Legislature(2023 - 2024)BUTROVICH 205
04/11/2024 01:30 PM Senate TRANSPORTATION
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Presentation(s): Statewide Transportation Improvement Program Approval Update | |
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ALASKA STATE LEGISLATURE SENATE TRANSPORTATION STANDING COMMITTEE April 11, 2024 1:32 p.m. MEMBERS PRESENT Senator James Kaufman, Chair Senator David Wilson, Vice Chair Senator Löki Tobin Senator Jesse Kiehl Senator Robert Myers MEMBERS ABSENT All members present OTHER LEGISLATORS PRESENT SENATOR BJORKMAN COMMITTEE CALENDAR PRESENTATION(S): STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL UPDATE - HEARD PREVIOUS COMMITTEE ACTION No previous action to record WITNESS REGISTER RYAN ANDERSON, Commissioner Department of Transportation and Public Facilities (DOTPF) Juneau, Alaska POSITION STATEMENT: Presented the Statewide Transportation Improvement Program (STIP) Approval Update. KATHERINE KEITH, Deputy Commissioner Department of Transportation and Public Facilities (DOTPF) Anchorage, Alaska POSITION STATEMENT: Presented a portion of the Statewide Transportation Improvement Program (STIP) Approval Update. ACTION NARRATIVE 1:32:23 PM CHAIR JAMES KAUFMAN called the Senate Transportation Standing Committee meeting to order at 1:32 p.m. Present at the call to order were Senators Myers, Wilson, Kiehl, and Chair Kaufman. Senator Tobin arrived thereafter. 1:33:05 PM CHAIR KAUFMAN announced that the agenda would consist of a presentation by Department of Transportation and Public Facilities (DOTPF) on the Statewide Transportation Improvement Program (STIP) Approval Update. 1:34:00 PM SENATOR TOBIN arrived. ^PRESENTATION(S): STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL UPDATE PRESENTATION(S): STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL UPDATE 1:34:05 PM RYAN ANDERSON, Commissioner, Department of Transportation and Public Facilities (DOTPF), Juneau, Alaska, presented the Statewide Transportation Improvement Program (STIP) Approval Update. He thanked the committee for the opportunity to provide another update to the STIP and said the presentation would also allow Department of Transportation and Public Facilities (DOTPF) to answer questions about the status of project delivery. He noted the STIP is key to the state's surface transportation program and the funds that are obligated to construct projects on the highways and the Alaska Marine Highway System (AMHS). He gave an overview of current funds obligated and awarded in Fiscal Year 24 compared with Fiscal Year 23. He observed that expenditures are about $30 million less for Fiscal Year 24 than for Fiscal Year 23. He said that, though the STIP has been delayed, DOTPF was moving forward and awarding projects. 1:36:04 PM COMMISSIONER ANDERSON moved to slide 2 and paraphrased the presentation points. Slide 2 includes a timeline titled: E-STP and STIP Development, dated December 2021 through March 2024. [Original punctuation provided.] 2024-2027 STIP Review STIP Submission Dates • Jul. 20, 2023: DOT&PF posts the 2027-2027 Draft STIP • Nov. 2023: Revised 2024-2027 STIP to FHWA and FTA • Jan. 11, 2024: Revised 2024-2027 STIP to FHWA and FTA • Jan. 19, 2024: Revised 2024-2027 STIP to FHWA and FTA • Mar. 1, 2024: Revised 2024-2027 STIP to FHWA and FTA Legislative Briefings • Feb. 13, 2024: House Transportation • Feb. 22, 2024: Senate Transportation • Feb. 28, 2024: Senate Finance • Feb. 28, 2024: House Finance • Feb. 29, 2024: House Transportation Summary of FHWA Correspondence • Feb. 12, 2024: DOT&PF receives planning findings from FHWA with a deadline of March 1, 2024. • Feb. 16, 2024: DOT&PF sends clarification and questions to FHWA regarding Tier 1 Findings. • Feb. 20, 2024: FHWA responds to DOT&PF questions. • Feb. 22, 2024: DOT&PF sends questions to FHWA focused on MPOs, fiscal constraint, Appendix D. • Feb. 23, 2024: FHWA responds to the February 22 letter. • Feb. 27, 2024: DOT&PF sends a listing of replacement projects for FHWA eligibility review. • Feb. 29, 2024: FHWA responds to the project listing request. • Mar. 27, 2024: FHWA grants partial approval of the STIP. • Mar. 27, 2024: DOT&PF follows up with FHWA regarding toll credits. 1:37:35 PM SENATOR TOBIN asked how the current STIP submission dates compare to previous submissions. She further asked whether the same submission timeline and process were being followed and whether there were delays or dynamics that differed from previous STIP submissions. 1:38:10 PM COMMISSIONER ANDERSON answered that the STIP was submitted for public notice late due to problems with E-STIP. He said there was an enormous volume of response to the public notice requiring significantly more time and multiple levels of communication to respond than in past STIPs. Beginning in February 2024, when the formal findings were received, he reported that DOTPF began communicating by more formal, written means to answer questions and convey progress on the STIP He noted that there was more time involved in the STIP process than previously. 1:39:36 PM SENATOR KIEHL asked whether there were shifts in personnel organization to do the work of preparing the STIP. 1:40:11 PM COMMISSIONER ANDERSON referred to the timeline and noted the length of the STIP development: December 2021 through April 2023 and said staff were working on E-STIP, the new way to develop the STIP. He said that team was composed of people from the regions and project delivery people to work through all the details. At that point, it was determined that E-STIP wouldn't work; the developers switched to a new platform to prepare for the public notice. A team was developed to rebuild the STIP, composed of thirty to forty people, with a more agile methodology. He described the method as small teams tied to other teams to address different aspects of the STIP that had to come together. He said the Commissioner's office oversaw the development from that point, and that each team or region focused on its part. He said there is a list of everyone that was involved. 1:42:31 PM SENATOR KIEHL asked how the roles of the most experienced DOTPF staff in the regions and in statewide planning shifted. 1:42:59 PM COMMISSIONER ANDERSON said if there was a shift in roles it was a shift in ways of working. He said DOTPF values everyone and their expertise and wanted to make the most of that. He said there was recognition of a large technological component, as well as the planning and regional expertise to capture while tackling challenges with fiscal constraint. He said project costs had risen, there was the over-programmed STIP and decisions were made at a higher level in terms of project delivery schedule, which projects would move forward and how, within the fiscal constraints. He characterized the changes for personnel as a change in the ways of working together rather than a change in roles. 1:44:16 PM SENATOR KIEHL asked whether DOTPF would use the same organization and methodology for working together on a future STIP. 1:44:42 PM COMMISSIONER ANDERSON said that the construct of building teams and working together in a way that the boundaries of different divisions didn't matter as much; and in which people can work across those boundaries will be the way to go in the future. He said that he would handle communications with the Federal Highway Administration differently. He noted that the effort to clearly communicate with them in February and March and that it would optimally have happened earlier in the process, for example September through November, and the result, he opined, would have improved the process. 1:45:41 PM SENATOR TOBIN requested an amendment to the [STIP] review specifying how often and when DOTPF communicated with the Municipal Planning Organizations (MPO's). She noted significant early feedback indicating they didn't feel included in the STIP creation and dialogue. She noted similar concerns expressed regarding tribal consultation and said these things need to be addressed before moving forward with conditional approval of the STIP. 1:46:33 PM CHAIR KAUFMAN concurred, noting the volume of concern expressed by people about being left out of the STIP creation process. He said there appeared to be a significant deviation from past processes and stakeholder engagement, both internal and external to DOTPF. He urged that improvements be made. He said avoiding similar situations in the future would be a high priority. He expressed his expectation that this would be addressed as the presentation continued. 1:47:59 PM COMMISSIONER ANDERSON indicated he was aware of the concerns. He said a great team of DOTPF people spent a lot of hours to go above and beyond to resolve the STIP. He emphasized that he does take it seriously and ensured that a later slide in the presentation would address proposed solutions. 1:48:38 PM COMMISSIONER ANDERSON moved to slide 3: [Original punctuation provided.] 2024-2027 STIP FHWA Tiered Approach Federal Planning Findings Overview The Federal Planning Finding is structured into three distinct tiers, each with its own set of conditions and requirements for resolving Federal actions. Tier Classification and Conditions Tier 1: Contains conditions that have been resolved for approval and identifies elements excluded from approval. Tier 2: Lists updated conditions for amendment approval. Tier 3: Specifies updated conditions for individual project approvals. Corrective Actions - Tier 1 •Tier 1, Finding 1: MPO and Other Transportation Improvement Programs •Tier 1, Finding 2: Project Groupings •Tier 1, Finding 3: Fiscal Constraint •Tier 1, Finding 4: STIP Amendment and Modifications Corrective action •Tier 1, Finding 5: Self Certifications, Federal Findings, and Federal Approvals 1:50:03 PM COMMISSIONER ANDERSON moved to slide 4: [Original punctuation provided.] 2024-2027 STIP Narrative Changes STIP Revision Process TIER 1: 23 CFR 450.218(P) STIP AMENDMENT AND MODIFICATIONS Removed Section: The "Updates that Do Not Require a STIP Change" has been removed from documentation. Review and Approval Process: Details on FHWA and FTA review and approval timelines and processes have been eliminated from the STIP content Maintenance and Operations of the Transportation System TIER 2: 23 CFR 450.218(Q) TRANSPORTATION PERFORMANCE MANAGEMENT (TPM) AND 23 CFR 450.206(C) PERFORMANCE- BASED PLANNING AND PROGRAMMING Expanded STIP Narrative: Included detailed explanations to demonstrate fiscal constraint. Appendix C Enhancements: Clarified how maintenance and operational needs are determined. Measures and Targets: Discussed measures and targets related to maintenance and operational needs. Historical Performance: Illustrated DOT&PF's track record in meeting maintenance and operational needs. Funding Process Explanation: Outlined how needs are financially supported. Investment Balance: Provided insight on balancing capital investments with ongoing maintenance costs. Project Sheets Update: Revised to feature relevant performance factors for individual projects. 1:52:52 PM COMMISSIONER ANDERSON moved to slide 5: [Original punctuation provided.] 2024-2027 STIP Narrative Changes Funding and Fiscal Constraint Tier 1: 23 CFR 450.218(m) Fiscal Constraint State Funding: Updated Appendix C with more information on state funding availability. Funding and Fiscal Constraint Discussion: Enhanced with further details on the use of Advance Construction. FHWA Discretionary Grants Tier 1: 23 CFR 450.218(m) Fiscal Constraint Detailed Financial Overview: Includes descriptions of federal grant programs. FTA Funds: Features a dedicated section on FTA fund sources within the financial overview. Public Involvement Process Tier 2: 23 CFR 450.210 Interested Parties, Public Involvement, and Consultation Enhanced Public Involvement Section: Now includes detailed information on tribal consultation processes within the STIP. Integration of Tribal Programs: The Tribal Transportation Improvement Programs are now incorporated by reference in the STIP. Federal Lands Management Inclusion: Federal Lands Management Agency Transportation Improvement Program is also integrated by reference. 1:53:00 PM SENATOR BJORKMAN joined the meeting. 1:54:02 PM COMMISSIONER ANDERSON moved to slide 6: [Original punctuation provided.] 2024-2027 STIP Appendices Changes Appendix C: Transportation Performance Management Analysis Maintenance and Operations Needs and Investments. Additional Information included on State funding sources, and overall maintenance and operations activities. Appendix D: Air Quality Conformance Analysis Revisions address Jan. 4 Fairbanks Metropolitan Planning Area Non-Attainment Area • The Air Quality Conformity status of the Fairbanks North Star Borough and the impacts to the TIP and STIP that result from this condition are documented in Appendix D: Air Quality Conformity Analysis. • The projects in Appendix C, Table C of the Federal Planning Finding have been removed, and no additional projects within the Fairbanks North Star Borough nonattainment/maintenance area have been added to the STIP. Appendix E: Fiscal Constraint Demonstration By Fund Type Changes to address MPO funding and removal of programs and projects. Ledgers are included to reflect allocations of funds for projects and programs not in the STIP 1:55:21 PM KATHERINE KEITH, Deputy Commissioner, Department of Transportation and Public Facilities (DOTPF), Anchorage, Alaska, moved to slide 7 and said it was her intent to walk through some of the federal planning findings that DOTPF received from the Federal Highway Administration with the partial approval of the STIP. She expressed delight on behalf of DOTPF with the progress on the Statewide Transportation Improvement Program (STIP). She said the accomplishments of the teams to connect disparate data sets, compile them in one location and provide for public access to and interaction with the data was phenomenal. She said the work also highlighted areas for improvement, for example project delivery and planning. The process of creating the current STIP provided for new ways to look at programming for the STIP and she expressed confidence that DOTPF had taken full advantage of that opportunity. She said when DOTPF began working on the STIP, the Federal Highways Administration did not have a planner with whom DOTPF could work. She said a federal planner was brought in from national headquarters. The STIP process benefitted from fresh eyes that allowed forward progress aligned with the Federal Highway Administration and the Federal Transit Authority. She said DOTPF appreciated the opportunity to be fully compliant with all their processes. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Tier 1, Finding 1: MPO and Other Transportation Improvement Programs (References Appendix A) 23 CFR 450.218(b) and (k) Excluded in Partial Approval #34374 - Railroad Anchorage North & South Rail Corridor #26076 - Aurora Drive-Noyes Slough Bridge Replacement #34385 - Port of Alaska North Extension Stabilization Step 1 Project [Slide 7 includes a table listing programs included in Tier 1, Finding 1 and an image of the 2024-20267 STIP Table of Contents] 1:57:06 PM CHAIR KAUFMAN asked about the level of engagement between the Federal Highway Administration and DOTPF. He specifically asked whether meetings began early enough [in the process], occurred often enough and were on task. 1:57:44 PM MS. KEITH replied that when DOTPF was in the throes of working with many dynamic changes within the STIP, no level of engagement with the federal office could be enough. She said the Federal Highway Administration in Alaska was not fully staffed and it was a small office, around 12 people, with a lot of work to do. She said bringing in extra resources was critical. She described DOTPF as a staff of over three thousand and said there was a tremendous amount of detail to go through. She expressed appreciation for the level of engagement between DOTPF and the Federal Highway Administration and said more engagement is needed to help DOTPF understand better. She said having things formally in writing was helpful. She reported that for years, DOTPF thought they were doing things the right way and just kept doing it that way, but there were other ways of looking at it and doing it that DOTPF hadn't done before and that they could improve. 1:58:56 PM CHAIR KAUFMAN asked whether there were changes in the work process with respect to the federal interface or with the interpretation of technical requirements. 1:59:05 PM MS. KEITH responded that it was both. She offered as an example overprogramming the STIP. She said it had been DOTPF's historical practice to over program each year, so that, as things slipped, there would be enough projects programmed and budgeted for that year that it wouldn't be necessary to go back and make an amendment [to the STIP]. She said the STIP originally included programming for over $3.5 billion for 2024. There wasn't that much revenue, so programming needed to be reduced to $1 billion. She emphasized the time and effort required to cut the programming from $3.5 billion to $1 billion. This represented significant new learning for DOTPF regarding the expectations of the Federal Highway Administration. 2:00:16 PM CHAIR KAUFMAN pointed out that the documents filed online said they were pending approval. He asked whether that was the reality or a matter of the posting not being up to date. MS. KEITH affirmed that approval was still pending. She said that DOTPF was working to repackage the PDF documents and uploading the new digital capital project modules to clearly communicate to the public what had been approved and was moving forward versus what was part of the partial approval. She anticipated posting a formal document online. 2:01:00 PM CHAIR KAUFMAN requested a timeline for the formal document. MS. KEITH said the document would be complete that week. CHAIR KAUFMAN commented that was not much time. MS. KEITH explained there would be a presentation later that day which would include [Quick Response] QR codes that were not ready to share for this meeting. She said she would share them with the committee right away. 2:01:32 PM MS. KEITH continued to paraphrase slide 7. She pointed out the list of projects for the Anchorage Metropolitan Area Transportation Solutions (AMATS), Fairbanks Area Surface Transportation (FAST) and the Metropolitan/Municipal Planning Organizations (MPOs). She said the details for the listed projects were included in the STIP and had been included in past STIPs. She said that in order to solely incorporate the Transportation Improvement Projects (TIPs) by reference, they have been fully removed from the STIP. She said DOTPF is working together with AMATS and FAST and Mat-Su Valley Planning for Transportation (MVP) to understand how to move forward in the absence of STIP ID's which they used to use to program their projects, and which no longer exist. This requires that DOTPF redefine how they work together with the MPO's and how they program and obligate projects. As part of their planning findings, she said there were six items that were excluded from approval: • two of them were discretionary grant awards and she said they aren't projects DOTPF would operate anyway • two of the projects were advanced construction conversions which means they were obligated in previous years and it's a financial transaction to pay back that a/c [account current] balance She sought to clarify that the projects listed on slide 7 are in that category and don't affect DOTPFs program over the next four years. 2:02:54 PM CHAIR KAUFMAN sought clarification regarding the Port of Alaska. He asked whether that project was included as an exclusion because the work was already underway. 2:03:15 PM MS. KEITH explained that the Federal Highways Administration instructed DOTPF to exclude [the Port of Alaska project] because it was already within the Anchorage AMATS planning boundary. [Federal Highways Administration] requested that the Port [of Alaska] and the municipality of Anchorage work first to get these discretionary grants included in the TIP and then they would be incorporated by reference. She said DOTPF was eager to get discretionary grant awards listed as soon as possible to avoid delays in grant agreements with the applicable federal agencies. She explained that there were two new federal agencies for funding within the state. One of the projects was from the Maritime Administration (MARAD) and one was from the Federal Rail Association (FRA). She said DOTPF was learning what the requirements of these agencies were to go to grant award. She said a number of the projects listed for information purposes were from external funding sources like that. She explained that DOTPF was required by regulation to include all regionally significant projects. 2:04:19 PM CHAIR KAUFMAN asked whether these projects would all get bundled into the over programming that was discussed earlier. 2:04:28 PM MS. KEITH said they would not. She said the fiscal constraint as far as Federal Highways Administration (FHA) and Federal Transit Authority (FTA) was concerned only took into account the formula funding or funds that were used toward projects. She said DOTPF was asked to account by fund and by year for each of those projects, but discretionary grants, especially those awarded to external agencies have not been a part of that accounting. She said that for this STIP, FHA and FTA did want DOTPF to show the funding source with discretionary grants, where they came from and that the state had the match for the grants so there was a different way of showing the fiscal constraints for discretionary grants that are not awarded to DOTPF. 2:05:20 PM CHAIR KAUFMAN recalled that the Delta was $2.5 billion. He asked whether the Delta project was part of the overprogramming. 2:05:40 PM MS. KEITH explained that those were not discretionary grant applications. She said programming a significant amount of discretionary grants into the STIP is relatively new to DOTPF as part of the Bipartisan Infrastructure Law. She explained that learning what the federal agencies requested and programming the STIP with those expectations was new, but that the discretionary grant funding had not been programmed into the E-STIP, so it was not part of the overprogramming. 2:06:18 PM MS. KEITH moved to slide 8 and said these examples were part of what had been resolved as part of DOTPF's project planning findings. She said these were things that had historically been included in the STIP but will no longer be. DOTPF had been instructed by FHA to remove the "programs" and instead list "projects" that had been specifically funded. She said the partially approved updated STIP will show a significant number of new projects which have been awarded. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Tier 1: Finding 2: Project Groupings (References Appendix B) 23 CFR 450.218(j) Grouping Removal: Majority of program groupings have been eliminated from the STIP. Revenue Reallocation: Funds from former groupings have been redistributed to specific DOT&PF-led projects and programs. Appendix B - Project Groupings The following project groupings must include project description, including project location, type of work, termini, etc., to be included in the STIP. If any work occurs within an MPO boundary, it must first be included in the MPO's TIP before being included in the STIP by reference. [Slide 8 includes a table of programs which are now expressed as projects in the STIP, Tier 1, Finding 2.] 2:07:54 PM MS. KEITH moved to slide 9 and pointed out that several of the items in the table had been resolved and that some of them had been moved to Tier #3, which means that, as DOTPF goes to obligate these projects and move them forward, details specific to the projects will have to be worked out. She pointed out the ferry boat toll credits and characterized this item as an innovative finance opportunity. With FHA approval, DOTPF will be able to apply these federal funds as a match for the federal transit grant awards. She said there were a number of Alaska Marine Highway System (AMHS) projects on the list and they have all been approved for leveraging the toll credits. The STIP will show the number of toll credits that will be applied to the AMHS projects as well as the federal fund source that is being used as match funds for the grant award. She credited Washington State DOT as the origin of this way of looking at toll credits. She continued to explain that in 2025 and 2027, FHA has instructed DOTPF to wait until they have identified projects to apply the ferry toll credits to, instead of using placeholders. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Teir 1, Finding 3: Fiscal Constraint (References Appendix D) 23 CFR 450.218(m) Tier 3 Project Discussions: Projects like the Cascade Point Ferry Terminal and Shishmaref Sanitation Road Erosion Control are now listed under Tier 3 due to ongoing discussions. Toll Credits: The process for approving Ferry Boat Funds as Toll Credits is carried out separately and distinctly. Approved Projects Leveraging Toll Credits: • M/V Tustumena Replacement Vessel • Low No Emission Shuttle Ferry • M/V Matanuska Safety Improvement Project • M/V Tazlina Crew Quarters • Yakutat Ferry Terminal Reconstruction • Pelican Ferry Terminal Reconstruction • M/V Kennicott Emissions and Exhaust • M/V Columbia Controllable Pitch Propeller • Auke Bay Ferry Terminal East Berth Mooring Rehabilitation • M/V Mainliner Replacement Vessel • Kake Ferry Terminal Rehabilitation • Angoon AMHS Ferry Terminal Rehabilitation Excluded Projects Leveraging Toll Credits: • STIP ID 34205 "Ferry Boat Funds as Toll Credits" will be replaced with project specific information once identified. Appendix D - Ineligible Projects The following projects appear to be ineligible for inclusion into the STIP for the reasons shown for each specific project. These projects must be removed from the STIP. [Slide 9 includes Table D-1: Resolution status from January 2024 STIP Submittal] 2:09:54 PM MS. KEITH moved to slide 10 and said there was one program that DOTPF was working on with FHA and would like to get back into the STIP as soon as possible. She said a bridge and tunnel inventory will provide a fund for inventory of bridges and tunnels, inspections and also for rehabilitations and replacements, especially when sudden situations or emergencies arise. She said there were several fund sources for the bridge and tunnel program, including National Highway system funding, surface transportation block grant funding, and bridge improvement performance funding. She said those funds would typically be used to replace bridges and that they would usually break this program out into projects and apply funding appropriate to each project. She said FHA did allow for this item to be excluded from the STIP until details can be worked out. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Tier 1, Finding 3: Fiscal Constraint (Reference Appendix D) 23 CFR 450.218(m) Outstanding Items • Bridge and Tunnel Inventory Work • Bridge Scour Monitoring and Retrofit • State Owned Shipyard Repairs [Slide 10 includes a Table lising Items from Tier 1, Finding 3 of the STIP review. 2:11:06 PM CHAIR KAUFMAN asked whether part of the challenge with this planning cycle was that the federal agencies were trying to designate funds for specific projects and prevent the movement of money between projects. 2:11:30 PM MS. KEITH concurred and said that DOTPF has preferred to use programs because of flexibility. She said the ability to move money around within a program allowed planners to be agile and meet needs without necessitating amendments from year to year. However, she said it is clear to DOTPF that FHA and FTA would prefer the planning be as specific [to projects] as possible. The federal agencies made it clear they were not opposed to programs and they encouraged DOTPF to leverage programs where appropriate. She said examples of programs that remained in the STIP were the Highway Safety Improvement Program and the Bridge Preservation Program. She said it was very important for DOTPF to be clear in the scope, location, and the project types in order to clearly satisfy the regulations. 2:12:28 PM CHAIR KAUFMAN shared his impression that DOTPF is under pressure by the federal agencies to provide a high degree of specific detail for individual projects and phases of projects. 2:12:52 PM MS. KEITH concurred and said that with the change in amendment revision procedures, DOTPF will have to be extra cautious with cost estimates. She said the final version of the STIP submitted to FHA included cost estimates for construction and preconstruction, inflation for year of expenditure, and up to date estimates on file and available for verification. She said DOTPF is aware that they will have to be vigilant and careful to provide up to date estimates for every amendment in order to complete the work they committed to do. 2:13:35 PM CHAIR KAUFMAN asked whether there was a hard limit on the amount of funding available. He wondered whether there would be any flexibility for expenditure. 2:13:51 PM MS. KEITH affirmed that there is a hard limit. She said the limit depends on the dollar amount of a project. She said the cost could go up to 20 percent over total cost of a whole project, but that if the cost exceeds 20 percent, DOTPF must process an amendment. She said there were several thresholds to be met. 2:14:28 PM CHAIR KAUFMAN asked how all of this would affect engagement with stakeholders. He wondered if the decreased ability to flex and move money around among projects would change the interface with stakeholders. 2:14:55 PM MS. KEITH said it had been a strong priority of DOTPF to be transparent about projects and their progress. She commended the Data Modernization and Innovation office for the tools they created, and she highlighted the 2024 GIS platform, named APEX which, she said, detailed where current construction projects were taking place. She said there were several comment portals and improvements to engagement with the public and that there would be more emphasis on continual public commentary over public comment periods. She anticipated using tools like those used by the MPOs to allow more overlap in project information. She looked forward to taking a proactive approach to changes. She mentioned the possibility of moving toward a rolling STIP which would allow for updates every year and plenty of opportunities for the public to offer input on the progress of projects and any changes that have happened. 2:16:15 PM SENATOR TOBIN recalled a recent in-person opportunity to gather and share perspectives and information about a common interest/concern. She said it was well-attended and allowed for real people to offer perspectives, ask questions and really dig in. She encouraged DOTPF not to rely too heavily on on-line participation and comments from the public. She acknowledged the significant shift in the process for developing the STIP. She asked whether other states were also facing similar challenges and changes regarding the development of their STIPs. 2:17:38 PM MS. KEITH said there were upcoming conferences with other states' DOTs to get together and learn from one another. She said she was looking forward to the opportunity to define some best practices and understand the experience of other states. She said DOTPF did review the other states' documentation, practices and methods of public engagement. She asserted that the detail of the work is much greater than before. She said she did not see that volume of work at the other states. 2:18:36 PM SENATOR TOBIN asked how many other states' STIPs were rejected. 2:18:40 PM MS. KEITH said she couldn't answer the question and that DOTPF had not found an example. 2:18:51 PM SENATOR TOBIN restated the response for clarification by saying we know of no other states who had their STIP rejected. 2:18:53 PM MS. KEITH agreed. She moved to slide 11 and explained one of the deep-dive STIP pages. She emphasized the depth of detail available for the public on each of these project pages, the details of planning and expenditure for all phases of the project are included and that this information is available to the public for all STIP projects. She said descriptions of the original plus current conditions are available as well as descriptions of what is expected once a project is complete. She said this information is directly tied to the four-year infrastructure plan and to the transportation asset management system, allowing DOTPF to quantify the benefit of the projects, demonstrate maintenance and operations expenditures and show where the system should be because of the federal investments. She said there could be confusion for the public looking at these pages because DOTPF was instructed to separate projects that were previously grouped together as corridor projects or as projects that had several construction phases and costs over several years. She said the scope and complexity of a project, the volume of information and the phases and stages of progress included in these pages result in a lot of information. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Tier 1, Finding 3: Fiscal Constraint (Refences Appendix D) 23 CFR 450.218(m) Modified Deep-Dives now include: • Advance Construction Conversion (ACC): Conversion details added for obligation • Project Estimates: Adjusted for the year of expenditure • Asset Management Metrics: Included when available Previous Obligations: Documented and reviewed • Project Score: Applied if applicable • STIP ID Connections: Details on parent/child relationships Slide 11 contains multiple tables to express an example of a "Deep-Dive" project plan in detail. The project chosen for this example is: Knik Goose Bay Road Reconstruction: Fairview Loop to Settler's Bay (Parent and Final Construction) 2:21:34 PM COMMISSIONER ANDERSON moved to slide 12. He said DOTPF was instructed to remove all the projects from the Statewide Transportation Improvement Program (STIP) that were already included in the Fairbanks Area Surface Transportation (FAST) Transportation Improvement Program (TIP). DOTPF was to rely on the FAST Municipal/Metropolitan Planning Organization (MPO)s TIP for the identification and the obligation of the listed projects. He reported that this led to discussion and controversy in Fairbanks as many of the projects that were in the STIP were not in the TIP, because in the past, that was not the way they had done things. He explained that because Fairbanks was experiencing an Air Quality conformance freeze, FAST didn't have the opportunity to add projects back into their TIP. He said the result was that a significant number of previously funded projects were no longer included in a funding plan. He mentioned several projects that had to be removed from the STIP and said DOTPF and other stakeholders were working on the projects one at a time to get them back into the MPO's TIP or the STIP. [Original punctuation provided.] 2024-2027 STIP Volume 1: Project Details Tier 1, Finding 5: Air Quality Conformity, Self- certification, Federal Findings and Federal Approvals. 23 CFR 450.220/23 CFR 450(a)(7) • Project Adjustments: Projects within the Particulate Matter (PM) 2.5 Non-Attainment Area have been removed. • Interagency Consultations: Consultations completed for Richardson Highway Milepost 346 Chena Bridges Replacement. • Amendment Process: The Chena Bridges Replacement will be addressed in an upcoming amendment. Appendix C - Projects Requiring Interagency Consultation Due to the Conformity Freeze for the Fairbanks North Star Air Quality Non-attainment area, the following projects must first be reviewed by the Fairbanks North Star Interagency Consultation process prior to inclusion in the TIP or STIP listed in the Table. These must be removed from the STIP. [Table C lists items addressed by Tier 1, Finding 5 of the STIP review.] 2:24:09 PM SENATOR TOBIN said she had heard it was not typical practice to require projects to be included in a TIP prior to including them in the STIP. She asked when that guidance from the federal agencies changed. 2:24:30 PM COMMISSIONER ANDERSON said DOTPF initially understood that a project had to be in an MPOs TIP prior to inclusion in the STIP. The first STIP submittal that was rejected included projects that were also included in TIPs; and it did not include projects that were not also in a TIP. That was when it was understood by DOTPF that none of the projects included in the STIP should also be in a TIP. He acknowledged the misunderstanding created some tough situations. 2:25:39 PM SENATOR MYERS asked about the exclusion of charging stations at the international airports. He said it seemed backwards that concerns about air quality would lead to barriers to conversion to electric vehicles. 2:26:01 PM COMMISSIONER ANDERSON said the Federal Highway Administration is focused on process and that process drives decisions. He opined that the decision wasn't targeted [against the charging stations], but that the emphasis on process led to an indiscriminate decision. 2:26:25 PM SENATOR KIEHL expressed confusion. He said his prior understanding had been that the STIP and whatever the MPO produced must match. But what he heard today is that DOTPF can't include anything in the STIP that is in the MPOs TIP. He said he must have missed something. 2:26:46 PM COMMISSIONER ANDERSON said DOTPF would be moving forward in such a way that the STIP will identify MPO national highway system projects, for example. DOTPF will call these "ledgers," not "projects". The ledger will only include a [dollar] amount to ensure that the STIP is fiscally constrained within the MPO. He said the ledger will be the only information [related to a project] included in the STIP. Detailed information about those projects will have to be obtained through the MPO. When DOTPF moves to obligate a project, they will refer to the MPO's TIP, not the STIP. 2:27:41 PM SENATOR KIEHL asked, then, if the new process could be likened to adopting a municipal document by reference. COMMISSIONER ANDERSON concurred. SENATOR KIEHL continued to ask, for the projects within the Fairbanks area that didn't match [between the MPOs TIP and the STIP], whether the problem was that they didn't match or with how they were listed. 2:28:07 PM COMMISSIONER ANDERSON said the problem was that what was in DOTPF's STIP didn't match what was in the MPOs TIP. He said lags in reporting between DOTPF and the MPO contributed to the problem and that the [air quality] conformity freeze unfortunately locked everything in. 2:28:45 PM SENATOR TOBIN referred to the Safer Seward Highway project which was included in the STIP; and was not part of the TIP. She said there was a good deal of confusion and consternation about it. She understood that the solution was for the STIP to carve out this section. She expressed confusion and asked whether this action resulted from a change in regulation or a change in guidance and when DOTPF learned that the STIP must be constructed this way. 2:29:27 PM COMMISSIONER ANDERSON said the Seward Highway Project was a great example [of the misunderstanding between DOTPF and the federal agencies]. He said that project was in the Anchorage Metropolitan Area Transportation System (AMATS) Transportation Improvement Program (TIP). The first STIP submitted by DOTPF also included the Seward Highway Project. When DOTPF received the planning findings, they discovered that if the project was included in the MPOs TIP, it could not also be in DOTPFs STIP. That first formal STIP submittal to result in planning findings was what first made the misunderstanding clear to DOTPF. 2:30:25 PM SENATOR KIEHL asked whether the decision for DOTPF to develop a rolling STIP would necessitate that the three local MPOs also develop rolling TIPs to avoid mismatches or timing problems. He asked whether the MPOs were prepared to do that and whether DOTPF had worked with the MPOs to make that shift. 2:30:59 PM MS. KEITH said DOTPF was working with the MPOs on a process to simplify some of the back-and-forth work. She said DOTPF was using a cloud-based system for project data that was easy to share with the MPO partners. She emphasized that they were all still learning what it would take for the MPOs to achieve their first [successful] amendment. She said the Anchorage MPO, AMATS, was ready to submit its second amendment on its current TIP document, but that AMATS was not certain whether the amendment would be accepted by the Federal Highway Administration (FHA) because of the current federal plan findings. She said that is a good example of trying to understand where the overlap between the Statewide Transportation Improvement Plan (STIP) and the Municipal Planning Organizations (MPOs) Transportation Improvement Plans (TIPs) lies. She said the MPOs TIPS may also have to be "rolling" but it may be possible for them to be asynchronous with the STIP. She explained that, in theory, the STIP would show the revenue that would go into the MPO area and then the MPO TIPs could be on their own schedule. They could also operate their own public involvement as needed and preferred. She said if there were any changes in revenue, they would immediately follow it up with an amendment, but otherwise, she said they would maintain the projects that were in progress. She said the TIPs are still works in progress as all three metropolitan planning organizations are shifting to adjust to the updated STIP. 2:32:49 PM CHAIR KAUFMAN sought clarification for the references to "changes in revenue". He asked whether that meant appropriation. or cost. 2:33:03 PM MS. KEITH explained that there was a change between December 2023 and March 2024. There was an update in revenue forecasts resulting from the move from 2010 census data to 2020 census data; at the end of December, the Matanuska Valley Metropolitan Planning Organization (MVP) came into existence. She said the population shift resulted in the dollar amount for MVP to program their available appropriation and AMATS was working to make their TIP amendments in order to obligate the funds available to them. 2:34:00 PM CHAIR KAUFMAN sought to summarize. He said the old way [of planning] was that DOTPFs STIP would be the home of all the plans [for transportation projects in Alaska]; the new way will be that the STIP will reference the planning elements and details which will be found in each MPOs TIP. He described the past process as working with the MPOs and other stakeholders to develop an overall plan and that the new process will require greater engagement between DOTPF, the MPOs and other stakeholders to stay abreast of planning and programs. He said it sounds like the way forward has been determined to be hosting shared information online and to establish new engagement processes. 2:35:25 PM MS. KEITH affirmed the general description of the change in planning processes and coordination. She said there would be flowcharts, processes and efforts toward clarity and cooperation to ensure that each organization involved is coordinating with the others. She said it would require a significant amount of communication and tools to be sure stakeholders are not doing a disservice to the public by delaying projects. 2:36:02 PM CHAIR KAUFMAN said the legislature was currently working on the budget. He asked whether DOTPF was adequately funded for this change implementation. He expressed concern over the delay in developing the STIP and asked whether there was a change program in place to manage all the different interfaces and the work that will need to be done to implement a new work process. 2:36:38 PM MS. KEITH said DOTPF was funded already through the Annual Work Program. She said the state and the Metropolitan Planning Organizations (MPOs) received a significant amount of planning dollars [from the Federal Highways Administration]. She said that funding used to be included in the STIP as a project, but that it will no longer be included in the STIP, because technically it did not have to be listed there. She reiterated that DOTPF does have the funding to make the planning changes and will be ensuring that staff have the resources they need to make changes. She said the annual work program funding is for STIP development and for other support functions such as research funding and training funds. She expressed confidence that DOTPF has the funds they need to make the planning changes and that they would endeavor to be smart and modern and to use tools that ensure efficiency. 2:38:04 PM COMMISSIONER ANDERSON moved to slide 13 and explained that the Community Transportation Program and the Transportation Alternatives Program were removed from the STIP after it was originally rejected. When the STIP was resubmitted, those programs were replaced with individual projects which were informed by community participation and a scoring and ranking process. [Original punctuation provided.] Project Allocations to Replace Programs Community Transportation Program (CTP) & Transportation Alternatives Program (TAP) [Slide 13 includes a table showing the Project Allocations used to replace programs and their scores.] 2:39:04 PM CHAIR KAUFMAN asked whether these projects did exist and were detailed but weren't expressed as such. 2:39:13 PM COMMISSIONER ANDERSON said they were projects that had gone through a nomination process, a solicitation and they included details and were awarded, but they hadn't been included in the STIP yet. 2:39:26 PM CHAIR KAUFMAN pointed out that the optics are that there was a bucket [of funding] here and an effort to figure out what to do with that. He asked for confirmation that it was not that, but that there were delineated and detailed projects that were deliverable but had not been expressed as such. 2:39:49 PM COMMISSIONER ANDERSON agreed and said DOTPFs website provided details about the process of the Community Transportation Projects and the Transportation Alternative Projects. 2:39:51 PM MS. KEITH said that one of the updates to the format for the Community Transportation Projects and the Transportation Alternative Projects was the inclusion of the process for scoring the projects on the website. She emphasized the effort to improve transparency and to communicate the decision-making process with the public. 2:40:29 PM COMMISSIONER ANDERSON moved to slide 14 and addressed the tables on the slide. He said these are the "programs" which were being worked on and were removed from the STIP and are now expressed in the STIP as "projects". • In the first table, he said a lot of these are projects DOTPF had been developing, for example the National Electric Vehicle Infrastructure has been under development in collaboration with Alaska Energy Authority (AEA) with an overall strategy of working toward one sustainable transportation system. • The second table represents a new program, Frontier Roads, Trails and Bridges which includes ice roads, the development of new frontier road standards for rural Alaska, with an emphasis on cost-effectiveness. • He described the Protect program projects in the third table falling under a specific funding source in Federal Highways. He noted the announcement today of a $40 million award to five Alaska communities in response to Typhoon Merbok. [Original punctuation provided.] Sustainable Transportation Program; Frontier Roads, Trails and Bridges; PROTECT [Slide 14 consists of Tables listing the Project Allocations replacing former Programs.] 2:42:05 PM MS. KEITH moved to slide 15. She said this slide illustrates the ledger approach and explained it as a way for DOTPF to show the funding that was going toward the MPO planning as required by the TIP. She said the final version which will be available on- line will include a new format for the MPO TIPs. She said instead of one page, there will be approximately ten pages for each project which breaks out by fund source the revenue which will be going into the project, the funding originally expected by the MPO and the expenditures. She said the Federal Highway Authority and the Federal Transit Administration called for this information to be included in the STIP. She reported that the MPOs and DOTPF are looking forward to having the published revenue forecasts as a resource for future planning. [Original punctuation provided.] 2024-2027 STIP Volume 2: TIPs Incorporated by Reference Tier 1, Finding 1: MPO and Other Transportation Improvement Programs (References Appendix A 23 CFR 450.218(b) and (k) [Slide 15 contains tables, definitions and narrative to support DOTPF's ledger method for communicating and tracking funding with MPOs.] 2:43:53 PM CHAIR KAUFMAN stated that the key hope of the committee was to learn what will be different, what was learned; and how DOTPF will move forward with STIP development in the future. He directed that the remainder of the presentation should focus on steps to reduce the level of concern regarding fears of unfunded projects and an impression of malaise and chaos on the part of DOTPF toward the STIP. 2:45:00 PM SENATOR TOBIN asked whether DOTPF intended to resume the E-STIP. She recommended moving to slide 17. 2:45:30 PM MS. KEITH moved to slide 17 and said there are a number of slides that address the lessons learned and what practices DOTPF was adopting as a normal course of action. She answered that DOTPF would be using a digital version of the STIP moving forward. She said integrating the large volume of information from multiple stakeholder sources in a spreadsheet would not be possible. She said DOTPF looks forward to using integrated digital tools for planning and expects to implement a rolling STIP to avoid the issues experienced this year as the deadline approached. She said this will allow DOTPF to adapt to changes from the federal government or the legislature or other entities with amendments along the way. [Original punctuation provided.] Be Modern and Agile Rolling STIP Model. Regularly update STIP, maintain clarity in funding, and ensure public participation for transparency as required by 23 CFR 450.218(p). • Implement a rolling STIP model for continuous engagement and real-time updates, clarity in funding, and ensure public participation for transparency. • Use predictive analytics to foresee and prepare for potential modifications. Enhance with Digital Innovation • Advance the STIP with interactive digital platforms. • Integrate GIS for comprehensive spatial analysis. • Create public portals to capture community voices and ensure their influence on planning. • Utilize advanced reporting for robust performance metrics referencing 23 CFR 450.218(q) & 23 CFR 450.206(c). • Use user-friendly design with full accessibility, promoting inclusive participation and adherence to legal standards. 2:47:27 PM COMMISSIONER ANDERSON noted that many other states had moved to rolling STIPs some time ago and so their STIPs were not subject to rejection. He said he expected the rolling STIP approach to prevent the concern and confusion of stakeholders and residents experienced during the recent STIP submission. 2:48:09 PM CHAIR KAUFMAN noted that DOTPF was still working through a backlog of actions, adapting to changes and moving forward. He asked whether DOTPF has the resources in place to be able to move forward with keeping the department running, drive the improvements, and catch up on the backlog of work. 2:48:57 PM COMMISSIONER ANDERSON acknowledged that DOTPF is adapting to new ways of working, assisted by technology and building teams in new ways. He said, for example, that there would be an MPO team versus the past approach with individual coordinators within each MPO, following different procedures. The intent is to set them up to work together and one of the next steps will be to codify new policies and procedures. He said there are planning contractors available to assist if DOTPF faces situations where they need that support. He agreed that there is a lot of work to do and that the hope is not to interrupt the flow of projects at this time. He mentioned that there are systems being developed and built to efficiently address trouble when it arises. He said the next six months will be a big push. 2:51:17 PM CHAIR KAUFMAN asked for clarification whether the system under development was a technical query system. 2:51:20 PM COMMISSIONER ANDERSON affirmed that it was. 2:51:25 PM SENATOR WILSON referred to the effort by DOTPF to adopt enhanced digital innovation during STIP development. He said DOTPF reported to the Senate Finance Committee that making the switch away from spreadsheets and toward the new platform had met with resistance. He asked what measures were being taken to avoid repeating the cycle of resistance. 2:52:07 PM MS. KEITH explained that the original platform, the E-STIP, had bugs; DOTPF couldn't make changes themselves and had to pay an outside/external contractor to make the fix. This led to a cycle of identifying problems, contracting to have them fixed, paying for the fix and then accumulating a new list of things to fix. DOTPF then switched to a format that allowed the department to fix and adjust themselves. She said this has been a revolutionary change, though still not perfect as the data entered into the system is only as good as the data available at a given time. She said, now that the STIP approval has occurred, the department is undergoing an evaluation of information entering and potential problems, especially with collaborative efforts. She said the system they are using now is interchangeable and that staff who prefer to work with spreadsheets can still do so. She said it is important that staff with all technological abilities and comfort levels can work within their needs and that data can be imported and exported using the documents with which staff are comfortable. She said the data modernization and innovation office was working toward that synergy. 2:54:14 PM CHAIR KAUFMAN asked whether all these changes are being tracked and documented. He asked whether there is a roadmap or a strategic plan for getting from the current operating state to the desired operating state. 2:54:35 PM MS. KEITH replied that DOTPF is capturing and documenting the lessons learned as shared in the presentation. She emphasized that the department and the MPOs are working toward their next amendment which must be prepared within five months. She said that target is their focus. She said that it would be very valuable to document the changes the department has been through. 2:55:35 PM CHAIR KAUFMAN clarified that he wasn't referring to the work product, but to the planning process, the roadmap, the improvement project. He sought to make a distinction between the projects described in the STIP and the project of improving DOTPF's internal processes. He emphasized that if there is a desired destination, it would be good to document the starting point and the steps of an execution plan to arrive at the desired destination. He reiterated that it is not the work product resulting from this process that he was describing, but the roadmap for the improved process itself. 2:56:13 PM COMMISSIONER ANDERSON said that the Tier 2 findings and the requirements for documenting procedures and policies, in particular with the collaboration between DOTPF and the MPOs, which, he said, is some of the most confusing aspects [of the STIP process]. He said the intent is to build the processes out collaboratively with the MPOs, acknowledging that the MPOs may have some different ideas. He anticipated a robust plan from those efforts. 2:56:58 PM MS. KEITH moved to slide 18 and said it is important to document the process. She said it is also important to have the operating agreements, the bylaws, and the agreements with the MPOs in place, available, current and in compliance with federal regulations, state regulations and statutes. [Original punctuation provided.] Governance and Compliance • Upholding Federal Compliance through Reviews. Conduct planning certification reviews, adhering to federal standards per 23 CFR 450.336(b). • Regular Updates to Governance Documents. Institutionalize routine updates to documents (bylaws and operating agreements), ensuring they remain in compliance with statutes, policy frameworks, and best practices in transportation. • Authoritative Documentation. Maintain guidance or policies/procedures as definitive records that detail process and agreements. • Fiscal Planning for Transportation Projects: Adhere to 'Year of Expenditure' accounting, integrating inflationary projections and understand expectations for fiscal constraint-CFR 450.218(l). 2:57:42 PM MS. KEITH moved to slide 19. She said the core of DOTPFs approach is multidisciplinary teams, internally and externally. She noted that more external stakeholders will be included in the core team for developing the STIP moving forward. She noted DOTPF's recognition of the importance of the Regional Planning Organizations (RPOs) and that they intend to support the regions in the effort to form the RPOs so they can significantly engage in the development of projects. She emphasized the importance of improving the accessibility of information and the opportunity to meaningfully communicate and collaborate with constituents and stakeholders. [Original punctuation provided.] Teaming and Collaboration • Form Multidisciplinary Teams. Assemble a coalition of internal and external specialists in engineering, planning, communication, data science, law, area knowledge, and financial strategy. • Stakeholder Integration. Foster a collaborative process with diverse stakeholders. • Metropolitan Coordination. Execute coordinated planning efforts among MPOs and Regional Planning Organizations (RPOs), and pertinent agencies in accordance with 23CFR.450.208. • Alignment of Transportation Improvement Programs. Synchronize MPO Transportation Improvement Programs (TIPs) with the STIP, ensuring regional uniformity as specified in 23 CFR.450.218(b) and (k). • Tailored Outreach Strategies. Develop targeted communication strategies for Title 6/Environmental Justice populations and minority serving organizations to ensure broad community involvement. 2:59:36 PM SENATOR TOBIN expressed interest in learning more about DOTPFs outreach strategies. She asked how DOTPF intends to quantify robust public process and ensure maintenance of the metrics of engagement as they move toward the rolling STIP. She asked how many staff are tasked with tribal outreach. She wondered if they were traveling to and engaging with the communities to facilitate full public process. 3:00:36 PM COMMISSIONER ANDERSON said that DOTPF has designated a tribal liaison and beyond that, recognizing that Alaska is a huge state and that there are hundreds of tribes, he said there is a need for tribal liaison in each division. He expressed appreciation for the metrics on community engagement. He acknowledged the challenge of providing a variety of ways to communicate and that it would be an ongoing effort. 3:01:21 PM SENATOR MYERS commented on the volume and magnitude of changes for DOTPF in the development of the STIP. He expressed appreciation to the department. 3:01:57 PM SENATOR WILSON noted that there were projects listed as having been removed from the STIP when they were actually renamed and reclassified. He asked for a list that accurately described the status of the projects, especially those that were removed completely. 3:02:46 PM COMMISSIONER ANDERSON said his office would provide that information to the committee. 3:02:58 PM CHAIR KAUFMAN offered feedback from constituents who expressed both concern over the perception that projects may not be funded and appreciation for an improved level of interface with DOTPF. 3:04:35 PM There being no further business to come before the committee, Chair Kaufman adjourned the Senate Transportation Standing Committee meeting at 3:04 p.m.
Document Name | Date/Time | Subjects |
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STIP Approval Update by DOTPF 4.10.24.pdf |
STRA 4/11/2024 1:30:00 PM |
STIP |