Minutes of the One Hundred Eighteenth Unified Carrier Registration Plan Board of Directors Meeting
April 28th, 2017

The One Hundred Eighteenth (118th) Unified Carrier Registration (UCR) Plan Board of Directors (Board) meeting was called to order by Avelino Gutierrez, Chairman at 1:00 pm EDT.

Attendance – Board of Directors:

Present – Avelino Gutierrez, Adam Anderson, Sandy Bowling, Woody Chambers, Tina Thurman, Daphne Jefferson, Larry Herold, Mike Hoeme, Elizabeth Leaman, Scott Morris, Monte Wiederhold and Carol Fallin.

Absent – Bob Pitcher, Chris Burroughs and Rick Schweitzer.

Avelino Gutierrez conducted a roll call of the States with self-introductions of government and industry representatives made by those in attendance.

Avelino Gutierrez read the certification of Exception to Sunshine in the Government Act as provided to by the Boards Chief Legal Officer that the Board meeting as published by The Board in the Federal Register for April 28th, 2017 may be a closed meeting (Exhibit A).  Avelino mentioned that we would not have to close the meeting as long as we did not talk about the specific financial numbers of the applicants for the Administrator.

Avelino Gutierrez moved that the Board authorize the Plan Administration Task Force, made up of Scott Morris, Adam Anderson and Rick Schweitzer to enter into negotiations with Kellen for a best and final offer that; 1) adds to the scope of work an RFP for the Registration System with a priority such that a new contract or MOU to replace the current MOU would take effect when the current MOU expires in September 2018; and secondly, further allows the Plan Administration Task Force to utilize the legal services of Bradley Arant in contract drafting if needed; and finally, that when the Task Force and Kellen deem the proposed contract complete to bring the contract to the Board for final approval, seconded by Adam Anderson, motion passed, roll call vote (Exhibit B), note – Daphne Jefferson had left by the time the board got to the vote.

Discussion on the Motion:

Scott Morris – felt that all three candidates were all qualified and would do a good job for the Board but after looking at the details behind the proposal’s Scott felt that Kellen had the strongest standing because the amount of the staff they had, the amount of time they have been around and the best financial position.

Elizabeth Leaman – agreed with Scott in that she felt Kellen was the leading candidate and that all the presentations were good.  She felt having the representation from the whole team we would be working with and they seemed very pliable and understood what our needs are. They understood that there are a few gray areas that have to be worked out.

Monte Weiderhold – Agreed that Kellen had the depth of the resources above the others and their presentation was very strait forward and they understood there was a few gray areas.  One question Monte had was what out sources that we have are we looking to consolidate into the contract with Kellen i.e. the accounting.

Scott Morris – envisioned that some of the day to day stuff for the accounting will move into Kellen and that Jackson Thornton would continue in an oversight roll.  Have another set of eyes.  There will be a transition as we move things and we will need to define their roll and it was envisioned that the accounts roll will be significantly less as we transition.  Don’t really see it impacting Iteris since they are the only ones providing the data services for the Board. Some of the administrative help that is currently being provided will go away as we transition. The auditing will depend on the policies we adopt.  Some they will be able to do and some may have to be done by an outside auditor.

Elizabeth Leaman asked about the length of the contract.

Scott Morris reminded everyone that the RFP mentioned 2 -3 years.

Woody Chambers asked about DSL services.

Scott Morris said that that would depend upon what the Board decides.

Avelino Gutierrez said that we would rely upon Kellen to help determine what was needed.

Larry Herold also agreed that Kellen was the best based upon the fact that they already had 100 plus customers and the size of the staff.

Woody Chambers added that if you compared their hourly rate with the others that Kellen’s was a lot cheaper than the others.

Other UCR Board Matters

Avelino Gutierrez – in regards to the dispute resolution procedure it was discussed with Tina Thurman that Alex Leaf recommended that we do not adopt the procedure yet until we adopt some protects. Tina Thurman has agreed.

Scott Morris this decision came about based upon the need to get a legal opinion on if we can and how we do it. The whole thing goes into how we adopt policy.

Alex Leath – Gave a brief history or basis of what is trying to be done.  With the major step the Board has taken today it will shift the Board to being an actual policy deciding Board.  What is the authority of the Board and steps that the Board took in deciding upon its policy and procedures?  What is being looked at is the procedure by which the Board takes in deciding its policies and procedures. The reason being is if someone challenges one of its actions the Board would have behaved in a way that caused it to get Chevron deference. This causes the court to be extremely deferential to the Board. What do we need to do to accomplish this:

  1. What we have to do is tell people about it,
  2. Tell them what we are going to do,
  3. Tell them what we did,
  4. Give people a reasonable amount of time for people to review and comment on what was done,
  5. Hold a public hearing for people to present those comments,
  6. Then take those changes into consideration, (not necessarily accept them),
  7. Adopt any changes and make those changes to the proposed procedure,

Four step process:

  1. Publish a notice of proposed action (at least on the website and/or federal register)
  2. We would publish a draft of the proposed procedure and inform them they have 40 to 60 days to make comments.
  3. We would then hold the public hearing (physical or electronic). Consider the comments (accept or reject).
  4. Adopt the proposal.

Rick Wood – Just wanted to caution of going down the road of handling matters under Administrative Procedure Act comes with baggage. Happy to take a look at this memorandum.  Not too sure that the Plan falls into the restrictions under the Administrative Procedure Act.

Rick Wood – also brought up that there are four Board members whose time is expiring at the end of May (Carol Fallin, Adam Anderson, Sandy Bowling and Elizabeth Leaman).  If they wish to continue they need to send an e-mail to Rick and copy it to Avelino.

Elizabeth Leaman – the go to meeting will expire at the end of May and wanted to know what the wishes of the Board was since the Administrator will not be on board yet.

Avelino Gutierrez moved that the Board allow Elizabeth to negotiate a new contract with go to meeting, seconded by Scott Morris, motion passed.

Sandy Bowling let everyone know she would be sending out everyone’s 2017 non-compliance list. Also, there will be some new items put into the registration system.  The payment system is going to be updated and it should be easier for people to use.

Mike Hoeme gave a brief report that there are a few states that have now given a report at all.  Brought up that the states must have access to MCMIS and found out that 11 states did not have access to the Iteris system.  Mike indicated that the audit subcommittee would make a recommendation for states to use their own system instead of the Matrix.

Elizabeth Leaman asked if anybody thought we needed to do a webinar on how to do an audit. Mike suggested that one should be done once they get everything completed with the audit requirements etc.

Regarding states audits of carriers.  If a state has not done any audits they need to reply to Mike Hoeme as such.

Mike Hoeme brought up the topic of vehicles rated for less than 10,000 lbs. but have IRP plates.  Mikes thoughts were that the carrier does not have to count those vehicles even though they have IRP plates.  The only reason they have IRP plates is because they are towing a trailer.

Future Board Meetings:

May 25th, 2017 12:00 PM EDT

June 3rd thru 7th, 2017, Board Meeting on June 7th, 2017 8:30 AM MDT (Santa Fe, NM)

July 13th, 2017 12:00 PM EDT

Minutes approved by the UCR Board on 5/25/2017.

Adam Anderson,

UCR Board Member/Secretary

Exhibit A – Certification Letter from Chief Legal Officer

Exhibit B – Roll Call Vote