Staff recommends the City Council approve the consultant agreement with Kittelson & Associates to assist in completion of the MDT/FHWA Audit Findings regarding the 2023 Billings Long Range Transportation Plan. This approval will authorize the mayor to sign and allow the issuance of the notice to proceed.

The Federal Highway Administration (FHWA) and the Montana Department of Transportation (MDT) conducted a routine review in 2024 of the Billings Metropolitan Planning Organization (MPO). The review was very positive overall as to the operations and compliance of the MPO. The report following the review stated: "The result of the review is a finding that the Billings metropolitan planning process substantially complies with the regulations under Subpart C – Metropolitan Transportation Planning and Programming – 23 CFR § 450 and related FHWA/FTA guidance."

However, there were several findings of the review that the MPO must address. Two findings focused on technical elements of the Billings Long Range Transportation Plan adopted in 2023. The findings specifically called for redesigning the project list in the 2023 Long Range Transportation Plan (LRTP) and updating the MPO's urban planning boundary to align with 2020 Census data. The FHWA did not express concerns over the project list information when it reviewed the plan for adoption in 2023. It was not until the review in 2024 that the agency brought up the issue and so the MPO is following the review findings to make sure MPO and LRTP are in conformance. Completion of these findings ensures compliance with federal and state guidelines while improving project transparency and usability. Amendment of the Urban Planning Boundary also may increase the MPO's access to transportation funding based on the additional area that may be included.

Staff also is addressing these review elements in preparation for the next update to the Long Range Transportation Plan (LRTP), which is required every five years and is set for completion by 2028. Completing these technical updates now will better equip MPO staff with the necessary information to carry out the LRTP update mostly in-house with limited outside technical assistance.

The scope of work for this specific set of technical findings - redesigning the project list in the 2023 Long Range Transportation Plan (LRTP) and updating the MPO's urban planning boundary - includes:

1. Project List Audit
   • Review all project entries for accurate descriptions, timelines, costs, and funding sources.
   • Identify discrepancies between listed projects and current funding allocations.
   • Work with MPO, City and County staff, and MDT to verify project data.
   • Provide a summary report with findings and recommendations for corrections.
2. Redesign of Project List
   • Develop a redesigned project list with clearer descriptions and funding alignment.
   • Propose a standardized format for readability and ease of use.
   • Ensure compliance with FHWA and MDT guidelines.
   • Incorporate feedback from MPO staff and stakeholders.
3. Urban Planning Boundary Update
   • Analyze 2020 Census data and demographic shifts affecting the boundary.
   • Create updated GIS maps and support documentation.
   • Integrate the new boundary into the 2023 LRTP.
4. LRTP Modification
   • Update the LRTP to reflect the redesigned project list and urban planning boundary.
   • Ensure the modification aligns with FHWA and MDT requirements.
   • Conduct public outreach and document community feedback.

Deliverables

• Audit Report – Detailed findings and recommended corrections.
• Redesigned Project List – Improved project list in draft and final versions.
• Urban Planning Boundary Map – GIS supported boundary update.
• Updated LRTP Document – Final modifications incorporating all changes.
• Weekly Progress Updates – Regular email reports to the MPO.

Consultant Selection
The consultant selection process followed the City of Billings procurement guidelines, including:

1. Issuing a Request for Proposals (RFP) detailing the project scope and evaluation criteria.
2. Evaluating proposals based on qualifications, relevant experience, and cost effectiveness.
3. Conducting interviews, if necessary, with short-listed candidates (N/A in this situation).
4. Selecting the consultant who best meets the project’s needs.

The MPO received a single proposal for the project from Kittelson & Associates, a firm well-acquainted with Billings MPO, having completed the previous LRTP in 2023. The selection committee evaluated the proposal based on four key criteria: Consultant Experience, Project Methodology, Key Staff, and Cost. Given Kittelson & Associates' extensive experience with transportation projects in Billings over the past two decades and their specialized expertise in transportation planning, the committee expressed confidence in their ability to execute the project effectively.

The project budget was set at $50,000, with Kittelson & Associates proposing a total cost of $45,900. Per the City's Consulting Agreement, the payment for this project will not exceed $45,900, with monthly payments made based on invoices submitted by the consultant. These payments will correspond to the costs associated with Project Tasks as outlined in Exhibit A: Scope of Work and Exhibit B: Project Cost.
 

Stakeholder engagement will be a component of this project’s development. Kittelson will maintain extensive communication with the MPO, City, County, MDT, and FHWA to ensure compliance with the LRTP revisions and the MPO boundary amendment. Additionally, the project includes a public meeting to present the redesigned project list and the updated MPO boundary.

 

City Council may: 

• Approve, the consulting contract with Kittelson & Associates to address the MDT/FHWA Audit Findings of the Billings MPO 2023 LRTP and Boundary Update. Approval will ensure compliance with FHWA MPO requirements; or,
• Not Approve the consulting contract with Kittelson & Associates. Without approval, the MPO risks potential repercussions for non-compliance with FHWA MPO regulations.

The LRTP project updates and Boundary Amendment is included in the PCC adopted FY25 Unified Planning Work Program (UPWP) under the Metropolitan Planning Organization (MPO). With a budget of $50,000, the project was successfully awarded and is fully funded through the MPO’s Transportation PL funds.
 

In summary, the Billings MPO is undertaking an update to the 2023 LRTP, including a redesign of the project list and an urban planning boundary amendment based on 2020 Census data. This effort ensures compliance with FHWA and MDT regulations while enhancing the accuracy, transparency, and usability of the document. Following a competitive procurement process, Kittelson & Associates was selected for the project based on its extensive experience and proven expertise in Billings. With a proposed budget of $45,900, the project will be fully funded through MPO Transportation PL funds, with structured payments based on completed tasks.