeting a decision about IBTTA officers and Foundation directors.
158 Emerging Technologies Committee Committee Chair James Hofmann said that the Central hub has been operational for almost two years. He said that most likely they would test the integration of hubs between west and central in November and they would be performing more testing of other regions later.
Government Affairs Committee Chris Tomlinson mentioned the RUC White paper that is being written by Ed Regan, Ken Philmus, Neil Gray, and Kathy Ruffalo.
International Committee Chair Malika Seddi gave a brief report on the activities of the committee. She recalled the successful actions performed so far to highlight the “I” of IBTTA: joint PIARC/IBTTA workshop in Orlando summit, incoming webinar on managed lane and drones used to attract new potential members outside US. She mentioned the discussion with IRF to extend partnerships with other international organizations. Young professional meeting is under preparation in relation with Tyler Milligan for the Lisbon Summit.
Membership Committee Chair Rob Horr said it has been a productive year in terms of member growth. Revenue will exceed budget and it’s good to see that we are adding more value to membership.
Finance Committee Chair George Zilocchi said that IBTTA will invest $110,000 in the long-term investment fund (IBTTA reserve) the first such contribution, other than interest earnings, that has been made in a long time.
IBTTA Foundation Chair Frank McCartney talked about fundraising, scholarship applications, the service project, the leadership academy and the Foundation’s investment policy.
Future Meetings Wanda Klayman talked about the venues for future meetings, most of which have already been approved by the Board.
Communications Bill Cramer gave a quick update on the communications program and highlighted the continued value that members are receiving from the SmartBrief and access to high quality information to promote role of tolling around the world.
Adjournment The meeting was adjourned at about 4:30pm.
159 Respectfully submitted, Patrick D. Jones Executive Director & CEO
160