STAFF:

MICHAEL W. BEHRENS, P.E., Executive Director
STEVE SIMMONS, Deputy Executive Director
RICHARD MONROE, General Counsel
ROGER POLSON, Executive Assistant to the Deputy Executive Director
DEE HERNANDEZ, Chief Minute Clerk

PROCEEDINGS

MR. WILLIAMSON: Good morning. It is now 9:10 a.m. and I call the June 2005 meeting of the Texas Transportation Commission to order. It is a pleasure to have all of you here this morning and please note for the record that public notice of this meeting containing all items on the agenda was filed with the office of the Secretary of State at 1:33 p.m. on June 22, 2005.

Before we begin today's meeting, as we always do, please take a moment to join with me and reaching into your pocket or purse and pulling out your pager, your telephone, your dewberry and whatever else you carry to remind you about life’s travails and put those items on the silent or vibrate mode so that we might not be rudely disrupted in our deliberations. Thank you very much.

This is a sad and joyous day. Normally we would recognize each commissioner for remarks and see what their business, but we have some special business to take care of and at this time I would like to recognize Commissioner Nichols who will have a statement to enter into the record.

Mr. NICHOLS: Good morning. Also I appreciate all of you being here as the Commission does its business. I sent a letter to Governor Perry this morning as well as copies to the Executive Director Mike Behrens and the other commissioners and the department and I think I’ll just read the letter and I think it will be self-explanatory.

"Dear Governor Perry, it is with great regret but no hesitation that I resign my position with the Texas Transportation Commission effective June 30 -- that’s today, at 8:00 a.m. It has been one of my life’s greatest honors to have been appointed by both you and former Governor George W. Bush to this position of responsibility that impacts the daily lives of Texas citizens and businesses.

"It has been an honor to have been confirmed twice by the Texas Senate and have served with six distinguished commissioners. I have made clear my intention to announce for Texas Senate District 3 if and when Senator Staples makes a formal announcement seeking another office. While the Attorney General’s opinion indicates that I do not need to resign until I file for a place in the Republican primary, I do not consider it ethical or proper to vote on projects within that district, or approve contracts, while seeking elective office.

"I’ll leave with the confidence and knowledge that the department is in its best shape in decades. During the past eight years, the department has tripled the number of roadway construction projects being built each year; brought more local control and input into the project programming and selection process, including funding allocation; dramatically increased safety projects; approved the establishment of five regional mobility authorities for the acceleration of transportation projects under local control; accelerated reconstruction of bridges both on and off the state system; funded and scheduled ninety percent of highway projects planned for the next twelve years to be built in half the time; established and accelerated construction of corridors throughout the state on the Texas trunk system; passed historic rail legislation and signed working agreements with major railroads for the relocation and preservation of rail corridors; improved the overall physical condition of the existing state system; given Texas voters a choice in clearing traffic congestion by offering an historic constitutional amendment resulting in the immediate construction of the 55-mile, 2.7 billion dollar Central Texas system with more to come; begun implementation of the Trans-Texas Corridor with the signing of the development agreement for the 6 billion dollar concession proposal paralleling I-35.

"Instead of costing taxpayers it will add an additional 1.2 billion dollars to transportation along the corridor while insuring property rights protections for landowners. Currently, a project is underway, either large or small, every six miles on the Texas highway system. Most importantly, without additional employees or raising fees or taxes, the commission has increased production and safety to the benefit of Texans.

"These accomplishments would have not been possible without the policies, programs, new legislative tools with which you have been instrumental. The administration, under the leadership of Mike Behrens, is outstanding. The men and women running the divisions, districts and other offices of TXDOT are intelligent, motivated and stable.

"The employees of the Texas Department of Transportation are some of the most dedicated with which I have ever worked. Their willingness to go the extra mile for the system of Texas is unmatched and I will truly miss them. As I travel, I will never look at a highway or road crew the same again. I thank you for the confidence you have shown me."

MR. WILLIAMSON: We’re going to have the opportunity in a moment to continue to say our thanks to Robert. At this time I need to recognize the fellow commission member on my immediate right, or my far right, Ted Houghton. Ted.

MR. HOUGHTON: This is extremely difficult for me. When I first came on to the commission, I looked for a godfather and he sits right down to my left here, and he has served as a great mentor to me, and yesterday was the first time that I sat in a Trans-Texas Corridor negotiation meeting that Robert and I have been working on over the last, what year, a little over a year, a year, and he wasn’t there. And we had a room full of people, a conference call going on.

I said, Folks, there’s good news and bad news about all this. The good news is I’m not the detail person and I do not have the panache for detail like Commissioner Nichols does. But the bad news is when he’s elected as your state -- as a state senator and he is in charge of a committee of infrastructure and transportation, there'll be no BS-ing this guy.

And I want to offer my congratulations and I look forward to working with you in another capacity, Robert. Thank you very much for your leadership.

MR. WILLIAMSON: Hope Andrade.

MS. ANDRADE: Commissioner, I think there is a reason that somebody put a box of Kleenex here in front of me, but as I told you earlier, thank you for everything that you have done for this department. You certainly have left your mark here. And thank you for everything that you did during my new year as a commissioner.

Everything that we see and we hear is something that you either started or that you looked at or that you felt that needed attention and you will be missed. And as I told you earlier, it must be wonderful for you to feel the void that you are going to leave here and that all your friends are missing you and that when you’re across the street we’re going to look forward to going over there and asking for help. But good luck, and I wish you the best and remember that you have a good friend in San Antonio.

MR. WILLIAMSON: At this time I am going to hold my remarks as I do for last. At this time I would like to recognize Kris Heckmann personal representative of Governor Perry.

MR. HECKMANN: Good morning. I actually think in the four years that I’ve been here this is the first time that I’ve stood at this podium. So it’s very good, a good action. The Governor couldn’t be here this morning. He’s traveling the state working on school finance and such but he wrote a little note that he asked me to read you, Robert.

It says "Dear Robert, as you resign your post as Commissioner I would like to express my appreciation for your eight years of service on the Texas Transportation Commission. Throughout your tenure on the commission you have played a major role in the formation and implementation of the most remarkable transportation policy in the nation.

"You embraced the job of commissioner like few before you. Your intelligence, engaging personality and strong work ethic are well known across our state. In the last eight years I think you are the only person in Texas who has traveled more places, eaten more chicken dinners and spoken to more people about state business than I have.

"I am grateful for your contributions as a member of the commission and look forward to your next endeavor. Thank you for your service to the Lone Star State. Sincerely, Rick Perry." Thanks.

MR. WILLIAMSON: Mr. Behrens, I think you have something you need to say.

MR. BEHRENS: Yes, thank you Chairman. I’m honored to read a resolution that was prepared for you commissioner and if you’ll bear with me I’ll read this resolution. It says, "Whereas the Texas Transportation Commission takes great pride in recognizing Robert Lee Nichols for his vigor, good humor and insistent drive to ensure that Texas be known for its excellence of its transportation systems. And, whereas Mr. Nichols, often called the employees’ commissioner, wasted little time after his appointment to learn about the department and to taste the bread. He traveled the whole 25 districts listening to the men and women in the trenches and through his genuine concern earned their respect by identifying mosquitoes. And, whereas Mr. Nichols in the role of transportation commissioner for eight years has provided creative insight, helpful guidance and focused leadership in the development of policy in all operational areas of the Texas Department of Transportation. And, whereas Mr. Nichols has devoted his time and talents to public service with TXDOT since his initial appointment by Governor George W. Bush to the Transportation Commission in May, 1997, and his reappointment by Governor Rick Perry in June, 2003. Whereas Mr. Nichols successfully worked to change the method of collecting motor fuel taxes, moving the point of collection from the distributor/marketer level to the terminal rank, thereby increasing the revenue for transportation and education without raising taxes. And, whereas Mr. Nichols is known as a champion for reducing traffic congestion and increasing traffic safety through effective management of highway access, and he was instrumental in developing the nation's first memoranda of understanding with two rail companies to address rail relocation to areas outside metropolitan boundaries in Texas, and he has worked diligently to help create the Texas Rail Relocation and Improvement Fund. And, whereas Mr. Nichols has shown wisdom in business matters as he has helped lead the Department through the sale of bonds to finance TXDOT’s first toll road, State Highway 130, and as he is in the vanguard of those future-oriented Texans advancing the state’s Trans-Texas Corridor, and as he has devoted his professional life to improving the quality of life for all Texans. Now, therefore, be it resolved that the Texas Transportation Commission, on the occasion of his departure from imminent and active role with the commission, hereby recognizes and thanks Robert L. Nichols, affectionately known as "El Nino," for his effective service on behalf of Texas and its citizens. Presented with pride and gratitude of the Texas Transportation Commission this the 30^th day of June, 2005." And, Commissioner Nichols, signed by your fellow commissioners and endorsed by all the employees of the Texas Department of Transportation.

MR. WILLIAMSON: We would normally offer applause at this time but I have asked you to hold it. We’ve got a few candid photos that Robert’s wife provided us that show you the real Robert Nichols. So maybe she didn’t, maybe they were department photos. We’d like to share them with you.

That’s just sort of a smaller version of what we will share with the public here in about a month or two when we show you an appreciation dinner. The way, this is a very unusual situation so we had to kind of work out the timing of who said what. I normally reserve the right to speak last but in this case, I think it’s appropriate that we permit Robert to give his last remarks and then we can, again, thank him for his service to the state.

I came into the legislature in 1985 with John Willey and Jack Harris and I think 36 other relatively young and fairly conservative people, so I’ve been in public service 20 years. I remember when Governor Perry asked me to retire and take a role in his campaign for Lieutenant Governor and how difficult it was for me at that time to leave doing something I truly loved, as Jack and John will remember and as I guess a current House member or current Senator would affirm, there is no greater feeling of satisfaction than voluntary, non-professional public service, particularly in the state that you love. And I know for Robert to leave this position at this time I know is an emotionally draining time.

Robert seeks other office and I have no doubt he will be successful so he will be able to apply his public service talents in a different arena but it is constructive, I think, when I have control of this forum, to point out that this one great state, from the booming Republican suburbs of Brazoria to the teeming Democratic suburbs of Brownsville and Harlingen, from the plains of Amarillo to the hustle and bustle of East Dallas, from little old Weatherford to El Paso to San Antonio and all the points in between, we are one great state because men and women like Robert Nichols lay down their private lives and for virtually no money come to this capitol and work hard to promote public policy which sometimes doesn’t make people happy, sometimes makes people mad, but in the end advances the cause of civilization in our state.

We would not be what we are if it weren’t for men and women such as Robert. I’ve thought about the remarks I would want to be in this record when I am long gone and I have decided the best thing I could say about Robert Nichols is a phrase a close friend of transportation shared with me just this morning and that is everyone in this state and particularly the House and Senate members who have watched Robert work the last eight years recognize that this guy is not a show horse but he is the absolute best workhorse transportation has ever had and it is with regret that I watch him leave and it is with joy that I know the entire state will soon have the benefit of his leadership.

Robert, you may say whatever you wish, the floor is yours.

MR. NICHOLS: I think I have pretty much said it. I have truly enjoyed you know the last 8-1/2 years. It’s just been a great time. I regret that I did not get to every single field office in the state. I went to all the districts, I kept a list, I had this map and I had everything marked and whenever I was in an area of the state I would pop in and I made it to 156 of our field offices, little maintenance, they call them barns, that a lot of people never go to.

I appreciate all the support the communities, the industry and the department has helped together to get this job done and I will truly miss all of you. That’s about it.

MR. WILLIAMSON: We thank all of you very much for helping us with this. And we're going to take a couple of minute break. We need to take some pictures. Robert refuses to come back in here after he leaves. So we're going to take our pictures now. And you're welcome to coffee, Cokes, the restroom -- whatever you need to do. We'll take us about five minutes.

(Whereupon, a short recess was taken.)

MR. WILLIAMSON: Resume after our brief recess. At this time I need to approve the minutes of the last meeting -- the meeting of May 26, 2005. Do I have a motion?

MR. HOUGHTON: So moved.

MS. ANDRADE: Second.

MR. WILLIAMSON: I have a motion and a second. All in favor of the motion signify by saying aye.

(A chorus of ayes.)

MR. WILLIAMSON: Opposed, no.

(No response.)

MR. WILLIAMSON: The motion's approved. Minutes -- the motion carries. The minutes are approved.

We seek -- ladies and gentlemen who don't appear with us every month, we seek to accommodate all special requests for people who are on a schedule to return back to home. At the request of my very close friend Kyle Janek the Brazoria County delegation was put at the first and will be permitted to make their presentation first except another Senator and a House member who are on even closer schedules than yours have asked to make their remarks about some items on our agenda. And with your indulgence I would appreciate it if you would let me recognize first Senator Seliger, who represents an inner city Houston area. Oh, no. Maybe that's Amarillo. And, Senator, it's always good to see a friend of transportation at our podium.

SENATOR SELIGER: Thank you, Mr. Chairman. I appreciate the indulgence of Senator Janek while we talk about the inner city West Texas.

And, while it was not part of my remarks, I want to express my great appreciation and admiration for your service to the people of the state of Texas who have to get around the state of Texas and must get their wares and services around the state of Texas. I believe you've had significant impact for the entire state and the people who live here. And I would like to express my appreciation --

MR. NICHOLS: Thank you.

SENATOR SELIGER: -- of your service. And while my remarks refer to an agenda item not yet considered, it is my understanding that there has at this point been a favorable review of the toll credits that were applied to the Midland and Odessa Transportation Authority and how important this is and these environmentally very clean vehicles and the services they will provide the people of this area who, as do all people in West Texas, greatly depend upon their modes of transportation -- and all Texans who depend and will depend in the future on environmentally responsible modes of transportation.

And this will be a program that will be a substantial success for the people of Midland-Odessa, the Permian Basin, and the people of the state of Texas, and for this commission.

And I wanted to express my thanks to all of you and the thanks of the people of Midland-Odessa, Permian Basin, for your consideration of this most worthy project and for projects around the state that bode well, I think, for the future of transportation in the state of Texas.

And Senator Janek will not indulge me for very long. So I just wanted to say thank you and the best of luck to you, sir.

MR. WILLIAMSON: Thank you, Senator. Members, any questions of the Senator?

(No response.)

MR. WILLIAMSON: We, again, thank you for being so aware of the transportation needs of the state. Thank you.

House member Scott Campbell. Are you here, Scott? (Pause.) Also a publisher and an author of note in my home part of the state.

REP. CAMPBELL: Mr. Chairman, members. Thank you for the work you do. I wanted to brag on Commissioner Nichols before he left, but I'll brag on him anyway. Commissioner Nichols has -- I know, as all of you do, understand rural issues which are quite a bit different than some of my colleagues in Dallas and Houston and places.

But Commissioner Nichols visited with me many times about the need to improve our rural roads. And I know Mr. Behrens has been out to see us many times, as have most of you.

But we have a little project that has had some personal -- is a personal project of mine that I have really been pushing for. And I know the folks at the -- at our district office agree that we have an intersection -- I think it's listed in your agenda as Loop 306 and FM 388, which is an area near our Goodfellow Air Force Base, which thankfully we were able to keep open. And those employees use it on a regular basis, as do our folks that work out at Ethicon.

And it's on the Texas trunk system and Ports-to-Plains project. But it was slated I think for 10 or 12 years down the road, and we have been working with the folks out at our district office trying to figure out a way to get this project moved up.

One of my daughter's friends was killed in a terrible accident out there right after she had a child. We've had many, many folks killed and seriously injured. It's a very dangerous intersection that I travel when we go out to our ranch at Paint Rock.

And I know personally how dangerous it is, regardless of -- I don't know exactly what criteria you use, but this is just something that I know we need because of my growing up in our area out there. And I believe that -- I think Commissioner Nichols and I have had talks about this many times.

I think -- we're just really asking for half of the funding from you all. I think our local folks have figured out how to use their discretionary funding to come up with the rest of the money.

But it's something we need desperately to save lives. It's something we need to improve our infrastructure. And I just ask for your favorable consideration for this project. And we just don't want to see anybody else killed out there. There are crosses on every corner already, and we don't need any more out there.

And so we appreciate your consideration of this and just ask that you keep us in mind. And thanks for everything you do for the rural folks of Texas and for the rest of the state as well.

MR. WILLIAMSON: Representative Campbell, we thank you. Are there any questions or dialogue, members? (No response.) We thank you very much.

The Governor at the beginning of our terms made it clear that strategic priority money should be focused on partnering in the state with new initiatives, pass-through tolls. It should be focused on safety matters and on assisting with retaining our military presence in the state.

And, certainly, the overpass you speak of today falls under the safety and the military matter criteria. I would be surprised if the Commission didn't act favorably later on.

REP. CAMPBELL: I appreciate that. And I'm about to use some of your good roads to head home in just a minute. So thank you again for what you do and thanks for allowing me to speak to you.

MR. WILLIAMSON: Thank you. And we thank the Brazoria delegation for permitting us to let these two members speak. Mike?

MR. BEHRENS: I think we'll go to the delegation.

MR. WILLIAMSON: Very good. Who wants to take control?

JUDGE WILLY: Thank you, Mr. Chairman, members, Mr. Director. I want to thank -- I want to take one moment just to say that we also join you in thanking Commissioner Nichols for the work that he's done. He's been a great friend, and we will certainly miss him in Brazoria County. But we'll keep in touch with him I can assure you.

Brazoria County is before you again today to bring before you our concerns on projects that we feel are important to Brazoria County, both from the evacuation, from the expansion and growth that we're having.

First of all, I'd like to, because the senators are waiting for a bill to come out of committee, allow Senator Jackson and Senator Janek to speak first. So at this point in time, without further ado, I'd like to ask Senator Jackson to step forward.

SENATOR JACKSON: Thank you, Judge Willy and Commissioners, Chairman. I appear before you today -- we were here about two years ago I think it was -- and were talking about some of the needs of Brazoria County -- some of the concerns that I had and I still have. And I know you do as well.

And mainly what's going to happen when we get a Category 3, Category 4, Category 5 -- hopefully not -- hurricane out in the Gulf of Mexico and we have to evacuate Houston and the surrounding area. And it's really going to be a nightmare. And I know our Governor's come up with a plan. We're working on trying to streamline that.

But there are two areas in Brazoria County -- there are really two north-south main evacuation routes that we talked about here a couple of years ago, and that being Highway 36 and that being Highway 288.

Brazoria County is experiencing a huge amount of growth. Pearland area in the northern part of the county is one of the fastest growing areas in the state of Texas.

Highway 288 works very, very well coming out of the south end of the county until you get up to the Pearland area and congestion every day of people commuting in and out going into Houston.

That area I think can be streamlined and work well with some frontage roads and some better access ramps that could be put there that would make that a whole lot more safe and usable for people. And we talked about this a couple of years ago.

I think the Commission suggestion to our delegation at that time was to go back, make some plans, see if you can come up with some local money -- matching money -- to make these projects work. And we have done that. I think you'll hear a lot of testimony following me on a lot more of the details there. We're here. We're ready to go. And we're ready to see how we can partner and make these projects go as quickly as can be.

We've been very, very lucky over the last 20 years on storms in the Gulf. And it's not a question of if; it's just going to be a question of when. It's going to be one of these days we know we'll have to deal with that.

It was very interesting last night discussing with Commissioner Houghton on some of the tools that are in the tool box now to utilize. We talked a little bit about rail and the ability to take on and put in rail projects. And I'm sure we want to discuss that further as we go forward and see if there's a potential there.

But we've got in Brazoria County huge petrochemical investments with some of the major petrochemical complexes there. The Port of Freeport is growing leaps and bounds. There's a new LNG facility that's being built down there now. The dirt excavation work is being performed.

We still have a lot of tourism in the area. The cities and the growth that they are experiencing is really -- it's great for the economy. And we just need to make sure that we can do everything that we can to keep them mobile, as Senator Seliger said a moment ago. That's kind of the lifeblood of the economy is being able to move your goods and services from one place to another.

So as we have to leave and go take up a school finance bill because -- you know, that's a very important element of our state government, too, to make sure that our kids have a -- have the best education that they can possibly have. I think the Senate's going to take this bill up here at ten o'clock. So I'm going to be very, very brief.

But I want to express my appreciation for the work that you all have done. I know over the last year or so with all of the e-mails that I've gotten from people in Travis County about toll roads that you guys have had a long, tough row to hoe in trying to develop policy and making some things happen in ways that are non-conventional to what's happened in the past. So --

MR. WILLIAMSON: I saw a quote in the newspaper today -- this morning about an unrelated topic, but it made me think of the toll road thing. The guy was quoted as saying, this company had whipped him into guacamole, and that's kind of how we feel sometimes. We've been whipped into some smooth cream.

SENATOR JACKSON: Well, I appreciate the work that you guys and girls do. And I know it's not an easy deal. You have a whole lot more requests than you have the resources to deal with.

And my message today is that, pursuant to the advice that the Commission has given our county, we have I think done our part. We're ready and willing and able to ready to go. So we appreciate.

MR. WILLIAMSON: Members, questions or dialogue with Senator Jackson?

MR. HOUGHTON: Senator, I look forward to working with you. I had a nice visit with you last night about all the available -- we call it tools in the tool box -- up for your county -- and not only your county, but counties across the state of Texas to make them have the competitive edge that we need in this global market and economy that we are dealing with. And thank you for your support of transportation.

SENATOR JACKSON: Thank all of y'all.

MR. WILLIAMSON: Well, I didn't know when I was addressing your delegation you were hiding behind one of the bigger fellows in the front, so I didn't realize you were back there -- that your constituents need to know that you were as insistent about starting at ten o'clock as Senator Janek was. And we listen when senators insist.

SENATOR JACKSON: Well, we're going to be over there voting on a -- I think nearly a 400-page bill. And we've got to have about five minutes to read it --

MR. WILLIAMSON: Five minutes to look at it? Yes.

SENATOR JACKSON: Yes -- before we vote.

MR. WILLIAMSON: Things just never change, do they, Mike?

SENATOR JACKSON: Thank you, Commission.

MR. WILLIAMSON: Good to see you, sir.

JUDGE WILLY: Mr. Chairman, members, I'd like to ask Senator Janek to come forward, please. Senator?

SENATOR JANEK: Thank you, Judge, Commissioner, and members. Mr. Chairman and members, I want to thank you. I tell my three young boys that please and thank you go hand in hand. So, first, let me say thank you, not just for the global service that you provide to the people of the state, but for the specifics of what you've done for the Texas Gulf Coast and southeast Texas.

We had a nasty little brouhaha brewing along 610 Loop in Texas -- in Houston because it splits the city of Bellaire. Mr. Trietsch and TxDOT did a tremendous job in dressing up the 610 Loop, putting some aesthetic sound walls and other niceties over there that made it not only more palatable to the people that live there, but a lot nicer for the people that use the freeway.

That's one small example of the work that you do, and I'm grateful for your daily tasks. I don't envy your job, having to pick amongst so many worthy causes. It's one of the toughest jobs in the state. I put it up there with little league coaches and school board members having to say yes or no to so many worthy causes.

The merits of the argument that we're going to make on behalf of Brazoria County are before you. And they're going to articulate what their needs are in Brazoria County far better than I can do.

I would just say this. It is a pleasure to represent the people of Brazoria County. They're good, hard-working, hard-playing, God-fearing people down there. I love them. I love campaigning down there. When they tell you something -- they look you in the eye and tell you something you can pretty much take it to the bank.

They're a pleasure to represent. They rarely ask things of me. I try to make these little visits with you as few and far between as I can. I show up when I think it's important. I'll tell you what you're going to see with Brazoria County is important for mobility, for public safety, for the hopefully distant event that we may have hurricane evacuation needs in that area. It is extremely important.

I'll thank you in advance for your indulgence that I do need to leave to get back over for House Bill 2. The House has sent over a wonderful education reform bill. The Senate's going to see if we can mess it up a little bit.

MR. WILLIAMSON: Members, any dialogue? (No response.) Senator -- and I guess Mike's already left. He's not waiting on me. Oh, no. Both of you have been -- as with Senator Seliger, been stalwart supporters of the transportation needs of the state. And we appreciate that more than we can say.

SENATOR JANEK: It's our pleasure.

MR. WILLIAMSON: You all have been good friends of transportation, and we appreciate it.

SENATOR JANEK: It's our pleasure. Thank you, Mr. Chairman.

MR. WILLIAMSON: Good to see you, sir.

JUDGE WILLY: Thank you, Senator. We appreciate it very much your being here.

At this time, Mr. Chairman, I'd like to call on Representative Glenda Dawson.

REP. DAWSON: Thank you, John. Mr. Chairman, members, I have been asked to speak with you today, not because I am a Representative, but probably because I taught most of these Brazoria County people here.

I was a high school teacher for 33 years. And John Willy and I started transportation needs a long time ago. We went to school together in Angleton. We rode that big old yellow school bus and the school driver -- bus driver would say to us, I will drive home whomever wins this race. So John Willy and I would be put out of the yellow school bus and we would race. And I'm glad to say that I outraced him every time.

This is called in some cases Brazoria County and in some cases it's called Brazoria County. And we call it home. And when I started teaching 36 years ago and taught for 33 years, ladies and gentlemen, I want you to know in Pearland, Texas, of Brazoria County some of my students rode horses to school.

We do not ride horses to school in Pearland any more. We drive cars and we drive lots of cars. And I'm telling you we are inundated with growth. The news is out. And Brazoria County is the place to be. And transportation needs have just become overwhelming.

I am delighted to be in this capacity as a State Representative and to represent such a neat district -- but to be able to appeal to you sincerely and say, we are in need. We need your help, and we appreciate all your efforts.

I will close by simply saying with the group of people we have in leadership in Brazoria County you can depend on us working in a very ethical, sincere manner. We may not have it all together, but together we have it all. And I'm telling you we'll work together and we'll work with you and we thank you sincerely for all the consideration you might give to us. Thank you, ladies and gentlemen. We appreciate it.

MR. WILLIAMSON: Oh, thank you. Members?

REP. DAWSON: You're certainly welcome.

MR. WILLIAMSON: Thank you, Representative. REP. DAWSON: You're certainly welcome.

MR. WILLIAMSON: We appreciate it.

REP. DAWSON: Yes, sir.

JUDGE WILLY: Thank you, Representative. I appreciate that. If I may indulge the Commission, Representative Bonnen was not able to be here. He had a short letter he asked me to read if that's all right.

It says, Dear Chairman and Commissioners, I'd sincerely appreciate your consideration of the vital transportation needs of Brazoria County as presented to you today by the Brazoria County Economic Development Alliance and my fellow legislators representing this community.

I offer my full support of the proposed improvements to State Highway 36 and encourage the Commission to complete construction funding of State Highway 36 from Freeport to Interstate 10. As you are aware, the Governor has designated this highway, along with State Highway 288, as major arteries for hurricane evacuation for the Gulf Coast region.

Additionally, improvements to State Highway 36 are imperative to addressing the congestion caused by significant growth in Brazoria County. By taking these necessary steps to improve mobility we can achieve a better quality environment for southeast Texas.

Again, thank you for taking the time to meet with representatives from Brazoria County who are working to increase awareness of the transportation needs of the county and surrounding communities.

Please do not hesitate to contact me if I can be of assistance to expediting the improvements to State Highway 36 and State Highway 288, which will be of great benefit to the entire region. Sincerely, Dennis Bonnen, District 25.

If I may give this to the --

MR. WILLIAMSON: Yes, sir.

JUDGE WILLY: I would also like to at this time recognize one person. We have Commissioner Stavinoha from Fort Bend County here to show his support for the Highway 36 project coming from and through Fort Bend County. If you would, please.

COMMISSIONER STAVINOHA: Thank you, Judge, Commissioners, Mr. Director. Highway 36 splits my precinct in half, starting at Damon, going through Rosenberg, and going all the way into Wallace Orchard area.

I've always lived within probably four miles of Highway 36. At one time when I first got married my driveway was on Highway 36. Right now I live two miles off of Highway 36. I'm very familiar with the traffic flow down that corridor.

I dread this weekend. The people from Brazoria County will be evacuating to go up to the Hill Country to their deer lease. The people in the Hill Country will be going to their condos on the beach. And it's going to be impossible to get across Highway 36. I've noticed this every weekend when there's a holiday the traffic flow back and forth down 36.

Until 99 gets funded 36 is the corridor that most people use to get in and out of that area. And right now 99 -- it's in limbo how it's going to be built. But, again, 36 is very important, not only to Fort Bend County, but certainly to Brazoria Country, and certainly it needs attention as quickly as possible. Thank you.

MR. WILLIAMSON: Wait, wait, wait, wait. Members, any questions of the Commissioner? (No response.) Oh, okay. Good to see you again.

JUDGE WILLY: Thank you very much. At this time I would like show just a quick video, if I may, sir.

(Showing of video.)

JUDGE WILLY: Members, in the essence of time, I'd like to introduce Commissioner Jack Harris at this time and ask him to step forward.

COMMISSIONER HARRIS: Thank you, Judge. Mr. Chairman, Commissioners, we thank you so much for you allowing us the time to be here today.

I would like to quickly go over some of what we need in regard to Highway 288. You've seen the video presentation. Let me assure you that our growth is not slowing down in our area. The 2000 census we had 241,000 people -- residents in our county. The estimate now for -- through 2004 is over 275,000 and growing rapidly.

You heard about the 22,000 platted new lots that we have in our county ready to be developed. We have another division -- one subdivision of 11,000 acres that will soon be the home to 150,000 more residents.

This thing is not stopping. We're in an unusual situation in that we're just south of the Texas Medical Center, which draws a tremendous number of people to our county to reside. And we're not that far from NASA. And, as a result, we have a number of people who live in our county who go over there.

So, obviously, we need help. 288 is already crowded, as we told you last year. It's gotten worse. It's not going to get any better.

So, you know, besides hurricanes, as you saw also, we have to worry about tropical storms. Allison was a tremendous blow to our area, and it really did stop our ability to move around for several days. That's going to always be with us, and we understand that. When you're 40 feet above sea level you've got a problem.

So, anyhow, we'd like to do this first. We'd like to thank you for helping us begin to build the service road from 2234 to Beltway 8. That's in the process, and we appreciate that. It's going to help relieve some. But we need to also do from 518 to 2234. Otherwise, we're going to have a major traffic jam at the Beltway every morning and every evening. We also need direct connectors from 288 to the Beltway.

The other thing that we need we think rapidly -- we've already passed a resolution in the Commissioner's Court -- is to take a look and hopefully do something in regard to two lanes either way in the middle of 288. We think that the traffic now warrants it, and certainly it will, as I say, only get worse as time goes by. So we'd like very much for you to look at that with us and let's see if we can't do either some type of controlled access or whatever is possible in that area. But we need those four lanes and we need them now.

These projects I'm talking about on 288 will certainly aid our economic growth, and, as you can see, would definitely protect our citizens in a catastrophe. And that's the thing that we worry about the most.

So we need your help. We need it now. And we hope you can help us. Thank you so much.

MR. WILLIAMSON: Questions of former House member Harris -- Dr. Harris?

COMMISSIONER HARRIS: And, by the way, Mr. Chairman, I've mentioned to Commissioner Nichols that I was really surprised that you as a former House member did not tell him how terrible the Senate is.

JUDGE WILLY: Thank you, Commissioner Harris. One thing that the videos did not show with regard to the evacuation routes -- first of all, there's two ways out. According to the Governor and the Department of Emergency Management through the Texas Department of Public Safety there are two ways out. East of the Brazos you go 288 to the Beltway and on up to College Station. West of the Brazos Highway 36 to Brenham -- or did I get that backward. Anyway, that's your two ways out.

But let me show you something that really brings to heart where we really are on an evacuation situation. The Texas Department of Public Safety, at the direction of our Governor, asked the Department of Public Safety to use a scenario that would tell us what would happen.

What they did they used the 1961 Hurricane Carla scenario where it was a Cat 4 storm with gusts up to 175, which would be a Cat 5. And the surge that occurred there created 34 deaths in Brazoria County and over $400 million in 1961 dollars.

What they did, they moved the hurricane from the Palacios area as a direct hit. They moved it up to Brazoria County to do a scenario and show what would happen. Now, what I'm going to show you does not include the damage from rainfall and flooding such as we received from Allison.

This is your base coastline map. Note that the Freeport industrial complex is right in the -- well, won't work on that -- is right there where it says Coastline Freeport. Then you have your Chocolate Bayou Plant and industrial complex over at Chocolate Bayou. That's your Monsanto/Solutia/Equistar/Lyondell. And then, of course, Sweeney is over to the west.

Here's what happened. Just -- I'm going to take the categories. A Category 1 storm with a 4.9-foot storm surge will cause some immediate damage. Note the inlets and the rivers starting to build.

Now, let's move to a Category 2, which would cause a 9.9-foot surge. Your petrochemical industry in Chocolate Bayou is under water. Fortunately, the area in Freeport has a levee that's going to keep it out of the water for a while longer.

Go to a Cat 3 with a 15.3-foot surge. See, already you're approaching West Columbia. Lake Jackson is going to be really suffering. Your plants at Chocolate Bayou are just about under water. Now, here we have -- where you have two-thirds of the total petrochemical activity in the United States in this area -- one-third of it's in Brazoria County. You've just inundated a portion of it.

Now we go to a Cat 4 with 18.8-foot surge. And you see it's almost up to West Columbia and pushing toward Angleton and pushing toward Alvin.

Then in a true Cat 5, according to the Texas Department of Public Safety Emergency Management Office, a 22.4-foot surge would inundate even the Dow complex and the industrial complex in the Freeport area. And we have to move these people. That's where we are.

Now, that -- just in that scenario with Hurricane Carla it was 13,900 people that were affected -- over $3.5 billion in damages. And this just reinforces the need to try to save lives in the future.

If we started now it would take four to five years to get fully ready for a full evacuation in Brazoria County. That's five years of hurricane seasons or 30 months of sitting and waiting to see if it's going to happen. Each year we're not hit increases the probability of a storm for the following year.

In 1998 we were funded for Highway 36. In 2004 -- Highway 36 was scheduled for letting in 2004 for the entire corridor from Highway 59 to the Port of Freeport. This project was pulled in 2003 and rescheduled for 2014, except for that portion from Fort Bend to Highway 35.

We came to see you in HGAC -- our Council of Governments -- and said, Here's our problem. We need help on the State Highway 288 expansion and the State Highway 36 widening. Two years ago TxDOT told us we -- what we needed to do, and we came back to make sure we heard you right. Last year we were told that we had every reason to be successful, and we appreciate the positive comments.

We took to heart when we were told that all indications -- we had this right to be successful. We didn't make a pledge to our voters without input and approval from the MPO and overlaying our plans on that of TxDOT. We didn't make a pledge to our voters without the input and positive feedback from TxDOT.

TxDOT and HGAC score their projects on the basis of regional significance. So I present to you a unanimous resolution of support from HGAC and our MPO signed by Judge Eckles.

TxDOT and HGAC have scored projects based on leveraged value. So I present you a check for $50 million on behalf of the citizens of Brazoria County. With the special districts chipping in I present you a check for $100 million. I think we've satisfied that leveraged value.

MR. WILLIAMSON: Hey, if you're in the Legislature that's one check for $150 million. That's what that is.

JUDGE WILLY: Well, that's why we wouldn't let the House or Senate have a hold on it. What we're asking for us to move Highway 36 and Highway 288 expansion into the TIP for 2007 or at the latest 2008 funding cycle. Ideally these funds would -- and I'm hurrying because I'm running out of time. Ideally these funds could be secured from funds available through HGAC on the 288 freeway project from Category 2 funds and evacuation funds for Highway 36. But, if necessary, we're asking you to make up the difference from your discretionary funds at your control.

Our county and the safety of 276,000 people and our future growth depends on your action. We believe that we've done our part. We're asking for TxDOT to do its part.

I'd like to have the members of the Brazoria County delegation stand. Gentlemen? Ladies? These are the people that represent.

MR. WILLIAMSON: It looks like a --

JUDGE WILLY: And we thank you for letting us be here.

MR. WILLIAMSON: -- good cross-section.

JUDGE WILLY: And if you have any questions I'll be happy to answer them, sir.

MR. WILLIAMSON: First of all, thank you for a great presentation. Please be seated. I'm going to have a couple of questions.

JUDGE WILLY: Okay.

MR. WILLIAMSON: Pretty all-encompassing. Good presentation all the way around.

JUDGE WILLY: Thank you.

MR. WILLIAMSON: Mr. Houghton?

MR. HOUGHTON: The shortfall is -- if I'm -- my addition is correct, is about 30 million, Mike? Or Amadeo? Who's in charge here? What's the shortfall --

MR. WILLIAMSON: That would be Gary.

MR. HOUGHTON: Gary?

MR. TRIETSCH: Well, just on Highway 36 it's about $50 to $60 million. And 288 -- that doesn't have any funds. But to make it -- add four lanes to it is about another $140 million.

MR. HOUGHTON: So we're talking about $200 million?

MR. TRIETSCH: Yes.

MR. HOUGHTON: Give or take?

MR. TRIETSCH: Yes. Give or take.

MR. HOUGHTON: Give or take.

MR. TRIETSCH: On the projects.

MR. HOUGHTON: And, Judge, your contribution is obviously --

JUDGE WILLY: Obviously, it's $100 million. We have on the books and planned about $400 million in projects, of which some of those are totally county projects. We're not even counting those in the till.

But, just for instance on Highway 36, we have $10 million that we're willing to hand over right now, you know, for whatever purpose that Gary needs it. And, believe me, with regard to Gary, we wouldn't trade him for two speckled puppies. He has been good to us. So when I fuss at TxDOT I'm not fussing at this guy.

MR. WILLIAMSON: Two speckled puppies.

JUDGE WILLY: He's tried very hard to help us. But, in answer to your question, we're willing to do whatever you all wish us to do. We're -- on the expansion of 288 freeway, let us work together on a pass-through toll. Let us work together with HCTRA -- with Harris County Toll Road Authority and create a toll road.

I don't care how we do it. There's -- I know that -- Ric, we talked last night -- or Mr. Commissioner --

MR. WILLIAMSON: No, no. Ric.

JUDGE WILLY: -- talked last night and -- about several ways that we could approach this. There are a lot of ways it can be done. We just need to think outside the box and get the dang job done.

MR. WILLIAMSON: And get it done.

JUDGE WILLY: That's it.

MR. WILLIAMSON: Absolutely.

JUDGE WILLY: Now, Highway 36, that's a Cat 2 -- well, it was Cat 4 until somebody changed the designation to Cat 2. But, you know, that's one that we really need right now. It's already in the -- it's not in the TIP, but we're at least scheduled for down to 35. It's that lower part that we need to get done. That's where you're going to be bringing all those people out.

MR. HOUGHTON: Gary, I'm still confused a little bit by the number. What's the total project cost -- the total project cost --

MR. TRIETSCH: Total project cost --

MR. HOUGHTON: -- without the input -- I mean, the contribution by Brazoria --

MR. TRIETSCH: 120 million on Highway 36. (Pause.) The total on 36 is roughly 170 million. And we've got about 30 million funded. And that includes the right-of-way cost.

MR. HOUGHTON: Right.

MR. TRIETSCH: That's construction and right of way.

MR. HOUGHTON: That's everything.

MR. TRIETSCH: Yes.

MR. HOUGHTON: Including the other --

MR. TRIETSCH: Oh, no, that's just State Highway 36.

MR. HOUGHTON: Okay.

MR. TRIETSCH: 288 -- if my memory is correct that's 100 to $140 million.

(All talking at once.)

MR. TRIETSCH: Oh, okay. On 36 -- it's in Fort Bend and Brazoria County. So I'm talking about the whole project.

MR. HOUGHTON: Okay.

MR. WILLIAMSON: Again, thanks.

COMMISSIONER HARRIS: Mr. Chairman, you and I got elected in 1984. We started serving in 1985. I represented the southern part of Fort Bend County at that time. 36 went through that area. I was promised in 1985 that 36 would be taken care of. It's been that long that road's been sitting there.

MR. WILLIAMSON: Sounds like a familiar story. Yes, sir.

COMMISSIONER HARRIS: Not unusual.

MR. WILLIAMSON: Hope?

MS. ANDRADE: Judge?

JUDGE WILLY: Yes, ma'am.

MS. ANDRADE: Congratulations. You certainly -- your community listened to what we said last year, and you've come back with one solution. You know, this is not the answer to everything that you need.

But I'm sorry that I missed last night's event. I got into Austin about 10:30 I think. Our District Engineer failed to inform me that I-35 had two lanes closed last night, so it took me quite a bit to get here.

But your community is certainly progressive in thinking -- innovative in what you've done. And I congratulate you and I'm extremely proud of what you've done in this short time.

I think that, you know, the fact that you mentioned pass-through tolls -- the fact that you mentioned it -- we still can't get it done as it is now, but we're still willing to sit at the table all together. And so I'm very committed to supporting and working with you on this and seeing if we can't resolve the problem that you have out there. So thank you all so much.

JUDGE WILLY: Thank you very much, Commissioner. And, like I said before -- and I have said before -- if you can't get out of the box they're going to bury you in the box. We think outside the box in Brazoria County and we'll watch other people be buried, but we want to move forward.

Mr. Chairman, if there's no further questions may I give you a handout?

MR. WILLIAMSON: Well, I'm going to have just a couple, John.

JUDGE WILLY: Okay. Certainly.

MR. WILLIAMSON: First of all, I'm just curious. Who's the predominant electric provider in this part of the state? Is it --

JUDGE WILLY: You have two providers. Predominantly, it's Texas/New Mexico Power Company and Reliant -- or the old Houston Lighting and Power.

MR. WILLIAMSON: Is Reliant also known as CenterPoint?

JUDGE WILLY: CenterPoint. That's correct.

MR. WILLIAMSON: Okay. And the Legislature recently extended the TERP program and funded that extension out of some removals of state highway fund money. Does the TERP program affect you all directly or just as part of the Houston/Galveston area?

JUDGE WILLY: More the Houston/Galveston area. I think the program that you're talking about actually was the expansion of those lines to the south. If that's what you're talking about that went around Brazoria County through Fort Bend County.

MR. WILLIAMSON: I was curious though. One of your legislators seemed to be particularly interested in helping CenterPoint Energy at the cost of the Department. And I was just kind of curious if there was a reason.

JUDGE WILLY: No. I'm not familiar, nor have I been advised what the member you're talking about is up to.

MR. WILLIAMSON: No, and we would never mention that member's name publicly.

JUDGE WILLY: No, sir, we wouldn't.

MR. WILLIAMSON: I've just been curious about it. You know, when -- one of the most difficult things in dealing with my former colleagues is to help them understand that every time they take a dollar out of the department for school buses or every time they cost us an additional dollar to reimburse utility companies for their right of ways that is, in fact, a dollar that can't be spent in Brazoria or Harris or Parker County on a road.

JUDGE WILLY: Mr. Chairman, it's dollars that --

MR. WILLIAMSON: It's just hard to get those people --

JUDGE WILLY: It's dollars that we can't multiply. It's not just one dollar. It's lots of dollars that we can't multiply when it's used that way.

MR. WILLIAMSON: It's a difficult thing. Also I would want the new faces in the Brazoria/Fort Bend County area to be sure that we didn't make a mistake on what we had to do in 2003. I know the Judge knows about this, but I want all of you to know.

When Mr. Perry became Governor and we were advising him of the status of the transportation system in the state one of the things we pointed out to him was the construction plan was overcommitted across the state.

JUDGE WILLY: Yes, sir.

MR. WILLIAMSON: And every year every MPO and every county judge and every mayor and every business leader was getting this book -- this happened while you were in Atlanta -- that said, Your project's in the book. You're promised your project. But when you added up the cost of all the projects in the book it exceeded our most optimistic revenues by like 50 percent.

So we were in effect every year -- I don't mean to say this personally about the department -- we were misleading the taxpayers of the state into thinking that their projects were going to get built at some point.

And the Governor didn't want that. He said, I want you to strip it out and make it honest and we'll just go ahead and take the hits and everybody will get mad -- and they did -- people got mad all across the state. But the document's now honest. It's fundable.

I think, Alan, you all did the same process we did all across the state. You internally through local leaders decided which projects to move around. And I think that when 36 got taken back out it was a part of that process and not because we didn't want to honor our word. And now it's time for us to figure out how to put that back together, and we're going to try to do that.

I think you made a great presentation. I think the need is clear. And you know, John, we don't make these decisions here. But I think you and your community can expect that the Governor is most interested in addressing your concerns.

JUDGE WILLY: Well, we thank the Governor and we thank the Commission for allowing us to be here. And anything we can do to be of help to help create new ways of doing things we're going to be first in line to be there with you --

MR. WILLIAMSON: Yes.

JUDGE WILLY: -- when you --

MR. WILLIAMSON: Yes, you all are pretty innovative. Fort Bend County and Brazoria County has been pretty spectacular over the last few years.

JUDGE WILLY: Well, don't forget old Bart Sadler up at Montgomery County. He's been pretty good, too.

MR. WILLIAMSON: Well, and they have -- yes, in the last year they've just -- man, they --

JUDGE WILLY: He's getting one of the first pass-through tolls, so I admire him.

MR. WILLIAMSON: It's good to see you and Jack again. Thank you. And we're going to take a few minutes and let you all excuse yourselves. Gary and Alan, thanks for coming up with the bunch. And take a few moments to stretch and we'll come back in.

(Whereupon, a short recess was taken.)

MR. WILLIAMSON: Michael, the agenda's in your hands.

MR. BEHRENS: Thank you. We're going to agenda item number 3. That's our aviation minute order for the month on various airport improvement projects. Dave?

MR. FULTON: Thank you, Mike. For the record, my name is Dave Fulton, director of the TxDOT Aviation Division.

This minute order contains a request for grant funding approval for four airport improvement projects. The total estimated cost of all requests as shown in Exhibit A is approximately $1.4 million, approximately $1.2 million federal and $140,000 in local funding.

A public hearing was held on May 20, 2005. No comments were received. We would recommend approval of this minute order.

MR. WILLIAMSON: Members, are there questions of Dave?

(No response.)

MR. WILLIAMSON: Do I have a motion?

MR. HOUGHTON: So moved.

MS. ANDRADE: Second.

MR. WILLIAMSON: I have a motion and second. All in favor of the motion signify by saying aye.

(A chorus of ayes.)

MR. WILLIAMSON: All opposed no.

(No response.)

MR. WILLIAMSON: Motion carries.

MR. FULTON: Thank you, sir.

MR. BEHRENS: We'll go to agenda item number 4, which will begin some public transportation agenda items, and the first being a discussion item to lay before the Commission the distribution of toll credits and how that program works. Bobby Killebrew.

MR. KILLEBREW: Good morning again. Commissioners, Mr. Behrens, and Roger. For the record, I'm Bobby Killebrew, Public Transportation Division interim director.

Today I have the pleasure of leading a discussion on item 4, criteria for the distribution of toll credits. (Pause.) I think I -- there it is.

MR. WILLIAMSON: Are we doing --

MR. KILLEBREW: Wrong presentation. (Pause.) As we're bringing this up I'll go ahead and begin. On June 29, 2000, the Commission authorized using toll credits on transit projects. And this is by way of a historical recap of what we've done so far as an agency.

The following August history was made in Texas with the first award of toll credits for a transit project. Hill Country Transit District, operating a small organized system, serving the areas of Killeen, Copperas Cove, and Harker Heights, received a toll credit award for the procurement of transit capital for that new system.

In November 2003 the most recent award of toll credits for transit projects was made to Beaumont and Port Arthur for vehicle procurement.

And on February 24, 2005, the Commission indicated their intention to make toll credits available for the JARC -- that's Job Access Reverse Commute -- Colonias Project, which TxDOT is in the process now of issuing an RFP for project proposals.

The past toll credit awards for transit projects to date total approximately 27 million. The amount of power and innovative financing has or will allow the leveraging of is almost $108 million in federal funds to carry out over 300 transit projects.

Projects benefitting from the use of toll credits range from buses in Killeen, Mesquite, Victoria, Beaumont, Port Arthur, and others, facilities in Lubbock, Longview, Bryan/College Station, and Waco, rail projects in Dallas and Galveston, as well as TxDOT-administered grants which assist nonprofits, rural, and small urban transit systems and the elderly and disabled program and the rural program and in our vehicle capital replacement program.

The Texas Transit Association and the Department have both conducted various surveys over the past several months. A quick review of the survey results for projects where systems have indicated the lapse of their federal funds due to their inability to provide match, and thus the need for toll credits, are in fiscal year '05. We have one system that is scheduled to have a federal grant lapse because of their inability to match.

MR. WILLIAMSON: And what's that system?

MR. KILLEBREW: That system is Midland/Odessa.

MR. WILLIAMSON: And will that be put in local funds -- if we were to approve toll credits today would they be put in local funds with that?

MR. KILLEBREW: Commissioner, I believe there's some representatives from that system here today that would like to speak on that subject regarding their local match ability.

MR. WILLIAMSON: Okay.

MR. KILLEBREW: In fiscal year '06 we have -- found out through the survey that there will be seven systems that will have grants that will lapse because of their inability to match, and they're also requesting toll credits.

Likewise, in fiscal year '07 there's an additional four systems that will have grants that will lapse at that time.

The projects funded with federal funds identified in this table include vehicle replacements, new vehicle fleet expansion, facility construction for maintenance and administrative operations, and facility renovations.

Presented for discussion matters today is a process which involves an annual call for projects. As the points outlined in the discussion are tied to elements which may not currently exist, the approach is phased so that in the short term projects can be considered using criteria applicable for today, and in the long term using criteria which is currently being developed.

And before you now is a table that lists some criteria -- some screening criteria that the Department might consider in addressing proposals in the short term versus the long term. And I'll just go through this table quickly.

The first item in good standing. Currently in the Texas Administrative Code in the public transportation area there is a definition for good standing. And it's recommended that the same be applied to toll credits. And that particular definition reads, A status indicating that the department's Director of Public Transportation has not sent a letter to an entity signifying the entity is in noncompliance with any aspect of a program.

Application as the oversight agency, the Department should be involved from the get-go. Systems which intend to use toll credits should involve the department very early in the process, specifically if these plans are requesting and securing federal earmarks for which the system plans to request toll credits in lieu of local match for funds.

The Federal Transit Administration requires systems to identify at the time of application what their match rate's going to be. Once a system files an application with the Federal Transit Administration they lock in a match ratio. So if a system indicates to FTA we're going to use local funds as the match, a match ratio is locked in. They can't come back after the fact and apply toll credits retroactive and has to be there from the get-go.

Regional endorsement -- as the Department moves forward with regional service planning transit projects should be linked to the local service plan. Until such plans are formalized it's recommended that the regional service planning partners confirm support for the projects.

ITS Projects -- projects falling under the ITS must conform to regional architecture plans as a federal requirement.

Improvements to service delivery and also the business plan -- as short-term criteria transit system would allow the improvement -- excuse me -- as a short-term criteria transit systems would outline the improvement to service delivery. As the department develops and adopts a business plan it's recommended that the transit system -- or that the system detail -- how the project will support or carry out the business plan.

And local contribution -- toll credits are recognized by the Federal Transit Administration as an innovative financing tool. As such, it is recommended that the request assure that the use of toll credits will not decrease overall local funds.

Evaluating the project -- the criteria outlined in this table -- an attainment plan. As provided by House Bill 3588 the department is charged with furthering the state's efforts to reduce air pollution.

Performance and efficiencies -- also provided by House Bill 3588. The legislation speaks to eliminating waste and the provision of public transportation services and generating efficiencies that will permit increased levels of service.

Other Health and Human Service programs and Workforce Commission programs -- as TxDOT's public transportation role has evolved and continues evolving so much the project's funded through the department. Projects should be considered if they can exist and provide benefits outside of the traditional silo programs.

Coordination -- the importance of having a coordinated project, one that will share transportation resources, responsibilities, and activities of various agencies with each for the overall benefit of their community.

As a matter of process, department staff could screen and evaluate projects considering and discussing the requested project's potential benefit to the public -- Texas public transportation system. Each project could be evaluated using the aforementioned criteria as a measure of the quality of the project. Those projects meeting or exceeding an appropriate level or quality could be considered by the commission contingent on the availability of toll credits and other commission priorities.

And, with that, I'll end the discussion and I can answer any questions.

MR. WILLIAMSON: First of all, Bobby, I want to thank you for distilling a complex discussion item to the bullet points the commission needs to focus on.

Members, we do have one person wishing to offer comment in this discussion item. Would you like to question Bobby now or would you prefer to --

MR. HOUGHTON: I'll wait to hear.

MR. WILLIAMSON: Okay. Well, if you'll just sit down for a second, Bobby. We'll hear from Glenn Gadbois. (Pause.) I think -- don't you represent the AGC?

MR. GADBOIS: Exactly. How did you know? Commissioners, Chairman, my name is Glenn Gadbois, and I'm with the Just Transportation Alliance. And we look forward to that time where we will have as good a working partnership with AGC as we apparently have with the department.

As you will notice -- let me just pass these out. (Pause.) Notice, with some conversations with Bobby with PTN -- Killebrew -- and Steve Simmons and Michael Morris and some of the public transportation providers, we have come to much the same conclusion -- or at least same recommendation -- that Bobby has.

Although we want to encourage you to expand out the conversation or at least in terms of thinking about the use of toll credits to expand that to their full application.

What we have done here -- because toll credits are going to become -- we have absolute faith that things are going to fall into place such that toll credits will become in the future one of Texas' more valuable tools in terms of getting all sorts of transportation projects done.

As a consequence we encourage you not to think just about transit when you're thinking about how you implement your rules or how you consider investing toll credits either in the short term or the long term.

As a consequence I ask your indulgence for a moment. I know we e-mailed these to you, but what I'm going to do is just kind of walk you through the highlights of some concepts here that I think are worth noting and thinking about as you move forward.

The first is that toll credits are a valuable investment tool for a number of different kinds of transportation. Those who do rail are very excited and enthusiastic about toll credits. And that could draw down many more toll credits than the state has available right now in terms of the projects that are moving forward.

As we look to the future and the passage of a constitutional referendum and the development of plans and the implement of the rail relocation and improvement program -- or whatever that's going to be called -- as we look forward to regional public transportation planning and how that evolves toll credits will become even more valuable.

As a consequence -- and then I guess we also have in place for now a couple of years -- and certainly evolving, maturing, developing is the Texas Metropolitan Mobility Plan. I think on all of those fronts toll credits will become more and more valuable as the department has more of them and those become more regularly available.

As a consequence what I proposed here is thinking about those different categories of places to invest. And then looking both in the short term and the long term to encourage a structure that promotes or has people coming to you in the way that you want.

As a consequence -- and I'm not tied to these percentages -- I mean, basically, they're kind of rough guesses. I'm not sure anybody -- but I certainly don't know what good percentages for each one of these categories would be in actual fact.

But what I tried to do is develop a structure that showed you, if you invest some in the Texas Metropolitan Mobility Plan in the short term, if you invest some in regional planning and/or transit in small urban in the short term, if you invest some in rail relocation in the short term -- what that does is -- what that is likely to do is to encourage people to work together if they need more money than is in that category.

Or, if they're smart and playing well, then that will encourage those transit folks or those rail folks that are in the metropolitan area to apply to this commission for both.

We have also created a category for commission strategic funding because we think it is in important, especially over the short term, that the commission maintain some -- or as much flexibility as is possible.

As this evolves out, however, and you get the rail plan in place, as you get the regional service planning, for which you have worked so hard, Commissioner, in place, then that will allow us to move from kind of competitive allocations statewide, which are never as strategic, to a strategy of supporting and implementing the plans that these local folks have worked on so hard, in which case you could consider where those plans make sense allocating regionally, in which case, if you will notice on that box on the first page, the long term -- the Texas Metropolitan Mobility Plan category goes way up because what we have done is recognized that there will be needs for rail and there will be need for transit and there will be need for implementation of the Texas Metropolitan Mobility Plan that could all be allocated in one bundle to those regions.

There will also, however, be rail outside of that. There will be transit outside of that. The regional plans outside of that still retain some percentage.

That's the basic layout of the structure that we think -- well, we want to encourage you to think about because we think, much like our political system, that will encourage people to work together and not simply come to the State with their own individual or singular project and concerns.

We do completely agree with what you heard from the department on the idea of making sure you're clear on some up-front eligibility. When this department has done other competitive processes -- and I'll name one -- the enhancement program -- and that wasn't clear in the front end you have all sorts of problems on the back end that I think the department is well aware of now. And I'm sure, you know, when you put out that competitive process you'll make sure that, you know, there's clear enough guidance on the front end.

But to the extent that you can articulate we want you working together. We want to make sure that there is a maintenance of effort in terms of local contribution. We want to make sure those things are in place that will help you in the long run.

The only other thing that I'd like to mention about this is that our assumptions on this are really, you know, made out as clearly and in bullet point fashion as we can make it. We still need to pass a federal transportation bill that brings Texas more toll credits. And we still encourage, because we have been encouraged, to make sure everybody in this room understands how important it is to articulate that that still needs to happen when this bill occurs -- and this bill needs to occur quickly.

The -- you know, that the planning has to evolve and get in place for both the rail and for the regional public transit. But we do encourage you as these assumptions start falling in place. That will allow you to evolve this, that will allow you to sub-allocate, which we encourage you to think of as a much more strategic investment than simply doing statewide competitive granting.

That's the short remarks on this. If there are any questions I will -- or things that I passed over that you saw and didn't understand, I'll be more than happy to answer them. Otherwise, I'll let you get on with your busy agenda.

MR. WILLIAMSON: Questions, members?

MR. HOUGHTON: So you're -- I have a question. Where's Bobby? Bobby, what's our balance as far as toll credits are today?

MR. KILLEBREW: I had to ask the almighty guru of the finance division that question yesterday. And the answer I got back was 114 million.

MR. HOUGHTON: $114 million. And we could suck all that up in one or two projects. Correct?

MR. KILLEBREW: If the project were substantial they could go quickly.

MR. HOUGHTON: Quickly. Okay. You did -- you talked about -- and correct me if I say this wrong -- diminished local match. So we want the locals to have -- is what you're talking about is blood in the game. Correct? I call it that.

MR. KILLEBREW: Yes, sir. What I was referring to that there is -- I don't know if it's tempting to do this, but if you get something such as toll credits, which would supplant your local match, that local match could go away -- could go for something else, say, in the city government -- could go for public works, it could go for sidewalks, play parks, whatever.

What we are advocating that we'd like to see is that, if it's not using this to match this capital that that investment remains in the transit program for operating, for --

MR. HOUGHTON: As a requirement? Can we require that?

MR. KILLEBREW: I'd have to ask legal counsel if that could be a requirement we could put in on the system or not, sir.

MR. HOUGHTON: See, the fear I have is we have these toll credits but we do not require that match. I mean, they take the money and put it into general revenue and it goes into parks. Can we require that -- I call it displacement. We're displacing dollars somewhere else. It's a movement of money.

MR. KILLEBREW: Speaking, not as a lawyer but as a contractual thing, I would think we could probably write something to the contract saying, you know, our understanding is these toll credits are going to free up local match, which we contractually want you to agree that you'll keep in the program.

MR. GADBOIS: The federal rules on toll credits already require maintenance of effort in terms of assessing the toll credits. And all we're now looking at is -- or suggesting I think is that the department look at making sure people don't go backwards in their investment in transit because they're getting this investment that should be a short-term help to fix a problem. It should never be a long-term substitution for the overall investment in transit.

MR. HOUGHTON: Okay.

MS. ANDRADE: Bobby, if we can't require it can we strongly encourage it?

MR. KILLEBREW: Yes, ma'am, I think we should be able to do that.

MS. ANDRADE: Okay. Because, you know, my fear is that, like Ted says, 114 million, you know, will go soon. So we can strongly encourage that any application would be seriously considered if local contribution came along with it.

Now, when you're establishing this criteria are we thinking we're going to award these toll credits at a certain period every year or are we going to take application for requests? I mean, how are you envisioning that we're going to do this?

MR. KILLEBREW: What I laid out this morning was on the lines of an annual call for projects --

MS. ANDRADE: Okay. And I --

MR. KILLEBREW: -- that we kind of annualize this process or semi-annualize this process so we're not doing these every other week -- having people plan ahead.

MR. WILLIAMSON: So what we might do -- what you might recommend is we have a call for maybe 75 percent of -- in other words, we might announce based on last year's activity we have available this year 200 million -- the commission has authorized the department to distribute these credits two-thirds or three-quarters based on this call -- the balance they would reserve much as they reserve the strategic priority funds for emergency cases. That would be an acceptable approach.

MR. KILLEBREW: Yes, sir.

MR. WILLIAMSON: Thank you. And what I hear you saying, Glenn, is the department's recommendations are okay, but don't stop there -- blend it into the regional service planning concept we're trying to implement on transportation across the state.

MR. GADBOIS: Yes, sir. And the other things that we obviously know are coming down the pipe -- the rail improvement, for example.

MR. WILLIAMSON: So, in effect, let Alan Clark and Michael Morris have some authority to figure out how to use these as they would any other tool in the toolbox to address transportation issues in their area.

MR. GADBOIS: In the short term I think that you have -- I encourage you to think about rewarding them -- those who have gone through great struggle to try to implement the Texas Mobility Plan because they then could come back and say, See, it is already rewarding us to have done this. And in some places that has been a terrible struggle, as I'm sure you are aware.

But then as things evolve, yes, I think that -- I would hope that you would have more and more confidence in that planning process -- regional transit plans and rail plans in the mobility plan such that where that's possible you can wrap them together and allocate to -- one allocation to the whole bunch.

MR. HOUGHTON: Yes. Alan -- and the thing that might piggyback the Chairman's remarks is, as long as we're not displacing dollars into general revenue to go to some other thing other than non-transit issues -- transportation issues, whether it's roads, TM -- the mobility fund.

If we can put that in some type of contract form -- that we can see it and track it, that it's not going over here to sidewalks, then I'm for it. But, other than that, then I wouldn't be for it.

MR. WILLIAMSON: Bobby.

MR. KILLEBREW: If I can clarify just a couple of remarks, if I may. One, for Commissioner Andrade, what we find most often in systems, in order to match capital they end up taking out of their operating budget, which means that's fewer rides that they provide because they have to buy a new vehicle because the old vehicle wore out. So, you know, right now they're playing that little shell game. So that's a good -- this is a good assistance to help keep their shell game from happening.

And, in regards, Chairman, to the -- say, an annual call for projects, typically FDA has a -- they produce annually in the Federal Register their annual apportionments.

MR. WILLIAMSON: Uh-huh.

MR. KILLEBREW: So there's kind of a place and a time line that most of the money is probably known and that cycle would have to coincide with that.

MR. WILLIAMSON: You think you've got enough reaction from commission members to begin to develop a more concrete recommendation?

MR. KILLEBREW: I believe so.

MR. WILLIAMSON: I think, unless I hear objection, colleagues, we'll ask him to go ahead and start preparing some criteria for our consideration.

MR. BEHRENS: We will move forward with that.

MR. WILLIAMSON: With some teeth.

MR. BEHRENS: We'll move forward with that. Yes, sir.

MR. WILLIAMSON: Thank you, Bobby.

MR. BEHRENS: Bobby, if you would, we'll go to your agenda item number 5. And if you would present those proposed minute orders.

MR. KILLEBREW: Again, for the record, I'm Bobby Killebrew, Public Transportation Division interim director. As follow up to our previous discussion, before you for your consideration is a minute order which awards toll credits to the Midland-Odessa Urban Transit District.

The Transit District responded to TxDOT in a recent survey that they expect to lose $983,679 in a federal earmark for four alternatively-fueled buses planned for their fleet expansion.

Midland-Odessa is requesting 201,476 in toll credits. The Federal Transit Administration has issued a letter to Midland-Odessa Urban Transit District stating that their application for funds must be submitted by June 2005. And if my calendar is correct today's the last day of June 2005. And failure to submit a timely application will cause their earmark to lapse on September 30, 2005.

In light of the difficulty in securing a federal earmark and the local impact these federal funds have for the Midland-Odessa area staff does recommend approval for this minute order.

MR. WILLIAMSON: Members, we have a couple of witnesses. Do you wish to hear from witnesses first?

MS. ANDRADE: Please.

MR. WILLIAMSON: I always pick wrong, so who goes first, Ken or Bill? Ken. Ken Smithson.

MR. SMITHSON: Good morning, Mr. Chairman, members of the Commission. It's a privilege to be here today. And we've enjoyed working with you and -- including Commissioner Nichols on transit projects over the years.

My name is Ken Smithson for the record. I'm the general manager of Easy Rider in Midland-Odessa. I'm also on the board of directors for the Texas Transit Association.

On behalf of the board I'd like to thank you for considering the use of toll credits for transit capital projects that will serve to sustain and grow public transportation across the state. This will not only help transit projects in the large cities where the majority of toll credits are generated, but also the small urban and rural areas of the state where operating funds are already in short supply.

Midland-Odessa is just one example of the latter. And we appreciate being on the agenda today for consideration. As you know, Easy Rider has enjoyed outstanding success as a new start transit system in the state -- just under two years in service now. And we can hardly keep up with the growth. We're experiencing 36 percent increase in fixed route ridership over our first year.

On our paratransit service our ridership has increased by almost 200 percent. That's the type of public transportation that hasn't been seen in West Texas in a long time.

Public transportation and health and human services have long coordinated their services in West Texas. And Easy Rider has quickly folded into those efforts. We have a seat at the table of a 5310 advisory committee, so we sit with the rural provider, the elderly and disabled transportation provider, and other providers in the area. And we plan programs for the elderly and disabled transportation service.

MHMR in both cities has been able to put a lot of their clients on our buses instead of transporting them in their small vans. One agency in one of the cities that serves seniors was able to not purchase more vehicles because there's now public transportation and those seniors are using our service.

And we've hooked up with a regional 2-1-1 center so that the people have one number to call for transportation information, including ours. We're providing summer bus service for kids to the Boys and Girls Club. And Workforce Network has -- instead of handing out cash to their job seekers, are now buying bus passes and tickets and putting their folks on our service as well.

And we anticipate that Easy Rider will be one of the -- at least one of the lead agencies in regional service planning. And our goals are to optimize coordination and provide for seamless service amongst the transportation providers in our area.

So, for these reasons and more, we believe that Midland-Odessa is a prime candidate for toll credits at this time so that we can purchase more vehicles to keep the system growing. One way of using those vehicles that we've talked about locally is even providing some type of intercity service between the two cities which are separated by 20 miles. There's a lot of people that need to commute back and forth, and that's one idea that we had for using these vehicles.

So we think the project will serve well -- and not just the citizens of West Texas, but the interest of public transportation across the state. And we appreciate your consideration.

MR. WILLIAMSON: Questions of this witness, members?

MR. HOUGHTON: Yes. I'll go back to what I -- the thing with Bobby. If you're experiencing the growth is it my understanding -- are you coming up with a dollar match or are you going to use the toll credits as your match?

MR. SMITHSON: We'd like to use the toll credits for the match on this particular project. But to comment on your earlier question, the two cities are not reducing any contribution toward this project. In fact, both -- the two cities combined have contributed more to public transportation than the state has, including fiscal year '05.

As an example, the state provided $307,000; the two cities provided $339,000. And that's not even counting the fare box revenue and other locally generated revenues. So they're not reducing their contribution, but they've intended to keep it at the same level. And that goes toward operating.

MR. HOUGHTON: That answers my question.

MR. WILLIAMSON: Okay. Thank you, Ken.

MR. SMITHSON: Thank you.

MR. WILLIAMSON: Bill Dingus?

MR. DINGUS: Yes. My name is Bill Dingus. Thank you, Commissioners. I'm a City Councilman at large in Midland. And as -- so I'll be talking from the Midland perspective. But, of course, we're talking about Midland-Odessa.

And I came down specifically for two reasons today. One is I can't think of a better way to say thank you for helping us start this bus system than coming here personally to tell you that. I do not think we'd have it today -- I know we wouldn't have it if it weren't for federal funds, and I don't think we'd have it without the state funds we've received, not just because of the value of the money, but because it shows that at the state level and at the federal level there is a recognition of the importance of public transportation. And I think that additional funds would enhance that message from the state.

But I want to give you a little history about why Midland has a very young bus system. There are those in Midland who don't like the bus system. They're not the riders of the bus system. And when we -- when I was pushing for this -- I ran for mayor and lost, in part because I was a big proponent of public transportation, which we did not have at the time. And later I spent a lot of political capital and we got it in. I'm proud of that.

But there are people who said it will never work. It's going to fail. It's -- people aren't going to ride these buses. You just don't understand Midland. And I was afraid that might be the case. And I watched buses every time they went by, counting heads in those buses. And was I relieved that it has been a success.

I want to thank Ken Smithson, who just talked here. It's partly due to his oversight of this project. But, also, he did a very savvy thing. He was very conservative in his numbers. He told us he thought it'd cost Midland -- not Midland-Odessa -- but Midland about a quarter of a million dollars a year in local monies. It's cost us about 225-. And so it hasn't cost us quite as much as we thought. The ridership is above what we thought it would be.

I think it's a huge success. I'm very proud of it. And it really benefits the people of Midland, who don't have a lot of political clout.

However, just recently we had this discussion about buying new buses and it came up again -- you know, how is it working --

MR. WILLIAMSON: They must have some political clout. They elected you.

MR. DINGUS: Thank you. And I'm here for them today. But there are people who don't listen to them as vehemently as other people who say, Well, who's riding these buses. And I won't go into it.

I just want you to understand that the people in West Texas need these buses. And every encouragement we can get from the State makes it that much easier to maintain it.

I think in another five years this will become a fabric of the community and it won't be at the risk it is now of going away. It's still new and people are saying how valuable is it. It's extremely valuable.

And I think in, like I say, five years it's going to be part of Midland and won't be in any danger at all. But right now it's -- I wouldn't say it's treading on thin ice, but any type of encouragement we could get from the State would be greatly appreciated. And I thank you for your time.

MR. WILLIAMSON: Questions of this witness, members?

MS. ANDRADE: Thank you for what you do for public transportation. It's great to have you as a champion there.

MR. DINGUS: Thank you.

MS. ANDRADE: And I certainly would support this. Thank you.

MR. DINGUS: Good deal.

MR. WILLIAMSON: Thanks for your courage in stepping out there.

MR. DINGUS: Another reason I came today is because I can't expect Ken to say these things. He's always supposed to be upbeat --

MR. WILLIAMSON: Thanks for your courage.

MR. DINGUS: -- about everything.

MR. WILLIAMSON: Thanks for stepping out there.

MR. DINGUS: Thank you.

MR. WILLIAMSON: Because it's important to the State of Texas and the people of the state to move them around.

MR. DINGUS: Thank you very much.

MR. WILLIAMSON: Did you want to say something? (Pause.) You had a question on your face so I thought maybe you had --

MR. JOHNSTON: Oh, no --

MR. WILLIAMSON: -- you might be one of those guys that didn't like the bus.

MR. JOHNSTON: I didn't sign up to speak, but I'm certainly here to answer any questions. But in -- I'm Marcus Johnston, assistant city manager for the City of Midland.

And, certainly, we -- as a city we do support public transit. It's been very successful. We are continuing our commitment to supporting public transportation. We're keeping our level of funding level from the current year to next year. And we certainly appreciate your concerns that funds are not diverted to other uses. We're keeping our money in public transit and we appreciate your support. And I thank you very much for your consideration.

MR. WILLIAMSON: Questions of this witness, members?

(No response.)

MR. WILLIAMSON: Fill a card out for us, if you would.

MR. JOHNSTON: Sure. Will do. Thank you.

MR. WILLIAMSON: Okay. Members, you've heard the presentation by our staff. You've heard the witnesses' testimony. Do I have a motion?

MS. ANDRADE: So moved.

MR. HOUGHTON: Second.

MR. WILLIAMSON: I have a motion and a second. All those in favor of the motion signify by saying aye.

(A chorus of ayes.)

MR. WILLIAMSON: All opposed no.

(No response.)

MR. WILLIAMSON: Motion carries.

MR. BEHRENS: Okay. Bobby, if you would, continue with agenda item 5(b).

MR. KILLEBREW: Again, for the record, I'm Bobby Killebrew, Public Transportation Division interim director. For your consideration this morning a minute order which provides the state funding -- state formula funding for small urban and rural transportation systems for fiscal year 2006.

This minute order would allocate state funds of 28,741,068. These funds have been allocated according to the formula approved by the Commission on May 26. According to the formula 10,059,374 has been allocated among 30 small urban providers and 18,681,694 has been allocated among 39 rural providers.

I'd like to highlight some recent changes in the rural provider community. San Patricio Community Action Agency dissolved itself as a rural transit district effective November 8, 2004, and San Patricio County now receives transit services from Rural Economic Assistance League.

Fort Bend County established itself as a rural transit district in accordance with Chapter 458 of the Texas Transportation Code effective May 24, 2005.

And, finally, effective September 1, 2005, Rockwall County will change its affiliation from Hunt County Committee on Aging to Kaufman Area Rural Transportation.

Your consideration and approval of this minute order would be appreciated.

MR. WILLIAMSON: Do you have witnesses?

(No response.)

MR. WILLIAMSON: Members, we have no witnesses. You've heard the staff explanation and recommendation. Do I have a motion?

MS. ANDRADE: So moved.

MR. HOUGHTON: Second.

MR. WILLIAMSON: I have a motion and a second. All those in favor of the motion signify by saying aye.

(A chorus of ayes.)

MR. WILLIAMSON: All opposed no.

(No response.)

MR. WILLIAMSON: Motion carries.

MR. BEHRENS: Continue, Bobby.

MR. KILLEBREW: Continuing, Commissioners, with the next item, for your consideration this morning is a minute order which approves funding for intercity bus transportation in Texas.

By regulation 15 percent of the 5311 rural federal funds are to be set aside to enhance and improve intercity bus service unless the Governor certifies that intercity service is adequate in the state.

The projects recommended for approval were selected based on responses to a request for proposal issued on February 11 of this year. Twenty-three proposals were received requesting $2.7 million for operating, facility construction and renovation, vehicle lifts, computer software and hardware, and planning.

The proposals were reviewed based on their technical merits and the projects and the quality of the entity. Fifteen projects are recommended and are listed in Exhibit A in alphabetical order by the project sponsor.

The well-publicized closures of intercity bus routes across the United States, including Texas, have highlighted the critical need for this service. The amount requested for immediate commencement is in Category A -- is from the combination of unobligated amounts from previous years and the available appropriations from fiscal year 2005 totaling $726,983.

Projects listed in Category B would be funded with the expected balance of fiscal year '05 funds totaling $821,061.

And the project listed in Category C represents a multi-year project and would be financed with future appropriations totaling $249,747. A total for all categories is a little bit under 1.8 million.

Your consideration and approval of this minute order would be appreciated.

MR. WILLIAMSON: Are there witnesses, Mike?

MR. BEHRENS: No, sir.

MR. WILLIAMSON: Members, there are no witnesses. You heard the staff recommendation -- explanation and recomm