UCR Board Minutes

Minutes of the One Hundred Nineteenth Unified Carrier Registration Plan Board of Directors Meeting
May 25^th, 2017
Tele-conference

The One Hundred Nineteenth (119^th) Unified Carrier Registration (UCR) Plan Board of Directors (Board) meeting was called to order by Avelino Gutierrez, Chairman at 9:00 am PST.

Attendance – Board of Directors:

Present – Avelino Gutierrez, Adam Anderson, Sandy Bowling, Woody Chambers, Tina Thurman, Mike Hoeme, Elizabeth Leaman, Scott Morris, Bob Pitcher, Monte Wiederhold,.

Absent – Daphne Jefferson, Larry Herold, Carol Fallin, 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.

Scott Morris moved to accept the meeting agenda, which was seconded by Sandy Bowling (Exhibit A) – motion passed with changes to move the report for the Administrative Fees up and the vote and discussion on the contract with Kellen.

Elizabeth Leaman moved to accept the minutes for the April 28^th, 2017 Board meeting, seconded by Woody Chamber, (Exhibit B)

Avelino Gutierrez established the teleconference ground rules.

UCR Legislative Update – No Update

FMCSA Update – Daphne Jefferson, Deputy Administrator FMCSA – Rick Wood let the Chair know that the e-mails from the expiring Board Members was received and that they working the process.  All four had indicated they wanted continue serving on the Board.

Administrative Fee’s Subcommittee – Elizabeth Leaman –  Reported that she had compared the differences between keeping the go to meeting the same as before and reducing some of the features.  It was discussed to keep it the same other than the number of facilitators would be reduced.  No motions taken because Elizabeth was given the authority in the April meeting to renew the contract (Exhibit C)

RFP /Contract with Kellen – Scott Morris – motioned to have the Board accept the contract with Kellen as the Administrator, Seconded by     ,  (Exhibit D)          .

Robert Pitcher – moved to table the discussion and the vote on the Kellen contract until the June meeting to allow Board members time to review the contract, Seconded by Avelino Gutierrez, motion to table passed.  Roll Call vote.

Report by DSL Transportation Services, Inc. – Dave Lazarides – Dave gave a brief report on his activities for the Board (Exhibit E). Robert Pitcher gave his endorsement on the work that is being done on the FARS work.

Audit Subcommittee – Mike Hoeme – moved that states no longer send in reports for 2015, seconded by _________, motion passed.

Procedures/Best Practices Subcommittee – Adam Anderson – reported that Robert Pitcher is still working reviewing the UCRFaq with further work to be done in Santa Fe.

Indiana System Subcommittee – Scott Morris – continue to work on the various upgrades.  Still have some issues on the depository side. Some states may receive duplicate invoices and that is being worked on.

Indiana Department of Revenue – Sandy Bowling – Sandy reviewed the items that the programmers have completed and tested. She also reviewed some of the issues that are still in progress.

1)      Self-registration for Permit Service users and state users.

2)      Permit Service history report

3)      Classification changes not allowed by carriers/permit service users during adjustments

4)      Adding new logo on UCR applications and reports.

5)      Migrating to new payment service

6)      Adding print receipt option to all the users

7)      Updating the verbiage and showing more info on receipt page or view more info page.

8)      Fix the remedy issues for UCR no-pay button related to phone/fax/zip code.

9)      Showing grand total on transmittal and registration fee report.

10)   UCR Dashboard report – to add bad check.

Industry Advisory Subcommittee – Bob Pitcher – No report

Revenue and Fees Subcommittee – Larry Herold – No report.

Dispute Resolution Subcommittee – Tina Thurman – No report.

Depository Subcommittee – Scott Morris – moved that the contract with Ms. Pamela Gilbert be extended to December 31, 2017, Seconded by Woody Chambers, motion passed.

No additional funds were asked for as there should be sufficient funds in the subcommittee budget already.

Old/New Matters:

Avelino Gutierrez brought that he had sent and included a copy of the letter to Mr. Mark Miller with Student Transportation and the issue of subtracting buses (Exhibit F)

Avelino brought about the memorandum from Missouri regarding owed funds.  Scott Morris reviewed for the board (Exhibit G)

Future Board Meetings:

April 28^th, 2017 27^th, 28^th in Atlanta Georgia. Board meeting will be at 1:00 PM EDT

May 25^th, 2017 12:00 PM EDT

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

July 13^th, 2017 12:00 PM EDT

Potential face to face Board meeting in August or September.

Minutes approved by the UCR Board on June 7, 2017.

Adam Anderson,

UCR Board Member/Secretary

Exhibit A – Meeting Agenda

Exhibit B – April  2017 Board Meeting Minutes

Exhibit C – Go to Meeting

Exhibit D – Draft Kellen Contract

Exhibit E –  DSL Report

Exhibit F – Board Letter to Student Transportation

Exhibit G – Memo from Missouri

Minutes of the One Hundred Sixteenth Unified Carrier Registration Plan Board of Directors
Meeting
February 7th, 2017
In Person/Tele-conference

The One Hundred Sixteenth (116th) Unified Carrier Registration (UCR) Plan Board of Directors
(Board) meeting was called to order by Avelino Gutierrez, Chairman at 9:00 am PST.

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, Bob Pitcher, Carol Fallin and
Monte Wiederhold.

Absent – Chris Burroughs and Rick Schweitzer.

Avelino Gutierrez moved that the Board reconsider the sending of the letter to FMCSA requesting the
fee reduction and open up a time frame for public comments, seconded by Bob Pitcher, motion passed.

The time frame for public comment will be a week to ten days:

Scott Morris discussed the proposal for the fee reduction. It was a little different than the
original proposal because it did not address the overages that already been collected (Exhibit A).
The proposed is a two-step proposal.

Public Comments for the Fee reduction, 2 comments:

Randy Coplin, Michigan State Police, requested that the Board proceed very cautiously because of
state budgets are projected out up to 18 months in advance while I recognize that the excess fees
have to be returned there needs to be a mechanism in place in which we can recover the short falls
and states are adequately reimbursed from one year to the next for the full amount.

Mr. Berndnder with the Wisconsin Dept. of Transportation – I do appreciate the Boards work on this
issue do intend to be full participant’s in this program. I certainly endorse the prior comments
of making sure we receive our entitlements and just wanted to add that I think the approach is good
to correct the over collection and provide for a stable collection for the future. I have not
followed it closely enough to know exactly what if there is a stated cost across the board for
future years. The next step would be to estimate that and then one could decide if the registration
figure for 2019 would be $73 or $74.

Avelino Gutierrez closed the phone comment period and moved that the written comment period remain
open until February 20th 2017at 5 pm EST to allow for written comment in the form of email or
written mail. Seconded by Robert Pitcher, motion passed.

The written comments are to be sent to Avelino.gutierrez@state .nm.us or PO BOX 1269, Santa Fe NM,
87564

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

Adam Anderson moved to accept the meeting agenda, which was seconded by Scott Morris
(Exhibit B) – motion passed.

Woody Chambers moved to accept the minutes for the December 15th 2016 Board meeting, seconded by
Sandy Bowling, (Exhibit C)

Avelino Gutierrez established the teleconference ground rules.

UCR Legislative Update – No Update

FMCSA Update – Daphne Jefferson, Deputy Administrator FMCSA – delaying full implementation of the URS to allow states to do their testing due to some issues with the system. Continuing with the new
application tool. FMSCA welcomed the new Secretary of Transportation MS. Chau.

Woody Chambers asked Daphne and Rick Wood asked for an update on the UCR suffix on the
392.2 violation code. Rick Wood asked for more clarification on what Woody is looking for. Rick and
Woody will talk offline.

There had been recommendations that FMCSA help promote the UCR and there is a link now on the FMCSA website.

Report by DSL Transportation Services, Inc. – Dave Lazarides –

Audit Subcommittee – Mike Hoeme – Inga Johnson (Alaska) and Mark Burn (Nebraska) joined the
Subcommittee. Been working on some IRP reports to help with auditing. Further testing is ongoing
with additional states.

Mike gave a reminder that he needed to have states resend their 2015 reports. He only received a
handful and reminded that the 2016 is due by June 1, 2017.

Procedures/Best Practices Subcommittee – Adam Anderson – reported the subcommittee’s work on the
FAQ’s. A list was sent out to everyone and asked everyone to review that list of the items being
looked at and any suggestions on the proposed changes (Exhibit D). Also reviewing the 15 minute
upload for data to Iteris.

Adam turned time over to Scott Morris on a proposed change to acknowledgement of funds received by
states for funds from the Depository.

Scott Morris explained the issue is when states have to acknowledge those funds received in a
timely manner but it is not happening. Scott explained that the actual transaction is done by the
Bank and if there is a problem there they are quickly identified and he is notified by the bank and
he gets ahold of the State.

Scott Morris moved that the need to have the States acknowledge the receipt of the Depository
Distributions funds be removed from the depository function, seconded by Adam Anderson, motion
passed.

An e-mail will go out when the system has been updated to remove this requirement it may take a few
months.

States still have to acknowledge the funds received from Indiana.

Indiana System Subcommittee – Scott Morris – time was given over to Sandy Bowling to give a report
on the System. The team has finally been created to work on the UCR stuff all the time. The team
did a lot of testing with the upload and downloads with the cloud environment. Also offering an
online chat line and other enhancements (Exhibit E). Sandy will make sure there is a report
provided each month on the status.

Scott Morris reported that Jim Poe is no longer with Indiana. Scott and Dave will be heading to
Indiana to test some of the enhancements that have been completed.

Dave Lazarides said one of the things they are trying to do is to accommodate more web browsers.
The team we have with Indiana is working really well.

Scott Morris brought of the fact that with the changes in Indiana that our MOU expires in about 21
months and if something was to happen and Indiana not renew the MOU or if they exercise the 90 out
clause, the Board does not have a Plan B or contingency plan with that in mind Scott recommended
that the Board develop a plan b by first developing a design document.

Scott Morris moved that the Board direct Dave Lazarides to come back to the Board next month with a
list of resources and a proposal to develop a design document relative to a new registration
system, seconded by Adam Anderson, motion passed.

Indiana Department of Revenue – Sandy Bowling – reported on some of the statistics of what they do. Sandy said she wrote 1,189 IT remedy tickets from 2015 through 2016 (Exhibit F).
Sandy recommended that each state go into the registration System and pull a report that show’s how
many registrations that are processed in house versus online.

Avelino Gutierrez moved that the Board authorize payment to the Indiana Department of Revenue in
the amount of $40,242.60, for the postage and mailing of the 2017 notices and the delinquent
notices for 2016, seconded by Adam Anderson, motion passed (Exhibit G).

Sandy Bowling – a few months back Len Shenk from Ohio took on the task of creating a database for
the motions voted upon and she asked if Tina could post it on the website. Avelino mentioned that
this would be one of the tasks the administrator will take on also to keep up to date.

Sandy Bowling asked for clarification that if a company should have paid the 2015 registration fees
and did not, should they be getting citations now that the system has shut down the 2015
registration year?

Avelino Gutierrez moved that the Board recommends to the States that citations should only be
issued by the states for the current registration year and the prior year, seconded by Robert
Pitcher, motion passed.

Industry Advisory Subcommittee – Bob Pitcher – The subcommittee has reviewed the topic of the fee
adjustment that would be taking into account the excess fees collected in 2016 and the projected
for 2017 along with the unspent administrative fees (still to be determined and would have to wait
until 2019 for the adjustment). Another item discussed was the audits of the motor carriers and the
states, it seems to be well in hand and whether the states are actually doing the audits is another topic since most have not bothered to turn in their report. Also  discussed the UCR Q & A, the Indiana Registration System and the dispute resolution.

Revenue and Fees Subcommittee – Larry Herold – Reported that before we can properly set fees we
need to have an operating budget. Dave Lazarides reported on the operating budget (Exhibit H).

Robert Pitcher mentioned that he presumed that some of the line items such as the consulting that
could possibly be put into the RFP. Dave and Scott agreed that that could be a possibility and we
will have to wait and see.

Avelino Gutierrez brought the fact that this budget did not include a reserve fund.

Larry Herold moved that the Board approve this per forma operating budget as an interim budget for
calendar year 2017, seconded by Scott Morris, motion passed.

Larry Herold then brought up the discussion about a reserve fund, especially if something was to
change in our relationship with Indiana (not that we want any change). No decision taken at this
time on how much the reserve should be.

Requests for Proposals – Scott Morris – reported on the three responses that had been received on
the RFI’s. These responses were used to help formulate the Request for Proposal (Exhibit I). Scott
asked that the Board members review the RFP document and if there is anything that needs to be
changed let him know but be specific as to what you want it to say. The target date to send out the
RFP is March 1st, 2017, but if possible to release it sooner. Due date for responses March 31st,
2017. Review and then hold an in-person interview for finalists on April 27th and then the Board
make a decision on April 28th on who to award the contract to.

Rick Wood will check to see if the review of the RFP’s needs to be a closed session.

Scott Morris moved that Board allow the release of the RFP upon approval of the taskforce (Scott
Morris, Avelino Gutierrez, Rick Schweitzer, Adam Anderson), seconded by Larry Herold, motion
passed.

Dispute Resolution Subcommittee – Tina Thurman – reviewed the draft copy of the Dispute Resolution
Procedure and asked that the Board Members review the document and report back to her and Robert
Pitcher on any suggestion by February 28th (Exhibit J).

Avelino Gutierrez gave a special thanks to Robert Pitcher for his help in drafting the procedure.

Administrative Fee’s Subcommittee – Elizabeth Leaman – tabled the website development until the
Administrator has been chosen and that the go to meeting is due up for renewal and will look at the
pricing but this too may be part of the Administrators duties.

Depository Subcommittee – Scott Morris – reviewed the preliminary Schedule of Operating Fund
Activity (Exhibit K). Scott gave some preliminary numbers for the registration totals for 2015
($112,725,023), 2016 ($116,653, 609), 2017 ($106,583,045). Scott then reviewed his
Subcommittee Budget (Exhibit L).

Scott Morris moved that the Board approve the operating budget for the Depository Subcommittee of
$135,000, seconded by Elizabeth Leahman, motion passed.

Scott looked into bringing on a temporary employee to help out with the functions. However he found
out he could not bring someone into the office space there. He did find an office space to rent and
he proposed that he could bring on a temporary office assistant to help with depository functions
and asked for authorization to enter the agreement for 6 months. This space can also be used during
the transition with the Administrator.

Scott Morris move that the Board authorize him to be able to enter into an agreement with Kelly
Services for 6 months to provide an administrative assistant and with Regis for a 6 month lease for
office space, seconded by Adam Anderson, motion passed.

Scott Morris welcomed Carol Fallin to the Depository Subcommittee.

Scott Morris moved that the Board authorize that Carol Fallin be added to the list of signatories
at the Bank of North Dakota, seconded by Mike Hoeme.

Scott Morris moved that he be allowed to open a new savings account for the 2017 registration and
another account for excess funds, seconded by Woody Chambers, motion passed.

Old/New Matters:

Avelino Gutierrez reviewed the invoice from NCSTS for the UCR’s portion of bill for the San Diego,
in the amount of 3,466.33 for food meeting room and av costs.

Avelino Gutierrez moved to reimburse NCSTS in the amount of $3,466.33, seconded by Carol Fallin,
motion passed.

Sandy Bowling brought the issue with the Student Bus Transportation for Nebraska and Mike Hoeme
responded that Nebraska will receive a letter from Avelino Gutierrez confirming Nebraska’s stance
on the audit.

Future Board Meetings:

March 14th, 2017 12:00 PM EDT
April 28th, 2017 27th, 28th in Atlanta Georgia May 25th, 2017 12:00 PM EDT
June 3rd thru 7th, 2017, Board Meeting on June 7th, 2017 9:00 AM EDT (Santa Fe, NM)

Minutes approved by the UCR Board on March 14th, 2017 . Adam Anderson,
UCR Board Member/Secretary

Exhibit A – 2018/2019 Fee Recommendation to FMCSA Exhibit B – Meeting Agenda
Exhibit C – December 2016 Board Meeting Minutes
Exhibit D – UCRA Q & A Suggested Revisions Exhibit E – UCR Summary Enhancements Exhibit F – Stats
for 2017
Exhibit G – Invoice for Indiana Mail Outs Exhibit H – Budget Outline
Exhibit I – UCRA RFP Draft
Exhibit J – Draft UCR DR Procedures
Exhibit K – Schedule of Operating Fund Activity

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

The One Hundred Eighteenth (118^th) 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 28^th, 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 25^th, 2017 12:00 PM EDT

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

July 13^th, 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

Minutes of the One Hundred Fifteenth Unified Carrier Registration Plan Board of Directors Meeting
December 15th, 2016
Tele-conference

The One Hundred Fourteenth (115^th) Unified Carrier Registration (UCR) Plan Board of Directors (Board) meeting was called to order by Avelino Gutierrez, Chairman at 2:00 pm EST.

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, Bob Pitcher and Rick Schweitzer.

Absent – Chris Burroughs and Monte Wiederhold.

Sandy Bowling was present on the call, but unable to speak very well due to illness.

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

Adam Anderson moved to accept the meeting agenda, which was seconded by Rick Schweitzer (Exhibit A) – motion passed.

Woody Chambers moved to accept the minutes for the November 10^th 2016 Board meeting, seconded by Elizabeth Leaman, (Exhibit B)

Adam Anderson indicated he would be leaving the meeting early. Tina Thurman will be taking minutes in his absence.

Avelino Gutierrez established the teleconference ground rules.

UCR Legislative Update – No Update

FMCSA Update – Daphne Jefferson, Deputy Administrator FMCSA. URS implementation is being delayed. FMCSA does not have an implementation date yet but wants to get information out as quickly as possible. FMCSA will provide an update after the first of the year. As of last month we had over 100,000 new applicants through the URS system and that process is going well.

FMCSA has a nomination to fill the UCR Board vacancy. They are working on the vacancy and will be getting back to us soon on the status of the nominee.

Washington D.C. continues to work through the transition process with the new administration coming on board. One of the new members in a former Chief Council for the FMCSA, so they already know some of our needs. This is a good thing. Daphne will be sticking around as a career person and continue to move forward with UCR issues.

Rick Wood also mentioned that Woody Chambers had asked about the 392.2 UCR violation/report on MCMIS during the last meeting. Rick indicated he isn’t sure what the issue is and asked Woody to send him a little more information. Woody responded he needed to get with the people in his office to find out where they are no longer able to find the UCR violation information and then he would email Rick.

Report by DSL Transportation Services, Inc. – Dave Lazarides – Dave provided the monthly status report (Exhibit C). Dave provided an update on the Director and Office (D&O) insurance. An application has been completed to obtain an estimate.

Indiana asked Dave to look into search engine placement of UCR.IN.Gov when people google UCR. Dave has contacted Google, who put him in touch with the Ad folks. In order to do anything meaningful, they need to speak with owner of the 10 digit code of the website. Dave has turned this information over to Indiana and they will follow up with Google. Dave also mentioned the UCR link on FMCSA importance. It seems most people who have fallen victim to the third party services are the new carriers who don’t know where to register. Dave stressed the importance of the UCR link to be embedded in to the FMCSA registration process.

UCR Website – Discussion continues with Iteris. They can begin phase one, basic phase after the first of the year. Phase 2 would include individual accounts; log ins, uploading audits, and etc. Phase one doesn’t include much maintenance. Indiana believes they can provide many of the phase two services. We may need to revisit the phase two services to determine if we want to pay Iteris to provide these services when Indiana can do it.

Audit Subcommittee – Mike Hoeme – Mike reported he has been working with Dave and Sandy on an audit report. This is reflected within Dave’s status report provided in Exhibit C. The Audit Subcommittee hopes to have a presentation ready for San Diego.

Procedures/Best Practices Subcommittee – Adam Anderson – Adam sent out the UCR Agreement updates. Adam also sent out updates to the State with their own system regarding the requirement to update Iteris every 15 minutes and they have three months from November 10^th to comply. Iteris having a hard time getting downloads timely from FMCSA. Adam asked Dave to get with him to make a call to Iteris regarding the timing of the FMCSA downloads. Dave responded that Iteris does testing for FMCSA and believes they have good FMCSA contacts. Iteris acknowledged they had some problems, but thought updates were going pretty well.

Adam indicated he will be in contact with his subcommittee members soon to set up a teleconference meeting in January. Adam also indicated he plans to do extensive work on the FAQ’s in San Diego. Adam asked states to review the FAQ’s and provide feedback to him before the San Diego meeting.

Avelino asked all subcommittee chairs to email him if their subcommittee plans to meet in San Diego and a time estimate so he can create an agenda.

Scott Morris mentioned how we handle states that are behind on payment or reporting obligations moving forward. We have procedures in place to withhold payment from the Indiana registration system. We are in the process of building a methodology to do that on the depository side also. Recently we actually had to release money to states who shouldn’t have received payment so other states would receive their payment. During the meeting in Indiana where they were scoping through some of these changes, one of the things determined was that the actual development to build a withhold function on the depository side would be pretty extensive. We were looking for a couple of options. One option is for states that typically hit their cap pretty quickly to exclude them from distribution so we aren’t sending them money and then they are turning around and sending it right back. We feel that this is a really important tool that will prevent a lot of sending money back and forth to each other. This piece is pretty easy to code. The more difficult area to code is when a state is out of compliance and the system needs to hold payment and distribute payment later when that state comes back in to compliance. From a programming stand point this is very difficult. From procedures stand point; we need to discuss how we go about this. We need to look at the policy because of the development resources. Possibly adopting a formal policy that if you are not current with obligations to the plan and a distribution is coming due that you miss that distribution and go to the back of the line and that money will be distributed to other states. Once that state comes back in to compliance, that states comes back in to the lines and partakes in future distributions.

Iteris 15 minutes update requirement – After discussing this requirement with the developers in Indiana we have determined this requirement is not difficult to code. But, the problem with an update of this frequency is that when there are discrepancies, manual intervention is required. With uploads every 15 minutes, which is a possibility of 100 uploads daily. This may be a topic we need to give some thought to in San Diego.

Indiana System Subcommittee – Scott Morris – Dave and Scott went to Indiana last week and met with their key project team and developers. They discussed the process and the template form developed for requests. One of the items discussed was that UCR needs to provide a hefty workload of items in a worklist for the developers. Scott and Dave plan to have weekly conference calls with the developers for the next couple of months to make sure the developers always have at least three weeks of work. They may change the calls to bi-weekly later.

Dave Lazarides reported the Indiana folks use the Agile methodology which is designed to narrow down exactly what everybody is doing in the next few weeks. The Indiana programmers continue to be focused on data exchange with FMCSA right now. It will probably be mid-January before the first results from the depository updates happen.

Indiana Department of Revenue – Sandy Bowling – Scott Morris provided the Indiana Department of Revenue update along with the Indiana System Subcommittee update since Sandy Bowling was ill and unable to speak.

Industry Advisory Subcommittee – Bob Pitcher – The Industry Advisory Subcommittee will be meeting in San Diego. Bob will provide an agenda prior to the meeting date.

Revenue and Fees Subcommittee – Larry Herold – Larry sent out a Revenue and Fee Reduction Spreadsheet (Exhibit E) to be discussed. The 2016 UCR cap has been exceeded through November. Scott also did a great job of projecting numbers two different ways. He took the last three preceding registration years average for each month during the last 13 month period projecting an additional $2M in revenue. He also took the last three preceding registration years using the minimum for each month during the last 13 month period projecting an additional $1.7M in revenue (see exhibit E for both average and minimum numbers). We are projected to have somewhere between $4.5M and $4.8M revenue over the cap. We are all in agreement that this should be used in the calculation to reduce UCR fees. If we go with the three year average, the fee reduction is 4.28%. If we go with the three year minimum the fee reduction right at 4%. See table below for fee reduction recommendations. Larry opened the floor for discussion.

The Revenue and Fees Subcommittee recommends that we reduce 2018 fees, that we make the recommendation to FMCSA, for the numbers highlighted in blue. Scott Morris indicated he has done the math behind the numbers and that he would replace the projected numbers with actual numbers as they come in. He expects the decrease may become larger as the actual number come in. Scott indicated UCR would need a final ruling from FMCSA no later than August 31, 2017 to allow for programming of UCR system to be ready for the 2018 registration year to be ready to go by October 1. Laurie O’Flaherty in California commented that the August 31 cutoff is too close of a turnaround time for California to prepare UCR mailing materials and have everything out by October 1. Scott commented that the UCR Board has used this date in the past and it has been sufficient time for the Board the other State with their own systems to prepare. Laurie O’Flaherty commented that California needs at least six weeks to allow for printing of post cards and to prepare mailings. Avelino commented that some state do not print the actual UCR fees on the post card and that possibly that would be an option or a workaround. Laurie O’Flaherty indicated she would like to see an August 1 response date from FMCSA. Rick Wood responded that it is already December and we still need to resolve when we are going to get a recommendation and what is going to be in it. And then if we have to do notice and comment before FMCSA could have a decision on a recommended fee decrease. If time is taken away at the other end, there will be some heavy lifting to do. FMCSA doesn’t want to be committed in that short period of time. If notice and comment is required it will be very difficult to get this accomplished. Laurie O’Flaherty questioned how long it takes to get it approved for reduction? Rick responded that if it has to go out for public notice and comment it’s a minimum of 60 days, that’s assuming you can get the OST to approve it timely, and this is during a transition period. Any comments submitted would also have to be evaluated and then a final rule would have to be made. Rick simply stated that he didn’t want to commit FMCSA to having anything prior to August 31, 2017 until he knows a fee reduction doesn’t require notice and comment – and even then it won’t be an easy process. Avelino commented that in the past FMCSQA actions have taken longer than expected simply because of all the hoops they go through. Laurie O’Flaherty commented that California notices will most likely be late and there isn’t much she can do about it.

Sandy would prefer to have the whole dollars and remove the cents on the fee recommendations. Scott indicated that no one pays in cash anymore so he didn’t believe it made much of a difference but was happy to round to the nearest dollar. Laurie O’Flaherty in California commented that she understood why Sandy wanted the cents rounded. California does collect some cash and the cents make its inconvenient. Also, when you are working with cents and you have a balancing issue, a large amount of time can be invested in searching for the discrepancy. Suzanne from Washington also commented that they receive walkin customers who pay by cash and the cents would be an inconvenience. Scott asked Woody what his opinion is since his group is probably the group most likely to be paying in cash. Woody indicated that he had no problem rounding to the nearest dollar and it would probably be easiest for his guys too. Woody also mentioned that we should take the excessive fees that will be in the administrative fees account in to consideration. Bob Pitcher indicated that if we consider those fees right now, there will be no fee decrease recommendation until the next meeting at the very latest and there will be absolutely no chance at any decrease for 2018. Woody agreed for now and to round to the nearest dollar. Larry responded to Woody and indicated that the Board needs to get an overall budget set that includes reserves, contracts, etc so we can start really having those numbers in the future. This is our best opportunity to get something for 2018. Larry Herold made a motion that the UCR Chairman write a letter to FMCSA recommending FMCSA reduce fees in the fee brackets for 2018 to $73 for the first bracket, $218 for the second bracket, $434 for the third bracket, $1,513 for the fourth bracket, $7,211 for the fifth bracket, and $70,412 for the sixth bracket provided the fees for 2018 are published by FMCSA on or before August 31, 2017. If these fees are not published on or before August 31, 2017, these fees would not go into effect for 2018 but will be rolled over for the 2019 fee calculation. Bob Pitcher seconded the motion. Rick Wood commented that the more justification and explanation that can be provided that supports the amount of the adjustment that can be incorporated into a rule making document would be greatly appreciated. Avelino commented that he will provide as much justification as he can with the letter within one week and will follow up with whatever other documentation is needed. Scott commented that he would follow up and provide actual numbers as they come in. Larry responded that the motion does not allow for adjustment as it stands. Rick indicated we don’t need to worry about it for now. The motion passed without objection.

Larry commented that the Revenue and Fees Subcommittee will have a follow up meeting in San Diego.

Dispute Resolution Subcommittee – Tina Thurman – No Report.

Administrative Fee’s Subcommittee – Elizabeth Leaman – Liz reported that she and Dave have been meeting with Iteris weekly on the UCR website. The initial goal is to develop a static website. Liz will be contacting everybody to begin data collection to determine what kind of data will be on the website. So Liz will be contacting Subcommittee chairs to determine what the needs of each subcommittee are. Liz will also be reaching out to each chair for a bio to board member info can be placed on the web. Dave and Liz plan on continuing to work with Iteris and hope to have a rough draft to present to the Board in San Diego.

Depository Subcommittee – Scott Morris – The November numbers are not in from the accountants yet. Scott indicated that he has made a 2016 distribution for the month of July. That distribution should have made all states whole for 2016. Scott would like to without making anymore 2016 distributions to States until the depository changes are made at this point to avoid states having to send fees right back to the depository. Avelino made a motion that Scott Morris be allowed to withhold additional 2016 distribution money to any state that has already capped for 2016. Mike Hoeme seconded the motion. Scott commented that all states have capped for 2016. The motion passed without objections.

Scott Morris made a motion to authorize a continuing resolution to allow all subcommittees to be funded at 25 percent of their Board approved 2016 budgets. Elizabeth Leaman seconded the motion. Liz asked if there is a document that lists the approved budgets of all subcommittees. Avelino responded that no document exists right now. Scott Morris asked for Dave Lazarides to create a list of all the approved subcommittee budgets. The motion passed without objection.

Scott Morris provided an update on the RFP process for a provider to support the administration of the UCR agreement. Scott indicated the consultant decided to begin with a RFI to solicit some more input form the folks that may be doing this that would help us create the final RFP. A draft RFI (Exhibit E) was shared with the UCR Board that will be published on December 20. Responses due by January 17, with responses by February 3. The goal is to have a draft RFP ready for review at the San Diego Board meeting with the goal of releasing the RFP in March. Scott made a motion that the RFI be released on December 20, 2016 subject to the approval of the UCR plan board Chair. Elizabeth Leaman seconded the motion. The motion passed without objection.

Old/New Matters:

Woody Chambers asked Rick Wood if the 392.2 UCR violations are on the MCMIS database. Rick responded that he gets a monthly report with the data. But, there may be issues with who has access to the data. Rick asked Woody to send him an email outlining the nature of this inquiry.

Kathy from Nebraska questioned an issue that was brought up to Sandy regarding school buses. The state of Nebraska audited a carrier and the carrier is disputing the audit. The issue is being delayed until the San Diego meeting. Mike asked Kathy to forward any information they have on the audit to him.

Future Board Meetings:

February 5^th thru 7^th, 2017, Board meeting on February 7th (San Diego, CA)

March 16^th, 2017 12:00 PM EDT

April 20, 2017

June 3^rd thru 7^th, 2017, Board Meeting on June 7^th, 2017 9:00 AM EDT (Santa Fe, NM)

Minutes approved by the UCR Board on .

Adam Anderson,

UCR Board Member/Secretary

Exhibit A – Meeting Agenda

Exhibit B – Board Meeting Minutes

Exhibit C – DSL Services report

Exhibit D – Revenue and Fee Reduction Spreadsheet

Exhibit E – Draft RFI