Texas Department of Transportation Commission Meeting

Commission Room
Dewitt Greer Building
125 East 11th Street
Austin, Texas 78701-2483

9:00 a.m. Thursday, March 28, 2002

COMMISSION MEMBERS:

JOHN W. JOHNSON, Chairman
ROBERT L. NICHOLS
RIC WILLIAMSON

STAFF:

MICHAEL W. BEHRENS, Executive Director
RICHARD MONROE, General Counsel
HELEN HAVELKA, Executive Assistant to the Deputy Executive Director

PROCEEDINGS

MR. JOHNSON: Good morning. It is 9:15 a.m. and this meeting of the Texas Transportation Commission is called to order. Welcome to our March meeting; it is a pleasure to have you here today.

Please note for the record that public notice of this meeting, containing all items of the agenda, was filed with the Office of the Secretary of State at 2:03 p.m. on March 20.

We have a very full and I know interesting agenda today, but before we get started, I would like to see if my colleagues, Mr. Nichols and Mr. Williamson, have anything they'd like to say.

MR. NICHOLS: Sure. There are a lot of people here so we'll try not to take up too much of your time. I'd like to welcome everybody here. We very much appreciate the opportunity to listen to the presentations that have been put together for today. We recognize that most people don't realize that communities don't just happen, they are built by people who will take the time to help come and plan and work together to make things happen. Those of you who are here today are obviously those kind of people, and your comments are very much appreciated and look forward to it. So thanks for being here.

MR. JOHNSON: Ric?

MR. WILLIAMSON: I'm glad everybody is here.

MR. JOHNSON: Commissioner Nichols is probably too shy to mention this, but I know that there's a visiting group from Jacksonville which has come here on a leadership seminar, and we'd like for them to stand and be recognized. People from Jacksonville, Texas. I know you're very surprised that Robert Nichols actually does this.

(General laughter.)

MR. JOHNSON: Welcome. We're glad that you're here.

CAPITAL AREA METROPOLITAN PLANNING ORGANIZATION

CAPITAL AREA TRANSPORTATION COALITION

(Neal Kocurek, Sen. Jeff Wentworth, Sen. Gonzalo Barrientos, Rep. Ann Kitchen, Rep. Terry Keel)

MR. JOHNSON: Our first delegation this morning comes from Austin and Travis County, and I would like for Neal Kocurek to lead the presentation for the Capital Area Metropolitan Planning Organization and the Capital Area Transportation Coalition. Neal, welcome.

MR. KOCUREK: Thank you, Mr. Chairman. Good morning, Chairman Johnson, Commissioner Nichols, Commissioner Williamson, and Mr. Behrens. We're very pleased to be here today, and we know that this is a very difficult time for you sitting on the commission, facing dwindling revenues and growing demands, and we appreciate the job that you're doing.

We're here today representing a broad range of concerned Capital Area citizens seeking transportation improvements that benefit our entire region. On their behalf, I'd like to thank you for the opportunity to present today and express our gratitude for the funding you provided last year for completion of the US 290 frontage roads and the grade separation of US 183 at Loyola Lane. We're also appreciative of the hard work of TxDOT employees and applaud their achievements in the difficult task of improving our state's transportation network when there is unlimited need but very limited resources.

In Central Texas, we're trying to do our part to help you help us. We're developing multimodal regional transportation solutions, and towards that end, local jurisdictions are establishing dedicated funding resources for transportation improvements and are working together to maximize the usage of those funds. We come before you today as a collaborative effort of regional stakeholders, working to improve our area's mobility.

I would like to introduce some of the attendees in our regionally united delegation. We have Senator Gonzalo Barrientos, Senator Jeff Wentworth, Representative Terry Keel, Representative Ann Kitchen, Judge Sam Biscoe from Travis County, Commissioner Margaret Moore from Travis County, Commissioner Karen Sonleitner from Travis County, Commissioner Bill Burnett from Hays County, Council Member Will Wynn from Austin. There may be other elected officials who are here that I have not recognized. If they are, would they please stand. Oh, Round Rock. Thank you very much.

This year we are requesting funding for three priority projects that would provide regional mobility for the residents of Travis, Williamson and Hays Counties. Those projects are shown on the map presentation behind: one, two, three projects.

Our esteemed speakers will be providing you more information regarding these projects. First, I'd like to ask Senator Jeff Wentworth to come to the podium. As an active member of our region's Capital Area Metropolitan Planning Organization, Senator Wentworth has been a direct participant in our work to improve transportation infrastructure in Central Texas, and one of the projects we are proposing to you today lies within his state senatorial district. We're pleased to have the Senator with us this morning, Senator Wentworth.

SENATOR WENTWORTH: Thank you, Neal. Mr. Chairman, Commissioner Nichols, Commissioner Williamson, Mr. Behrens. Let me begin by saying although I have been an active participant on CAMPO for seven years, it's because of my representation of Williamson County, and originally I shared that with Senator Jim Turner, and after he served a year on the CAMPO and then I served a year on the CAMPO, he decided it was kind of difficult for him to get from Crockett to Austin for the meetings, so I represented Williamson County from '94 until last October when Senator Ogden -- who succeeded Senator Turner after Turner went to Congress -- said, When do I get my year on CAMPO? -- because we hadn't been alternating. So as of October of last year, I'm not on CAMPO any longer, but based on the hopefully intelligent vote of the voters on March 12, I will be back next January representing Hays County.

(General laughter and applause.)

SENATOR WENTWORTH: I want to thank you very much for hearing us; you all are extremely patient. I've been appearing before this commission for a number of years, and I want to say to all three of you how grateful we are that you listen patiently and with such interest in what we have to tell you about our particular areas of the state, and of course, today we're here on behalf of the Capital Area. The cooperation and assistance of the commission in recent years has been very much appreciated, and I want to personally thank each of you for your responsiveness. I have never phoned any of you that I haven't gotten an immediate reply back and an open-minded consideration of our projects, and for that I am deeply grateful.

We're also appreciative of Governor Perry's initiative with the Trans Texas Corridor initiative. Like the governor, the Capital Area is not focusing on just highways but on a complete transportation system that moves people and goods with increased mobility by decreasing congestion, improving freight delivery, and providing safe commutes for our employees and freight handlers.

Local governments in the Capital Area have demonstrated their commitment to transportation infrastructure by passing bonds totaling $818 million for toll roads, roadways, bridges, drainage, and pedestrian and bikeway improvements. Initiatives under way in the Capital Area include development of a freight transportation study, and under the leadership of my colleague, Representative Mike Krusee, discussions regarding a regional mobility authority. The highway improvements we're requesting today are critical for improving safety, mobility and reducing congestion.

To show our strong support for these projects, Travis County has committed $2 million toward the US 290 priority project. All three of these projects are important to our region and economy, but the project that receives the highest priority ranking by CAMPO is the Highway 290 West project. This project would extend the existing western terminus of the US 290 freeway from Williamson Creek to west of FM 1826. With your help, we made this major east-west thoroughfare a freeway from IH 35 to just west of Williamson Creek just short of Motorola. Now we need to continue this project beyond the "Y" at Oak Hill so we can better link the eastern and western parts of the county for access to jobs, schools, to improve safety, and to reduce congestion.

The strong community support and CAMPO's number one priority ranking for Highway 290 West illustrates why we believe that the time has come to fund this project. I thank the residents and business communities of Travis and Hays Counties and Oak Hill for their persistence and patience on this project. They've been wholeheartedly committed to this project even when it has meant personal sacrifice and disruption of their lives and businesses.

Thank you, Mr. Chairman and commissioners, for your time and efforts on behalf of the citizens of this state, and thank you for your consideration of this very vital project.

MR. KOCUREK: Senator Gonzalo Barrientos has been a leader in responding to transportation needs in Central Texas for a long time. He serves not only as chairman of CAMPO, the Capital Area Metropolitan Planning Organization, but he has convened meetings of public officials from throughout the region to discuss how we might work together to better find solutions to serve the entire region. It's in this CAMPO leadership role that he presents details of the remainder of our request to you this morning. Senator.

SENATOR BARRIENTOS: May it please the commission. Members, our delegation, first of all, appreciates the funding that you have made available this last year and we're looking forward to seeing the construction of those improvements. And I must add you don't know how happy I am to be here with my great colleague from Bexar County, Senator Wentworth, and I hope we'll be here together in January. I'm not biased; I just like the guy.

(General laughter.)

SENATOR BARRIENTOS: Members, you've heard that the area here will double in population in 20 years. It's amazing if you look back just ten years or so, this three-county area has increased in about 400,000 people who have moved in here. Now, that makes congestion, and we know that you know about that because you're caught up in some of the same traffic we are.

We'd like to point out today that this growth and our associated mobility problems impact beyond the region. I'd like to stress the direct link between the state economy and that of this region. This area is, of course, a vital part of our technology-driven economy and has to be supported with a safe and efficient transportation system.

Now, although we're all aware that the recent nationwide somewhat economic downturn, the number of jobs in the Capital Area has grown and it's expected to continue to increase at a rate faster than the rest of the state. That continued growth comes on top of an incredible expansion in the employment sector from 1990 to 1999 where in Travis County, for example, employment increased by 70 percent or more, Williamson and Hays counties grew by over 107 percent and 142 percent. Now, despite our best efforts, the area's transportation infrastructure has just not kept with that growth.

The projects we're requesting funding for today are needed to be competitive in attracting top-notch employees and of course businesses, and as our dynamic economy is directly linked to the state's economy and as our workforce has and will continue to expand significantly, we have to address the increased needs of our system.

Now, my primary task today is to tell you a little about the US 183 projects, particularly interested in the grade separation of the remaining stoplight on US 183 at Technicenter Drive and freeway main lanes and frontage roads from north of FM 969 to south of FM 969. That would complete a nonstop tour from Cedar Park to the Austin Bergstrom International Airport, making it much easier for both Central Texas residents and visitors to use that facility.

Now, we recognize, members, TxDOT's current funding shortage, and in light of that, I am pleased to report that the CAMPO Policy Advisory Committee has committed $13,200,000 from STP(4)(c) funds to help the commission build these projects, and that the City of Austin is contributing $6,800,000 to help with those construction costs. And of course, as Senator Wentworth has stated, I'd like to point out the local participation, the bond elections in Hays, Travis and Williamson counties, the cities of Austin, Cedar Park and Round Rock have dedicated about $818 million to mobility improvements in our region.

So we're committed to doing our part, and we thank you for all that you do for the State of Texas, and of course, this region. Thank you, members.

MR. KOCUREK: Commissioners, many of our elected officials are prepared to speak to you on behalf of this request, but in the interest of your time and all you have to do, we have asked if any of our state elected officials might like to do that, and we'll limit it to that at this time. I know that Representative Kitchen would like to address you momentarily.

MS. KITCHEN: Thank you, and I'll be brief. Let me start by saying I, too, as well as the people that I represent living in the Oak Hill area, very much appreciate the funding that you provided last time for the extension of 290 for the frontage roads. So today I just want to reiterate that the completion of 290 West really is a crucial component of any attempt to solve the region's mobility crisis. As part of a balanced approach to improve regional mobility, this project's completion would both increase capacity and alleviate congestion, and as you know, 290 West has consistently been our top priority of CAMPO and of our constituents.

Now, you know in southwest Travis County I've talked to many people in the area, and household after household continually expresses their concern about the completion of 290. They're concerned about the traffic congestion but also about the public safety aspect of it. I think you probably are very aware of the fact that US 290 West just abruptly decreases from a six-lane freeway down to a four-lane arterial with a left-hand turn line, creating a dangerous situation. So addressing that, construction of the freeway main lanes, the frontage roads and the interchange with SH 71 would go a long way both to addressing the whole region's transportation system as well as addressing that particular safety concern for those folks that live and work in that area.

So thank you, again, very much for your time and consideration.

MR. KOCUREK: Representative Terry Keel will speak to you next.

MR. KEEL: Commissioners, I'll keep it brief. I do want to thank especially Ric Williamson for all his help to me on transportation issues in the 75th Legislative Session here in Travis County, and I'm not going to repeat the excellent presentations made by my senators, but I do want to tell you about the US 290 West project just briefly from our local point of view there.

It's been my own number one priority in the CAMPO ranking since 1997, and it's critically needed to address safety and capacity issues in the southwest quadrant of Travis County. When I was sheriff of Travis County, this particular area was a real problem, and still is.

I want to thank you for your approval last year of the funding for one part of that project that will construct the second segment of the frontage roads on US 290 West. The request before you today, as Senators Barrientos and Wentworth told you, will construct the main lanes of the highway. The needed right of way for part of this project has already been acquired, so phased construction could be significantly expedited.

These improvements will provide a critical link to the new Austin Bergstrom International Airport for citizens living in west and southwest Austin and Travis County, as well as northern Hays County. Traffic volumes have increased dramatically along this route -- as they have everywhere -- and although there is no good place to end a highway, the further this transition occurs from an urban area, the better, and in particular I want to emphasize to the commissioners that this project would move that transition past the "Y" at Oak Hill.

As you know, our area continues to experience phenomenal growth and with the population expected to double over the next 20 years, construction of these improvements is crucial to sustaining the economic vitality of this region and to promoting safe and efficient travel for our citizens.

I thank you for your time, and I sure hope we get your support on that project, and I know I can count on Commissioner Williamson; I'm just confident of that.

(General laughter.)

MR. KOCUREK: Thank you, Chairman Johnson, Commissioner Nichols, Commissioner Williamson, Mr. Behrens for your hard work, your dedication and tremendously difficult decisions that you have to make to maintain and improve Texas nationally recognized transportation system.

I'd like to reiterate that we are all working together to develop regional transportation, and to demonstrate, I'd like to ask everyone who supports these projects and is here this morning in support of those projects to please stand. Senator Wentworth says we need one more commissioner to stand with that group.

(General laughter.)

MR. KOCUREK: We have come a long way. Our region brings $22.2 million from local entities, and that's shown up here. I think this truly illustrates a unified effort for regional mobility. To recap, we're bringing $13.4 million from CAMPO, $2 million from Travis County, and $6.8 million from the City of Austin, along with the support of many surrounding communities and local organizations. I applaud the local jurisdictions in their efforts to raise $22.2 million for these projects.

We thank you again for your time and dedication to the State of Texas. We'd be happy at this time to answer questions if you have any.

MR. JOHNSON: Questions?

MR. WILLIAMSON: Not so much a question but just a couple of comments for the record, Mr. Chairman.

First of all, Mr. Kocurek, a lot of delegations come before us during the year and a lot of elected members, House and Senate, come before us during the year, and the commission so far has not been interested in saying what I'm going to say about members of which it's not true, but I want to say to you and to the members of your various community groups that in Senator Barrientos and in Senator Wentworth and House Member Keel -- and I'm getting to know Ms. Kitchen better, and from what I can tell, it's also true -- the commission and the department have four strong contributing friends.

And we very much appreciate the fact that we have people in Central Texas who will listen to the challenges we face as a commission and will communicate to us in a civilized and clear and logical way about what's wrong with our department, what's right with it, and then help us fix it because we don't frequently get that kind of communication from other parts of the state and from all members of the Legislature -- and that's okay -- but when we do and when it's so unified and when it's so positive, it makes it a lot easier for us to get our job done.

And I just can't say enough about these four members, particularly the three I know well and what I've seen of the fourth, it's good for us.

MR. KOCUREK: Commissioner Williamson, we greatly appreciate your comments, and our entire delegation, led by the individuals you've spoken of, is really working together and recognizes that we need to partner with you, help you meet your needs, we meet our needs as you support all of Texas, and we thank you.

MR. WILLIAMSON: Well, these members lead not only their citizens but in particular their local leaders. I mean, we have disagreements, but we never worry about a county commissioner or a city council person or mayor or a member of CAMPO, for Hays and Travis and Williamson Counties, It is always consistently up front, positive and defensible. We never hear about getting whanged on in some meeting off someplace where we weren't; it's always constructive. Ms. Sonleitner knows how I feel about the way that they communicate with us.

All counties, all cities, and these members make that happen and it makes it a lot easier for us to help when House and Senate members and local leaders are speaking from logic and emotion in a civilized way in making their arguments, and to our faces and not in meetings off someplace where they can kind of accentuate the negative and not the positive, and I want to tell you that makes a difference to me.

Thank you, Mr. Chairman.

MR. JOHNSON: Did you have anything?

MR. NICHOLS: Yes. First of all, thank you very much for a great presentation. We have said in the past -- and you have stepped up to the plate -- it is so helpful when a region, not just a community but a region, comes together and amongst themselves establishes the priorities for the needs which is very helpful to us and it's very much considered by us, and then to, in addition, step up with a vested interest from the community. It's so easy to ask for things, but when you're willing to put some of your own money up on the plate, that's very meaningful and helpful, and for that I wanted to thank you for the presentation.

I had a number of different things related to transportation, really to comment and talk to, concerning you because I related a lot to the 130 and the Central Texas projects which I know all of you in the entire region -- and part of the entire state -- is very much interested in.

You will probably in the next week to ten days hear an announcement as to the procurement results of the 130 exclusive development agreement, and someone will make those announcements in the next week to ten days. Second, we are scheduling in the April meeting an agenda item to take action on the Central Texas projects and the 130; there will be an action item on there. I've heard so many things -- I know all of you have -- and I've read so many different things in the newspapers around the state about the project, and locally, and you're going to see the real results very shortly, so it is real. That's probably the most important message, and soon.

Simultaneous with this, I believe most of you are aware, the federal announcement that we are going to lose as a state $500 million a year beginning this fall, and it's a huge hit of federal money lost. It's going to impact all of us. On the Central Texas project, our construction costs are the best right now than they ever will be; the interest rates for issuing bonds are the best right now than they will ever be; and we are going to, over the next few weeks, be raising a "Please Help Us" flag. I know you are here asking us for help, but I'm telling you, we're going to be asking you for help and looking to your leadership in ways, and we will lay out all the math and numbers and show you ways that we think might help, and then see amongst yourselves which ways you think you can, but we really are truly going to need some help to make this happen. But I don't think it's a Draconian basis or action; I think you will see it's reasonable, and if you understand, will be supportive. So I'll make those comments.

Another thing we will ask that would also help would be when the communities are considering actions related to the right of way that has been identified on 130, the more your communities can help preserve that right of way for this project, it would be helpful. We have some communities who recently are still okaying plats for subdivisions in the middle of the right of way, so instead of buying a 20-acre or 100-acre tract, we now are going to have to buy those by the lot. That has occurred in the last 90 days. So as your communities are considering those items, please pass that on to help us preserve it, because ultimately it is you and the people who use that freeway who are going to end up paying.

That's pretty much the comments that I wanted to make, and so in the projects that you are requesting today, it looks like it's approximately $100 million worth, three different projects, for which you are stepping up with a vesting of around $22 million. The projects we're asking for help on over here are in the neighborhood of $3,000 million, $3 billion, and so this is huge -- I know you know it is -- $3,000 million worth of transportation projects soon in this area, and we need some help. So look forward to that.

MR. WILLIAMSON: Well, Mr. Nichols, by your comments then, am I to infer that -- Senator Barrientos, Senator Wentworth and Governor Perry have been most insistent that we move ahead on State Highway 130 -- am I to infer or should the audience infer that we hope to move ahead on 130 soon? Would that be the inference?

MR. NICHOLS: That's about as most subtle as I could put it. Yes, I would think that it looks very encouraging.

MR. WILLIAMSON: Because the community has been concerned in the last month or so that the commission, for various reasons, is not moving as quickly as it should, and perhaps this is a golden opportunity to assure the community that there were legitimate economic reasons why we had to take a little time and look at what we're doing. And we shouldn't send you out here with a big smile on your face because we still have some hurdles to cross: the construction is perhaps more than we anticipated; the draw on state funds perhaps might be more than we anticipated; the loss in federal support over the next few years is going to have to be evened out across the state so that's got some impact. There have been very good business reasons why we kind of slowed down a little bit to be sure that we could do what we say we're going to do and what we know the community wants.

And we're probably going to have to ask persons along the proposed route, not just Williamson and Travis, but perhaps south and north, to either be more patient or help us in ways that we hadn't anticipated. I think that would be a fair statement.

MR. JOHNSON: Thank you. I think it's clear, $3 billion worth of new projects for the Central Texas area is a significant accomplishment and the communities, both cities and counties up and down that corridor, have played and will continue to play a vital role in helping us get that job done in as quick a manner as possible. So the partnerships need to be developed from both sides, and as Robert and Ric have said, we need your attention and your help on this area, and likewise, when you need partners from our level, we want to be here to do that within the limits of our resources.

Neal, I didn't mean to interrupt what you were going to say.

MR. KOCUREK: No, Chairman Johnson. I was just going to say that we do know how hard Commissioner Nichols has been working on the tollways and we do know how hard you and Commissioner Williamson have been working to assist in that arena also, and it's a very difficult circumstance, and as you know and we've conveyed to you, we are dedicated to partnering with you and we greatly appreciate your comments. We understand and we'll be there standing for us to be counted on as we move forward. Thank you so very much.

MR. JOHNSON: What Commission Nichols did not tell you was that our April meeting is scheduled to be in Abilene, so I'm certain that you'll want to make your hotel reservations as soon as possible.

(General laughter.)

MR. NICHOLS: Yes, I think Abilene would be tickled to see all of you out there.

One other thing I had in my notes but I failed to mention related to that series of projects. And that is, I know those of you who have been following the issue related to South 45 east and west of 35, I know we've taken some action items, there's some stuff floating. We've seen action and requests from the area to finish the east of 35 and get it connected to 130 before we finish the western portion for a number of different reasons, and I will tell you that every one that I have seen that we have been working on does it in that order. That's very important to some of you, not so much to others, but that is per that request the way it is laid out.

MR. JOHNSON: One final question that you might not have the answer to, but you have come with $22.2 million worth of leverage for us in consideration of these projects and there's about $90 million worth of projects. Are we free to move that money around in any form or fashion, or do you have certain amounts attached to certain projects? That, I think, will be important in the deliberations that we will be considering in the formation of the next UTP.

MR. KOCUREK: I can understand, Commissioner, your question, and as you might expect, there are some things tied to that. We will research that and get back to you.

MR. JOHNSON: Great, terrific.

I've had a request to speak on this issue from somebody, Tommy Eden, and I would like to ask Mr. Eden did he specifically want to address the group on these three projects, or should his comments be saved for the open comment period. Mr. Eden, can you answer that question, please, sir?

MR. EDEN: Yes, I would like to speak.

MR. JOHNSON: But are your comments relative to these three projects or are they relative to a general comment as a whole.

MR. EDEN: They're specifically about these three projects.

MR. JOHNSON: While I've got you here in my sights, could I ask you when you appear here, are you treated with respect and civility, in your opinion?

MR. EDEN: Absolutely.

MR. JOHNSON: Well, I think you were there Monday and I would ask you for the same consideration in future meetings.

MR. EDEN: Certainly.

MR. JOHNSON: Thank you.

MR. WILLIAMSON: You could even take this opportunity to apologize to him for your behavior.

MR. EDEN: Well, thank you, Mr. Chairman and commission members. I'm not here to apologize for anything that I've done. I am here to speak about the need for clean air, and specifically in the Travis County resolution I want to point out -- I am here to support this, by the way -- want to point out the specific clauses in the Travis County resolution that indicate that Travis County supports; where appropriate, install bicycle lanes and pedestrian facilities on US 290 West, where appropriate, install bicycle lanes and pedestrian facilities on US 183 South, south of FM 969 to north of Boggy Creek and north of FM 969 to south of FM 969.

I would hope that when this commission finds it appropriate to allocate the money for these projects that you take a very close look at that because in the TIP which was approved by CAMPO, those bicycle and pedestrian facilities are not included. Now, TxDOT has indicated that they have every intention of including sidewalks and bicycle facilities, either during the construction of these projects or later on, using some other funds. I'm asking that when you allocate the funds for these projects, you include a requirement that they have bicycle lanes and sidewalks, as supported by the Travis County resolution.

MR. JOHNSON: Well, thank you, and I know that you have been very involved in this effort, and we appreciate your bringing that to our attention. We will consider, as federal law requires, the use of and the implementation of both pedestrian and bicycle features in these projects. You know, we're somewhat constrained by the definition of where it's reasonably possible and we're also somewhat constrained by funding, but we do appreciate your bringing that to our attention.

MR. EDEN: Thank you.

MR. JOHNSON: I would like to thank the CAMPO delegation for, as always, a very creative and well put together presentation. As you're aware, we don't make responses on the spot, but please be assured that every consideration will be made on these three requests. And again, I want to emphasize something I said last night at the Partners in Mobility thing is that if we work together, we can accomplish great tasks, and I look forward to working with you.

We will take a brief recess to allow our "Bat" friends to go back to the "Bat Cave" and let our Partners in Mobility group enter. Thank you.

(Whereupon, a brief recess was taken.)

DALLAS-FORT WORTH AREA PARTNERS IN MOBILITY

(Mayor Kenneth Barr, Rep. Bill Carter, Rep. Vicki Truitt, Rep. Fred Hill, David W. Biegler, Mayor Pro Tem Donald Hill, Allan Howeth, Don Dillard, Mayor Pro Tem John Murphy, Judge Lee Jackson)

MR. JOHNSON: We will reconvene the meeting of the Texas Transportation Commission. Our next delegation hails from the great Metroplex, Dallas-Fort Worth area, and I would like to ask Mayor Kenneth Barr of Fort Worth to begin the presentation for the Partners in Mobility. Mr. Mayor, welcome.

MAYOR BARR: Thank you, Mr. Chairman, members of the commission and Director Behrens. We are pleased to be here today. I'm Kenneth Barr and it is my privilege to be the mayor of the City of Fort Worth.

We are the Dallas-Fort Worth Area Partners in Mobility which is a coalition of public and private sector leaders who believe that investment in our surface transportation infrastructure is critical to sustain our economic vitality and quality of life, and we very much appreciate a chance to appear before you here today.

Before we get into our formal presentation, at this time we have several members of the Legislature who are here in attendance with us today, and I'd like to ask them to come forward at this time and make a few brief remarks if they would. I will say, on behalf of the group, the rest of us, that we appreciate the members taking the time to join us and be here, and we know that you do as well.

REPRESENTATIVE CARTER: I'm Bill Carter, state representative District 91, chairman of the Tarrant County Legislative Delegation, and just wanted to tell you that our delegation is 100 percent behind the Partners in Mobility and the issues that they're going to bring to you today. I think you'll find that this is probably one of the best thought-out programs from a large metroplex area that you probably will see for a long time to come, and I hope that we'll be able to continue to work with you as we bring this sustainable transportation plan into action. Thank you.

MR. JOHNSON: Thank you.

REPRESENTATIVE TRUITT: Good morning, Chairman Johnson, Commissioner Nichols, Commissioner Williamson, Mr. Behrens. Vicki Truitt, state representative District 98.

I just want to thank you for the tremendous time and effort that you all put into addressing the difficult challenges of transportation in Texas with so many people wanting too much and having so little to work with. I just really respect you and appreciate what you do.

I'm here with many friends this morning from both sides of the county line, and I'm very proud to tell you that I'm here with the Fort Worth-Dallas Metropolitan Area Partners in Mobility, and I don't want to take your valuable time this morning because there are others here who are going to explain why we are here. Incidentally, I support both sides, but having been born in Fort Worth, I just had to say that.

MR. WILLIAMSON: I'm glad you clarified it, I thought you were talking about both sides of the Parker-Tarrant County.

(General laughter.)

REPRESENTATIVE TRUITT: I just want you to know that I'm here this morning to support them, and I support you and the fine job that you do, and I want to thank you for your continued consideration and your continued support of our projects, and I appreciate your vision for transportation in Texas. Thank you.

MR. JOHNSON: Thank you.

REPRESENTATIVE HILL: Good morning, Mr. Chairman, members. I am Fred Hill and I'm from the Dallas-Fort Worth side of that equation.

I'm here also to express my appreciation to you but also to show you my support. I'm here to show you my support for the Partners in Mobility. This is one of the finest organizations of its type in the state, and I know that you folks recognize that. We are here as a united group to try to do something good for the State of Texas -- and I know you'll appreciate that, Mr. Williams -- and I appreciate your efforts and I look forward to working with you during the next session on the issue of finding more revenue to help you do the job that you want to accomplish here.

So I appreciate the attention that you're willing to give to my colleagues and my constituents. Thank you for being here.

MAYOR BARR: Thank you very much. We appreciate all of the members being here with us.

Today we are presenting a policy position delivered by a cross-section of public and private sector officials from all across our region, and at this time I'd like to ask the members of our delegation to stand -- and I'll tell you it's about 160 people. If all of you would stand? We are mayors, city council members, county judges, commissioners, city managers, chamber of commerce presidents and board members, and other leaders from nearly every community in the North Central Texas region, and I want to thank all of this group of people for coming here and being a part of our Partners in Mobility delegation. As you know, this is our delegation's eighth consecutive annual appearance before the commission.

North Texas continues to experience dramatic growth, as the area's population now exceeds 5.1 million people. Year 2001 represented the sixth straight year in which the region's population grew by more than 100,000 persons. Indicators are that this growth trend can be expected to continue. Recent forecasts by the Texas Data Center for the Fort Worth-Dallas region estimate that the area will reach nearly 9 million persons by the year 2030. And Commissioner Williamson, contrary to what might be said, Fort Worth does not intend to annex all of that.

(General laughter.)

MAYOR BARR: I've taken a lot of grief over annexation since I've been at this meeting.

By all measures, the Fort Worth-Dallas region continues to be a leader in the state's economy. Over the past decade, our population growth represented 31 percent of the state's total growth and 34 percent of the employment growth; retail sales data shows similar trends. Regional gross product projections indicate that more than one-third of the state's gross product will continue to be generated from the North Texas economy in 2002.

Maximizing the benefits of our current transportation system, as well as ensuring that we have adequate transportation funding available to meet our growing needs, is important to the region and to all areas of the state. Strong partnerships between the Fort Worth-Dallas area and the State of Texas must be maintained that include visionary plans for the future, strategies for ensuring adequate funding levels to meet our needs, and the implementation of projects and programs that reduce traffic congestion and improve air quality.

Now it's my privilege to turn the podium over to Dallas business and civic leader David Biegler.

MR. BIEGLER: Thank you, Mayor, and good morning.

I'm David Biegler, recently retired vice-chairman of TXU and I'm still non-retired chairman of the Central Dallas Association. I'm here today on behalf of the North Texas business community -- see, I avoid that issue; I've learned over the years. The business community has a great interest in mobility and its impact on job creation, property tax base, sales tax generation for the entire state of Texas, but specifically for the North Texas area which represents about a third of the state's economy.

We've been very fortunate in North Texas to have experienced several decades of sustained economic growth. While this growth has resulted in enormous benefits to the entire state, it has also resulted in increased travel demand that does continue to overburden the Dallas-Fort Worth area transportation system. While we've made significant progress toward implementing regional multimodal transportation improvements, the growth we're experiencing is outpacing available financial resources which translates into higher costs for business and the motoring public.

In 1999 the cost of congestion to DFW motorists alone was estimated to exceed $5 billion annually. This direct cost does not begin to take into account the lost opportunity costs of foregone economic opportunity, the plants and the jobs which moved to South Carolina or Georgia or Oklahoma because of mobility issues. With the continued growth projected for our region, and given our current pace of addressing it, by the year 2025 this annual cost of congestion alone, ignoring the opportunity costs, is anticipated to surpass $8 billion per year.

Congestion will be more severe, extend for more hours, extend to larger portions of the region, and we'll be adding new performance measures to our vocabulary like transportation reliability and dependability, and unfortunately, we will be adding those same terms to our economic development packages to people who are interested in relocating to our state.

The Texas Transportation Institute's Urban Mobility Study annually reports levels of congestion in major cities across the U.S. The latest findings available from TTI indicate the congestion levels are continuing to rise in the Fort Worth-Dallas area. As you can see from these data, our traffic congestion levels are growing. With limited resources available to address growing needs, we must ensure that investments are being made that provide measurable mobility and reliability benefits.

Securing adequate funding for future transportation improvements is contingent upon providing meaningful and objective performance standards to policy-makers faced with the difficult challenge of allocating limited resources. Monitoring transportation system performance is an essential component of making good public policy.

We applaud Chairman Johnson and the Texas Transportation Commission and the Transportation Working Group for their efforts in developing the August 2001 report regarding the need for: expanded partnerships, setting performance standards, and measuring progress toward addressing needs. We do support and embrace the commission's goals set out for: reliable mobility, improved safety, responsible system preservation, streamlined project delivery, and economic vitality. And we are encouraging our Texas leaders in the Legislature to also embrace the recommendations of the study to address the state's transportation needs.

The transportation needs of North Texas, as well as the entire state of Texas, represent a major challenge that must be overcome in order to sustain economic growth and preserve the quality of life desired by all Texans. When you really come down to it, there is no doubt about it, our economic future will be largely determined by transportation, the challenge of meeting the needs and how we address it. For our particular purposes, again coming back to the North Texas role in the state economy, it's very much an issue specifically aimed right at North Texas because of its critical position in the state's economy.

Meeting this challenge will require vision; it's going to require leadership on the part of elected officials and transportation agencies. The Dallas-Fort Worth Area Partners in Mobility commends Governor Perry for his advocacy efforts in promoting a comprehensive statewide transportation strategy. Incremental thinking will not meet our inter-city long-term needs; we know that. We concur with the needs the governor identified in proposing the plan, including: reducing traffic congestion, reducing the flow of hazardous materials through our cities, improving air quality, and removing transportation obstacles faced by business.

It's our offer that we will work with the Transportation Commission and the Texas Department of Transportation staff to integrate the mobility plan for our region with the Trans Texas Corridor vision.

Dallas Mayor Pro Tem Don Hill will now continue our presentation. Thank you.

MR. WILLIAMSON: Commissioner, Mr. Chairman, I have a comment, and I have some other things to say about some of these other people later on, but I've got to take this shot at David while I can.

MR. BIEGLER: I'm used to it, Commissioner.

MR. WILLIAMSON: It is good to see you active in this group, and people from North Texas know of you and of your contribution to our society, but I'm not sure my fellow commissioners and other members of the department know. This is one of the finest advocates for free markets and liberty and growth in this state that I ever had the pleasure of dealing with in my 13 years in the Legislature, and I can't let you get off the podium without recognizing you for all the contributions you've made to this state, not just your company. I'm glad you're active.

(Applause.)

MR. BIEGLER: I'm humbled by your comments, Commissioner, and I am going to stay active, and I'll stand here for as long as you want for that type of comment. Thank you, Ric.

MR. HILL: Thank you, David. And Commissioner, we also concur that David is one of our outstanding citizens.

Good morning, commissioners and Mr. Behrens. I am Don Hill, mayor pro tem of the City of Dallas. It is my pleasure to be here this morning on behalf of the Partners in Mobility, citizens of Dallas, and our new mayor Laura Miller.

We recognize that the process of developing, funding and constructing transportation improvements is a very complicated challenge, and we want to salute you for your ongoing efforts to simplify this process by restructuring your Unified Transportation Program. Your staff's proposal to include new procedures for developing transportation projects will simplify the state's transportation funding process, focus improvements in transportation corridors, and enhance the public's understanding of state transportation funding priorities. Reducing the number of funding categories, developing clear and understandable guidelines and focusing on a corridor development approach to improve the UTP are positive steps toward enhancing the funding allocation process.

The Dallas-Fort Worth area has more than $8 billion in major corridor improvements approaching preliminary engineering and environmental approval which will soon need construction funding. These are critical regional projects for which many years of effort have already been invested on the part of TxDOT, the TxDOT staff, local government, transportation agencies, and the public in building consensus, evaluating alternatives, and selecting improvements that best fit the needs of each corridor and the surrounding communities.

We urge TxDOT's staff and the commission to provide flexibility in the UTP update process that allow these projects to be funded. Your policy of all previously funded Priority 1 projects will remain funded is right on the mark; however, future commitments should come from not only the Priority 2 of the New Developed category but also the New Planned category.

We believe that the process of identifying and prioritizing corridors for mobility funding would be best accomplished within the established framework of the Transportation Commission, TxDOT districts, and the metropolitan planning organizations. We also believe that providing increased flexibility will allow the Dallas and Fort Worth districts, in collaboration with local governments and the MPO, to target funding where it is most needed.

The demand for highway capacity is continuing to outpace available funding for systems improvement. As a result, we must find ways to increase the operational efficiency of the transportation system. We support the Transportation Commission in its efforts to move forward with an access management approach to the frontage road questions. We believe progress toward addressing these issues has been made as the focus of this discussion is now centering on developing comprehensive access management programs to improve the flow of traffic along the state's major roadway corridors.

Access management is one of several tools available that will help facilitate improved traffic flow. Other strategies such as freeway bottleneck removal, integration of local and state traffic signal systems, freeway construction traffic management plans, improvements to at-grade rail crossings, and accessing private sector accident data should also be pursued.

We encourage the commission and the TxDOT staff to continue to work collaboratively with transportation agencies, local governments and metropolitan planning organizations across the state to fully explore additional opportunities for maximizing the efficiency of our state's transportation system.

Now let me turn our presentation over to Allan Howeth. Thank you.

MR. HOWETH: Thank you, Don. Good morning, commissioners and Director Behrens. I'm Allan Howeth, chairman of the Fort Worth Chamber of Commerce, known to Commissioner Williamson as serving in the greater Weatherford area.

A complementary program to access management is the promotion of sustainable development which strives to reduce vehicular demand on the transportation system through better coordination of land use and transportation investments. In 2001 the Regional Transportation Council's Land Use Transportation Joint Venture Program provided $38 million to leverage public-private sector joint development initiatives.

North Central Texas Council of Governments’ new Center of Development Excellence serves as a forum for public and private sector dialogue regarding growth and development issues. We're also now evaluating the feasibility of expanding commuter rail service and public transportation into new corridors and service areas. Last week the Regional Transportation Council held a very successful Regional Transit Summit for this very purpose.

In Dallas and Fort Worth and cities across the nation, highway capacity is challenged, as we all know. Citizens are concerned about congestion, traffic is impacting where we live, our transportation system has become less reliable. In North Texas, transportation planners and providers are initiating efforts that will maximize our mobility investments through better management and operations of our transportation systems.

By placing a greater emphasis on customer service, optimizing corridor capacity, and monitoring system performance, we can and will improve system reliability, mitigate congestion, and improve our air quality which we must do.

Intelligent transportation system technology is serving as the communications backbone of our management and operations systems. We are developing integrated freeway and toll road systems along strategic corridors throughout the North Texas area. Roadway and transit systems are being designed to provide operators and travelers with real-time information on system conditions in an effort to make trips safer, modes more reliable, and provide travelers greater choices. TxDOT's TransVision Center in Fort Worth opened in June of 2000 and the DalTran Center currently under construction in Dallas are key components of this regional ITS system.

We also believe there's tremendous opportunity to capitalize on ITS technology which we're putting in place to facilitate the flow of NAFTA truck traffic through our region. By monitoring travel conditions and communicating this information to freight carriers, we can improve safety, enhance mobility, and reduce emissions.

I'd now like to call on one of our major partners in the North Texas area in the transportation field, North Texas Tollway Authority Chairman Don Dillard, to continue our presentation.

MR. DILLARD: Thank you, Allan. Good morning, commissioners and Director Behrens. My name is Don Dillard, chairman of the board of directors of the North Texas Tollway Authority, the NTTA for short.

In August of 2001 we marked the official opening of the President George Bush Turnpike, formerly State Highway 190, that stretches, as you well know, over from State Highway 78 in Garland all the way across the Metroplex to IH 35 E in Carrollton. By February of 2002, the daily transactions on the Bush Turnpike exceeded 312,000 transactions. Like the Dallas North Tollway, the success of the President George Bush Turnpike illustrates the continued willingness of the North Texas commuters to support toll facilities. The expedited construction process exemplifies the value of our collaborative efforts between NTTA, TxDOT, and local governments.

Over the past decade, more than $675 million worth of toll road construction has taken place in North Texas. This investment in regional mobility improvements, on behalf of DFW motorists, serves to reduce the burden on traditional state and federal freeway funding programs, thereby providing funds for additional roadway construction in the area. Toll roads are a vital component in solving the mobility challenges we are facing in North Texas.

Senate Bill 342, passed by the 77th Legislature, and the subsequent Constitutional amendment, Proposition 15, passed by the Texas voters in 2001, have provided the opportunity for expanded partnerships between TxDOT and NTTA in the funding and construction of toll roads. Now is the time to establish all those necessary agreements, rules and policies to maximize this resource. We encourage the commission and the TxDOT staff to involve officials from NTTA in developing workable rules to implement the toll equity provisions of Proposition 15. We stand ready to assist in this endeavor, and I think that endeavor is already underway.

NTTA has identified more than $2 billion worth of additional toll road projects for construction in the Dallas-Fort Worth area, including: the Southwest Parkway in Fort Worth, the Trinity Parkway in Dallas, and extensions to both the Dallas North Tollway and the President George Bush facilities. The Dallas-Fort Worth Area Partners in Mobility looks forward to this opportunity to now accelerate construction of toll road projects in North Texas by virtue of the leadership of the Texas Legislature, supportive Texas citizens, and the continued cooperation between NTTA and TxDOT in the construction of these needed facilities. A strong partnership between TxDOT, NTTA and the funding and construction of toll roads is critical in meeting our mobility needs.

Thank you for your time to talk about NTTA, and at this time I'd like to turn it over to John Murphy who will be our next presenter. Thank you.

MR. MURPHY: Thank you, Don. Good morning, commissioners and Director Behrens. I am John Murphy, mayor pro tem of the City of Richardson and chairman of the North Texas MPO, the regional transportation council.

The dramatic growth we have experienced in the Dallas-Fort Worth area and the resultant rise in traffic congestion require that we develop collaborative and innovative strategies to expedite the funding of transportation improvements. The Intermodal Surface Transportation Efficiency Act of 1991 and its successor, the Transportation Equity Act for the 21st Century, created new partnership opportunities for funding transportation improvements. The Regional Transportation Council, Texas Transportation Commission Partnership Program -- which we created with you in 1995 -- capitalized on this opportunity to combine regional and state resources to address mobility needs in North Texas.

Since that time, our partnership program has resulted in construction of dozens of vital transportation system improvements, projects that most likely would have been delayed or remained unfunded. While we are very proud of this accomplishment and we greatly appreciate your participation with us in this program, we cannot rest for long on this accomplishment, as we still have a long way to go meeting the needs of our area.

In the year 2002 the Regional Transportation Council is proposing to utilize federal Surface Transportation Program Metropolitan Mobility funds, in conjunction with Texas Transportation Commission Strategic Priority funds to construct $370 million in critical regional transportation projects. This year's request proposes a local share of 65 percent and a state share of only 35 percent.

With your United Transportation program in transition and our desire to permit long-range projects to be expedited, it is more difficult for us to select projects during this period; however, we are confident that the projects we are putting forward for your funding consideration represent terrific opportunities for us to continue to build on our successful partnership program with you.

Let me now call on Lee Jackson to conclude our presentation.

JUDGE JACKSON: Thank you, John. Good morning, Commissioners and Mr. Behrens. I am Dallas County Judge Lee Jackson, and this is probably my last appearance before you as an elected official representing the county of Dallas County. I'm retiring at the end of this year, and so I thought it just as a simple personal courtesy if you would just agree to give us everything we've asked for.

(General laughter.)

JUDGE JACKSON: Seeing no motion, I'd probably better go ahead and finish my speech. I do want to cover on the back page of our brochure the eight major points we've tried to make to you today.

We support your efforts to establish goals and you've established five very broad goals of system performance and achievement for the residents that will be useful in determining progress. The challenge now is to actually turn these adopted goals into things that are tangible enough to inspire the citizens and state leaders to be a benchmark of progress and particularly to drive investment; otherwise, it's just another study. If we can make these goals and their corresponding benchmarks as clear as the state has done in public education -- where a state leader can say let's ensure that all children can read by the third grade -- it will then help actually drive the funding and the legislative support process. And that's going to be a big challenge; we want to be your partners.

On number two, we'd rather partner with a state that has vision than one that doesn't, because we've certainly struggled to develop a vision broad enough for a region as complicated as ours, and at times the state, we thought, maybe wasn't paying attention to our needs. Now you have come forward with several visions, and we commend the vision of Governor Perry's plan and this agency's role in fleshing it out, and we just ask that you'll continue to work with urban regions and find ways to integrate these new large and inspiring statewide visions with our metropolitan plans.

Bullet number three, you have begun a very healthy process of simplifying and streamlining the Unified Transportation Program. The hardest part may be to come up with a way that will allow TxDOT districts, in collaboration with MPOs and local governments, to focus funds where they're needed the most. This means the 25 districts may vary in their priorities. This flexibility is contemplated in your system but it is not formally a part of your current position, and we urge you to consider ways to make the program not just flexible at the state level but flexible district to district.

Number four, we believe that achieving greater levels of mobility with limited funding can be accomplished in part by placing greater emphasis on freeway operations and access management. We applaud your decision to focus on a comprehensive access management program in the planning, funding and construction of future transportation facilities. We recognize that new legal mechanisms and financial incentives may be necessary to help enforce the very difficult task of limiting access to what are supposed to be limited access roadways, and we pledge to work with you and to support that.

Bullet number five says basically that the same logic that applies to freeways, treating them like a system and managing access, also applies to the overall transportation system, and we recognize that you and we and the entire transportation community need to place more emphasis on system management. We used to call this bottleneck removal but it's now obviously perceived rightly to be something much broader than that; it's not as simple as finding a few bottlenecks. All of us need to do more as the state matures. We urge you to support and provide funding for those critical mobility and air quality projects which will help us manage and operate the overall transportation system.

Number six is the topic of corridors, one in particular. We applaud the focus on the concept of corridors to drive transportation planning, but we suggest that perhaps not all corridors are equal, and that if there is a first among equals for this state's economy that the efficient flow of freight and traffic along the I-35 NAFTA corridor is vital to both the state's economy and obviously to us in Dallas-Fort Worth. We urge you to support and identify state, federal and local partnership opportunities for the removal of bottlenecks for the improvement of its carrying capacity and the deployment of ITS technology in the I-35 NAFTA corridor.

Number seven, we ask the commission to move as expeditiously as possible to involve NTTA officials in developing comprehensive mutually acceptable rules and procedures for our joint development of toll road construction in North Texas, and again, our message is one of flexibility across the state. We recognize that in some areas you, the State, are going to be asked to build and operate some toll roads that may technically be owned by a new startup RMA. In our area, we hope and intend to build and operate all the feasible toll roads through the vehicle of the NTTA, but we recognize that we need your help, but it is a different kind of help than those startups, and we hope that your rules will recognize that the roles will be different for different projects in different regions of the state. So again, we ask for flexibility.

The last bullet ends appropriately on the theme of partnerships. We feel some pride in having helped encourage and suggest this partnership program in which we've offered up some of the federal funds that are under the control of our metropolitan planning organization to draw down in a two-for-one match -- two of our dollars for one of yours -- contribution in a very successful partnership program. We've done that again this year and we urge the commission to continue this very successful program which we hope is a statewide example of what we need more of.

Those are our eight themes. We've had a set of really good presenters and you can see that we are united in this, and that concludes our presentation, Mr. Chairman and Commissioners. If you have any questions for any of us in the delegation, we're here to try and address them.

MR. WILLIAMSON: Don't leave.

MR. JOHNSON: Go ahead.

MR. WILLIAMSON: One of the greatest things about this position is you've got a bully pulpit to dress people down and then a bully pulpit to compliment people.

JUDGE JACKSON: I didn't notice you ever needed a pulpit, Commissioner.

(General laughter.)

MR. WILLIAMSON: I have a story to tell about Lee Jackson. Mr. Hill, I was a freshman legislator in the summer of 1985, I didn't know much about the legislative process because unlike a lot of people that get in our business, I didn't run at the local level and precinct work and work my way up, I just got up one morning in December of '83 and decided I was mad about government and I ran, so I had a lot to learn. In my freshman year, I sat in a section of the floor that included Mike Toomey -- who everyone in the room knows is my closest friend -- Lee Jackson, I think it was Ray Keller was in the section, and Ernestine Glossman was in the section, and so I was exposed to some of the best minds in the Legislature.

Summer rolled around, and during our time we were having a lot of special sessions, but we had about a 45-day break, and somebody suggested that I needed to sign up to take a legislative trip, state-paid-for, to Seattle, Washington to attend a legislative conference and learn what other legislators were doing about different things, and I thought that sounded like something I should do. So I signed myself up and made my draw against the state account and did everything you're supposed to do, and got on the plane and flew to Seattle and I got my agenda of the courses or the seminars I was supposed to go to, and I selected two.

And I got up the next morning, and my wife was going off with some other spouses, and as I was walking through the floor, an unnamed member of the House stopped me and said, Are you headed to the golf course? And I said, No, I'm going over to the seminar on -- I forget now what it was. And he kind of looked around and said, Why? And I said, Well, that's why we're here.

I went on over to the seminar, walked into this big room, and there was one member of the Texas Legislature in that room besides me, and that was Lee Jackson. And we sat down together and attended this three-hour seminar, and we got to the break and I went outside and said, Lee, where's everybody else? And he said, Well, not everybody attends these for this reason. And for two days it was always Lee taking care of his business.

There will be lots of opportunities, Mr. Chairman, to recognize Lee Jackson over the next few months, but to the son of an employee of the Texas Department of Transportation, to a recognized and outstanding member of the Texas House, to a calm and visionary county judge, and to the original proponent of Senate Bill 342 working with Senator Shapiro and Proposition 15, I won't use words, Lee, I'll just simply stand.

(Applause.)

MR. HILL: Mr. Chairman, I think it's fair to say that Lee Jackson is a terrible golfer too.

(General laughter.)

MR. NICHOLS: That might have something to do with it.

JUDGE JACKSON: I would say that I just had a later tee time that morning, but actually I don't play golf at all. Thank you very much for those kind words, and I appreciate you and my colleagues here, but I remind you this is not my party, and in addition to all those kind words, you do feel good about what we asked you for, don't you?

(General laughter.)

JUDGE JACKSON: Thank you very much.

MR. JOHNSON: Robert, did you have anything?

MR. NICHOLS: Well, I was going to say something nice about Judge Jackson but I can't come back behind something like that. But I do want you to know that I sincerely appreciate the leadership and the counsel you have provided me, not only for your region but for the whole state, on transportation. It is greatly appreciated. Thank you.

MR. JOHNSON: I find it's sad to think about having these meetings and having conferences and gatherings on transportation that you claim that you're not going to be there, and I know that's hopefully a false claim, because you have provided insight to me personally and also, I know, to this commission and the department, and your work efforts in the transportation area are known around the state and probably around the country. We appreciate it as a commission and I know three individuals up here appreciate it, and I would suspect very strongly that all your constituents appreciate it. And we wish you the best in whatever endeavors lie ahead because we know you're going to be extremely successful.

One thing I was going to say, I'd like to call attention that David Laney has been here this morning -- I think I just saw him sneak out. Three years ago Ann Wynne was up here and she complained about having a bad hair day, and with that, David introduced me as a new member of the commission, and I was going to introduce him saying I was having a bad hair day, and I'm sorry that David snuck out. But David, as you know, served six years on this commission and I believe five as chair, and did an extraordinary job and his service has been missed, but it's been filled well by our man with the bully pulpit, so we're grateful for that.

Any questions on the presentation? I know that everything that has gone on, that this will be well considered, and your offer of almost two-to-one leverage is extremely generous and it enables us to make decisions more readily because it gives us more resources with which to make decisions.

MR. WILLIAMSON: I do have a comment on my fellow colleagues, Mr. Hill and Ms. Truitt, and Mr. Carter, even though he's retiring. You know, the difference between what we do and what I think all other agencies of state government do is what we do is measurable. I mean, there's really not much room for philosophical difference. We finance roads, we hopefully in the future will be financing rail, we help cities and counties build things and it's easy to measure it. You know, a thousand feet of frontage road in the Grand Prairie area, it's 15,000 feet of rebar, whatever. It's not so easy to do that in other parts of state government, and it's therefore easier, I think, to support, where you can, the resources necessary.

Mr. Carter, in his years as one of my classmates, was always a strong supporter of transportation -- he should be recognized for that. And Mr. Hill and Ms. Truitt have also been friends of the department, and we always compliment and say thank you to those, and we say thank you to three of you.

Bill, what are you going to do?

MR. CARTER: I'm going to put my wife to work.

(General laughter.)

MR. WILLIAMSON: Well, hat's off for a good career in the Legislature and to the Dallas-Fort Worth area and to the Weatherford-Fort Worth area. And we say thank you to all three of these members who have helped us, in addition, of course, to the other delegation that's not here, and in particular Senator Shapiro who in the end is the leader for North Texas on our transportation issues.

MR. JOHNSON: Thank you again for all you do for not only your area but this great state.

We will take a brief recess to allow our friends from the Metroplex to get back up I-35. There's no traffic at this time.

(Laughter.)

(Whereupon, a brief recess was taken.)

CITY OF WACO

(Mayor Linda Ethridge, Dr. Robert Sloan, Margaret Mills)

MR. JOHNSON: We will reconvene this meeting of the Texas Transportation Commission. Our last delegation today comes from just up the way, I-35 -- probably came down I-35, no alternate route. Mayor Linda Ethridge, I believe, is going to lead the delegation. Welcome, Mayor. We're delighted that you're here.

MAYOR ETHRIDGE: Well, thank you very much and thank you for saving the best till last. We think this is a good slot to be in. We really do appreciate the chance to visit with you today about this project.

I'd like to introduce some of the people who have come along with us, or have them stand. They have these buttons on so you can easily identify them. Would you stand? And if there's anyone else in the audience who would like to give us extra support, I'll give you a button. Thank you very much.

(General laughter.)

MR. JOHNSON: Is that the area code?

MAYOR ETHRIDGE: No. That's Loop 574. It's probably somebody's area code but I don't know whose.

We would like to handle our presentation this morning in the following way: we have a video that's about eight minutes that we would like to show you, and then we'll have three speakers. Dr. Robert Sloan who is president of Baylor University will come after the video; and then Margaret Mills who is executive director of Downtown Waco will speak; and then I'll make a few additional remarks. So if you would start the video, please.

(Whereupon, the video was shown.)

DR. SLOAN: I'm Robert Sloan from Baylor University. Thank you for the time that you've given us. The video has already spoken to the critical nature of Loop 574 in terms of infrastructure and the movement of people through Waco and Central Texas, and others will speak with regard to the direct access -- the video has hinted at this already -- the more direct access and thus the economic impact that 574 would have with regard to various tourism venues in Waco.

I'd like to speak on behalf of Baylor University with respect to the very significant role that 574 would play for us as a university, and thus, for Waco and Central Texas as well. In recent years we have completed a number of very significant projects that are in the Brazos River Corridor which is precisely the area that this proposed loop, extension of Highway 6, would facilitate and would serve. For example, we have recently built and completed a major law school campus for the Baylor Law School, the Umphrey Law School, $32 million project; we've just completed a seminary project, the Truitt Seminary, nearly $18 million; a tennis complex of $5 million -- we have another $3- to $4 million to spend on that project as well. These are all, again, in the Brazos River Corridor.

We have just completed a new sports complex, again, along the river, a soccer complex, a baseball and softball field, a student life center. All of these projects together are in excess of $85 million that the university has spent directly along the river. One of the things that the sports complexes have done is make available for Baylor and for Waco and Central Texas numerous major NCAA Division 1 athletic regional and sub-regional contests which, of course, bring a lot of sports participation from outside the state into Central Texas as well. So we've already hosted, in terms of baseball, track and field, basketball, so we've had this success already.

We also have some current and future projects under way exactly in the Brazos River Corridor as well: we have a science building that we will begin construction on this summer; it's a $103 million science building; we have a museum complex, the Mayborn Museum Complex which is a $23 million project; we have a parking garage and office facility as well; we have a panhellenic building; we have a marina that we are renovating and extending. These projects alone, that we've either already started or will start within the next few months, add an additional $152 million to the $85-86 million of investment that the university has already made in the Brazos River Corridor.

I can tell, as well, that along the river we have other aspirations for some other venues. We were the first university in the U.S. to put forward a proposal for the George W. Bush Library; we have a major proposal that we are sending on to the White House. Of course, there are other universities in competition for that as well. We hope to achieve success in that area, but we have significant land there that will be very important for us either for the library or for other significant projects in our master plan.

So again, this corridor is very important to the university. Loop 574 is something that will have a very positive impact, we believe, for Waco and Central Texas, and I can tell you that the investment that we've made already as a university there is very considerable, both in the recent past and in the future. So we would appreciate very much your support of this project. Loop 574, I think, in terms of the movement of traffic and the movement of people, with the additional venues that we have, is the most critical piece of the transportation puzzle for us as a university.

Thank you very much.

MS. MILLS: Good morning, Chairman Johnson, Commissioner Nichols, Commissioner Williamson. I'm Margaret Mills, executive director of Downtown Waco, Inc., a not-for-profit economic development corporation that's responsibilities are for the revitalization of the central business district, and we are also the city's contractor for the development of the Brazos River Corridor. It's our responsibility to facilitate quality development throughout the 12-1/2 mile Brazos River Corridor which is within the boundaries of a federally designated enterprise community.

An area challenged economically, the corridor winds its way through the central business district. While the downtown business district has experienced significant growth and reinvestment in recent years, with the consolidation of the State of Texas offices in downtown, the centralization of federal, county and city offices, as well as arts facilities, specialty retail, loft apartments, fine dining, the east side of the corridor remains economically challenged. Once a thriving commercial district, Elm Avenue on the east side of the river -- which was also shown in the video -- is a targeted development area for the City of Waco. Historically significant buildings, as well as developable land are adjacent to the proposed Loop 574.

We urge your support of this loop which will enhance the access to Baylor University, our central business district, Waco's finest museum and performing arts facilities, McLennan Community College, Cameron Park Zoo, the Mammoth Site, the Waco Regional Airport. Recently named the third most visited museum in Texas, the Texas Ranger Museum is located adjacent to the Texas Sports Hall of Fame and Baylor's proposed Mayborn Natural Science Center and Cultural History Museum, offering tourists and Wacoans alike a diverse museum complex in the heart of the Brazos Corridor.

The proposed Loop 574 assures the revitalization of Elm Avenue and the strengthening of East Waco neighborhoods, while offering key development opportunities throughout the Brazos Corridor. A favorable decision on this project will provide the needed stimulus to assure quality development throughout the enterprise community.

We thank you very much for this opportunity to speak to you today, for providing us this time, and I particularly appreciate your service on this commission and your commitment to the diverse interests of Texans. Thank you very much.

MAYOR ETHRIDGE: Thank you, Robert and Margaret.

We talked a little bit about the value of this to our community, and I want to emphasize again what the City of Waco wishes to do in support of this project. The video alluded to the maintenance swap which would result in your having I think it's five miles less maintenance, so we think that's a very efficient plan and we are anxious to go forward with that.

The city will, of course, be responsible for 100 percent of the costs associated with right of way acquisition and relocation of utilities, and in addition to that, the City of Waco will contribute $750,000 to the project. We have upped the ante and sweetened the pot a little bit -- the last time I spoke to you, that was a paltry $500,000. The Waco District is going to match that amount from their discretionary funds if this project goes forward.

So we think that the project is not only a good one from the standpoint of very sound transportation planning, we think it's an excellent project in terms of the leveraging of public dollars by bringing together the state and the district and the local dollars. We think that the taxpayers are very well served by that kind of arrangement.

Just to sum up, we think that this project is going to allow people to move into and through our city much more efficiently; we think it's going to help connect key attractions; we think it is a vital piece in terms of opening up an area that's been economically depressed and we think it would really enhance the prosperity and the potential development of that area; and we also think it is a key corridor for Baylor University which, as Dr. Sloan described, is very happily growing and prospering in our community.

One other thing that I would mention that was alluded to briefly in the video, one of the ways this would help is really to eliminate a lot of driver confusion. There's one particular spot where you really can't figure out how to get anywhere from there because there are just too many signs, too much confusion. And actually we had ten more people who were coming down but I just had a call and they're lost up there.

So I think it makes sense for a number of reasons, and this project has also been in the planning since 1985 and I think the time really has come for this to be funded. So I hope very much that we'll be able to go forward with this project and that you can provide the funding this year.

I do want to thank you for your time and your kind attention today. I know that as policy-makers you have a very big balancing act to do with scarce resources, and we do appreciate the efforts that you make and want to thank you again for hearing us out today. And I want to renew one promise that I did make to you the last time I was here. I said that if you would fund this that we would -- we being all of the people that came here with me -- we would say nice things about you everywhere that we go, and I do want to renew that promise. And I know some of you are relieved that your mothers could finally hear something good and that seemed to be something you wanted.

We do appreciate you and thank you for your time today.

MR. JOHNSON: Wonderful offer. Any questions?

MR. WILLIAMSON: I want to ask her a question in a moment, Mr. Chairman, but I'd like to ask Mr. Skopik a question first.

MR. JOHNSON: Sure.

MR. WILLIAMSON: Richard, to your knowledge, has there been any thought given to Loop 574 being a toll road?

MR. SKOPIK: No, sir, no thought has been given to that.

MR. WILLIAMSON: Do you have any, just off the top of your head -- and I know department employees don't like to do that -- do you have, off the top of your head, any idea how many vehicles would use this loop in a regular 24-hour day?

MR. SKOPIK: It would probably range from somewhere between 4- to 10,000 upon opening.

MR. WILLIAMSON: And then one last question, have you started talking at all with Waco or McLennan County and/or Bell County and other Central Texas towns about a regional mobility authority?

MR. SKOPIK: Yes, we have, we have started that.

MR. WILLIAMSON: Thank you, Richard.

Mayor, I don't want to give you the wrong impression. The chairman is very consistent in bringing before the commissioners and staff individual presentations that are made during these things, and it will be considered -- I'm sure that's what he's going to tell you -- without regard to the questions that I'm asking you about RMA, but it seems to me that this might be a worthwhile project for a regional mobility authority to be formed around and for the state to consider using toll equity money to help make this project real and to begin to generate local toll revenue to pay for other local toll projects.

It would be my hope that as we're considering the request to fund it as a free road that leaders in Waco and McLennan County and at Baylor University, because one of the things about this new law -- I'm fond of using A&M as an example -- there's not any reason why A&M can't help finance a toll road from Bryan-College Station to Houston, and there's really not any reason why Baylor University can't help finance it on the part of a toll road also. So just something to think about.

I know it's new to all of us and we're feeling our way through it, but my personal urging would be to consider whether or not this makes sense. If 100 percent of the traffic is going to be McLennan County citizens, then take the opportunity to begin to build a revenue-generating asset that McLennan County citizens can benefit from. Just my thoughts.

MAYOR ETHRIDGE: Well, I appreciate those comments. We have had at our metropolitan planning organization -- we have begun -- and of course, it is all very new to us -- to look at those possibilities, and I know it's important to the commission because I know you're challenged to stretch your dollars as well as you can, and we will certainly move forward to do the organization that has to be done. I don't know whether this is the best candidate for a first attempt there, but we're certainly open to guidance from the commission on how to take the best advantage of these new opportunities that we're just beginning to learn about.

MR. WILLIAMSON: Well, I think each commissioner has said many times publicly in all parts of the state if a community chooses to form an RMA and take a project that would have gotten in the long line for state approval and build it as a toll facility, the commission intends to continue to invest gas tax money in communities. In other words, it's not money you would lose, but we're trying to get communities to focus on if toll roads are the revenue-generator for expansion in the future -- and right now we think they are -- then anytime you've got a road that's almost purely locally used, take advantage of that, ask us for assistance in building that toll road, and keep those tolls yourself and invest them in your community. I mean, it's just logical to us, but anyway, you've given me the answer.

Thank you, Chair.

MAYOR ETHRIDGE: Thank you very much. Any other questions?

MR. JOHNSON: Robert, did you have anything?

MR. NICHOLS: Yes. Just adding on to what Ric was talking about, if you do a local toll project like that, because those monies are leveraged in that toll project, you end up building three projects or three times as much project for the same amount of money. For the amount of money that will eventually be put into this, you could have had three times as much construction plus a potential revenue source. So even if this one may or may not work, I would encourage you as a community and as you're looking at the entire region, on your next projects -- and I think you'll have more leadership also coming from the district and from our staff here to help you guide in that direction -- for which projects longer term and then evolve them from the ground up as a toll project. We're going to have to all start thinking in a slightly different direction.

As to this, good job. We've been watching this progress for a number of years and I was going to ask Richard a couple of questions too, or maybe our Executive Director Mike. We're through with the record of decision on the environmental. What percent of the right of way has the city obtained at this point?

MR. SKOPIK: No right of way has been acquired at this point.

MR. NICHOLS: My notes say: Right of way acquisition by the city should be completed by this fall.

MR. SKOPIK: That's right. Really, the parcels that have to be acquired are fairly large parcels, in terms of numbers, the numbers are, I'm thinking, are less than a dozen parcels. I may be incorrect because of some recent things that have happened where things have been subdivided, and I don't want to step out here because the city is taking the lead on the right of way, but they're anticipating some donations, or are at least working in that direction, but that's purely their business and I'm not prepared to really speak to that.

But the bottom line is I see no reason for the right of way not to be acquired in that time frame at this point.

MAYOR ETHRIDGE: We do believe we can meet that time line.

MR. NICHOLS: And I think it's an excellent idea that you are trying to obtain the right of way as opposed to TxDOT, regardless of who ends up paying for it, because what happens when the locals acquire it from local people, they're able to do a better job, in some cases obtain a donation, things of that nature; whereas, for some reason when the state steps up to try to acquire, people see dollar marks and it costs us all more money. But we do feel like we can have the right of way by this fall?

What about when that right of way is obtained, will there be a lot of utility relocation? I know it said $200,000.

MR. SKOPIK: I would say that on this project, compared to most projects, it's on the lighter side because really where the utility adjustments have to be made is around where the connection is to I-35 and then there's another connection on the other end of the project where it connects to Business 6, or Highway 6, the spur that goes over to Highway 6 and Business 77. They're all kind of clustered together on what I call the south end of the project.

MR. NICHOLS: The construction plans, what percent completed are those?

MR. SKOPIK: Ninety-nine percent.

MR. NICHOLS: So we're almost through, okay. The fact that it was put in Priority 2 some time ago was an absolute commitment by the commission that it will be built, and usually, as the right of way progresses and the drawings and engineering plans progress, that at a certain point of completion we're looking for the opportunity to flag, so we're basically there now. I hope something doesn't get snagged on the right of way. So all that's great.

Also, I commend you for what I think is a very clever idea of swapping out city streets for state roads, because it does get awkward down there. There is a tendency, as we move and build new things, we retain old highways -- obviously because they're state -- that really in effect are city streets but we end up maintaining them. So if we could pick and trade out like that, I think it does make sense -- that's my personal feeling. So I compliment you on that.

You've got a great district engineer. I know he's real bashful but he's glad to be back home, I know that.

On the Highway 6 connection, the Highway 6, as I think you mentioned, was one of the Phase One Corridors that's identified to be four-lane divided basically all the way to Houston, so as that thing gets nearer to completion as a four-lane, you're going to have an increased amount of traffic feeding into Waco in that area, so a connector will become even more important.

Thank you for answering the questions and I appreciate the presentation.

MAYOR ETHRIDGE: Thank you all.

MR. JOHNSON: Mayor, I'm glad that you brought up the MPO. I know that the director Hugh McNeely has been working with TxDOT on the re-authorization of TEA-21 and that's a very vital partnership because we're in the sixth year of TEA-21 and we'll go to the federal government for a re-authorization of the Highway Act and it will cover the next six years, and it's extremely vital to all Texans who use our transportation system as to how that looks and what we're able to benefit from it, and his work is greatly appreciated.

Excellent presentation. I did want to ask President Sloan about this marina and what courses I needed to sign up to take at Baylor so I could use the new marina. Is that part of the educational program or is this a recreation element?

DR. SLOAN: Well, no. It's part of the educational program and recreation. Our so-called PE human performance area uses it, and I have to tell you there's a lot of traffic, seriously, from outside the state that comes to the Brazos River Corridor. We've had schools from the north who have skull and crew teams come to Waco to work out, and in the future, we plan to start a varsity women's crew, so anyway, but we get a lot of out-of-state traffic.

MR. JOHNSON: Terrific. Well, once again, extremely well thought out presentation, and as Ric alluded to, we don't make decisions on the spot, but we're optimistic that we'll get there. Thank you so much.

We'll take a brief recess so that our friends from Waco and McLennan County can return home.

(Whereupon, a brief recess was taken.)

P R O C E E D I N G S (RESUMED)

MR. JOHNSON: We will reconvene the meeting. Before we begin, let me remind you that if anyone would like to address the commission, please fill out a card at the registration table in the lobby. We would ask that if it is an agenda item that you request to speak on that you fill out a yellow card and identify the specific agenda item. We would also mention that if it is not an agenda item and you would like to address the commission at the open comment period at the end of the meeting, we would ask that you fill out a blue card for that purpose. And please keep in mind that we would request that each of your comments be held to a maximum of three minutes.

We will begin the meeting with approval of the minutes of our commission meeting in February.

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

Mike, I believe we'll turn the agenda over to you.

MR. BEHRENS: Thank you, Mr. Chairman. We'll move to agenda item 3 which concerns Aviation and funding of improvement projects. This will be presented by Karon Wiedemann.

MS. WIEDEMANN: Good morning. I'm here to present item number 3. This minute order requests approval of 14 airport improvement grants. The total estimated cost of all of these improvements is $9,405,464; this consists of $6,519,198 in federal funds, $1,918,269 in state funds, and $967,997 in your local matching funds. That is shown on your Exhibit A to the minute order.

We held our public hearing on March 11; no comments were received. We recommend approval of the minute order.

MR. JOHNSON: Any questions?

MR. NICHOLS: I'll so move.

MR. JOHNSON: Second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MR. BEHRENS: Agenda item 4, Public Transportation. Margot Massey will present three minute orders for your consideration.

MS. MASSEY: I'm Margot Massey, director of the Public Transportation Division.

I was pleased to see Richard Skopik here in support of item 4(a) toll credits for the City of Waco. This will be Phase 2 of a building project where they have sought and received, on their own, federal discretionary funds. We recommend your approval of toll credits as match in the amount of $408,000.

MR. JOHNSON: Any questions?

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Margot.

MS. MASSEY: The second item is an award of discretionary funds for vehicle capital replacement based on programming flexible federal funds, $5 million in federal funds and a little bit of leftover balance from previous years. This will be distributed to urban and rural transit systems around the state based on depreciation and replacement costs. All of the equipment will be alternatively fueled. We recommend your approval.

MR. WILLIAMSON: Question.

MR. JOHNSON: Yes, sir.

MR. WILLIAMSON: First of all, Margot, I want to say once again how much I appreciate your taking my personal interest in alternative fuels to heart; I know it's been difficult for you, I'm aware that you've had a lot of complaints. I need to ask you if a process for getting exempted from that is in place that you feel comfortable about. Is it now possible for people to say we just can't do it and here's why?

MS. MASSEY: Yes. We've recently released those waiver procedures, and I think it addresses those cases where it's not feasible at this time.

MR. WILLIAMSON: And then secondly, Mr. Chairman, sort of in light of the embarrassment that citizens of our state brought to you earlier in the week, I wonder if we're doing an adequate job in making sure that the public, and in particular Tommy and his crowd, understand that we are the most advanced state agency in the State of Texas in promoting alternative fuels as a replacement to diesel fuel vehicles.

MS. MASSEY: I think we can definitely improve our efforts there. We've been so focused on the planning part of this process and fueling issues and facilities issues.

MR. WILLIAMSON: I want to say for the record I just find it bizarre that people who purport to be interested only in clean air -- and I can only hope they're not interested in some other political agenda they wish not to discuss -- would embarrass the agency of the state which is leading the way in moving away from diesel emissions, and I want to be sure we're doing our part to make those citizens understand how hard we're working.

MS. MASSEY: Yes, sir.

MR. WILLIAMSON: So every effort that we can take, Mr. Behrens, we ought to take to remind these people that we're doing our share to clean up the air.

The third thing is are we overlooking either emotional credit or financial credit that might be available to us through the federal government by making sure they understand how focused we are on shifting to alternative fuels?

MS. MASSEY: I believe the recognition is certainly there. I was recently in a meeting with folks from the Environmental Protection Agency and they're aware of the bold initiative that we are undertaking here, and certainly the U.S. Department of Transportation is aware of it as well.

MR. WILLIAMSON: Subject to other questions, Mr. Chairman, I so move.

MR. NICHOLS: Was that a motion?

MR. JOHNSON: Yes, it was a motion.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MS. MASSEY: The third item we have for you is our federal formula program for rural transit, the Section 5311 program, our annual program of projects for you. And again, all vehicles identified or to be funded through these contracts will be alternatively fueled. We recommend your approval.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MS. MASSEY: Thank you.

MR. JOHNSON: Margot, thank you very much.

MR. BEHRENS: We have agenda item 5, beginning with 5(a) Proposed Rules for Adoption, the first being rules concerning our Environmental Policy. Ken Bohuslav.

MR. K. BOHUSLAV: My name is Ken Bohuslav and I'm the director of the Design Division.

The minute order we have for your consideration today proposes amendments to Section 2.62 and 2.65 to the department's Environmental Policy contained in Title 43, Part 1, Chapter 2, Sub-chapter (d) of the Texas Administrative Code. Currently the Landscape Cost Sharing Program allows private businesses and civic organizations to participate in financing state system landscape improvements through local governments. The proposed amendments to Section 2.62 and 2.65 will allow private businesses and civic organizations to participate in the cost of materials and labor of the landscaping directly with the department.

Staff recommends your approval of the minute order to propose these rules for publication in the Texas Register.

MR. WILLIAMSON: So Mr. Chairman, is this the next step in what has been a series of steps to empower the department to be more entrepreneurial in serving its citizens?

MR. JOHNSON: Hopefully we're headed in that direction in encouraging people to participate with us in projects which will improve aesthetics of our roadways.

MR. WILLIAMSON: Excellent. So moved.

MR. NICHOLS: Second.

MR. JOHNSON: Ken, before we vote, a question. What about maintenance of these landscaping projects? Is that still going to be a department issue or do we accept contributions for maintenance?

MR. K. BOHUSLAV: We accept the contributions for maintenance as well.

MR. JOHNSON: Will the signs be similar to what we see in the Adopt-a-Highway?

MR. K. BOHUSLAV: I'm getting a head shake yes.

MR. JOHNSON: Okay, great. There is a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MR. BEHRENS: We have item 5(a)(2), Chapter 9 which refers to rules for Contract Management.

MR. MONROE: Good morning, commissioners. My name is Richard Monroe. I'm the general counsel for the department.

If you approve this minute order, we will publish for public comment a revision of 43 TAC 9.4. It was recently brought to my office's attention by the gentleman who manages that function of the Office of Civil Rights that this particular provision of the rules could be more exactly stated and far more informative than it is at this time. We have so modified that particular section of our rules to make it plain that it does not apply just to equal employment matters but it applies to everything touching on civil rights as it relates to our contracts; therefore, better putting the public on notice what we expect of them and what our charge is. Therefore, I would recommend that you approve the minute order so that we can publish this revision of the rule.

MR. WILLIAMSON: So moved.

MR. JOHNSON: Questions?

MR. NICHOLS: A comment and then I'll second. I like the beard; it's coming along real good.

MR. MONROE: Well, thank you. You were my inspiration.

(General laughter.)

MR. NICHOLS: That was a second.

MR. JOHNSON: All in favor of the motion, please signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. MONROE: Thanks for everything.

MR. BEHRENS: Agenda item 5(a)(2)(b) which would be amendments to Highway Improvement Contracts.

MR. T. BOHUSLAV: Good morning, commissioners. My name is Thomas Bohuslav, director of the Construction Division.

Item 5(a)(2)(b) proposes amendments to Sections 9.10, 9.11, 9.13, 9.14, and 9.16 through 9.18 related to Highway Improvement Contracts. These rules address considerations for proposals with contractor bidders. This will allow you to reject bids if there is a mathematical mistake in a contractor's bid. Do you have any questions?

MR. WILLIAMSON: So Mr. Chairman, this is another step the department is taking in setting the rules and regulations up such that we act more like a business, more entrepreneurial, not afraid of risks and can move a little bit faster. Is that how I would interpret that?

MR. JOHNSON: I think that's a good interpretation.

MR. WILLIAMSON: And Thomas, you're sending these out now for comment from the public?

MR. T. BOHUSLAV: Yes, sir.

MR. WILLIAMSON: Keeping with the commission's desire to send out to the public proposals and seriously encourage comment and take into consideration that comment.

MR. T. BOHUSLAV: Yes, sir, and we will be discussing this with contractors and we already have.

MR. WILLIAMSON: Excellent move, Thomas, excellent move. So moved.

MR. JOHNSON: Do you have any observations or questions?

MR. NICHOLS: I had an observation and then I'll second it. Observation being I'll echo what Commissioner Williamson said, but also, we're kind of moving out on new territory here related to bids which we've had conversations related to this. As we delve out into it and time moves on and we actually go through a few of these real situations, we also need to be prepared that if it doesn't work well that way to come back quickly and modify these things or do whatever we need to do to fix it. So anyway, that's a second.

MR. JOHNSON: A motion and a second made. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Thomas.

MR. T. BOHUSLAV: Item 5(a)(3) -- am I next?

MR. BEHRENS: No.

MR. T. BOHUSLAV: I'm sorry.

MR. BEHRENS: We're first going to agenda item 5(a)(2)(c) which would involve Contract Claims Rules for Toll Projects. Phil Russell.

MR. RUSSELL: Good morning, commissioners. For the record, my name is Phillip Russell, the director of the Texas Turnpike Authority Division.

The rule I bring to you today deals with contract claims resolutions. Generally speaking, there are two statutory provisions that provide for contract claims resolutions for state agencies. Generally, the Government Code Chapter 2260 applies to state agencies; specifically under the Transportation Code, Section 201.112 applies to the department. This department statute applies to aviation contracts, non-toll state highway construction contracts, and contracts for professional services. Toll projects do fall under the broader Government Code Chapter 2260.

This minute order, should you approve it, would provide for a process that is consistent with the general 2260 statute but at the same time would take advantage of the department's tried and true contract claims resolution process. Staff would recommend your approval.

MR. JOHNSON: Questions, comments?

MR. WILLIAMSON: Generally, Phil, is this going to make it easier to resolve disputes or harder?

MR. RUSSELL: I think this helps clarify the process so that we can take advantage of some of the department's procedures. Under that framework, it should make it easier.

MR. WILLIAMSON: So it makes the rules of the game more clear to everybody.

MR. RUSSELL: Yes, sir.

MR. WILLIAMSON: That's my only question.

MR. NICHOLS: Was that a motion?

MR. WILLIAMSON: I move.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Phil.

MR. BEHRENS: Agenda item 5(a)(3), now, Thomas, you can talk about Contract Management.

MR. JOHNSON: Thomas, you know that when someone bats out of order, it's an automatic out.

MR. T. BOHUSLAV: Well, the reason I tried to do that is because I knew I would have to raise this podium again.

(General laughter.)

MR. T. BOHUSLAV: Item 5(a)(3) is for the repeal of Section 9.6 through 9.8 and 29.21 through 29.26 and new sections 9.100 through 9.110 concerning contractor sanctions. These rules will include sanctions for contractors that do not perform, do not execute contracts, in addition to our current requirements for bidding crimes. Do you have any questions?

MR. WILLIAMSON: So when we put these out for comment, and unless they're changed radically and we adopt them, we've basically said to the public the commission now takes it seriously that when you make a proposal you need to be prepared to stick with your proposal, and if you didn't intend to stick with it in the first place unless certain things happened, there will be penalties associated with that kind of behavior.

MR. T. BOHUSLAV: Yes, sir.

MR. WILLIAMSON: So once again, the department takes another step towards treating the Department of Transportation as a business and operating quickly and efficiently to resolve disputes.

MR. T. BOHUSLAV: Yes, sir.

MR. WILLIAMSON: I'm real impressed with this stuff we're seeing, Mr. Chairman.

MR. JOHNSON: That's great. Robert, did you have a question?

MR. NICHOLS: I'll move.

MR. WILLIAMSON: I second.

MR. JOHNSON: I have one question, Thomas -- actually it's an observation and it's one of the points. I don't know if we used a template of what others might be doing in this arena, but one of the provisions calls for a debarment for no more than 36 months for a bidding crime or fraud and related conduct. You know, my sense is that if it's premeditated bidding crime or premeditated fraud that that's an extremely serious offense, and I'm wondering if not to exceed 36 months is sufficient punishment to deter or to discourage behavior like that now. I just throw that open as an observation.

MR. T. BOHUSLAV: If they're convicted on a federal offense in a federal court and they're debarred by the federal government, they'll be debarred for the period of debarment by the federal government, so if it's a permanent debarment, we would apply that to the contractor in our state as well.

MR. JOHNSON: Good. There's a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. BEHRENS: Agenda item 5(a)(4) will be presented by Carlos Lopez pertaining to Safe Routes to School.

MR. JOHNSON: Carlos, there's a switch there that you can lower it.<