I n t e r t r i b a l T r a n s p o r ta t i o n A s s o c i a t i o n Volume 5, Issue 3 REMINDER: ITA Annual Meeting & Conference Dec. 11-14, 2007 Golden Nugget, Las Vegas, Nevada Inside this issue: Message from ITA President IRR Inventory & Transportation Planning: Consultants - Friend or Foe? Message from ITA Vice- President IRRPCC Road Maintenance Task Force Update Profits in PL 93-638 Contracting? 1-2 2-3 3 4 5-6 Calendar of Events 7 ITA Membership Form 7 Message from the ITA President C. John Healy Sr., Fort Belknap Indian Community Hello all my relations! I hope at the reading of this article it finds you in good health & good humor. For we know that it s good to find humor even when the times get hard. This seems to have helped us survive for many years. The ITA Mid-year meeting was held on June 6-8, 2007 at the Park Plaza Hotel, ABQ, NM. The event was very successful. We partnered with the Federal Transit Administration (FTA) to present the FTA National Tribal Transit Program Technical Assistance Workshop, and the timing couldn t have been better. I would like to thank Lorna Wilson, FTA, for agreeing to this partnership and assisting in making it a reality. Lorna and an elite team of Tribal Liaisons attended to host the workshop. The goal of the workshop was to provide information and technical assistance on FTA s grant process to those tribes awarded FY-06 Tribal Transit Program funding and to provide technical assistance to those tribes interested in applying for the FY 2007 Tribal Transit Program funds. We also hope to do have FTA at our annual meeting this coming December. I would like to thank the following tribal liaisons: Jennifer Stewart, FTA Community Planner, Region VIII, Lakewood CO and Cathy Monroe, Transportation Program Specialist, FTA Region 7 Office, Kansas City. These ladies did a fantastic job in assisting potential FTA recipients. If I missed any other tribal liaisons who attended I apologize. Another major success was the reactivation of the ITA Transit Sub-committee on June 6, 2007. The original Chairman of the sub-committee Chuck Tsoodle, Transportation Director, Kiowa Tribe of Oklahoma, will once again lead this subcommittee. Chuck gave a good presentation on how the subcommittee was formed. He also gave some good background information on transit and how the tribes in Oklahoma have addressed transit issues. Chuck has been involved in the transit field for some time now and was in fact appointed as chair of this subcommittee by the first ITA President Mr. Wendall George. If you are interested please contact Chuck Tsoodle at 580-654-2052 or email him at chucktsoodle@yahoo.com The ITA Executive Committee will continue to keep the membership informed through this newsletter, workshops, conferences and subcommittee meetings. Thank You. FALL 2007 ITA Membership TRIBES & COMMUNITIES Absentee Shawnee Apache of Oklahoma Blackfeet Nation Cherokee Nation Chippewa Cree Tribes Citizen Band of Potawatomi Cowlitz Indian Tribe Colville Confederated Tribes Comanche Tribe of Oklahoma Confederated Salish & Kootenai Tribes Confederated Tribes of Umatilla Fort Belknap Indian Community Fort Peck Tribes Gila River Indian Community Jamestown S Klallam Tribe Kalispel Tribe Kawerak Inc. Kaw Nation Kootenai Ketchikan Indian Community Lummi Nation Makah Nation Muckleshoot Tribe Native Village of Eyak Navajo Nation Nez Perce Tribe Northern Cheyenne Northwestern Band of Shoshone Nation Oglala Sioux Tribe Onieda Tribe of Wisconsin Prairie Band of Potawatomi Quinault Indian Nation Salt River Indian Community San lldefonso Pueblo Shoshone & Arapahoe Tribes, Wind River Shoshone Bannock Tribes, Ft. Hall Southern Ute Standing Rock Sioux Tribe Susanville Tanana Chiefs Conference Warm Springs Confederated Tribes INDIVIDUAL Mike Clements Joseph Kamkoff Richard Rolland Jeff Swan ASSOCIATE Dept. of Interior (Heidi Muller) Eastern Washington University TransCivil (Jimmy Young)
PAGE 2 IRR Inventory & Transportation Planning: Consultants Friend or Foe? By Christopher L Robideau, Director of PTE, LLC. It is often difficult to present yourself as a consultant in the IRR market. I am sure that all of you have your favorite consultant joke that you hold on to from conference to conference that is easily accessible in your brain and ready to be taken out in a split second. Over the past eight years, I have heard some really funny ones. So behind all of the sarcastic jokes, I pose the question: Are consultants considered friend or foe? The IRR program has taken a completely new direction since the establishment of the tribal share concept. Consultants are now in a place of marketing each Tribe across the country in the pursuit of P.L. 93-638 contracts. In the past, the consultant world was a combination of marketing efforts heavily centered on the BIA Central and Regional Offices, and the invaluable acquisition of IQC contracts. The IQC s contracts allowed the BIA to contract work directly to consultants. The good consultants of old that had solid relationships with the BIA now find themselves shifting their marketing efforts, which is a positive change in the IRR market. Let s face it, in some regions there s built up resentment and a general distrust between the Tribes and the BIA. Many of the stories I hear are from long before I shifted my career. No doubt they are deeply rooted all the way back to the decisions made by our ancestors. It is my belief that the BIA staff I ve worked with have a general desire to positively assist tribal development. In particular, the IRR Inventory Process and Long Range Transportation Planning, the Oracle database known as RIFDS, in combination with the IRR submittal annual cycle, has provided established policy not easily altered. This program has established more consistent inventories and LRTP s. Many tribes saw this new funding formula as an opportunity to increase the funding sources and build internal capacities for their transportation programs. Some hired consultants, some relied on the BIA, some had the internal program capacity, and some have ignored the program altogether. Except for the last option, all of the other actions are positive effects that the new system has generated. Each year we submit new inventory miles, traffic counts, and responsible LRTP s. The IRR program and tribal transportation needs of our communities are becoming better documented and more legitimate to the budgetary forces. Of course, this is very important with the national budget situation and ongoing war on terror. Back to the original question: are consultants considered friend or foe? Well, you have to look at the changing market and utilize consultants to benefit your programs positively. For example, tribes in Montana and Wyoming have made positive impacts over past two years and completed comprehensive inventory updates and responsible LRTP s. This was a concentrated effort by the BIA, the tribal administrations, and a team of consultants. I worked with six of the eight tribes in the Rocky Mountain Region, and saw the accomplishments made by each individual program. Each of their efforts yielded an increased budget. One unique aspect of our contract was to provide tribal training. We provided procedural manuals identifying our recommended approach to performing IRR inventory and GPS (Continued on page 3)
PAGE 3 Message from the ITA Vice-President Willie Tracey, Jr., Navajo Nation Fall Season brings wonderful and beautiful colors. As our beautiful children return to school, I extend heartfelt greetings to all tribes across Indian Country. Thank you for your efforts in coordinating transportation system improvements to promote and provide safe, reliable routes to educational facilities. SAFETEA-LU has appropriated transportation system improvement proceeds for safe mobility, and to reduce accident rates and address a variety of issues and concerns. As Indian tribes we must contend with the No Child Left Behind Act calling for student progress using applicable state measuring standards, including participation and attendance. It is our responsibility, as transportation system advocates to ensure safe routes to schools. We are citizens of an ever-changing world demanding complex workforce skills. As Indian Tribes, we may unintentionally leave our children behind, meaning our transportation system improvement laws have become so complicated that immediate improvements are dejavue desires. In reality, it takes years to construct roads and bridges. Indian Country must unite and make viable recommendations to loosen the ropes of the law to build a business friendly tool. The Indian Reservation Roads program blueprint is designed for Indian Country. We are in the driver s seat to impact how business is coordinated. So let s join hands to develop a safe mobility system for our children, tribal members, elders and the touring public. In closing, I look forward to seeing you at the annual ITA meeting and conference in December 2007. Meanwhile, journey safely while enjoying your personal and professional lives. Consultants Friend or Foe? (Continued from page 2) data collection. Also while performing the data collection under contract; our technicians were joined by tribal members, providing them inthe-field experience. It also developed some great friendships. Ultimately, the answer boils down to one thing. For consultants, the work related to the IRR inventory and long range transportation planning is not very lucrative, despite popular belief. It is hard work and is a challenge to work with unique clients for each project. Whether you are talking about BIA employees, consultants, or tribal administrations, I think there are both good and bad instances. Good consultants are in this business for the same reason as the good BIA employees and the good tribal employees. We all want to make a positive difference in our professions. We want to be able to look back at our accomplishments successful and positive projects, and feel a sense of satisfaction. We want to make a difference. We are all service providers that need to primarily focus on improving the transportation needs of our communities. If a project that I have worked on helps pave one road, improve one hazardous condition on a roadway which people travel every day, or provides a solid planning future for generations to come, then by all means I will work through whatever systems are in place to make that happen. At the end of the day, I will know I have made a positive impact.
PAGE 4 IRRPCC Road Maintenance Task Force Update By Tim Ramirez, Prairie Band Potawatomi Nation (ITA Southern Plains Regional Representative) Thank you Mr. Artman my name is Tim Ramirez the Southern Plains Alt Rep, Co-chair of the Road Maintenance Task Force, and the Prairie Band Potawatomi Road & Bridge Director for 24 years. Not every Tribe uses Road Maintenance BIA funding. Those who do are representing 281 out of 564 Tribes. If a personal home or automobile is not maintained it will eventually fail. The same holds true for a road, it needs maintenance, as well as the equipment we use to repair and maintain our routes. The home folks and public depend on this service road maintenance provide, if it s good you hear it, if it is bad you really hear it, just like today. I want you to remember something this committee representing our areas and tribes nationwide have many issues, today, but road maintenance is the first. For a long time it is always prioritized down the list. It competes against housing, welfare, education, police & fire services, and health services. It is a much needed service all Indian reservations need better attention given to for, from the BIA, here in this Interior Building, by funding this BIA road maintenance to a level of 120 million per year. Many Tribes need the heavy equipment upgraded and replaced, not just repaired. I see the problem 4 seasons a year. Mother Nature does not work a 40 hour week. Kansas has snow & ice the SW has arroyo s, wide washes low water crossings. Many storms, SW rain, or Northern snow, deplete a programs budget. In speaking with the BIA interior personnel on getting more dollars into Road Maintenance (TPA Program) we are told the only way to do this is to get more funds is for the whole BIA to get more funding from Congress. This seems highly unlikely, so a solution is to fund this under funded, vital program with Highway Trust Fund Dollars from the DOT, Department of Transportation with a stand alone line item like the IRR Bridge Program, the level of funding, 25.6 million to 27.4 million since 1999 to 2006 has not kept the pace with inflation of materials and fuel cost. A big problem is 75% or more of a Tribe s share is used for wages. Thank you for this time to hear the Tribal concerns. The formation of the Road Maintenance Task Force and findings are in the handout provided. This was my speech to Assistant Secretary of BIA Carl Artman, Department of Interior on June, 20 2007 at the Department Of Interior in Washington D.C. This was a chance for the issue of the Road Maintenance to be heard by the policy decision makers in the capitol city. The IRR program issues were The BIA Road Maintenance Program funding level threatens public safety and shortens the useful life of IRR Program routes. The BIA S June 2006 mini-mum attachments policy for up-dates their IRR Program Inventory requires clarification to ensure uniform implementation among BIA Regions. Unresolved IRR Program Inventory issues. BIA delays in approving a model title ISDA contract negatively impacts the IRR Program and the disbursement of fund to Indian Tribes for projects, such as construction. The status of tribal access to RIFDS remains unclear. Flexible financing status of the Department s rewrite of the Part 170 IRR Program Rule. Traffic Safety These issues were presented in the morning, had a quick lunch, and was off to the DOT building, federal highway. The DOT meeting started out with Road Maintenance. Other topics were national tribal transportation facility inventory, IRR Bridge Program, Transit FTA, Traffic Safety, and fill the deputy assistant secretary for governmental affairs. Each Member of the IRR program coordinating committee spoke on a different subject, and everything went well. I hear that in the Senate Hearings on Indian Affairs Road Maintenance was also requested to be funded at 150 million. Currently, FY 2008 is proposed at 26 million, there is a serious short fall going on here that effects Indian reservation roads nationwide.
PAGE 5 Can Tribes make a reasonable amount of profit during construction activities using PL 93-638 contracts? By Jeff Whalen, Oglala Sioux Tribe (ITA Great Plains Regional Representative) Can Tribes make a reasonable amount of profit during construction activities using PL 93-638 contracts? The answer is yes, they can. I received the chart below from the Bureau of Indian Affairs (BIA) Regional office in Aberdeen, South Dakota. It was like pulling teeth attempting to get this document but after much discussion, we finally got it. This may or may not be used nationwide, but at any rate, it is being accepted at Great Plains. If you are not getting a fair and reasonable amount of profit during the negotiation period of 638 contracts, you can use this document to provide information as to how you came up with your profit percentages. Normally, the BIA would like you to stay within 10% profit of your total contract dollar amount, but if you push the limit you may get upward of 15%. In Great Plains, the BIA did not recommend getting profits from contracts because it reduced the amount of money available for the projects. To me, this is a very negative attitude as they allow private contractors to negotiate profits but were historically disallowing Tribes to negotiate the same. All of the Transportation Directors prior to me were not allowed a reasonable amount of profits. Once I assumed this position, I wondered why the construction program was a failure. The staff was not getting paid on time. The pay estimates were not approved in a timely manner. There was little to no operating capital. Contracts were not being negotiated fairly and according to 25 CFR Part 900, subpart J. Federal rules under this citation were routinely being broken by the Bureau. Once I identified all the negative issues, I worked to change the system. Since Great Plains had the attitude of not allowing Tribes to make much profit, I asked, If we cannot make CHART: FAIR AND REASONABLE PROFIT DETERMINATION Project Name - Pine Ridge Indian Reservation - Oglala Sioux Tribe Factor Rate Weight Value (%) Range (Max.0.12) Degree of Risk 20 0.03-0.12 Consideration Lump Sum Fixed Price = High Unit Price = High Minus Cost Reimbursement = Low Relative Difficulty 15 0.03-0.12 Interrelated to an extent with risk Size of Job ( $ ) 15 0.03-0.12 Period of Performance 15 0.03-0.12 < $100,000 = 0.12 = $100,000 to $5,000,000 = 0.12 to 0.05 =$5,000,000 to $10,000,000 = 0.04 > $10,000,000 = 0.03 > 24 Months = 0.12 < 30 Days = 0.03 Contractor's Investment 5 0.03-0.12 Interrelated to an extent with Period and Amount and Duration of Investment Assistance by BIA 5 0.12-0.03 Average = 0.12 More than Average = 0.03 Subcontracting 23 0.12-0.03 80% = 0.03 0% = 0.12 Reasonable Profit ( % ) Definitions < = Less Than > = Greater Than = Equal To profits, how are we supposed to increase the Tribes capability in employing our own members in these contracts? The number one problem I had was the BIA s inability to negotiate in good faith with Tribes while developing construction contracts, which was the primary reason our Tribe had a failing construction program. We simply were not allowed to make reasonable profits. I did not want to continue negotiating with outside contractors to have them come into the reservation to build our road system and take all the money back out off the reservation with them once the job was completed. This had historically negatively affected the reservation economy. Since then, we started to negotiate the contracts with the BIA with a heavy hand, and finally got our way. Our construction program is up and running, payroll is being met, bills are being paid on time, there is money left over for equipment purchases, expansion and we are finally able to employ more and more of our Tribal folks. We are becoming less and less dependent on outside contractors. Things are looking good. With that said, the bottom line is Tribes can make a profit in contracting. What should they do with the money? They should create a budget to allow for further expansion in terms of purchasing equipment needed to perform construction contracts hiring additional folks, contracting with professional engineers, and executing your first right of refusal rights and demand contracts with the planning and design phases of construction contract development and so on. If you decide to work on the equip- (Continued on page 6)
PAGE 6 Profit in PL 93-638 Contracting? (Continued from page 5) ment side, you can enter into a lease purchase agreement and carry over the payments into other contracts that you have negotiated until the equipment is paid for. You can also simply save your money by putting one-third of the money in an interest bearing savings account and keep adding to it until you have enough to purchase some sort of business that will provide a positive cash flow and give you a good return on investment (ROI). You can use onethird to re-invest into your program and one-third to invest back into your community, provided your procurement regulations authorize those type of expenditures. Using your money to purchase existing businesses or for buying other investments is a whole new world most Tribes have not even looked into. The expansion possibilities are endless and the results will ultimately put you on the map financially. If you completed the necessary research and were interested in purchasing a positive cash flowing business or even creating a new positive cash flowing business, you would need a business plan. Once that was done you would look for funding. If you have 20% down you can finance the rest. Where do you get the 20% from? You get it from the profits on your 638 contracts. Say for example, your new business costs $300,000, you would need $60,000 for down payment money on the remaining $240,000 loan. Once your business is up and running and you are receiving a positive cash flow every month (after all expenses are paid including debt service), of say $15,000, you would save $5,000 per month for future business development. This money will turn into $60,000.00 at the end of one year. Then you can look at purchasing another business. Once that is done, now you can save $5,000 from the first business and an additional $5,000 for the second business totaling $10,000 per month in savings. Your next business purchase can potentially occur in the next 6 months. And so on and so on. You will, in essence, be creating more employment with each business purchase (or development). This reduces your dependence on the State by taking folks off the welfare rolls, provides employment, creates equity within the Tribe, increases your tax base, your new buildings and business increase in value through appreciation and you can even depreciate your building value and plumbing at the same time for a reduction in overall taxes. If you want to know more about how to secure finances and create businesses for Tribal development contact me at ostroads@gwtc.net.
PAGE 7 2007 CALENDAR Dates Location Event August 15-18 September 5-7 September 16-19 September 17-20 Bloomington, NM TBD Cherokee, NC TBA November 6-9 Golden, CO November 11-16 December 11-14 Denver, CO Las Vegas, NV BIA Roads Maintenance Conference hosted by MTU & Northern Plains TTAPs. Officials from Federal Lands Highway & BIADOT will be in attendance and giving presentations. Members of the ITA & IRRPCC Roads Maintenance Subcommittee will also be in attendance. 11th Annual Northern Plains TTAP Conference. American Indian/Alaska Native Tourism Conference http://www.aianta.org/ ATNI 54th Annual Conference http://www.atnitribes.org/calend ar.htm National Tribal Transportation Conference http://ttap.colostate.edu 64th Annual Convention of the National Congress of American Indians. http://www.ncai.org ITA Annual Meeting & Conference, Golden Nugget, Las Vegas, NV JOIN ITA TODAY Membership Application Membership Type (Select): Fee Tribal Membership (Voting Entity) Tribal Government 200.00 Tribal Community 200.00 Associate Memberships (Non-Voting) Organizations 300.00 Private Sector 300.00 Tribal Program/Department 300.00 Federal Agency/Program/Dept 300.00 State Agency/District/City/County 500.00 Individual Membership (Non-voting) ITA Individual 100.00 ITA Elder (55 years +) 50.00 ITA Student/Youth (under 20 years) 25.00 Contributor Membership (Tax-Deductible) TOTAL Name: Contact: Address: Phone: Fax: ITA MISSION To help Tribal Elected Leadership address tribal transportation concerns, issues, needs, programs, and policies to assist tribes and tribal communities in the evolution of their transportation systems and programs. Email: Mail payments and/or contributions by check to ITA and send to: C. John Healy, Sr. c/o ITA Fort Belknap Indian Community 102 Tribal Way R.R. #1 Box 66, Harlem, MT 59526 Phone: 406-353-8469 Fax: 406-353-8434 Email: cjohnhealysr@fortbelknapnations-nsn.gov
C. John Healy, Sr. c/o Intertribal Transportation Association Fort Belknap Indian Community 102 Tribal Way R.R. #1 Box 66 Harlem, MT 59526 Phone: 406-353-8469 Fax: 406-353-8434 Email: cjohnhealysr@fortbelknapnations-nsn.gov Intertribal Transportation Association Officers and Executive Committee Members OFFICERS: John Healy Sr., President (Fort Belknap Indian Community) Willie Tracey Jr., Vice-President (Navajo Nation) Evelyn J. Roundstone, Secretary-Treasurer (Northern Cheyenne Tribe) GREAT PLAINS REGION: Jeff Whalen, Oglala Sioux Tribe (Rep) Sherman Wright, Rosebud Sioux Tribe Ed Hall Sr., Three Affiliated Tribes SOUTHWEST REGION: Edwin Tafoya, Pueblo of Laguna (Rep) SOUTHERN PLAINS REGION: Tim Ramirez, Prairie Band Potawotomi Nation (Rep) Chuck Tsoodle, Kiowa Tribe of Oklahoma (Rep) George Wallace, Comanche Nation ROCKY MOUNTAIN REGION: Don White, Blackfeet Nation (Rep) John Smith, Shoshone & Arapaho Tribes EASTERN REGION: Jody Clark, Seneca Nation (Rep) Nelson Mars, Manshantucket Pequot Nation ALASKA REGION: Al Ketzler, Sr., Tanana Chiefs Conference, Inc. (Rep) Dave Matsuno, Ugashik Traditional Village Council MIDWEST REGION: Jim Garrigan, Red Lake Band of Chippewa (Rep) Robert Blanchard, Bad River Tribe of Wisconsin Chuck Houle, Bad River Tribe of Wisconsin EASTERN OKLAHOMA REGION: Mike Lynn, Cherokee Nation (Rep) NAVAJO REGION: Willie Tracey Jr., Navajo Nation (Rep) Lawrence Morgan, Navajo Nation WESTERN REGION: Margaret Baha-Walker, White Mountain Apache Tribe (Rep) Dennis Smith, Shoshone Paiute NORTHWEST REGION: Della Cree, Nez Perce Tribe (Rep) Bill Brower, Shoshone-Bannock Tribes Mike Marchand, Colville Tribes Kirk Vinish, Lummi Tribe PACIFIC REGION: Vacant (Rep) Randolph Feliz, Hopland Band of Pomo Indians SUPPORT: Terrollene Charley, Newsletter Editor (SRPMIC)