·1· · · · ·BORDER TRADE ADVISORY COMMITTEE MEETING ·2 ·3· "- Boarder: Gateway to Texas and U.S. ·4· International Trade and Economic Competitiveness" ·5 ·6· · · ------·7 ·8· · · · · ·Texas Department of Transportation ·9· · · · · · · · · · ·Greer Building 10· · · · · · · Ric Williamson Hearing Room 11· · · · · · · · · 125 East 11th Street 12· · · · · · · · · Austin, Texas, 78701 13· · · · · · · · ·Thuesday, July 24, 2018 14· · · ------15 16 17 18 19 20 21 22 23 24 25 Page 2 Page 4 ·1· · · · · · · · · P R O C E E D I N G S ·1· · · · · · SECRETARY PABLOS:· Muchas gracias.· I hope ·2· · · · · · SECRETARY PABLOS:· Good morning ·2· she got that.· I will translate for you.· He was just ·3· everyone.· Beautiful day in Austin, hopefully won't ·3· letting us know that he is the Secretary of Rural ·4· reach 109 like yesterday, but it will be close. ·4· Development and he's happy to be here.· That will ·5· · · · · · Time is 8:59, and I'd like to call this ·5· suffice. ·6· meeting of the Border Trade Advisory Committee Meeting ·6· · · · · · Next I'd like to introduce the Secretary of ·7· to order.· My name is Rolando Pablos, Chair. ·7· Infrastructure for the State of Coahuila de Zaragoza. ·8· · · · · · I would like to make some preliminary ·8· · · · · · (Speaking Spanish.) ·9· introductions.· We have folks joining us from Mexico, ·9· · · · · · SECRETARY PABLOS:· He's here representing 10· but we also have two of our Transportation 10· the Governor of Coahuila.· He is the Secretary of 11· Commissioners here.· I'd like to welcome Commission 11· Infrastructure.· You know, I had the honor and 12· New, starting at the Commission.· We just met earlier 12· pleasure to welcome the Governor of Coahuila at our 13· today.· He's already going 100 miles an hour. 13· offices at the Capitol.· And let me tell you, he has 14· · · So Commissioner, I'd like to welcome you 14· made border infrastructure a priority for Coahuila, 15· and ask you if you would like to say any words. 15· and I'm really honored to have his representative here 16· · · · · · COMMISSIONER NEW:· No, honestly I'm here to 16· today. 17· start the learning process and I really appreciate the 17· · · · · · We're working on bringing in 18· opportunity to be here. 18· representatives.· And on the federal side he has had 19· · · · · · SECRETARY PABLOS:· We also have 19· two seats to the Board on the federal side.· Given the 20· Commissioner Ryan.· Commissioner, welcome again. 20· transition in the federal government, we are going to 21· Thank you for your interest and also being here with 21· wait and identify those individuals along the way. 22· us.· Would you like to say anything? 22· · · · · · But as you can see, having our Mexican 23· · · · · · COMMISSIONER RYAN:· Just good morning.· As 23· counterparts at the table is not only going to be very 24· he just said, I'm looking forward to the continued 24· exciting, but also essential as we look forward into 25· learning process as well as seeing how TxDOT exists 25· the crystal ball and see what great things will come

Page 3 Page 5 ·1· and we can all work better together and open up ·1· in border trade and infrastructure as it relates to ·2· communications.· Anything that we have on the table. ·2· that trade.· So I'm very happy that we have everyone ·3· So thank you. ·3· today. ·4· · · · · · SECRETARY PABLOS:· Thank you, Commissioner. ·4· · · · · · And last but not least, we have ·5· You know, as part of our improved management of this ·5· Representative Nevarez with us today.· Representative, ·6· Committee, we focused on ensuring that we also have a ·6· thank you for joining us.· You'll be giving us a ·7· voice from Mexico and so I'm really glad to announce ·7· presentation.· Is there something you want to add? ·8· that we have three representatives from Mexico today. ·8· · · · · · REPRESENTATIVE NEVAREZ:· No, I'm grateful ·9· · · · · · We have Deputy Secretary Clauda Lagos, ·9· for the opportunity, talking to many of them before, 10· thank you for being here today.· Secretary, having you 10· and we talked about a lot of other stuff, but towards 11· represent the State of Tamaulipas is very important 11· the end start getting into this, but I think the 12· for us.· We have a majority of trade going through the 12· position of the community like our's has never been 13· ports there, so your presence here is much 13· greater or more unified to extend our infrastructure 14· appreciated. 14· projects to the point where we really integrate into 15· · · · · · Is there anything you would like to add? 15· the state, because as its border goes, the state goes 16· · · · · · MS. LAGOS:· No, thank you for the 16· and anybody that doesn't say that, doesn't know what 17· invitation. 17· they are talking about, but we'll talk about that in a 18· · · · · · SECRETARY PABLOS:· Okay.· Thank you for 18· little bit. 19· being here. 19· · · · · · SECRETARY PABLOS:· Wonderful.· Thank you. 20· · · · · · From the State of , we also have 20· I'd like to go around the table for self introduction. 21· Secretary of Rural Development, Ciudad Juarez.· Thank 21· Maybe we can start with you, Benji, please. 22· you, Secretary. 22· · · · · · MR. HUTCHINSON:· Sure, I'm Benji Hutchison 23· · · · · · (Speaking Spanish.)· Would you like to say 23· Vice President of federal operations with NEC 24· anything? 24· Corporation of America. 25· · · · · · (Speaking Spanish.) 25· · · · · · TIM JUAREZ:· Tim Juarez, TxDOT, Freight and Page 6 Page 8 ·1· International Trade. ·1· Barela, the CEO of Borderplex Alliance, El Paso. ·2· · · · · · BRIAN SWINDELL:· Brian Swindell, HDR ·2· · · · · · JOSUE GARCIA:· Good morning, I'm Josue ·3· Engineering, I'm the Deputy Project Manager for the ·3· Garcia, Cameron County Bridge System. ·4· Border Master Plan. ·4· · · · · · PETER SMITH:· Peter Smith. ·5· · · · · · RAMSEY CANTU:· Good morning, Mr. Secretary, ·5· · · · · · CAROLINE MAYS:· Caroline Mays with TxDOT, ·6· Ramsey Cantu, Mayor for the City of Eagle Pass. ·6· your host.· And there is a sign-in sheet going around ·7· · · · · · CLAUDIA LAGOS:· Claudia Lagos, State of ·7· for the members.· If you don't see your name there, ·8· Tamaulipas. ·8· please just write it.· But if you are representing ·9· · · · · · SAM VALE:· Sam Vale, Starr-Camargo Bridge ·9· somebody, please just sign your name next to their 10· Company. 10· name because that's how we, one, you know, counting 11· · · · · · DANTE GALEAZZI:· Dante Galeazzi, Texas 11· the quorum, but just to keep a record of who is 12· International Produce Association. 12· attending.· Thank you for being here. 13· · · · · · JAKE GIESBRECHT:· My name is Jacob 13· · · · · · SECRETARY PABLOS:· Well, thank you.· Along 14· Giesbrecht, Presidio International Port Authority. 14· the wall here we have a few members.· If you could 15· · · · · · ING. RUBEN CHAVEZ:· Ruben Chavez. 15· introduce yourselves. 16· · · · · · HENRY SAUVIGNET:· Henry Sauvignet IBC Bank. 16· · · · · · (Introductions.) 17· · · · · · TYSON MOELLER:· Tyson Moeller. 17· · · · · · SECRETARY PABLOS:· Wonderful.· Well, as you 18· · · · · · CYNTHIA GARZA-REYES:· Cynthia Garza-Reyes. 18· can see, especially look at the TxDOT support that 19· · · · · · GABRIEL GONZALEZ:· Gabriel Gonzalez. 19· International Trade has.· We have the staff here, 20· · · · · · ART DOMINGUEZ:· Art Dominguez, Kansas City 20· Commissioners, everything you are doing to support 21· Southern Railroad. 21· international trade is to be recognized and commended. 22· · · · · · LISA LOFTUS-OTWAY:· Lisa Loftus-Otway. 22· Thank you very much for all the support. 23· · · · · · CHRISTINA STOKES:· Christina Stokes. 23· · · · · · We definitely need to look into the future 24· · · · · · PAUL STRESOW:· Paul Stresow, El Paso 24· and estimate the needs from an infrastructure 25· International Bridges. 25· development.· I see only great things happening

Page 7 Page 9 ·1· · · · · · VINCENT PEREZ:· Vincent Perez. ·1· between Texas and Mexico, and we do have to get ready. ·2· · · · · · ALFONSO VALLEJO:· Alfonso Vallejo. ·2· So I want to thank everyone for your interest and for ·3· · · · · · JUAN OLAGUIBEL:· Juan Olaguibel, ·3· your work in ensuring that Texas continues to lead as ·4· McAllen-Hildalgo and International Bridges. ·4· Mexico's number one trade partner and a top exporter. ·5· · · · · · ANDREW CANON:· Andrew Canon, Hidalgo County ·5· · · · · · So that being said, I'd like to move to our ·6· MPO. ·6· first item, which is approving our minutes from the ·7· · · · · · DR. REYNA:· Good morning committee members, ·7· last meeting.· Has everyone had an opportunity to read ·8· Dr. Reyna. ·8· them? ·9· · · · · · PAUL CRISTINA:· I'm Paul Cristina with BNSF ·9· · · · · · I'd like to entertain a motion. 10· Railway.· I'd also like to point out I'm joined today 10· · · · · · SECRETARY PABLOS:· Motion by Josue Garcia, 11· by Paul Hirsch, our AVP, Assistant Vice President, of 11· second Mayor Ramsey Cantu.· Is there any discussion on 12· Mexico Business Unit; Frank Hernandez, our general 12· this item?· Any changes?· Anything you see in there? 13· director of Mexico Business Operations; and Lindsey 13· · · · · · Okay.· Hearing none, I'd like to entertain 14· Mullins, our State Government representative here in 14· a vote on this.· All those in favor, signify by saying 15· Austin.· Thank you. 15· aye. 16· · · · · · FRED BROUWEN:· Fred Brouwen, Director of 16· · · · · · (Chorus of ayes.) 17· Operations, Pharr. 17· · · · · · SECRETARY PABLOS:· Any opposed?· Okay. 18· · · · · · TOMMY TAYLOR:· Good morning, Tommy Taylor, 18· That motion carries. 19· Fasken Oil and Ranch. 19· · · · · · At this time I'd like to move into our next 20· · · · · · JUAN ANTONIO FLORES:· Good morning, 20· item.· We will ask Representative Nevarez to give a 21· Mr. Secretary, Juan Flores.· I am Executive Vice 21· presentation from a legislative perspective on the 22· President for Government Affairs at Port 22· importance of the Texas-Mexico Border Region and the 23· and newly named to this body to represent the port. 23· highway infrastructure.· So Representative, the floor 24· I'm honored to be here. 24· is your's. 25· · · · · · JON BARELA:· Good morning, everyone.· Jon 25· · · · · · NEVAREZ:· I want to appreciate my friend, Page 10 Page 12 ·1· Secretary of State, Rolando Pablos.· I've known ·1· reason, the Permian bill, we had this downturn in oil ·2· Rolando going back 20 years since we were in law ·2· and gas in the last four years, the Permian basin just ·3· school together.· And let's say I'm amazed that he is ·3· didn't quit.· Jobs didn't quit.· The activity didn't ·4· sitting here chairing this meeting, but I'm not, ·4· quit. ·5· because he's a very competent individual, he cares ·5· · · · · · I want to say this morning when I woke up, ·6· passionately about our state, and I think, he may deny ·6· the WTI was right around $60 a barrel.· And it's one ·7· it, he cares more passionately about our border.· So ·7· of the things that among many things I do in the ·8· I'm grateful for that. ·8· morning, check on my children and my cattle and some ·9· · · · · · I will tell you that we have some ·9· of the other stuff, the other thing I look at is the 10· challenges facing us in this next session.· I mean, I 10· price of oil and gas because it's important in my 11· think every legislative session there is challenges 11· district. 12· but for different reasons.· I think one of the things 12· · · · · · But I really believe that even at 40, 42, 13· that we heard couple weeks ago is that we now have a 13· $43 a barrel, we are still in the money and we are 14· little bit more money in our budget than we would have 14· still in the same amount of traffic that we have. 15· planned, but just doesn't seem, maybe he can speak to 15· · · · · · And so as we deal with the border 16· this later or Commissioner, you might be able to speak 16· infrastructure, we start seeing now some of the 17· to this later, is it doesn't seem to really matter for 17· reforms in Mexico is how do we move labor, how do we 18· TxDOT when it comes to how well the budget is, because 18· move capital, which is a little bit different, but how 19· it seems that TxDOT is an after-thought a lot of times 19· do we move labor and machinery.· And one of the 20· with a lot of members. 20· biggest things we need for the exportation of 21· · · · · · I think a job that myself and other members 21· hydrocarbons is water.· How do you move these things 22· that represent the border have, this session is to 22· from one place to another? 23· highlight, maybe not so much from a budgetary 23· · · · · · We've been using the roads to move a lot of 24· standpoint, but we need to be more creative in terms 24· water out of west Texas and it's made a difference 25· of what we're doing with our infrastructure needs on 25· between roads that need certain type of maintenance

Page 11 Page 13 ·1· the border. ·1· and roads like 285 that need a whole lot of work to ·2· · · · · · And I'll speak specifically to a couple of ·2· it.· Because once you get past Pecos and head toward ·3· things that we have going on in my district.· One in ·3· the Mexico state line, we took a trip there one night, ·4· Permian and then two, which I think is directly ·4· and the condition of the road and the way the area ·5· related to what we're doing, developing the border; ·5· looks at night with the gas wells burning off, it ·6· and two, to a project that I know the Mayor is ·6· almost looks like a scene from Mad Max, and I'm not ·7· extremely familiar with. ·7· kidding.· And that's not good for a Texas road. ·8· · · · · · But I can tell you, I'll start with the ·8· · · · · · You know, when New Mexico has a better ·9· Permian.· For those who are not familiar, and I'm sure ·9· paving surface than a road in Texas, that's the day 10· the Commissioner is, Highway 285 that basically runs 10· that we need to be concerned. 11· from almost Sanderson, Texas, I think it runs all the 11· · · · · · The good news about that is I see a turn 12· way to Colorado, and will end right in Crested Butte, 12· now from the federal government as well as our state 13· Colorado, for those of you that never followed highway 13· government because they understand the need.· But what 14· 285 to its conclusion. 14· it tells me is that from the border, or on the border, 15· · · · · · But it's become a highway that is extremely 15· we should not allow, and I tell myself, these are 16· important to the production of hydrocarbons in our 16· different, western and eastern end of my own district, 17· state and in the world.· Right now the Permian Basin I 17· not just the state, but my own district, and I tell 18· think is leading in production. 18· myself not one spot is more deserving than the other. 19· · · · · · Apache announced, I want to say it was at 19· · · · · · But I think, and the Mayor sees this now, 20· the tail end of our legislative session, so it would 20· that we need to be more creative in areas like the 21· have been March or April of 2017, one of the largest 21· valley and El Paso, has been really good at putting 22· finds of natural gas in the history of the world.· And 22· these mobility authorities together and they have the 23· I'll say it again, in the history of the world. 23· need. 24· · · · · · And they are getting ready to start 24· · · · · · And we are going, if I'm not mistaken, 25· producing that at a very high level.· And for whatever 25· Mr. Mayor, we've got ABT counts for almost three years Page 14 Page 16 ·1· now, and I know they have changed.· And I know TxDOT ·1· communities and I've looked at some of these projects ·2· looks at, you know, the average daily traffic count, ·2· in the valley and in particular with Representative ·3· and I can tell you, and the Mayor can tell you, that ·3· Mando Martinez, who is the Vice Chair of ·4· it's changed substantially since 2016.· Am I right? ·4· Transportation in the House, and Mando has been a very ·5· · · · · · But that's still leaves us a little bit ·5· good resource for me over the last year and a half ·6· outside of being a priority, and that seems to be an ·6· when we discuss transportation issues. ·7· issue in the border.· And so it's my job as a ·7· · · · · · In particular, we started looking at these ·8· Representative to make sure that my legislative ·8· issues in Pecos County.· And a lot of the rubber ·9· partners, my colleagues, understand the traffic along ·9· meeting the road, pun intended, happens right now, 10· the border, what it means for some place like Plano or 10· before the session starts. 11· McKinney or Dallas, it matter, it matters how quick 11· · · · · · And so I've taken upon myself, in 12· trucks can get across.· It matters how quick people 12· particular with these projects that we have going in 13· can get across.· It matters how quick we can access 13· and around the county to avail myself of every 14· labor.· You know, that's one of the big things that's 14· opportunity we have to vault the projects that we have 15· lost, and I'm not going to get into all the politics 15· to the top of the list. 16· of immigration, but that's something that's lost in 16· · · · · · And I can assure you with, and I can't 17· this great debate that we have had in this country for 17· think of an exception, that every representative that 18· the last few years is labor, our access to labor. 18· represents from El Paso to Brownsville, they do the 19· · · · · · And we, those of us that live along the 19· same thing.· In other words, they are trying to figure 20· border, understand that these shifts tend to, not just 20· out how to muscle over some of these things, because 21· affect local markets and the buying and selling of 21· our communities have traditionally and historically 22· goods along the border, because remember, just 22· not been afforded the same opportunities that north 23· naturally over the course of history, borders become 23· Texas or, I guess depending on where you are standing, 24· important, and they become ideal for people because 24· southeast Texas, which would be the Houston area and 25· that's where you can trade things, you know. 25· the Gulf Coast have gotten.

Page 15 Page 17 ·1· · · · · · It's just a natural inclination to go ·1· · · · · · And don't want to point to no other reason ·2· somewhere, where you have somebody, they need ·2· than maybe we should have been squeaking a little more ·3· something on the other side of a line that we have to ·3· and squeaky wheels get grease, but here we are.· So ·4· draw in the sand or in this case it's a river.· But ·4· I'm not going to look back and say, well, we should ·5· that's our natural inclination. ·5· have got X, Y and Z.· We are right here standing on ·6· · · · · · And it's been a very difficult time in the ·6· the stage, it's time to play our part, and I'm more ·7· legislature convincing some of my colleagues, and I ·7· than willing to do that. ·8· always use this as an example, I don't know if is ·8· · · · · · I was extremely excited to be able to do ·9· anybody here that's from Bexar County or Bend County, ·9· this one because I never participated in the group 10· I'm sure they are wonderful places, but I tell people 10· before.· I think to have an organization like this is 11· you don't understand those realities of, you could if 11· incredible because it adds so much muscle to what's 12· you wanted to, but you won't understand them in Fort 12· happening at the Capitol.· And, you know, people say, 13· Bend unless you understand that this is what borders 13· well, you are there, you should be able to move things 14· are for and why it's not a bad thing. 14· a certain way.· Well, yeah, I can, but it's hard to 15· · · · · · And for us now, you know, I think this will 15· lobby 149, well, I'll say 148, because I would never 16· be the second full legislative session that our 16· call the Speaker a yahoo, but it's hard to rally 148 17· secretary has under his belt going into it, and I'm 17· yahoos, and I'll include myself in the yahoos, so 149 18· very confident, as active as he was in last session in 18· yahoos to a certain cause, but I think we'll have, and 19· educating a lot of our members and being able to go 19· I say this with as much optimism as I can muster, I 20· into some places that maybe a Democrat from El Paso 20· think we'll have an easier time in the lobbying, we'll 21· could not go into, the secretary can do that.· And 21· be picking a new speaker, and that might influence how 22· that to me is, I take a lot of heart in that, because 22· some of these things go, but I have a lot of 23· it tells me that we are heading in the right 23· confidence that no matter how it goes, now is a really 24· direction. 24· good time for us. 25· · · · · · As we go forward, and I know some of your 25· · · · · · Historically, economically, there has not Page 18 Page 20 ·1· been a better time for the border to say, you know, ·1· to Laredo, which would cut maybe about 30 minutes on ·2· we're here, we've always been here, we're not going ·2· the trip, it would be a game changer, not just for ·3· anywhere and we're that much more important. ·3· Eagle Pass, but for Laredo and for the whole region. ·4· · · · · · I mean, you can tick off an infinite amount ·4· And I'm talking about Del Rio, Carrizo Springs, ·5· of statistics about how important it is for those that ·5· Crystal City. ·6· sit on the border, but to me number one is one in four ·6· · · · · · There used to be a lot of opposition ·7· manufacturing jobs in Texas is tied to this, one in ·7· because towns like Crystal City, Del Rio, all this ·8· four. ·8· traffic, we are going to miss all this traffic that's ·9· · · · · · If that doesn't pop your eye open as to how ·9· coming through.· We're a small town. 10· important we are.· You know, when, for natural gas 10· · · · · · But the truth is the traffic is still going 11· producers and these pipelines that we have now going, 11· to be coming through because you have so much oil and 12· we have so many pipelines criss-crossing Texas, but we 12· gas production in the region, and it's not going away. 13· have two in my part of the district that are starting 13· · · · · · And to me, I see this simply as a pathway 14· to stretch to Mexico and at some point they hope to 14· to move people, to move goods up to the Pacific 15· reach the Pacific corridor in terms of being able to 15· corridor and beyond, and then of course to I-10 and 16· pump Texas LNG into Mexico. 16· move it to California and beyond. 17· · · · · · Mexican manufacturing plant, they are fired 17· · · · · · Now, we look at the other project, which is 18· on Texas LNG, and what we can't afford is to have 18· Highway 57, which connects Eagle Pass to San Antonio. 19· Mexico start looking somewhere else for their liquid 19· On the U.S. side, Highway 57 is just a little piece of 20· and natural gas.· We need to be the ones that sell 20· highway, maybe, what, 90 something miles, from Eagle 21· them that.· We need to be the ones that pump it 21· Pass to the cutoff with I-35. 22· through these pipelines.· And along with that comes 22· · · · · · But the truth is it's a very small piece of 23· roads. 23· a very large highway, which is (Spanish). 24· · · · · · So when we look at, we've got three 24· · · · · · So it comes from (Mexican City) and I think 25· different projects in our district.· Highway 277, for 25· it ends up all the way in (City), they call it the Pan

Page 19 Page 21 ·1· those of you that are not familiar, basically runs ·1· American Highway.· So it's I-35 where it starts at the ·2· from Carrizo Springs and then up through what we call ·2· tip in Argentina and probably ends the other side of ·3· the Ports-to-Plains Corridor.· It's a project that ·3· the Mississippi in Minnesota.· Think about that. ·4· many of you are familiar with.· It's been ongoing for ·4· · · · · · So we have this piece that may not seem ·5· the last, I think it had its 20th anniversary the ·5· very important in the grand scheme of things, but with ·6· other day. ·6· the amount of traffic that we have coming through ·7· · · · · · So I always tell people as important as ·7· Eagle Pass, the railroad has made a major investment ·8· Laredo is, you know, the largest inland point in the ·8· and continues to make a major investment in and around ·9· world, there is only I-35.· You can only push so much ·9· Eagle Pass, but that's still not enough to alleviate 10· traffic onto I-35 and so it becomes natural to start 10· what's happening. 11· seeing trucks moving from Eagle Pass north up to 277 11· · · · · · And what we welcome happening on the 12· through Del Rio, Sonora. 12· bridge, on our two bridges I should say, and that's 13· · · · · · But for that to happen, for us to be able 13· traffic, commercial traffic.· And for that traffic to 14· to push that type of traffic that's already there, 14· flow as quickly, as briskly and as safely as it can, 15· along with what's happening to service the oil & gas 15· these projects become more important. 16· industry, you know, we need work. 16· · · · · · And again, because of certain structures or 17· · · · · · There used to be that there was a lot of 17· strictures, I like to call them, strictures that we 18· opposition, there was a lot of opposition to widening 18· have in terms of financing and how these projects get 19· out 277, some of it's already happening right now as 19· prioritized, we are not getting as much play, and it's 20· we speak, they are doing that work today. 20· not the district's fault.· It's just an accident of 21· · · · · · But to get it all the way from Eagle Pass 21· history and time, but we're here to fix that. 22· to the other side of Carrizo Springs, and then open up 22· · · · · · Then we go to our other project, which is a 23· what we call the Old Mighty Road, which is, what's 23· loop that would basically connect these roads that 24· that?· 1021?· The 1021 project, that would allow for 24· we're talking about, intersect 57 and come up to 25· at least two, maybe two lanes heading from Eagle Pass 25· Highway 277, which against goes to Del Rio.· And what Page 22 Page 24 ·1· this would do is create a natural pass around Eagle ·1· into before. ·2· Pass. ·2· · · · · ·How important it is for us to be able to stop ·3· · · · · · And I can tell you maybe 15, 20 years ago ·3· diversions, stop these diversions to our ·4· it would have been reprehensible to say we need to get ·4· transportation funds because they were set up for a ·5· around Eagle Pass, but the truth is we need the ·5· reason.· So we can do a little bit more than re-carpet ·6· traffic to get around Eagle Pass.· Because it's that, ·6· and re-asphalt and re-pave surfaces. ·7· it's too much. ·7· · · · · ·And it seems that a lot of our areas along ·8· · · · · ·But in order for this to happen, again, we ·8· the border that's what we are doing, playing catch up ·9· need to develop a way to get us to the top, to the top ·9· and that's not TxDOT's fault.· That's our fault.· We 10· of the list in terms of priority.· And what we've been 10· need to be better at making sure that the money that 11· discussing and exploring over the last few months is, 11· TxDOT has in its budget isn't necessarily just for 12· you know, private public partnerships.· And the good 12· doing these cosmetic, and they are needed, cosmetic 13· thing when you talk about Maverick County, is many of 13· and safety upgrades of roads in terms of repaving 14· our border counties are economically disadvantaged, 14· them, but to be able to build new roads. 15· you know, we are one of the only, the Laredo District 15· · · · · ·Just seems that our budget, you know, with 16· I think is one of the only ones that is not getting 16· very few examples, I'm not saying we are not building 17· signals right now and that is something we need to 17· any new roads with TxDOT budget money, but with very 18· address, that I need to address to make sure that our 18· few examples we are getting that done, you know, as 19· locals understand that we need to make every effort to 19· time goes over.· And a lot of people don't understand 20· get out in front of that. 20· that we have a lot of shadow, I call them, we call 21· · · · · ·We need to make every effort to make sure 21· them shadow toll roads in Texas, where they are built 22· that we're exhausting every opportunity financially, 22· with money that we are borrowing. 23· and I'm sure most of you are aware how this is done, 23· · · · · ·That's not a bad thing if it gets the road 24· but I'll just give a very cursory example. 24· built, and we can do that responsibly.· And I think 25· · · · · ·Basically in this situation the locals are 25· it's incumbent on us in our communities, it's

Page 23 Page 25 ·1· being charged basically paying for the road, that is ·1· incumbent on us with our economy in the legislature, ·2· making some sort of deal with a financing outfit that ·2· and I'm talking about myself, to make sure that they ·3· will finance the road, and then TxDOT coming back in ·3· understand that they haven't had to deal with these ·4· and repaying the loan, which if you think about it, ·4· things and what they call toll roads and opposition to ·5· it's not bad, because it's not the local entity that's ·5· that should not extend to what we're trying to do in ·6· paying back the loan.· They are just responsible for ·6· our districts, because it's different, and they need ·7· getting it.· And the responsibility is being able to ·7· to be more responsive. ·8· show the need and being able to show that they are ·8· · · · · ·I suspect that like anything else, you know, ·9· unified in a front that this should happen and that ·9· we always have the discussion about border security. 10· there is no opposition in the region. 10· Again, that's a topic that I can go on for a long 11· · · · · ·One of the things that we've been doing is 11· time, but I'm not going to.· To the extent that if 12· going out to other places around our region and make 12· discussing that hand in hand with getting some of 13· sure they understand how important it is to us.· Maybe 13· these projects done is necessary, I do it.· Because 14· for some counties like in El Paso County it hasn't 14· sometimes that's the only language some of my 15· been as necessary because you are somewhat more 15· colleagues will understand. 16· removed from let's say Hudspeth and Culberson County, 16· · · · · ·And again, I'm not casting aspersions on 17· and it hasn't been necessary to be able to sell that 17· whether they are correct or not about how we go about 18· to those counties, but for us it's very, very 18· securing our borders, but if it helps them understand 19· important. 19· what it is we're dealing with and why it's important 20· · · · · ·And in the legislature it can become very 20· with the structure, then we talk about it. 21· difficult to explain to a member from, again, I use 21· · · · · ·And I don't think, and I know Mr. Mayor, you 22· these examples because they are far from the border, a 22· would probably agree with this, is that a road like 23· member of Terrell County how important it is for us to 23· 1021 which is the one that runs from Eagle Pass, you 24· be able to expand opportunities, statutorily, for us 24· know, for lack of a better word, (Spanish), running 25· to tap into funds that we have not been able to tap 25· right alongside the river, right along the river, that Page 26 Page 28 ·1· it will play no small part, a function in securing the ·1· that's what I've done most of my life in one form or ·2· border in terms of getting manpower and surveillance ·2· another. ·3· equipment to the border because that seems to be, if ·3· · · But I think it's become more important when ·4· that's what it takes, that's what it takes. ·4· we talk about some of these projects and we look at, ·5· · · · · ·But I'm sure our Border Patrol would welcome ·5· you know, Del Rio and Eagle Pass, and you look at ·6· a better road to be able to do their job.· You provide ·6· where we have been historically, you know, communities ·7· a better road for us, you provide a better road for ·7· like Laredo and Brownsville and Presidio, and it seems ·8· everybody. ·8· we have always been kind of on the edge of ·9· · · · · ·And I literally live right on the river, so ·9· respectability, on the edge of history, but the truth 10· awhile back when we bulldozed through it to get down 10· is we have always been at the front of it.· We just 11· to the river to create what I call Nevarez's Beach, on 11· didn't see that. 12· the river, and we fish off it and, you know, it's our 12· · · I think it's incumbent on groups like this 13· place to enjoy the river.· I had to laugh because I've 13· to make sure that whether it's at the level of your 14· never had one thing stolen off my place, and I can 14· own community and I don't see how hard it would be to 15· leave keys in trucks.· I live on 30 acres and then I 15· convince people in your own community, but nothing 16· ranch another 700 acres right up the river.· Never had 16· surprises me any more.· But I think it's incumbent on 17· anything stolen.· And when we first did this we had 17· us to seek to do this individually and collectively. 18· (Spanish), we had it out there. 18· · · And whatever help that I can give you, some 19· · · And on the other side of the river, they 19· of you I know because you have come into my office 20· come looking for soft spots on the river to move stuff 20· before and we have visited when I've been on the Rio 21· sometimes, so I guess they saw that we had put this 21· Grande Valley tour, and I hope to visit with you again 22· thing up and it was a good opportunity for them to do 22· as the session goes forward.· But I can tell you that 23· something with it.· The next day we come back it was 23· I pretty much know exactly which representatives 24· gone.· And somebody was saying, oh, they came and took 24· represent your respective districts, and I don't know 25· it back across the river, I'm like you got to be 25· one that's not extremely interested in this delegation

Page 27 Page 29 ·1· kidding, this thing weighs 200 pounds, you are not ·1· in El Paso. ·2· floating it back across the river. ·2· · · And in the Valley it goes without saying, ·3· · · What it was, I can imagine is they were ·3· you know, my com padre Terry, Terry Canales has always ·4· they are loading up, it was a crime of opportunity. ·4· been a champion for that.· And I will, on the ·5· So that was on me, not on them. ·5· transportation committee, as well as on the ·6· · · And, in fact, they had good taste, it was a ·6· legislative budget board, (name), (name), big champion ·7· very good one, by the way. ·7· for your bridge, which is one of the largest if not ·8· · · That being said, those are things that our ·8· the largest points for our produce.· Is that correct? ·9· professionals, our experts, they look at.· The Border ·9· · · And you are going to have a new member in 10· Patrol now uses that little launch, sometimes they 10· Brownsville, but you know what, I'm sure that's going 11· have some trouble, put it in, take it out of the 11· to work out because Reese is a very steady guy. 12· river, they use my property to do that. 12· · · And I think we, collectively, we've done a 13· · · So, again, one of them definitely noted as 13· very good job of being united on these issues, being 14· easy as we can come in and out of the river, somebody 14· united on the idea that our infrastructure projects, 15· else can. 15· our transportation projects are to the front.· And, 16· · · Those are issues, again, that deal with 16· you know, the Rio Grande Valley has suffered a little 17· transportation at a different level, but it's those 17· bit from the fact that we are not El Paso, and we are 18· discussions that we need to have with certain people 18· not Laredo and the valley, but I think the region is 19· in the room with how these things get done and why, 19· changing.· It's becoming more urban. 20· I'm willing to have them. 20· · · It's becoming, dare I say more 21· · · · · · But I can tell you as I sit here now at 21· sophisticated, I want to say that, because it is, and 22· this point in time and position that I'm in, I think 22· it's becoming a hub for a lot of traffic that we never 23· there's not a better opportunity for me to be, you 23· would have thought we would get, and we're getting it. 24· know, what I've always known, which is speak the 24· And that's something to be said. 25· gospel and preach the gospel of the border, because 25· · · And so I want you all to understand that Page 30 Page 32 ·1· while maybe we don't have the numbers here that Laredo ·1· that these things don't happen in a vacuum.· They just ·2· has, but we're going to get them.· I always tell ·2· don't, and they can't. ·3· people you always have to include the communities on ·3· · · And so as good as we are, as good as we ·4· the Mexican side, because they are using your ·4· think we can be here, we need to be that much better ·5· infrastructure.· If you don't include them in your ·5· with our neighbors because they are a number one ·6· estimates, then you are making a mistake because they ·6· trading partner.· I would hate to think of a day or a ·7· are using your infrastructure, and you want them to ·7· scenario that would pass when they would not be, that ·8· use your infrastructure.· Because if they are not, ·8· somehow, you know, Mexico's eyes are turned east or ·9· that's a problem. ·9· further north because we're not, we're foolish and 10· · · Somebody says, well, you have to include a 10· we're not taking the opportunity to make sure that 11· lot of other statistics that are not so nice 11· these things work not just for places like Eagle Pass 12· sometimes, which what we're referring to are criminal 12· and Laredo and Brownsville, but they work for places 13· statistics, and I say, well, I don't fall into that 13· like Santinao and they work for places like Santiga 14· trap, and I'll tell you why.· Because there is a 14· and they work for place like Sal Victoria, and Juarez. 15· demonstrable difference between how our law 15· And if we don't work for them, what good are they to 16· enforcement is working sometimes on the U.S. 16· us.· They are not. 17· sometimes.· Doesn't mean that the Mexican side is any 17· · · And again, I'll close with this is, that if 18· less safe or more safe than the U.S. side.· It just is 18· I become somewhat of a pest over the next few months 19· what it is. 19· or even years, depending on the amount of time that 20· · · And for those of us that live on the border 20· God gives me to do the job that I have, about this, 21· that, I mean, there will be some Saturdays where I 21· it's intended, and it's, I mean to cause no offense to 22· cross that bridge three times, you know, go check my 22· anybody, but I need to get these things done, because 23· cattle, depending on the traffic I might have an 23· they need to get done. 24· appointment in the middle of the afternoon and maybe 24· · · And I know the Mayor shares my sense of 25· at night I might go have dinner or see my in-laws or 25· urgency when it comes to my projects.· I share your

Page 31 Page 33 ·1· something. ·1· sense of urgency when it to your projects because they ·2· · · But I have no problems about where I live, ·2· are important to me.· If they are important to you and ·3· how I live and the fact that our community, and I'm ·3· you live on the border, just don't get in the way of ·4· talking about even the Mexican side, is one of the ·4· my projects. ·5· safest places in the region.· And I'm not under any ·5· · · But if they are important to you, they are ·6· illusions.· You may turn on Fox News one night and get ·6· important to me.· And I mean that sincerely, because ·7· scared because all they want to do is talk about X, Y ·7· there is no other way to do it. ·8· and Z, or some isolated incidents, but the truth is we ·8· · · And I also believe this to be true, that we ·9· have a very vibrant community.· We share so many ·9· can and will pull together all these things and I 10· things.· We share familial, cultural, economic ties 10· count on each and every one of you as an ally in this. 11· that defy what anybody, again, no disrespect to Fort 11· I count on each and every one of you as a brother and 12· Bend and Tarrant County, but defy what people in those 12· sister in arms on this, because that's what we are. 13· counties may think about our region. 13· And as your group goes, we go. 14· · · So I would encourage you to continue to 14· · · And so with that, Mr. Secretary, I 15· pound your chest and beat that drum about that, 15· appreciate you having me today.· I look forward to, as 16· because it's important.· And it's important not just 16· the session goes forward, I know our Mayor has been, 17· for the community itself, but it's important in that 17· you know, if he's not like the tip of the spear, he's 18· pink granite building.· It's important for them to 18· right there.· I think we go back and forth with who is 19· hear it from not just me, because they get tired of me 19· the tip of the spear on this thing at any given time, 20· sometimes.· Sermonize and forget about it, and the 20· and I'm very grateful for that because you can't do 21· answer is yes, and again and again and again. 21· these things by yourself. 22· · · But it's important for them to hear it from 22· · · And with that being said, I appreciate your 23· you.· You would be surprised, you know, as I sit here 23· time.· Thank you everybody. 24· with our colleague from Mexico and the representative 24· · · · · · SECRETARY PABLOS:· Thank you, 25· of the Governor's Office, I'm reminded of the fact 25· Representative.· Do we have any comments or questions? Page 34 Page 36 ·1· · · · · · REPRESENTATIVE NEVAREZ:· I will take any ·1· the discussion is going forward. ·2· suggestions or criticism. ·2· · · · · · MR. VALE:· The other question is it would ·3· · · · · · MR. VALE:· You said something very ·3· be for on-system only or off-system projects? ·4· interesting.· Our port of entry is financed privately, ·4· · · · · · REPRESENTATIVE NEVAREZ:· I think it would ·5· lot of that stuff, and we're working on similar ·5· be very difficult, this is my sense, I don't want to ·6· projects with TxDOT.· Did I understand you say that if ·6· put any words into TxDOT's mouth, but just on the ·7· TxDOT is willing to listen to something that you would ·7· conversations that I've had with certain TxDOT ·8· say you get it financed, you build it, no investment ·8· officials and with some of my colleagues especially on ·9· in it, but they would be willing to come in and pay ·9· the transportation committee, it would be very 10· for the facility? 10· difficult to get it for an off-line deal. 11· · · · · · REPRESENTATIVE NEVAREZ:· I'm saying they 11· · · · · · MR. VALE:· That's what most communities are 12· are willing to listen.· I don't know if it will 12· looking at, off-systems projects. 13· happen. 13· · · · · · REPRESENTATIVE NEVAREZ:· I think that 14· · · · · · MR. VALE:· Isn't that like an 14· behooves the communities, and again, the conversation 15· appropriation? 15· has shifted in that direction and it's going to 16· · · · · · REPRESENTATIVE NEVAREZ:· It would be, but 16· require muscle.· But I think with the exception of one 17· it's not, it wouldn't come through our appropriation 17· project that we have, I think all of them are on-line, 18· committee.· It comes out of the budget is what I 18· right except for the 221.· 221 issue is a right-of-way 19· understand.· Unless that changes.· It may be something 19· issue. 20· that we can change. 20· · · · · · MR. VALE:· Before that you actually had the 21· · · · · · MR. VALE:· It's an interesting idea.· I'm 21· coordinated border infrastructure. 22· just curious as to how to make this work.· Do they 22· · · · · · REPRESENTATIVE NEVAREZ:· If you look, I'm 23· actually do that, because TxDOT is making kind of a 23· speaking directly about our's, it becomes issues 24· commitment to be looked at by a financial institution, 24· regarding the right-of-way.· But I'm not familiar with 25· direct guarantor.· So that's, I just don't know.· It's 25· your port in terms of how it got done or --

Page 35 Page 37 ·1· an interesting concept. ·1· · · · · · MR. VALE:· I'm talking in general.· We just ·2· · · · · · REPRESENTATIVE NEVAREZ:· This is a ·2· flat out gave it and we built the facilities and we ·3· conversation that I've had with some of our ·3· said to the government we bought the road and we gave ·4· appropriators.· We are going to have our third ·4· the right-of-way to TxDOT and put a road in. ·5· appropriations Chair just because of the turnover in ·5· · · · · · REPRESENTATIVE NEVAREZ:· Generally ·6· Speaker's office.· But, you know, normally 80 percent ·6· speaking, that's how -- ·7· of the budget is done by the time we start the ·7· · · · · · MR. VALE:· It's only half a mile. ·8· session.· Maybe between 20 to 16 percent of the budget ·8· · · · · · REPRESENTATIVE NEVAREZ:· Generally ·9· now becomes somewhat discretionary, and that's what we ·9· speaking, that's how it's going.· But I can tell you 10· are scrapping over, if you will, for 141 days. 10· that for some reason, and it's not, I don't believe 11· · · · · · But the conversations that I've had with 11· it's a TxDOT mentality, I think it trickles down from 12· the people I think they are going to be more constant 12· the legislature and the committees regarding off-line 13· on the committee, and I think every representative at 13· and on-line. 14· some point should be on the appropriations committee. 14· · · · · · So, again, maybe it's more of a discussion 15· The reason I tell you this is because that's been 15· or more robust discussion of how minds are open and 16· topic of discussion 1A, not just from me and some of 16· clear about, you know, the discussion going forward, 17· my colleagues on the border, but talking about 17· and I hope that's the case.· Does that make sense? I 18· colleagues in different areas.· They are trying to 18· think either way we are going to have to -- again 19· figure out how, what the mechanism is beyond what's 19· talking about specifically this and then other 20· available from an agency standpoint in terms of how 20· infrastructure projects as we go along the border, we 21· they can manipulate that or not or if we have to 21· are going to be borrowing the money.· It's not going 22· actually order it to be done so. 22· to be budgeted.· Because the pressure that's being put 23· · · · · · And I think we're in the best position that 23· on TxDOT within their own budget to just maintain the 24· I've seen in awhile to be able to get that done 24· roads is tremendous. 25· because of how we are going to assist the session.· So 25· · · · · · And I mean, I say pressure, we are the ones Page 38 Page 40 ·1· that put the pressure on.· 4 percent cuts last session ·1· being here.· I've encouraged the City Manager to ·2· and probably going to try to cut more, which I don't ·2· participate.· He wasn't able to be here today, but ·3· understand.· That's going to cut directly into what I ·3· Nicole is here, so thank you, Nicole, for being here. ·4· will call new road funding whether it's on-line or ·4· · · · · · And lastly, I want to introduce Laffeo ·5· off-line. ·5· Montoya (sp).· Laffey, will you please stand?· ·Laffeo ·6· · · · · · MR. VALE:· Very interesting discussion. ·6· is a representative with the Conseco (name), which is ·7· · · · · · REPRESENTATIVE NEVAREZ:· And again, I got ·7· the U.S. Chamber of Mexico.· Laffeo, thank you for ·8· to a point in this where I said, well, if we are not ·8· being here.· Thank you for all your support in helping ·9· going to vault, because no matter how much we squeeze, ·9· us reach out to the Mexican government and create 10· if we don't vault to the top, what's it's going to 10· those important connections.· So thank you for being 11· take.· Jimmy up the money somewhere else.· There is no 11· here.· Appreciate that. 12· shortage of ideas.· We have some ideas about some 12· · · · · · I'd like to recognize also the Honorable 13· spread money that we can get here and there.· And 13· Tano Tijerina, County Judge.· Judge, thank you for 14· we've got some ideas of some statutory things that we 14· being here today.· I appreciate you attending the 15· can create locally to do it.· But I don't think any 15· meeting, look forward to the discussion. 16· idea should be off the table.· We have an itch and we 16· · · · · · So that being said, we are getting a little 17· have to scratch it. 17· feedback, I hope it's not too bothersome, but we'll 18· · · · · · SECRETARY PABLOS:· This is perhaps a time 18· try to deal with it. 19· where we can identify some of those opportunities and 19· · · · · · I will now take the next item, which is 20· then also look at the realities, funding cuts that we 20· Cyber Safety, IT Infrastructure and Efficiency.· You 21· are facing.· So Representative, I want to thank you 21· know, two months ago, I traveled to Japan and sat 22· for your advocacy, for your strong interest in your 22· through a very impressive presentation by NEC.· And 23· community, and I think everybody here recognizes the 23· the majority of the presentation had to do with border 24· need for improving infrastructure, but also at the 24· security and border security and technology. 25· same time understanding the things that we have.· So 25· · · · · · And it occurred to me immediately that this

Page 39 Page 41 ·1· that's the fine balance.· But it does take advocacy ·1· committee had never really brought in the technology ·2· and does take strong support from everyone. ·2· focus in a substantive way into this discussion.· And ·3· · · · · · So thank you for being here today.· We'll ·3· so what I have done is I've asked my friend Carter ·4· have more discussion about this and you are always ·4· Holston to bring somebody from NEC to give us a ·5· welcome.· Thank you very much. ·5· presentation and he brought to light the right ·6· · · · · · REPRESENTATIVE NEVAREZ:· Thank you, ·6· gentleman.· Benji Hutchison is VP of Federal ·7· everybody.· And remember diamonds are made with time ·7· Operations with NEC Corporation of America.· He has ·8· and pressure. ·8· extensive experience in Homeland Security.· And so ·9· · · · · · SECRETARY PABLOS:· Can everyone turn off ·9· what I'd like to do is, Benji, I'd like to give you 10· their microphones?· I think we are getting some 10· the floor for your presentation. 11· feedback.· Thank you. 11· · · · · · We do have a presentation up on the monitor 12· · · · · · So we move on to our next item, but before 12· and so I'd like to pass it over to you, the floor is 13· we do that I'd like to recognize a few folks.· Mario 13· your's, thank you for being here. 14· Lozoya, where are you, Mario?· Please stand up. I 14· · · · · · MR. HUTCHINSON:· Thank you very much, 15· want to congratulate you.· Mario has now been 15· Mr. Secretary, and I want to thank the Committee 16· appointed to the Greater Brownsville Incentives 16· Members and the distinguished guests for having me 17· Corporation as the President CEO.· He will be down in 17· here.· I'm the new guy and I am from Washington, D.C., 18· the valley area trying to hopefully bring everyone 18· so I hope I am the right guy. 19· together and bring a more pronounced regional 19· · · · · · One big difference it's hot in Washington, 20· approach.· Mario was with Toyota, understands trade, 20· D.C., but you guys are stealing the cake here.· This 21· understands the challenges of global businesses so 21· is 109 degrees.· I thought I lived in a swamp, but you 22· congratulations.· I want to thank you for being here. 22· guys are definitely winning on that front. 23· · · · · · I'd also like to recognize Nicole Ferrina, 23· · · · · · But thank you all for having me, and it's a 24· where's Nicole?· Nicole is here representing City 24· pleasure to be here.· It's a pressure to meet so many 25· Manager Tony Gonzales with El Paso.· So thank you for 25· folks.· And one of the things that occurred to me as I Page 42 Page 44 ·1· was sitting here is that, you know, being from ·1· small team in Washington, D.C.· And most of our ·2· Washington, it's a very political town and we see news ·2· business today is focused on the Department of ·3· headlines every day.· But being in a place like this, ·3· Homeland Security.· And like I said, I'll dig into ·4· it reminds me how politics are local and how some of ·4· exactly what we do there.· Real quick on NEC, ·5· these issues are so very important. ·5· definitely don't want to bore you with too many ·6· · · · · · So some of the things you are going to hear ·6· details, but it is interesting that we are 119 year ·7· me talk about, border security and commerce, it's ·7· old company.· We are headquartered out of Tokyo, so ·8· great to see these really good debates going on and ·8· again, we are a global firm, and we have a presence on ·9· discussion about how important the jobs are and trade, ·9· almost every continent in the world, and we have a 10· but also balancing that with security.· So you'll hear 10· significant footprint.· We have got about 100,000 11· me talk a little bit about. 11· people, and we're about 28 billion dollars in revenue, 12· · · · · · A little bit about me, just so you know who 12· depending on the year, and so we're a fairly 13· I am, my name is Benji Hutchinson, I currently run the 13· significant company. 14· Federal Operations within Washington, D.C. for NEC 14· · · · · · And one of the most interesting things 15· Corporation of America.· And as you know, NEC is a 15· about NEC is our founder studied under Alexander 16· global company.· We are actually headquartered in 16· Graham Bell, so there is a lot of connective tissue 17· Irving, Texas near DFW so we got a lot of connective 17· there with America.· And he and the company that he 18· tissue to Texas.· We work with Texas DPS.· We also 18· created back then deployed the first telephone systems 19· have a number of other law enforcement technology 19· in Tokyo. 20· deployments where we provide biometric technology and 20· · · · · · So after the war, after everything got back 21· then also the Secretary referenced that we do some 21· on its feet, we had a lot of jobs in America and a lot 22· work with DHS, which I'll get into in a little bit. 22· of those jobs are here in Texas as well.· We have 23· · · · · · But for me, I've lived my life mainly on 23· offices all across the United States and we've got 24· the road, around the world, looking at international 24· laboratories where we do our R&D work. 25· trade. So my background is I have a master's degree in 25· · · · · · So focusing in on the biometric technology,

Page 43 Page 45 ·1· international trade and commerce.· A lot of that has ·1· because that's primarily what I'm going to· speak a ·2· to do with trading blocks and trading, trade ·2· little bit about today.· We have been ranked number ·3· agreements and so NAFTA is near and dear to my heart. ·3· one for performance and accuracy on our facial ·4· But I spend a lot of my time in Europe looking at free ·4· recognition algorithms by the Department of Commerce, ·5· trade zones and have an increased commerce through ·5· National Institute for Standards and Technology. ·6· better immigration systems and better security systems ·6· That's nine years running.· We are very proud of that. ·7· that balance both the need to catch potential ·7· · · · · · And that has given us the platform to have ·8· criminals or terrorists or threats, but also enable ·8· some of the success that we've had with DHS and CBP ·9· commerce, because I absolutely love the focus on jobs ·9· and some of the other federal partners that we work 10· and commerce, that is critical to the most important 10· with.· So that basically just means that to some of 11· part about borders. 11· our competitors, it's a very competitive space, as you 12· · · · · · So it's really great to hear both those 12· might imagine, we're about twice as fast as our next 13· things happening. 13· competitor.· So we're really proud of that. 14· · · · · · I started my career working with the 14· · · · · · We also do iris recognition, we do 15· Department of State.· We helped modernize some of 15· fingerprints and palms and latent technology for law 16· their systems after 9/11 to issue visas, and we 16· enforcement, and we also do some real time 17· introduced biometric technology.· And then I spent a 17· surveillance technology that's just taking off. 18· significant part of my career supporting the U.S. 18· · · · · · As you can see, we do have a footprint 19· Military during the wars in Irag and Afghanistan. I 19· across the world as I mentioned earlier.· We have got 20· never deployed, but I spent time in the Pentagon and 20· offices everywhere, we've got offices in South 21· worked with the Army and also with the Under Secretary 21· America, we've got offices in Mexico.· I've been to 22· of Defense for intelligence, when General Clapper was 22· Mexico City.· We have a very large office there, about 23· the lead. 23· 100 people employed.· We are really proud of that. 24· · · · · · And then after that, I joined private 24· · · · · · And we have got big footprints in Asia, 25· industry and that's what I am today.· So we have a 25· which is one of our largest growing markets, as you Page 46 Page 48 ·1· might imagine.· There is a lot of lessons to be ·1· travel across the borders around our country. ·2· learned from what they have done, both in Europe and ·2· · · · · · Now, the challenge is they were unfunded ·3· in Asia when it comes to border technology and ·3· mandates.· So the federal government said, you know, ·4· speeding up the way that they process people who come ·4· you need to add biometrics to your Visa applicants and ·5· and go on a regular basis, but also how they process ·5· to a lot of the individuals that are coming across our ·6· commercial activity.· And so there is lot of lessons ·6· borders.· Well, because of a lack of funding, it ·7· learned there, and we'll talk a little bit about that. ·7· didn't really get done, and this went on and on and ·8· · · · · · This is our United States presence.· So ·8· on. ·9· we're at about 22 states when it comes to law ·9· · · · · · The biggest piece that's been in the news 10· enforcement, and we deal with a bunch of federal 10· lately is biometric air entry and exit.· So we'll talk 11· agencies as well, which I'll dig into.· As you can 11· a little bit about that.· But that piece has been a 12· see, we are big with Texas. 12· big hole for a long time.· And in the past two to 13· · · · · · We spend a lot of time on the west coast, 13· three years, it's really started to be filled. 14· so we have eight states called the Western 14· · · · · · And customs and border protection has 15· Identification Network.· So these states are more 15· really been the lead advocate for that.· And a lot of 16· sparsely populated up there like Wyoming and Idaho, so 16· that has to do not only with visa over-stays or other 17· what they've done is they put them all into a cloud 17· sorts of immigration infractions, but it also has to 18· situation, so basically we provide a cloud 18· do with processing people quickly, getting them onto a 19· infrastructure, and we provide shared services for the 19· plane. 20· software.· So if they need fingerprint services or 20· · · · · · And so the technology that we deployed, and 21· matching, a lot of the data are pooled together and we 21· I'll show you some pictures in a minute, primarily is 22· manage the entire platform on behalf of those states. 22· facial recognition.· And what DHS, Department of 23· · · · · · California is very large state.· That's one 23· Homeland Security, has done is they have really 24· of our biggest.· We just rolled out a new fingerprint 24· doubled down on face as the modality to be used as the 25· system there with 20 million records in LA County, and 25· biometric.

Page 47 Page 49 ·1· we were very excited to see the new technology led to ·1· · · · · · As you might imagine, if you see people ·2· a match on a cold case, a homicide from the 1970's ·2· crossing the border, which I know a lot of you folks ·3· which led to an arrest. ·3· see that, they always use fingerprints.· So they put ·4· · · · · · So you can see the technology has gotten ·4· their fingerprints down, it makes an individual stop, ·5· much more effective, it's faster and getting more ·5· takes on average like 10 to 15 seconds for that ·6· accurate.· And the most interesting thing I think for ·6· process, on a good day.· And then is they have ·7· anybody who's interested in procuring it, it's getting ·7· children with them or if they don't understand what's ·8· cheaper, and that's the good news of the story I ·8· going on or if they are intimidated, it's kind of ·9· think. ·9· scary walking across the border, and there is a big 10· · · · · · And then we're also in a smattering of 10· green light, and they are like put your fingerprints 11· states on the east coast as well.· A lot of those like 11· down.· And fingerprints are typically associated with 12· populated areas like Atlanta and Chicago. 12· law enforcement, so there is a negative connotation 13· · · · · · So now we'll dig into a little bit about 13· there. 14· what I do, and I think part of the reason that I'm 14· · · · · · The face is sort of the new modality, it's 15· here today is to talk a little bit about some of the 15· very modern, and a lot of millennials and other folks 16· border technology that we provide. 16· who have smart phones or other devices, face is sort 17· · · · · · By far, our largest customer is the 17· of, it's stand-off, and it's less intrusive.· And so 18· Department of Homeland Security.· So as many of you 18· people gravitate towards it because you have a face on 19· all probably know 9/11 changed the country in ways 19· your passport, you got a fact next to your Visa, it's 20· that we're still trying to understand, right.· And a 20· a very old way of identifying somebody. 21· lot of the laws that were passed at the federal level, 21· · · · · · We have been doing it for millennia as 22· the Patriot Act and a number of other laws, the 22· human beings.· So automating that process is kind of 23· Intelligence Reform Act, those led to a bunch of 23· what DHS is all about, and also U.S. Department of 24· recommendations to improve immigration, but also to 24· State has leaned heavily on face as the modality they 25· improve travel and air travel, whether that's or foot 25· want to use. Page 50 Page 52 ·1· · · · · · Obviously CBP, they have doubled down and ·1· this is a pilot program. ·2· said they want to use face.· And more recently in the ·2· · · · · · But what it does is it enable travelers to ·3· past month, just this recently, TSA has come out ·3· not have to pull out their passports.· It allows them ·4· publicly in saying that they want to pivot away from ·4· to just have their ticket stub, or they can have their ·5· fingerprints only and they want to add face as the ·5· ticket stub on their phone and they can walk up and ·6· modality to process people more quickly through ·6· they can use their face as their key to board an ·7· security lines. ·7· airplane. ·8· · · · · · So it's very exciting for anybody in the ·8· · · · · · And what we've seen, we've deployed this to ·9· biometric industry.· I've been in this space for over ·9· about 10 airports and it's at two gates, international 10· 14 years and every year they said this is the year 10· flights at each airport.· And in each instance, we've 11· that biometric is going to take off.· Well, it took 11· been able to board about 350 people in less than 25 12· the Apple folks and the iPhone for that to really 12· minutes.· And it's all automatic. 13· happen.· Now that you've got face recognition on your 13· · · · · · So the beauty of that is you have one or 14· phones, people are more accustomed to it.· So they 14· two CBP officers standing there and they are sort of 15· want to see more of it. 15· looking at the devices and making sure things are 16· · · · · · So some of our other customers that we work 16· working sore, properly and then if somebody gets 17· with, we work with the Department of Defense, U.S. 17· confused or if there is a need to have a secondary 18· intelligence community, and we also work with the U.S. 18· discussion, they can intervene.· But typically we 19· Department of State on a program in Mexico.· And we're 19· don't get that. 20· really proud of this program.· This is a brand new one 20· · · · · · Our accuracy and performance rates are 21· that started late last year, and I know there has been 21· amazing.· We are getting matches in less than 2 22· a presidential election so things are changing, but 22· seconds.· It's typically 1.6 seconds.· You don't have 23· this is a program that will endure. 23· to stop and stare, which is wonderful from a 24· · · · · · This is the Department of State's 24· technology perspective, because in the days of old 25· International Narcotics and Law Enforcement Bureau, 25· when face recognition started, I don't know if anybody

Page 51 Page 53 ·1· and what they've done is they have teamed up with a ·1· has ever gone through this, but in the old days you ·2· number of federal agencies in Mexico, SAGO and some ·2· would have to stand up, stare at something, and it ·3· other entities, to create a database of biometrics ·3· would be sort of awkward and you are looking at a ·4· from all around the country that can be compared and ·4· light, and it's bright and then maybe it doesn't match ·5· shared with U.S. data stores so that they can ·5· or maybe it wouldn't work at all. ·6· potentially catch narco traffickers and other folks ·6· · · · · · So now you walk up, you don't even stop, it ·7· who are committing crimes across the border, whether ·7· says thank you, have a nice day and board your flight. ·8· it's the northern border or the southern border. ·8· It's amazing. ·9· · · · · · And so it's a joint effort.· It's a really ·9· · · · · · And this is a new concept for Americans, 10· great way to illustrate how America and Mexico are 10· because if you go to places like Europe or Asia, they 11· working together.· There has been some really great 11· have been doing this for better part of a decade. 12· cooperation going on there, and I think that it's 12· They have deployed similar types of technology, 13· going to endure through the switch in administration. 13· whether it's electronic gates, or whether it's people 14· · · · · · That was one concern we had that this 14· driving trucks through larger gates where immigration 15· program may not make it, but it looks like it's going 15· official can just sort of look through and 16· to make it. 16· automatically process people. 17· · · · · · And what they are doing here, they are 17· · · · · · But in the airports, this is something new 18· creating a database for, face, fingerprints and iris, 18· for us.· And I think one of the challenges that 19· and they are going to be rolling this out to screen 19· resonates not only for the airports, but also at the 20· folks in airports and all across the borders as well. 20· borders, is that there is a infrastructure challenge 21· So it's a very exciting opportunity. 21· in the United States.· A lot of Asian countries that 22· · · · · · So getting into a little bit about what we 22· are either, they are not re-building or upgrading or 23· do for border security, one of the things that we've 23· modernizing, they are building, right.· So they are 24· done for CBP, when it comes to the airports, is we've 24· lucky in that perspective.· They can start from the 25· rolled out something called Biometric Exit, and so 25· ground up and build a modern infrastructure. Page 54 Page 56 ·1· · · · · · We don't have that luxury here in the ·1· Swift concert. ·2· United States, unless the airports and the airlines at ·2· · · · · · So they are absolutely wanting to know if ·3· the borders create new terminals or new ·3· there are bad actors walking around their venue that ·4· infrastructure, which is really cost prohibitive. ·4· are armed.· They already have metal detectors, but ·5· · · · · · So what's happened is the technology has ·5· they want to take it to the next level.· You can be a ·6· gotten cheaper, gotten faster and the footprint has ·6· little callous and say it's a liability issue, but ·7· gotten much, much smaller.· So that's a win-win across ·7· these people do run businesses.· But it's also a ·8· the border. ·8· safety and security issue. ·9· · · · · · So just a little bit more, we have worked ·9· · · · · · But this is an example.· We have also got 10· in coordination with CBP for about two and a half or 10· some competitors out there, but this is our leading 11· three years in this and we have gone through three 11· product that we've been developing at this point.· And 12· iterations.· This is the device that's deployed at the 12· it's been a great partnership with CBP, they have been 13· gates in the airports, and it's called the NeoFace 13· extremely helpful, and we have worked really closely 14· Express.· And we're also looking at hardening this as 14· with them to take this technology from what it was and 15· well.· We talked to CBP about putting some of these 15· bring it to what it is today. 16· devices outside along the borders as well.· And this 16· · · · · · Now, this is getting into a little bit more 17· is provided at the exit, but we're also looking at 17· about what we do with some other elements within DHS. 18· biometric entry.· So if any of you have ever, how many 18· You will see at the very top there a picture of JFK. 19· of you have traveled, have returned from a flight and 19· This was one of our first deployments about four years 20· used the kiosks.· Anybody?· Couple of you?· The 20· ago, and this is what I was discussing earlier 21· automated kiosks?· So that was wave one, right. 21· biometric entry.· So this is when you come back from a 22· · · · · · So if you are pre-check or global entry 22· flight, you take your passport out, you introduce it, 23· person, you pay and you get enrolled, they do a 23· it kind of knows who you are from the bar code, you 24· background check, then when you come back from a 24· put your fingerprints down, and it says you are good 25· flight, you can process real quickly without having to 25· to go, you make your declarations, and you leave the

Page 55 Page 57 ·1· talk to an agent, right. ·1· airport. ·2· · · · · · Well, the next phase of that is modernizing ·2· · · · · · As I mentioned, that's going to be ·3· those kiosks and also taking them away.· The future ·3· modernizing. ·4· will be where you will have cameras there, much ·4· · · · · · We also work with ICE a little bit for, ·5· smaller, and they will be running video and processing ·5· these are hand-held devices.· Those are carried by the ·6· thousands of faces in a frame as you walk off your ·6· agents and they use those if they encounter folks who ·7· airplane.· And there is no reason to interact with ·7· are undocumented, if they want to get a background ·8· anybody unless there is problem, unless you get ·8· check. ·9· flagged or you are confused or something like that. ·9· · · · · · Now, most interestingly for this group, on 10· · · · · · And then you might have an officer come up 10· the bottom there, at Otay Mesa, we were involved in a 11· and say how may I help you or we need to have a 11· CBP pilot that was pedestrian entry and exit.· And 12· discussion. 12· this was really exciting.· This was early days and it 13· · · · · · And so it's flipping the security paradigm 13· was ground breaking, because as I said, you got people 14· on its head.· We no longer want to go after everybody 14· lining up and cuing, takes them two to three hours to 15· as if they are a bad guy.· We only want to go after 15· cross the border.· There is no reason for that to 16· that small percentage that poses a risk, and let's let 16· happen, especially if you got folks who are carrying 17· everything else flow through much more quickly.· And 17· border crossing cards, or they are known workers who 18· that is the way that modern travel will look in the 18· has the correct Visa type.· They should be able to 19· future. 19· flow across the border and get to their job backwards 20· · · · · · Our commercial customers, I know I'm 20· and forwards without having to wait so long. 21· talking a lot about federal, state and local here, but 21· · · · · · So the idea here was to put some automation 22· our commercial customers are all in on this.· When you 22· along the foot and toe paths to allow these 23· talk to people who own stadiums or venues, nobody 23· individuals to cross more freely. 24· wants to be the next bucket clown in France.· Nobody 24· · · · · · And so the results were varied, because the 25· wants to have an entire facility shot up at a Taylor 25· technology is a little new and folks who are walking Page 58 Page 60 ·1· across aren't always accustomed to it.· So they have ·1· biometric technology, if you get a match, it doesn't ·2· to stop and ask questions, but typically we have folks ·2· mean you are getting arrested.· It doesn't mean that. ·3· there, they can guide them through and they learn ·3· All it means is you got a lead to have a conversation ·4· really quickly. ·4· and to see whether that person is a risk or not.· Or ·5· · · · · · After the second or third time, it's no ·5· maybe it's an error.· So that's a big discussion for ·6· issue.· They now either walk through, put the passport ·6· us. ·7· down, takes a photo and they are out.· The transaction ·7· · · · · · But this is where you would have sort of ·8· takes less than 10 seconds.· So the idea is to get ·8· back end solution coupled with a front end device to ·9· that down. ·9· help folks move quickly through.· As you will notice, 10· · · · · · So when we started doing this, we were 10· we've got facial recognition and that little piece on 11· talking 20 seconds, 15 seconds.· On the airport side, 11· the bottom there is a document reader.· So basically 12· I have a statistic for you, we are around 2 seconds. 12· you got a passport, border crossing card or a driver's 13· I don't know whether we'll get there with the 13· license, any of those can be coupled with a face image 14· pedestrian traffic, but that is the goal is how do we 14· that's usually already captured by officials.· And you 15· start deploying technology and automating some of 15· can say, I know that person, there is no issue, walk 16· these things so we don't have to continually have 16· right through.· You take the human out of the loop, 17· everybody stop and get checked continuously. 17· you immediately decrease the cost and you increase the 18· · · · · · So this is the challenge, right.· So this 18· efficiency of people crossing the border. 19· is you all's challenge.· This is what you all face 19· · · · · · And if you duplicate that over and over at 20· every day, I'm sure.· And so you got large areas of 20· all the different areas across the border, now you 21· congestion where people are focused, whether it's foot 21· have got real savings and you've got real cooperation, 22· traffic or commercial, motor traffic trying to get 22· people moving more freely cross the border. 23· through these choke points and everybody is getting 23· · · · · · This is just the pedestrian piece.· We have 24· screened. 24· also had a similar discussion about doing this with 25· · · · · · Or the alternative is you got the Border 25· trucks.· So you can also position either these devices

Page 59 Page 61 ·1· Patrol who is trying to patrol all the areas where ·1· or cameras or other devices at sort of the ·2· there or there is not fencing and they are trying to ·2· toll-looking structures when you drive through, and ·3· make sure there is a certain level of security there. ·3· you can also couple it with license plate readers. ·4· So the challenge is I need to do this in an automated ·4· · · · · · And that with some other scanning ·5· fashion with some of the things that I've talked ·5· technology to make sure that there is no cargo that's ·6· about. ·6· illicit being shipped across, you can get to a point ·7· · · · · · Well, one of the things that we've ·7· where you are moving this traffic more quickly.· You ·8· discussed with some of our folks is using more ·8· know, basically what you are doing is you are coupling ·9· artificial intelligence and video analytics platforms, ·9· face recognition with vehicle verification, and you 10· coupled with some of the technology that's already 10· are saying I know that person or I don't know that 11· deployed in the airports. 11· person with that cargo, they can go more freely and 12· · · · · · So I've already mentioned the Express unit 12· more quickly. 13· which is employed at some of the airports.· If you 13· · · · · · You know, the discussion around the border 14· couple this device with another back end software, you 14· wall has been going on in Washington, we hear it all 15· can start to do some really interesting things.· And 15· the time.· And one of the things that we try to pivot, 16· we started to have some discussions with CBP and 16· and if you have looked at the allocation of funding, 17· Border Patrol about potentially doing this along the 17· which hasn't been fully approved, there is a 18· border.· Right now it's very limited pilots.· They 18· percentage of that funding that has been allocated for 19· want to prove the technology and make sure that 19· technology. 20· there's not a lot of false positives, because last 20· · · · · · And so one of the discussions we always 21· thing we want to do is have a bunch of sirens going 21· have is it's probably not going to be very popular to 22· off and, you know, sending officers on errands that 22· build a gigantic concrete wall along the whole border, 23· doesn't lead to anything. 23· so one of the things that's been discussed is how do 24· · · · · · And also, we don't want to scare folks, 24· you fill it in with other types of technology where 25· because one of the biggest misnomers when it comes 25· you can supplement the wall, and whether that's ground Page 62 Page 64 ·1· sensing technology, fiberoptic sensing, or it's video ·1· the Las Vegas of China.· And so there are millions of ·2· surveillance.· You can also couple that with night ·2· people that cross that border on a regular basis. I ·3· vision technology. ·3· don't know the exact stat, but it's a large volume. ·4· · · · · · So basically if there is illegal crossings ·4· · · · · · If you look at the bottom there, I know ·5· or any sort of disruption along the fence line, an ·5· it's kind of hard to see, these are automated lanes ·6· agent will get a warning sign and they can take a look ·6· where people are just using their Visa or their ·7· and they can see whether or not it's an issue or not, ·7· passport to walk through, and there is no officer in ·8· and then respond appropriately.· And so we've had some ·8· the loop at all.· These are people who have the ·9· of these discussions with CBP and with Border Patrol ·9· correct visa category or the appropriate passport or 10· and it's in the very early stages, but they definitely 10· credential to go back and forth, and a lot of these 11· want to pilot some of this technology to see how well 11· people are workers.· They come from either Hong Kong 12· it will work. 12· or Japan and they want to go to Macau, whether they go 13· · · · · · So I kind of mentioned this a little bit, 13· for a weekend or a day, and it's just proven, it 14· but one of the things that we have often talked about 14· works. 15· is Intelligent Intrusion Detection.· So again, 15· · · · · · The biggest challenge when you deal with 16· building on the idea that we have face recognition and 16· some of the these cross border technologies is trust. 17· you have got face that you can view in two dimensions, 17· How do you trust that the technology is effective, 18· right, so you got a static face image and you compare 18· that it will work?· How do you trust that you are not 19· that against the database, that's like the driver's 19· going to get a false negative?· How do you trust?· So 20· license or passport. 20· this idea of trust is really important when it comes 21· · · · · · In this scenario, what we're talking about 21· to deploying the technology.· And then of course 22· is more real time video surveillance where you have 22· obviously cost has been an issue, but the price has 23· video cameras and then you got the artificial 23· come way down on the technology. 24· intelligence software running on the back end, and 24· · · · · · So around the world, comparatively, America 25· it's looking for objects.· And it can tell the 25· is playing a little bit of catch-up.· That's kind of

Page 63 Page 65 ·1· difference.· It can say that's a coyote or that's a ·1· one of the messages that I would probably carry.· And ·2· mule or that's nothing, or it's the wind, or it's a ·2· we hear this in Washington all the time. ·3· human being. ·3· Modernization of airports and borders, definitely we ·4· · · · · · And then hopefully if you have got a good ·4· are behind. ·5· enough line of sight on that individual, you can ·5· · · · · · So just to further the dialogue, if anybody ·6· potentially ID them in real time and find out if you ·6· is Reston, Virginia in August we welcome you all to ·7· actually know them.· Are they on a watch list?· Are ·7· come to our Users' Conference.· We will have, the ·8· they on a wanted list? ·8· first Secretary of Homeland Security will be speaking, ·9· · · · · · So these are the types of things you can ·9· Tom Ridge.· And we also got John Wagner will be there 10· actually deploy.· And then you can couple that with 10· speaking.· We will also have the Deputy Director of 11· other technology that can be imbedded in the fence 11· the Office of Biometric Identity Management, Kim Dan, 12· line.· And the fence line has, can have fiberoptic 12· and we will also have Roger Warner who is an ICE 13· technology that can tell if there is a disruption or 13· agent.· He will be there speaking.· So we are really 14· vibration.· It can also determine temperature and you 14· excited. 15· can sometimes, you can even hear sounds from the line. 15· · · · · · And this is an opportunity for our 16· You can also bury it and do all sorts of interesting 16· customers to talk to our state and local customers 17· things. 17· because we also have those states that I mentioned. 18· · · · · · And it's a fairly cost effective way to 18· So we'll have folks from Texas and California, and law 19· monitor big stretches of the fence without having to 19· enforcement officers will be there, sort of talk about 20· deploy larger technology. 20· the technology and they share their challenges that 21· · · · · · Now, what I've been talking about it's not 21· they face in the field, privacy issues, ethics issues, 22· really deployed along the border today, but I can tell 22· what are some of the issues that are surrounding the 23· you that in other parts of the world we absolutely 23· deployment of technology. 24· have deployed some of this technology.· One of the 24· · · · · · So these will be the key notes and then we 25· biggest border crossings in the world is Macau.· It's 25· have some educational seminar classes where everybody Page 66 Page 68 ·1· talks and meets and it's like a three day event. ·1· move forward, especially those wind turbines.· Nobody ·2· · · · · · But we also have international participants ·2· wants to see a wall.· Everybody is trying to figure ·3· as well.· We'll have folks from the Middle East, folks ·3· out what we are trying to do here and maybe those wind ·4· from Asia and Europe there as well.· So if anybody is ·4· turbines could benefit everyone.· Thank you. ·5· in that region, we certainly warmly welcome you all to ·5· · · · · · MR. HUTCHINSON:· Thank you for that.· You ·6· come. ·6· are not alone.· In Washington, D.C. there is a strong ·7· · · · · · Just to sort of summarize what I've been ·7· debate about the wall and the price tag and what it ·8· talking about here, you know, it truly is the time for ·8· does for openness.· So that's a big discussion. ·9· biometrics when it comes to immigration and border ·9· · · · · · So I think there is all sorts of different 10· control.· Like I said, I've been doing this for about 10· types of technology out there that should be 11· 15 years, and like most other types of technology, it 11· considered.· Absolutely. 12· starts off on the battle field and then it gets 12· · · · · · And the drones, that's interesting, the 13· normalized and it gets integrated into useful, more 13· drones, I'm a drone owner as well, kind of a hobbiest, 14· productive ways in every day society. 14· I was shocked to hear that.· In Washington, D.C. there 15· · · · · · We have seen that happen with biometrics in 15· is a gigantic no fly zone.· I mean, literally the 16· a real way, whether it's on your phone or just to open 16· software will not take off.· it's embedded in every 17· it up to go to Facebook or whether it's to introduce 17· commercial drone you buy.· It will not take off. 18· your face to get across the border to go do a job. 18· · · · · · So it's interesting what the federal 19· It's definitely here.· It's high performance.· It's 19· government, I think law enforcement office is going to 20· accurate.· It's reliable.· And it's cheaper than it's 20· have to do, is to think about drone technology, 21· ever been before. 21· because interdiction of those types of devices that's 22· · · · · · So I welcome any questions you all have, 22· a huge issue.· We saw it overseas in the desert of the 23· and I just want to warmly thank you all again for 23· war, it was a different set of scenarios.· Here in the 24· inviting me to speak today. 24· United States, it presents a lot of challenges, so. 25· · · · · · SECRETARY PABLOS:· Thank you very much and 25· · · · · · SECRETARY PABLOS:· Thank you.· Anyone else?

Page 67 Page 69 ·1· are there any questions or comments? ·1· Yes, sir? ·2· · · · · · JUDGE TIJERINA:· Good morning, sir, how are ·2· · · · · · SPEAKER:· (name), with the Port of San ·3· you?· Tano Tijerina, Webb County Judge.· Thank you for ·3· Antonio.· Great presentation, very interesting.· One ·4· your presentation.· One of the things that you were ·4· of the things that we're trying in San Antonio, want ·5· talking about right now with the facial recognition ·5· to extend an invitation to you and the rest of the ·6· and border wall situation that we are very much aware ·6· group to come back to the port sometime soon.· We're ·7· of, we are very much in disagreement by the way. ·7· looking to build a platform for the integration of ·8· · · · · · But one of the things that we can maybe ·8· cyber security and other digital technology into ·9· think about, and I don't know if maybe you have ·9· mature industries that are key industries for Texas 10· already gotten to that point, would be maybe to do 10· and the nation, not just for defense, but also for 11· wind turbine, that way the landowner could actually 11· aerospace, given what we have going on already at the 12· benefit from something and most wind turbine companies 12· port as well as manufacturing, protection of critical 13· would be able to do that.· The wind turbines love us 13· infrastructure, and I think also the movement of goods 14· because we have that south, that afternoon wind. 14· and people falls into that category too.· We would 15· · · · · · More importantly, you could put your 15· love to have you as a customer, as a tenant at the 16· cameras.· But with that said, I just want to make 16· port. 17· sure, I know you all are putting cameras in different 17· · · · · · MR. HUTCHINSON:· Thank you for the 18· areas of the border, but what Mexico is doing, or the 18· invitation. 19· bad guys, the cartels, what they are using are drones 19· · · · · · SPEAKER:· One question that occurs to me as 20· that are going over those cameras, and they are 20· you talk about the downward trend in cost for this 21· actually looking at them in live time, I'm very sure 21· technology.· I imagine that downward trend also 22· you know this, they are seeing what direction those 22· includes cosmetic surgery and other altering methods, 23· cameras are facing at that particular time, and then 23· identity altering methods.· I'm sure that's one of the 24· they go to the opposite side.· Just a couple of, you 24· first questions you get asked, how does this 25· know, so maybe some helpful tips that you can maybe 25· technology account for that? Page 70 Page 72 ·1· · · · · · MR. HUTCHINSON:· It's huge.· Number one, ·1· into our next item, which is our Texas-Mexico Border ·2· thank you for the invitation.· Be happy to talk to you ·2· Strategic Transportation Blueprint.· Tim, if you could ·3· afterward about that. ·3· please take over, I'd appreciate it. ·4· · · · · · Number two, your question is spot on.· We ·4· · · · · · TIM JUAREZ:· Good morning, Secretary of ·5· spend about 1.2 billion dollars a year in R&D.· Now we ·5· State Pablos, Commissioner Ryan and Commissioner New. ·6· do a lot more than just biometrics, but we spend ·6· I'm Tim Juarez, with TxDOT trade, International Trade ·7· heavily.· And we have an entire floor of researchers ·7· Office, and I serve as the international trade and ·8· and engineers both in Tokyo and across the United ·8· border coordinator. ·9· States looking at the math libraries for facial ·9· · · · · · So today we are going to provide you an 10· recognition to deal with those issues you mentioned 10· update on the strategic blueprint and we will have 11· and there are a very big concern to us. 11· multiple presenters today as well. 12· · · · · · Just like any other technology, as soon as 12· · · · · · So you should have the presentation in your 13· you introduce it, there is counter measures.· People 13· packet.· In addition, you should have copies of 14· try to find ways around it.· Like your basic 14· recommendation 1 through 5 that you approved as a 15· fingerprints, they would literally sew them off or 15· committee back in December of 2017.· And then we also 16· douse them in acid.· And so we had to move to another 16· have a fact sheet that we're going to roll out as part 17· biometric and iris or face was the one. 17· of the discussion. 18· · · · · · But for your question, it's absolutely a 18· · · · · · So just as a reminder, the blueprint itself 19· challenge.· But we've been able to demonstrate with 19· is the framework that BTAC approved that will address 20· masks that are produced by Hollywood special effects 20· the Texas-Mexico border and serve trade corridor 21· artists, and we've trained our algorithms against 21· needs.· The blueprint is your first planning effort to 22· those to detect liveness, so you can actually 22· help coordinate those activities along the border. 23· determine whether or not the skin has sort of blood 23· · · · · · The blueprint is a coordinated effort 24· behind it, and you can also determine if it's a fake 24· between TxDOT and BTAC, and it's going to help us 25· face. 25· develop the framework for addressing the Texas-Mexico

Page 71 Page 73 ·1· · · · · · And some of it is astonishing to see how ·1· border crossings and trade transportation corridor ·2· well it works.· Now, it's not cheap and it takes a lot ·2· needs. ·3· of training.· We also use deep learning to train our ·3· · · · · · In addition to the power point, you should ·4· algorithms, so they look at faces from the internet ·4· be able to see your original -- my apologies.· In the ·5· and we look at billions of faces from around the ·5· power point you should be able to see your original ·6· world. ·6· vision statement and your original mission statement. ·7· · · · · · We also have got crews that fly away so if ·7· · · · · · So of the multiple initiatives that came ·8· we ever run into an area of population set around the ·8· out of BTAC for the blueprint, this has been about a ·9· world, an ethic group that we can't, our algorithm ·9· 24 month initiative.· And there are about 100 original 10· doesn't work well with, we will deploy a team to 10· scenarios developed, and through your work you helped 11· collect faces.· We'll pay them and they sign 11· us categorize those 100 initiatives, and then you 12· paperwork, they release their face, so that we can 12· helped us develop the top five initiatives that you 13· train the algorithm against those faces to make it 13· wanted us as staff to provide assistance and support 14· better. 14· to. 15· · · · · · So it's a continual process of making it 15· · · · · · So those five that we are currently working 16· stronger and better.· It's never ending. 16· on and provided information to you at your last 17· · · · · · SECRETARY PABLOS:· Anyone else? 17· meeting in April, Recommendation 1 is "Establish a 18· Fascinating.· I think having this type of skill set is 18· Texas-Mexico Trade Transportation Task Force;" 19· going to be essential.· So thank you for being here. 19· Recommendation 2 is "Develop a Texas Trade Lanes 20· I know that your team is already deployed to the 20· Program;" Rec 3 is "Develop a Public Awareness and 21· border many times, and I'd like to begin to focus on 21· Education Program;" Rec 4 is "Implement Technology and 22· how it is we make those crossings more effective and 22· Innovative Border Strategies;" and you heard one 23· efficient. 23· previous to our presentation; and then Recommendation 24· · · · · · We'll take the next item and then after 24· 5 is "Foster Public Sector Involvement." 25· that we'll take a short break.· So we'll move right 25· · · · · · So at the April 18th meeting that was held Page 74 Page 76 ·1· here at Greer, you gave us additional guidance or ·1· action items that may come out from this meeting ·2· recommendations to go forward with the five recs.· So ·2· today. ·3· you asked that we continue to develop a comprehensive ·3· · · · · · So as part of Recommendation 1, your ·4· and unified vision for the Texas border among members ·4· original goal was to establish a forum for bilateral ·5· of the border community. ·5· communication, coordination and collaboration between ·6· · · · · · In addition, we were to identify binational ·6· Texas and Mexico and to focus on cross-border trade ·7· public and private stakeholders for participation in ·7· transportation, including planning, programming, ·8· the blueprint efforts and implementation. ·8· implementation and economic development. ·9· · · · · · We were also asked to identify funding ·9· · · · · · The objectives was that, from that was to 10· programs and establish processes that we here at TxDOT 10· promote and improve bilateral cooperation.· We were to 11· have. 11· facilitate communication among the agencies 12· · · · · · And then we were to develop documents in 12· responsible for border transportation planning, as 13· support of the public awareness and education program, 13· well as facilitate bilateral data collection, sharing 14· identify any existing case studies or business models 14· and analysis of that information. 15· that would help us develop alternatives to implement 15· · · · · · So for the identification of task members, 16· technology and innovative border strategies. 16· the committee had multiple discussions as to what 17· · · · · · And then we were to identify strategies for 17· level we would have participants be identified, and 18· the engagement and inclusion of the private sector. 18· then who from those particular agencies or entities we 19· · · · · · So on this slide you see the chairs of each 19· would know.· So· I would like to note this is just a 20· of the five recommendations.· I would just like to 20· proposal, Secretary of State Pablos, coming from this 21· note for the committee members here in attendance 21· committee for Task 1. 22· Mr. Schwebel could not be here with us today.· He is 22· · · · · · And so for proposed members for Texas we 23· actually on a trade mission NAFTA meeting in Mexico 23· are saying, or the committee is saying, or 24· City.· So he sends his regrets in not being able to 24· recommending Secretary of State, TxDOT administration, 25· attend. 25· a representative from TxDOT Freight and International

Page 75 Page 77 ·1· · · · · · In addition, Councilman Love, who is the ·1· Trade, Economic Development Division from the Texas ·2· Chair for Rec 3, has a council meeting today in his ·2· Governor's Office, and then representatives from each ·3· respective entity and they are discussing budgetary ·3· of the Texas border regions to consist of El Paso, ·4· issues.· So in order that we may proceed forward with ·4· Laredo and Pharr. ·5· the presentations on each of the five recommendations, ·5· · · · · · Proposed members from Mexico we would do, ·6· Mr. Schwebel has asked that myself and Mr. Vale ·6· the proposal was Secretary of Communication and ·7· present the information on recommendation 1; ·7· Transportation, or SCT, the Secretary of Foreign ·8· Councilman Love has asked that I provide the ·8· Affairs, or SRE, the Tax Administration of Mexico, ·9· information on Recommendation 3; and then Mr. Vale and ·9· known as SAT, and then representatives from the four 10· I will provide information regarding Recommendation 5, 10· Mexican states. 11· "Fostering the Private Sector Engagement." 11· · · · · · In addition, the committee identified the 12· · · · · · So as we noted, Recommendation 1 is 12· need to have potential ex officio members, who would 13· "Establish a Texas-Mexico Trade Transportation Task 13· also be part of that cohesiveness of the group from a 14· Force."· So the purpose of this initiative, and out of 14· binational approach.· So the proposal was to have 15· the WebEx that we had a week ago was to discuss 15· representatives from U.S. Customs and Border 16· proposed task force members, and to update the 16· Protection, U.S. and Mexico Consuls, which we have 17· schedule to implement task force meetings as we go 17· many representatives here, the U.S. Department of 18· forward. 18· Transportation to have that federal member present, 19· · · · · · So some of the items that were discussed in 19· the U.S. State Department, and then the Texas-Mexico 20· our conference calls was to come up with a list and 20· Trade Coalition and then the Class One railroads. 21· discussion of proposed task force members, revise the 21· · · · · · Because of the federal Mexican elections 22· schedule for implementation in light of the Mexican 22· that occurred on July 1, members had a discussion as 23· elections, identify and review existing memorandums of 23· to when the inauguration of the Mexican President 24· understandings between the State of Texas and our 24· would occur, when the Mexican President would have 25· Mexican counterparts, and then any other additional 25· appointments to particular key critical areas, and Page 78 Page 80 ·1· then how we would go about not only identifying that ·1· needed. ·2· individual, but explaining to them what the ·2· · · · · · And so I am going to stop there and see if ·3· Recommendation 1, task force committee is, and then ·3· there is anything Mr. Vale would like to add at this ·4· how we would go about meeting the goals and ·4· particular point before we address any comments or ·5· objectives. ·5· questions. ·6· · · · · · So on this particular slide you see the ·6· · · · · · MR. VALE:· In the, what we identified, the ·7· revised timeline, it is different from what was the ·7· cities of El Paso, Laredo and Pharr, those are ·8· original schedule in Rec 1, which is in your folder ·8· essentially the districts, so it's not just those ·9· today.· So the committee suggested with the ·9· cities, it's people in that district.· And each one 10· Inauguration of the Mexican President to occur in 10· has a district director that we would work with in 11· December 2018, we probably wouldn't have appointments 11· conjunction with. 12· by the Mexican President of his key secretaries and 12· · · · · · In addition, we don't note it here on key 13· staff members until around January or February time 13· dates, but I believe September 1st, that the Santa 14· frame of next year. 14· Rosa do get sworn in on September 1st.· So the Mexican 15· · · · · · It would then give us the opportunity based 15· Congress will already be functioning and that is an 16· on preliminary discussions that many of you as members 16· important time because that's when they start 17· have been having with representatives of the Mexican 17· organizing the commissions that they have and who is 18· government to help us start identifying who those 18· going to be placed in key positions very much like we 19· potential appointments would be and how we would go 19· would have committee chairmans and vice chairmans in 20· about including them as part of this task force. 20· the and House and in Washington.· So that 21· · · · · · And then around the March time frame we 21· is not a dead period.· It is a period of organization 22· would begin the notification and explanation of the 22· in the legislative branch, which is, today, very 23· goals and objectives of Recommendation 1. 23· prominent, and the new President-Elect has swept in a 24· · · · · · The Committee's thought that overall with 24· majority of both of those chambers.· So it's going to 25· that schedule of the appointments and identification 25· be very important to be in touch, in functioning with

Page 79 Page 81 ·1· of members, that initial meeting could occur around ·1· those legislative groups at that time. ·2· April of 2019. ·2· · · · · · The updates of the agreements we think, ·3· · · · · · The thought process since Austin had easy ·3· it's mentioned in another part here, but I believe ·4· access to, especially from Mexico, that it would be ·4· that we really need to start looking at the ·5· the meeting, the first place to have the meeting and ·5· memorandums of understanding that have been signed ·6· then we would alternate between Texas and Mexico. ·6· recently by both federal governments, and I believe ·7· · · · · · Some other efforts that were identified by ·7· Secretary now has a copy of those agreements, at least ·8· the committee, it was brought up that there are ·8· I was informed that they -- ·9· currently established agreements between Texas and ·9· · · · · · SECRETARY PABLOS:· Yes. 10· Mexico.· And so the first agreement is the Agreement 10· · · · · · MR. VALE:· And the importance of those 11· For Regional Progress, and then there is also a Letter 11· agreements are tremendous because it basically is a 12· of Intent. 12· blueprint as to how the U.S. and Mexican federal 13· · · · · · So the committee wanted us to discuss those 13· agencies who do the inspection service will be 14· two, or identify those today, and then talk about the 14· operating with each other in the border area. 15· need to, one, renew or update those agreements and the 15· · · · · · There has been some dramatic changes. I 16· opportunity to include them as part of the work effort 16· can tell you that three years ago I never would have 17· that Recommendation 1 and BTAC would have going 17· predicted that we would look at a port of entry as the 18· forward. 18· port of entry and not the Mexican port and the U.S. 19· · · · · · So the action items as part of Rec 1 was to 19· port.· And these goals are how to share resources on 20· identify members specifically from those approved 20· both sides. 21· agency lists, if they are approved at today's meeting, 21· · · · · · They piloted it in Arizona, in other 22· and then start developing a base for what the mission, 22· places.· We have some that are coming on stream in 23· goals and objectives would look like, and then have 23· Texas.· I want to give you a personal example. 24· the subcommittee start revising, updating, editing it, 24· · · · · · In October we were able at our port of 25· and then development or modification of agreements as 25· entry, which is one of the smallest ones on the Page 82 Page 84 ·1· border, one of the reasons it was chosen, and we were ·1· the times it is is when we measure.· We actually have ·2· able to identify the ability to do all inspections in ·2· cameras at our office and now CBP has to set up their ·3· the U.S. import lot with both federal agencies ·3· own independent PCs because they want to have access ·4· represented.· And in some places they only have a ·4· to the picture.· We can't put it into their system ·5· percentage.· We started with a percentage and went to ·5· because that's a national security system.· So they ·6· 100 percent, and now including Saturdays and Sundays. ·6· bought separate PC just to look at the camera.· And ·7· So all the cargo that comes through goes through that ·7· now everybody is looking at the lines and on the ·8· procedure. ·8· Mexican side, U.S. side, and they are communicating. ·9· · · · · · Many of the ports are struggling to have to ·9· · · · · · And the information that comes out of the 10· adjust for the infrastructure requirements because 10· old gamma ray that we had at our port, which is the 11· they make you have a lane specifically for cargo that 11· newer x-rays, it's going back and forth to each of 12· is in that program.· But the unusual part about it 12· their offices.· And they are all seeing it at the same 13· it's not just for the VIP, major corporations.· It's 13· time. 14· for everybody.· You file in that program, if you are 14· · · · · · And we are looking forward to the next 15· just a three man, three truck outfit or if you are 15· phase which is the command centers, where they are 16· bringing in 10 trucks or 100 trucks, you can get into 16· going to have people off-site reading those images, 17· that program. 17· and we think that's a big improvement what we are 18· · · · · · And the interesting thing that this is, I'm 18· talking about. 19· going to give you our side and then some of the CBP 19· · · · · · So these are all laid out in these, in more 20· side, from our side we have a two lane bridge.· What 20· general terms, but it's laid out in these memorandums. 21· we do is use some of the old fashioned stuff that we 21· And I think as, we are basically infrastructure 22· have done in the past in cooperation with both customs 22· oriented, now we have to look at it differently.· We 23· services, we put flagmen on the bridge and adjust the 23· always thought we would have to replicate a whole 24· time periods.· We actually use both lanes going both 24· other part of entry to get more.· Now we are finding 25· ways by doing that. 25· out we can do it, facial recognition which is coming

Page 83 Page 85 ·1· · · · · · So when the trucks need to -- Sorry.· Ease ·1· on stream, it's even faster because there you are ·2· the trucks in, get past a bunch of cars and they will ·2· getting the driver, the truck.· The images are so ·3· go into the import lot.· And we found that -- The ·3· precise on some of the these machines that they ·4· number that we are most interested in now is no longer ·4· actually lock in a vehicle and can identify if there ·5· wait times.· It's through-put.· It doesn't matter how ·5· is any anomalies the next time that vehicle comes ·6· long you wait.· It does matter, but it's not the ·6· through.· So that would set a red flag. ·7· definitive way to solve the problem.· What you want to ·7· · · · · · SECRETARY PABLOS:· Sam, I think what's ·8· look at is what every team of officers has the ·8· important is I think understanding what's in there is ·9· capability to process and put it through the ·9· very important.· So I would ask to please send a copy 10· facilities safely, physically and out where it's 10· of the agreements to each member of the committee. 11· supposed to be going instead of sitting around in a 11· You know, one of them was the most recent agreement 12· parking lot. 12· between President Pena Nieto and Governor Abbott, 13· · · · · · So CBP, and the CBP leadership has started 13· that's the memorandum of understanding.· Previous to 14· to use the word through-put now.· But even with the 14· that Governor Perry, I don't know -- 15· old fashioned wait times, they are, we're seeing 30 to 15· · · · · · MR. VALE:· It's been awhile back.· We need 16· 40 percent increases in through-put, same number of 16· to get them all updated. 17· people, putting that much more cargo into the stream, 17· · · · · · SECRETARY PABLOS:· Basically it was all 18· putting it out, to go to other things.· Inspections 18· four governors on the Mexican side and Governor Perry 19· and all of that stuff is all a part of what we have to 19· signed the agreement, but because there wasn't this 20· go through to go out and deliver it to the customer. 20· dialogue or a forum for dialogue, things kind of, you 21· · · · · · CBP says that their records are showing 21· know, fell off the edge.· And now that we have 22· that peak times when we had waits it's going from an 22· actually have an infrastructure where we have our 23· hour and a half to 30 minutes. 23· colleagues on the Mexican side, I think we can pick 24· · · · · · So if you can do this with two lanes at a 24· these back up, particularly the older agreement, that 25· very small port, that is not congested all the time, 25· one is very important, pick it back up, get consensus Page 86 Page 88 ·1· from all Governors and move forward in executing those ·1· because we are doing just one inspection together. ·2· items that you talked about.· But thank you.· I would ·2· That means all different steps for both are doing at ·3· ask if you could please make sure that everyone gets a ·3· the same time. ·4· cope of those. ·4· · · · · · SECRETARY PABLOS:· Exciting stuff.· Mayor? ·5· · · · · · MR. VALE:· These are committee big picture ·5· · · · · · MAYOR CANTU:· Thank you, Mr. Secretary, and ·6· items here and that's where you would to put that ·6· good morning to the Board and to Commissioners.· The ·7· emphasis.· I think we can update the Texas ones to ·7· Rec 2 which is one where our committee met last week ·8· meet the realities of the, even if it's an annex to ·8· via conference call to discuss a number of ·9· them, to the realities of how they are processing ·9· recommendations and reviews over this particular 10· things on the border now.· They have eliminated 10· portion of the charge, which has been given to this 11· pre-inspections.· They have folded that into the 11· committee. 12· unified cargo processing.· There is lots and lots of 12· · · · · · We all know, of course, the purpose of the 13· changes going on.· They are having Mexican come over 13· reason which we met.· A number of us were on this 14· and do, add inspections on the U.S. side for Mexico. 14· board met by conference call to, a number of the NTOs 15· USDA doing it for U.S. 15· who also serve throughout the different districts of 16· · · · · · SECRETARY PABLOS:· It's a new day and we 16· the TxDOT regions, all gave some good feedback and 17· are excited about it. 17· input towards this Recommendation. 18· · · · · · MR. JUAREZ:· What we will do is we will 18· · · · · · The items, of course, that were discussed 19· provide the information that Mr. Vale provided, not 19· at that point were the review of the TxDOT Clear Lanes 20· only review those but review the two existing 20· Program, the Coordinated Border Infrastructure and 21· agreements and see if we have some comparable 21· Rider 11B programs and their effectiveness, the 22· information. 22· identification of TxDOT district projects and needs, 23· · · · · · So we'll go forward with Recommendation 2, 23· development of a Trade Lanes Program. 24· and I'll introduce Mayor Cantu, he is the Chair and -- 24· · · · · · Of course, within that, we will review 25· · · · · · MR. VALE:· One second. 25· within this presentation, however, what the next

Page 87 Page 89 ·1· · · · · · SECRETARY PABLOS:· Pardon me. ·1· action steps will be later on throughout the ·2· · · · · · MR. BROUWEN:· On the agreement working ·2· presentation. ·3· together with also and also at the cargo lanes? ·3· · · · · · We can go to the next slide.· Moving on, ·4· · · · · · MR. VALE:· In the cargo lanes.· They are ·4· we, of course you can see, the Texas Clear Lanes ·5· not yet doing it with the cars. ·5· Program, that was created as a "focused initiative to ·6· · · · · · MR. BROUWEN:· But these are the trucks? ·6· identify and address the state's most congested ·7· · · · · · MR. VALE:· Yes. ·7· chokepoints" throughout the area.· There are five ·8· · · · · · MR. BROUWEN:· You have them working inside ·8· metropolitan areas that have been designated, which ·9· the port? ·9· are Austin, Dallas, Fort Worth, Houston and San 10· · · · · · MR. VALE:· Yes. 10· Antonio. 11· · · · · · MR. BROUWEN:· Okay. 11· · · · · · This program, of course, was created and it 12· · · · · · MR. VALE:· I'll let Secretary Lagos speak 12· was an initiative by the Governor with the creation of 13· to that, she has participated in those conversations. 13· an internal TxDOT task force and with a very indepth 14· · · · · · MS. LAGOS:· The only important thing to 14· listening tour to receive public input to move forward 15· mention here is that this MOUs, they are like the 15· with this. 16· frame to have this kind of processes together, and in 16· · · · · · There are identifications of regional 17· each port we would define each one that's 17· projects and project selection and, of course, not to 18· participating, the process that it's possible to have 18· mention the need for the project funding. 19· the smallest port, easier to come all unified cargo 19· · · · · · However, more than 1.3 billion dollars have 20· process system.· And the biggest one, Laredo, or any 20· been directed to address the congestion issues. 21· other one, we will have steps because it's really 21· · · · · · In regards to the Coordinated Border 22· difficult to change.· But this is the way that we are 22· Infrastructure project which is something that we 23· moving.· And that means that Mexicans can be on the 23· along the Texas-Mexico border benefit greatly from, we 24· U.S. side or the city, the officers can be on the 24· are seeing that the states, of course, may use these 25· Mexican side and it's, 50 percent of the process 25· funds on the border region throughout Texas and the Page 90 Page 92 ·1· Texas-Mexico border.· Then, of course, it can be ·1· district projects and needs will continue with the ·2· utilized with the defined area within 50 miles of the ·2· utilization of the TxDOT 2018 UTP, which includes the ·3· border from Mexico. ·3· projects in development of a plan and construction; ·4· · · · · · I think I can always refer back to my ·4· consideration of the MPO, metropolitan transportation ·5· predecessor, Chad Foster, who always used to say, you ·5· plans (2045), and coordinate with port of entry for ·6· know, 50 miles from the border.· And I can remember he ·6· infrastructure improvements and coordination with the ·7· always used to say where was the rest of those 50 ·7· CBP, GAS, FMCSA, and other federal and state agencies ·8· miles when the border wasn't pulled.· And 50 miles ·8· for the implementation. ·9· past that, they do realize some benefits, but I think ·9· · · · · · Our action items that the committee, of 10· that we should be defining some additional greater 10· course, is moving forward in trying to bring forth at 11· support to those areas where we are seeing ports of 11· a later point would be for the continuation with the 12· entries and those massive chokepoints that may be 12· project identification list throughout the border; the 13· causing that additional congestion for the other areas 13· identification of the needed funding, which we are 14· throughout the state. 14· working with currently at this point with our TxDOT 15· · · · · · So there may be some revisiting on that 15· districts throughout the border region in order to 16· that we need to do as a committee to try to make some 16· identify set funding for the areas that we had come up 17· additional recommendations as far as the length and 17· with some numbers tentatively through a number of the 18· the miles of what is considered throughout the border. 18· different districts trying to come up with how the 19· · · · · · We note there is, of course, legislative 19· funding was distributed for certain mechanisms, 20· work that's needed, but we need to continue with that 20· specifically with CBI; and of course, the discussion 21· and make sure that our border areas are a higher 21· of project criteria and evaluation. 22· priority in those funding mechanisms. 22· · · · · · That mechanism was still also something 23· · · · · · Construction of highways and related safety 23· that was pending and we are waiting for some 24· and safety enforcement facilities related to 24· additional information from staff to look at the 25· international trade, that can benefit from these 25· possibilities of re-evaluating how funding is

Page 91 Page 93 ·1· funds. ·1· distributed throughout the three different districts ·2· · · · · · The operational improvements, which ·2· throughout the Texas-Mexico border region, ·3· includes electronic data and interchange and ·3· particularly also with the CBI funding. ·4· telecommunications, and the international coordination ·4· · · · · · So at this point we would be moving forward ·5· of transportation planning and programming and border ·5· with the discussion in the next steps in developing of ·6· operation. ·6· the Trade Lanes Program. ·7· · · · · · Moving on to the Rider 11B for Texas Border ·7· · · · · · I do want to, of course, incorporate and ·8· Infrastructure, during the 84th Legislative session, ·8· ask that if there is some additional representation ·9· the Senate Finance Committee Riders, Rider 11B was ·9· that can be held on this committee from the El Paso 10· placed in the transportation bill pattern of the state 10· District, it would be great to have that.· I don't 11· budget for 2016-'17 and Rider 11B is now referred to 11· know if anyone is willing to serve on that, on this 12· as the Border Infrastructure Rider. 12· committee. 13· · · · · · The Texas Border Infrastructure, however, 13· · · · · · I know that we have some very heavy valley 14· when allocating state and federal transportation funds 14· and mid state or border mid border state 15· to the Department of Transportation districts located 15· representation of the, this committee, but we would 16· within 50 miles of the Texas-Mexico border out of 16· like to have some people from the El Paso area.· So if 17· funds for which the Department has the discretion to 17· there is anyone willing to serve, we would definitely 18· distribute, the Department of Transportation shall 18· move that forward. 19· consider factors related to the movement of people and 19· · · · · · So with that being said, if there is any 20· goods through the land border ports of entry within 20· specific questions regarding the work on this 21· the boundaries of the state, including but not limited 21· committee, I'll refer also to our additional board 22· to the number of incoming commercial trucks, railcars, 22· member or committee member for this committee, 23· personal motor vehicles, commercial trucks and the 23· Mr. Paul Cristina, if you would like to say anything. 24· number of land border ports of entry. 24· · · · · · MR. CRISTINA:· Thank you, Mayor, and thank 25· · · · · · The identification, however, of the TxDOT 25· you, Mr. Juarez, for your leadership of the Page 94 Page 96 ·1· subcommittee.· Our participation on this subcommittee ·1· started in 1990 and had a good run and then another ·2· has really revolved around make sure the Trade Lanes ·2· run from 1998 to the early 2000's, and it's the Texas ·3· Program reflects the whole program as well as in the ·3· Trunk System.· The Texas Trunk System overlays very ·4· rest of the Border Master Plan.· So our challenge is ·4· nicely with the freight plan.· And so I want to make ·5· unique in participating in these action items, ·5· sure that they don't end up being in silos here. ·6· particularly around identifying the project list, ·6· · · · · · So while you are trying to work on the ·7· because while we have lists of projects that we would ·7· Texas trade lanes process and I'm trying to work on ·8· invest on the border, because of the competitive ·8· the Texas Trunk System process, and they actually are ·9· concerns and our desire not to put ourselves in a ·9· the same thing in many places.· So I think it's very 10· position where we are asking the public to pay for 10· important that we are looking at the freight plans 11· railroad capacity, we believe that's our job, we 11· because it overlays very carefully and very nicely 12· believe that there is a foundational step that needs 12· with the Texas Trunk System. 13· to be had to determine how railroad projects provide 13· · · · · · So I just want to make sure we don't end up 14· public benefit, and to the extent that those benefits 14· in silos.· So the Texas trade lanes, the Texas Trunk 15· can be quantified explicitly by the state, the state 15· System and the freight plan probably intersect 16· could become a partner in those projects in the types 16· constantly and we're going to want to really be 17· of public partnerships that we normally put forward. 17· careful that while we are doing this process we are 18· · · · · · So as part of this subject, we put forth a 18· mindful of those things. 19· question about trying to assess the feasibility of 19· · · · · · And now, because something was done in 1990 20· freight rail as a means of addressing congestion, 20· and again in 1998, roughly 54 percent of the phase one 21· improving safety and minimizing the impact and cost of 21· corridor was completed, the four lane divided or 22· public infrastructure, in other words how can rail 22· undivided, from that trunk system process, that 23· facilitate movement over the border that would take 23· doesn't mean we want to go back specifically to that 24· the burden off of the public to provide that for other 24· because things change as time goes by and the process 25· modes. 25· doesn't move as quickly as it should or could.

Page 95 Page 97 ·1· · · · · · So right now, as I understand it, we're ·1· · · · · · For instance, the I-69 corridor has a lot ·2· somewhere between this committee and the Freight ·2· of momentum now and there is a lot of need basically ·3· Advisory Committee understanding what is the scope of ·3· to get from Laredo over to Corpus Christi to take some ·4· this question.· I just want to make sure it doesn't ·4· pressure off of 35 and get congestion out of San ·5· get lost in this conversation because we did come to ·5· Antonio and so forth.· So we've got an opportunity ·6· the table under this Recommendation with that question ·6· there that we should be looking at together. ·7· in hand.· So to the extent that still is viable and ·7· · · · · · And then also the opportunity to take a ·8· question to be considered, I'll defer to the ·8· road that is not on the original corridor plan for the ·9· leadership on where that lands. ·9· trunk system from Eagle Pass over to I-35 so that 10· · · · · · So thank you. 10· there will be an opportunity for an addition of a 11· · · · · · COMMISSIONER RYAN:· I was on the Freight 11· trunk system process there.· But we really should make 12· Advisory Committee, and also makes a good segway, I 12· sure we are not in silos. 13· might suggest the consideration of having 13· · · · · · That's the main thing I want to emphasize 14· representation from the Freight Advisory Committee on 14· to you if there is a freight plan, there is a trunk 15· this subcommittee.· I do think that when you start to 15· system plan.· These things have a life and have 16· look at planning and movement of what crosses, there 16· history and I want to be sure that we do a nice job of 17· is lot of work being done with both rail and a lot of 17· making sure we are all thinking and talking. 18· the other dynamics.· I think those conversations would 18· · · · · · MAYOR CANTU:· I understand.· We can visit 19· Benjamin, especially if you start to put global 19· with staff, bring some additional action.· So we 20· considerations on that, so that might be something to 20· appreciate that.· Thank you for bringing that up. 21· consider. 21· · · · · · MR. JUAREZ:· Recommendation 3 is the 22· · · · · · MR. JUAREZ:· Thank you. 22· Development of a Public Awareness and Education 23· · · · · · COMMISSIONER NEW:· Mr. Mayor, I want you to 23· Program, and what we focused on this week's call and 24· be aware of work that's being done that I'm really 24· the week before was to identify the status of various 25· trying to help initiate, to revitalize a process that 25· deliverables that came out of the April meeting. Page 98 Page 100 ·1· · · · · · And so in going forward, what staff did was ·1· to focus on commodities, so we would look at the top ·2· we begun to create a fact sheet, and utilized the Del ·2· three export and import commodities for each of the ·3· Rio port of entry as a basis shared with information ·3· border crossings.· And then we wanted to make sure ·4· with you today.· We also started talking about ·4· that we had this continual multi modal, that we would ·5· potential social media postings, and the basis of ·5· have a fact sheet base for truck, rail, air, maritime ·6· those media postings through Facebook, Twitter, Linked ·6· and pipeline. ·7· In and other social apps was going to be based on the ·7· · · · · · And then we would create additional border ·8· fact sheets as they were being developed. ·8· related fact sheets as topics came up through the ·9· · · · · · And then we also had a discussion on and a ·9· committee or through BTAC. 10· preliminary development of an international trade 10· · · · · · So as part of the ongoing effort, you have 11· video, which we will show you today to receive your 11· in your packet today an example of Del Rio fact sheet. 12· input.· And then particularly next items as we go 12· And in it it has a brief description of the actual 13· forward with implementation of Rec 3. 13· port of entry.· It identified northbound crossings and 14· · · · · · So the goals and objectives was to support 14· trends information.· It has a very high level map that 15· efforts within the Border Strategic Blueprint, and 15· shows the nearby on-system roads.· It has the top five 16· essentially was it was how do we go about telling the 16· imports and exports, and then it also gives you 17· border story to not just within the region, but 17· overall information regarding export trends. 18· throughout the state and nationwide.· And that was the 18· · · · · · So if you can just, I'm sorry, Eagle Pass. 19· goal and objectives of Rec 3. 19· Eagle Pass.· So this is an example of how the other 20· · · · · · It was identified by the committee that 20· fact sheets will be built off of once we get the 21· branding needs to be consistent as the message was 21· concurrence of BTAC. 22· going out in all outreach materials.· We have to be 22· · · · · · The committee asked that we bring this 23· cognizant of the audience and the type of material we 23· forward for your review and evaluation, to provide us 24· were going to tailor to their particular needs.· So 24· additional edits and revisions as we go forward with 25· from a policy, elected official, their message would 25· the development of the other fact sheets.

Page 99 Page 101 ·1· be tailored different than the layman or the users of ·1· · · · · · The social media post, once we correct the ·2· the system.· So the committee wanted us to be ·2· Eagle Pass heading, the social media posts will be ·3· cognizant of that. ·3· built off of this.· So essentially the idea is to take ·4· · · · · · And then we wanted to have the opportunity ·4· snippets from each of the boxes and just send those ·5· to provide real time data and information that would ·5· out via social media.· And then as additional ·6· know what the impact was to anybody receiving the ·6· information become available, either on a daily basis, ·7· social tweet or whatever facet it was based on. ·7· weekly basis, monthly basis, we would provide that ·8· · · · · · And then we want to be able to build ·8· out. ·9· credibility and maintain consistency on that message. ·9· · · · · · There was some preliminary discussion as to 10· We want to make sure that our champions, which are 10· who would initiate that, and the committee identified 11· BTAC members, members of the representative cities, 11· that TxDOT should be the one initiate that and then 12· MPOs, et cetera, that you continue to convey the same 12· they would re-post or re-tweet, so we are considering 13· message that's being developed out of these public 13· that. 14· awareness efforts. 14· · · · · · As part of the overall effort, we wanted to 15· · · · · · So on the fact sheet, the idea by the 15· utilize introductory methods at all the various 16· committee is that we agree that a fact sheet for all 16· meetings.· So we started based on committee 17· of the border crossings, and there would be one 17· recommendation developing what we're calling 18· specifically geared toward commercial crossings and 18· International Trade Video.· And so we're going to show 19· one geared toward 13 passenger crossings and then one 19· you what that video looks right now. 20· for each of the five rail crossings. 20· · · · · · (Video played.) 21· · · · · · We would also develop fact sheets based on 21· · · · · · MR. JUAREZ:· Okay.· So you can tell our 22· the customers districts, which we had some discussion 22· emphasis was to focus on trade and international trade 23· today, so one would be created for Laredo and one for 23· from a multi modal, of what our videos will look like. 24· El Paso. 24· We plan on developing a series of videos and we're 25· · · · · · And then we also, the committee wanted us 25· going to look at the committee structure to help us Page 102 Page 104 ·1· tell us what that will look like. ·1· things that I would recommend that you focus with ·2· · · · · · MS. MAYS:· One, we need feedback to make ·2· respect to trade corridors, and then also giving it a ·3· sure that this is, one, meets the needs, and we are ·3· more global view in that we also need to ensure that ·4· capturing everything; and then, two, on the video, ·4· people understand that there are goods coming in from ·5· again, I have to tell you I'm so proud of our TxDOT ·5· Asia through Mexico into Mexico.· So it's not just ·6· people.· This is done in-house.· We did not pay ·6· necessarily trade with Mexico, we are a global player, ·7· anybody to do this video for us.· It's our folks ·7· and the same thing with maritime ports.· We can show ·8· in-house that did it.· And we can, you know, add, edit ·8· that we are going to export LNG to India and to Japan ·9· stuff. ·9· and to Europe by having the graphic, it also would 10· · · · · · One of my vision is to have you all in the 10· allow people to get a better understanding. 11· videos, still photos, et cetera, but I want to add 11· · · · · · And my last point, I hope that we can 12· some life to it.· So the next iteration we might start 12· translate it and also offer it in Spanish. 13· coming to the committee members to actually share your 13· · · · · · MR. JUAREZ:· Yes, sir, very great point. 14· stories.· And we probably do series of videos because 14· We definitely will present those to the committee and 15· this is about three around a half minutes.· we don't 15· start drafting the necessary narrative to help develop 16· want to go beyond that.· I want to emphasize the goal 16· those.· And we are seeking feedback.· Maybe not 17· is, you all said you needed information that you could 17· necessarily today, but you have our contact 18· take.· You go like this, you go to a meeting, you can 18· information.· Send us an email, tell us what you like, 19· show that as part of introductory message that you 19· what you don't like. 20· have, this is what we are talking about, the 20· · · · · · These are drafts, and we will share them 21· Texas-Mexico border. 21· with the committee as we continue to go forward.· So 22· · · · · · So we're trying to provide you all with 22· as part of the overall efforts, we're going to 23· tools, with information that's quite easy, you know, 23· continue with the development of the identifying fact 24· you have one page here, go to a meeting whether on the 24· sheets for each of the port of entry.· We will build 25· U.S. side, or the Mexican side.· We are going to put 25· social media postings, utilizing the fact sheets.· And

Page 103 Page 105 ·1· all this on the website.· You all can have links to ·1· then we also, the committee wants us to meet ·2· it.· I want to just pause here for a minute, ·2· specifically with the Class 1 railroads to discuss the ·3· Secretary, give you a chance to comment. ·3· development of fact sheets for that particular mode. ·4· · · · · · SECRETARY PABLOS:· First of all, thank you ·4· So many of the railroads here today please anticipate ·5· for a great production and the committee should be ·5· visiting with us on that effort. ·6· commended.· Thank you for doing that.· I think it hits ·6· · · · · · So I'm going to turn it now over for ·7· on many points. ·7· Recommendation 5 to Mr. Vale.· 4, I'm sorry, ·8· · · · · · From an economic development perspective, ·8· Recommendation 4. ·9· one of the things I've always noted is the inability ·9· · · · · · SECRETARY PABLOS:· Mr. Galeazzi. 10· to connect the dots for people so they can truly 10· · · · · · MR. GALEAZZI:· ·Thank you, everyone, that 11· understand the context.· So what I've seen 11· participated in the calls and Tim did a fabulous job 12· consistently, particularly in other state agencies, is 12· putting together all this information, really helping 13· when they speak of international trade and corridors, 13· us with coordinating. 14· they mainly focus on I-35. 14· · · · · · So, again, just to cover Objective 4 was 15· · · · · · And we've had issues where we have had to 15· recommendation to discover, study, analyze and map out 16· actually come and educate the agencies on the fact 16· potential implementation plan as it relates to 17· that we have multiple trade corridors from El Paso, 17· technology and innovative resources for the 18· all the way down to Brownsville, the port, and all 18· Texas-Mexico Border Plan.· So the purpose of this 19· those places.· So being able to emphasize the trade 19· recommendation was to really kind of improve 20· routes, not only maritime, but also land routes, you 20· operational efficiencies, increase road times, but 21· know, from the Mexican highways in, and vice versa, I 21· most importantly increase capacity and capability of 22· think is one point that I would recommend that we 22· our existing border crossing resources. 23· include, so that not only the general public but our 23· · · · · · And this meant exploring resources not just 24· own state agencies understand that we got trades from 24· for road, but also other modes and seeing how that 25· El Paso all the way to Brownsville.· So that's one 25· would impact our resources available. Page 106 Page 108 ·1· · · · · · So purpose of the calls was to identify all ·1· access to it quicker and easier. ·2· the different possible technologies that were out ·2· · · · · · How do we develop a Texas border crossing ·3· there.· We did that through many of our previous phone ·3· technology and border process inventory that details ·4· calls.· So during the last planning sessions, we took ·4· the existing and planning technology deployments, ·5· all this information that we had put together and we ·5· because that was something you have to understand. ·6· kind of put them into buckets.· We came up with four ·6· There is always new improvements that are on the ·7· groups that helped us really identify what our next ·7· horizon, so we need to be aware of that, because that ·8· steps were. ·8· obviously helps recommendation moves forward. ·9· · · · · · So the four groups were Texas Border ·9· · · · · · And then we have to identify the 10· Crossing Technology and Innovative Border Process 10· opportunities for BTAC to support the implementation 11· Inventory; two, was Unified Cargo Processing For Rail; 11· of technology deployments, pilots and innovative 12· three, was the Texas-Mexico Border Shipment Tracking 12· processes. 13· technology; and four, was the Texas Pipelines. 13· · · · · · So the next one, white paper 2, Unified 14· · · · · · And so what we did here is we put all these 14· Cargo Processing For Rail.· So the objective here is 15· ideas, all these topics, all these different 15· to focus, what we saw previously in a lot of our 16· technologies we had discussed in our previous meetings 16· recommendations was focusing on the road, and so Tim's 17· and said okay, now let's start deciding what the 17· team did a really good job of outlining and showing 18· direction was with all these. 18· us, hey, we need to step back and look at all the 19· · · · · · So the first one is the Texas Border 19· modes, look at all the opportunities that are out 20· Crossing Technology and Innovative Border Process 20· there for us. 21· Inventory.· So the objective for his white paper was 21· · · · · · So we looked at what can we do for rails. 22· that we needed to understand what was available, what 22· Unified Cargo Processing is really kind of the idea we 23· are the capabilities that were already in place at 23· came up with for our second white paper, and this also 24· each of the ports of entry.· Why?· Well, we have to 24· includes considering shared or long-term mechanical 25· understand first off what resources are there, because 25· inspections, non-intrusive inspections, and also some

Page 107 Page 109 ·1· doesn't make sense to necessarily apply one technology ·1· of the crew transitions and location. ·2· or one application across all the bridges if they ·2· · · · · · So we base this white paper on two existing ·3· don't have the infrastructure available to do this. ·3· case studies in Nogales, Arizona and pilot program ·4· · · · · · For example, what if we projected an app ·4· that's currently in place in Laredo.· Purpose is going ·5· that required high speed internet, but certain ports ·5· to be to identify and review studies on implementing ·6· of entry don't even allow for more than one cellular ·6· Unified Cargo Processing for the rail.· This will ·7· carrier to run circuits.· Well, obviously that ·7· include outreach efforts that will be conducted by ·8· wouldn't work at that port of entry. ·8· TxDOT.· That will include CBP, Mexican officials, ·9· · · · · · So we had to truly understand what was ·9· Class 1 railroads and identify the ideas and concerns 10· available at each of the ports of entry so we could 10· that will affect the implementation and technology 11· understand how do we make this recommendation moving 11· requirements. 12· forward. 12· · · · · · This also includes interviewing public and 13· · · · · · So within the first white paper, we have 13· private partners to outline what are the challenges 14· several phases.· The first phase was concentrate on 14· and opportunities moving forward with implementing 15· the commercial crossings, that included road and rail. 15· these resources. 16· · · · · · Second phase will be to focus on the 16· · · · · · Third white paper, and this is where most 17· personal vehicle and pedestrian crossings. 17· of our ideas are going to fall into, is the 18· · · · · · Work within those will include identifying 18· Texas-Mexico Border Shipment Tracking Technologies. 19· innovative technologies and processes to implement and 19· The objective here is that we are going to take a lot 20· pilot at the U.S.-Canada border for potential 20· of unique, kind of more modern technologies and 21· application and consideration. 21· implement them and what would that look like.· Would 22· · · · · · Communicate with federal stakeholders as 22· that include things like considering door to door 23· well as the industry stakeholders, get their opinions 23· tracking, wait time apps, appointment scheduling, and 24· as what's actually working, how do we make it work 24· it all comes back to better tracking, better 25· better, how do we make it so that way everyone has 25· communicating back to federal agents and to resources, Page 110 Page 112 ·1· so better schedule, better placed personnel.· Perhaps ·1· move forward with the white paper process, please feel ·2· do something like Sam mentioned, a flagman that had to ·2· free to reach out to myself or Mr. Juarez, and we ·3· direct the traffic into the lanes that are available ·3· would like to get you on board.· I think that's it for ·4· and open. ·4· Recommendation 4.· Any questions?· Comments? ·5· · · · · · And so that will include a case study ·5· · · · · · SECRETARY PABLOS:· Are there any questions ·6· utilizing implementation of various shipping tracking ·6· or comments?· Well, thank you very much.· Thank you ·7· technologies like Pilot 21 that is in El Paso; ·7· for the effort.· This is also a very important aspect ·8· identify and review additional studies and information ·8· of what we are trying to do.· Tim, is there anything ·9· on implementing shipment tracking technologies; and ·9· additional? 10· then interview committee members and other subject 10· · · · · · MR. JUAREZ:· Not for Rec 4.· With your 11· matter experts.· That was important because we realize 11· permission, we will go on to Rec 5.· So Recommendation 12· that within our committee we all had some very vague 12· is "Foster Private Sector Involvement."· That was one 13· ideas, we had some good ideas about very generic 13· of the identified priorities from BTAC. 14· technologies.· But we weren't necessarily the subject 14· · · · · · So the purpose of the call was how are we 15· matter experts.· We didn't understand what depth was 15· going to go and develop an active dialogue between the 16· required or what resources would be required to 16· public and private sectors.· And so there were various 17· implement these technologies. 17· opportunities discussed by the committee. 18· · · · · · So we decided that it would be ideal for us 18· · · · · · And one was proposed listening sessions, 19· moving forward with this white paper kind of really 19· the identification of invited participants, the 20· rely on some of the subject matter experts, people 20· timeline and schedule of roundtables, and then 21· that develop the apps or companies that were 21· additional efforts for consideration. 22· implementing different technologies. 22· · · · · · So as part of fostering private sector 23· · · · · · Moving on to white paper number 4.· So as 23· involvement, the Committee asked that we identify 24· we heard in that video, 15 pipelines that are crossing 24· approaches that would help an active dialogue between 25· U.S.-Mexico, or underground U.S.-Mexico border.· And 25· the public and private sector on border trade related

Page 111 Page 113 ·1· so, again, this was important because we have to look ·1· issues. ·2· at all the existing modes of cargo movement.· Reason ·2· · · · · · The item that rose to the top was regional ·3· being, if we can ship more movement into the pipelines ·3· listening sessions because each of the regions are ·4· or other resources, takes trucks off the road, ·4· distinct in their approaches and what their particular ·5· obviously that immediately relieves congestion. ·5· needs are.· So it was proposed that we would consider ·6· · · · · · So this Recommendation was designed to ·6· all transportation modes for the movement of goods and ·7· consider not only the technology that is going to be ·7· people across the border.· The goal was to for the ·8· imposed to road and rail, but also what types of ·8· public sector to understand what the users of the ·9· resources are needed to further expand the movement of ·9· system face on a day to day basis, and the focus would 10· goods through pipelines, what are the Mexican agencies 10· be improving the process that would help make the 11· responsible for overseeing it.· How do we cooperate 11· operations at the ports-of-entry more efficient. 12· more with the U.S. agencies that are already at the 12· · · · · · So it was noted time and time again that 13· border to expand the pipeline offerings or the 13· there had to be some value added for the private 14· operations there. 14· sector in order for them to be engaged.· So that was 15· · · · · · So the pipeline network not only represents 15· identified by the committee to us which we are taking 16· the important economic sector, but it's really going 16· definitely into consideration. 17· to be another resource that we have available and has 17· · · · · · Overall, participants that we have noted to 18· been in place for us to understand what innovative 18· be involved or included in the process is U.S. and 19· processes lie for us at the border. 19· Mexican customs brokers, shippers and carriers; 20· · · · · · And then also as we heard from Mayor Cantu, 20· trucking firms primarily from Mexico, but definitely 21· we are looking for additional people who might have 21· on the Texas and U.S. side.· We would want to utilize 22· interest in serving on this committee.· We lost three 22· the railroad users on Texas and Mexico and the owners 23· people through the course of the previous meeting to 23· of the railroads.· Maquiladoras was a key component 24· this one.· So if there are others out here who are 24· identified from the Mexican side, and then logistics 25· interested in joining on with this Recommendation to 25· both in Texas and Mexico. Page 114 Page 116 ·1· · · · · · Part of the warehousing and distribution ·1· the groups that give us feedback for ongoing purposes, ·2· center was noted, because it is both secondary ·2· and that ultimately the beneficiary of that is going ·3· facilities that are where the goods and shipment are ·3· to be the states and federal government and how we go ·4· going to go, so we have to be able to identify; and ·4· about proposing projects. ·5· then from the economic development component, we were ·5· · · · · · The real value that we have to get added to ·6· asked that we include the chambers of commerce, ·6· something is that when a business, and you talk to a ·7· economic development corporations and then industry ·7· business person and you want to try to do something ·8· folks from both sides of the border. ·8· and participate, if there isn't something that comes ·9· · · · · · The time frame in implementing these ·9· out of that, then they will go and tell all their 10· listening sessions was going to take into account the 10· other friends don't waste your time on these outfits, 11· schedule that we talked about in Recommendation 1, 11· they don't do anything, they don't produce anything. 12· knowing what we needed in order to get buy-in from the 12· So the value added is results that become projects 13· Mexican side, we were going to have to let their 13· that become completed projects.· And that's always the 14· elected officials at all levels of government be in 14· big criticism in a lot of the business community.· So 15· place. 15· we got to make it to where we do deliver. 16· · · · · · And then we want to be able to partner with 16· · · · · · SECRETARY PABLOS:· On this point, thank 17· existing organizations and their efforts that they 17· you, Sam, on this point, we are already getting a jump 18· have under way.· The committee identified that is 18· start.· I'll speak to this towards the end of the 19· beneficial when those established relationships are 19· meeting on adding new Board members.· So being able to 20· there, that you are able to engage a wider range 20· have representation from these sectors, you know, we 21· participants in the overall process. 21· have (name) manufacturing, (name) customs brokers. 22· · · · · · So items that the committee also asked us 22· · · · · · Then we also have individuals on the Texas 23· to address was cargo processing and how that would 23· side that represent private sector, and we're going to 24· Benjamin the user of the system; once again, review 24· be looking forward to adding folks from sector, so 25· the MOUs that Mr. Vale and Secretary of State Pablos 25· being able to bring in that private sector

Page 115 Page 117 ·1· discussed today; and then funding opportunities for ·1· representation to the community I think is also very ·2· border projects and eligibility both on the U.S. and ·2· important. ·3· Mexico side. ·3· · · · · · So it plays on this particular ·4· · · · · · And I know Mr. Vale wanted to provide some ·4· recommendation.· Being able to have NEC, I'd love to ·5· additional details on this. ·5· have NEC at the table if they would be willing to ·6· · · · · · MR. VALE:· Well, first of all, we wanted to ·6· consider that.· So those are the things we are getting ·7· be able to not only just put some of these groups ·7· a jump start on and I look forward to having them. ·8· together, public, private information sharing for the ·8· · · · · · MR. JUAREZ:· So just to wrap up, and we had ·9· purposes of what we need to put into this plan, but we ·9· some of that discussion, you know, our next steps is 10· also would hope that they would take on a life of 10· we want concurrence from BTAC committee for the 11· their own so that it doesn't turn into like a 11· committees to continue to go forward.· We would look 12· community doesn't know where it has to go or what 12· for any additional input from committee members 13· private sector entities are in the community that 13· regarding Rec 1 through 5. 14· would be of value to this process. 14· · · · · · Definitely will need to start identifying 15· · · · · · Now, along that line, when we were reaching 15· champions.· As Secretary of State, you have identified 16· out, we were looking for public and private in Mexico, 16· some today for implementation of Rec 1 through 5. 17· and I asked Claudia Lagos if she would be willing to 17· · · · · · And then we are going to need to start 18· serve with us on this committee so that she could 18· identifying prioritization of what the committees 19· provide to us her experience both at the federal and 19· would like for us to focus on. 20· the state level.· She's currently working at the 20· · · · · · You have seen four or five examples from 21· state, but she has a long history of being in Mexican 21· each one that we need to start focus on and developing 22· alliance and being in multiple communities and Laredo 22· these further out so we can have some value added 23· and others, Mexico City. 23· going forward. 24· · · · · · So getting some key people like that and 24· · · · · · And then once we have those priorities 25· hoping they will then establish some groups between 25· identified, we will go with the implementation and at Page 118 Page 120 ·1· the next quarterly meeting bring that back. ·1· It's going to include support facilities serving the ·2· · · · · · So Secretary of State Pablos, Committee ·2· border crossings, and the over all transportation ·3· Members, Commissioners, that's the presentation of the ·3· system from a multimodal network perspective. ·4· Blueprint. ·4· · · · · · The key components is a multimodal ·5· · · · · · SECRETARY PABLOS:· Wonderful.· Okay.· Good. ·5· transportation system, the ports of entry and support ·6· Let's go ahead and take a quick break.· Let's do a 10 ·6· facilities, identifying and looking at policies, ·7· minute break.· The time is 11:35.· Thank you all very ·7· programs and projects, and then taking into account a ·8· much. ·8· prioritized list from a short, medium and long-term ·9· · · · · · (Recess taken.) ·9· investments. 10· · · · · · SECRETARY PABLOS:· Okay, folks, let's get 10· · · · · · As we identified at the April 18 meeting 11· started.· Okay, we'll take up our next item. 11· and prior meetings we had identified that TxDOT was 12· · · · · · Before we start on the next item, I've been 12· going through a consultant selection process.· We 13· remiss in not thanking TxDOT for hosting us today. 13· introduced the HDR consultant team at the last 14· Thank you all, Commissioners, for being a gracious 14· meeting, and with me today is Brian Swindell.· He is 15· host and always offering up your facilities.· I love 15· the deputy project manager from HDR and he will handle 16· coming to this historic building, so thank you for 16· today's presentation.· Brian, if you will. 17· doing that.· I appreciate it. 17· · · · · · BRIAN SWINDELL:· ·Thank you, Tim.· And 18· · · · · · The other item is we have some letters. 18· Alejandro Solis is our project manager, apologized for 19· Governor Abbott wrote President Trump a letter 19· not being here today, he had his second baby, so he's 20· regarding tariffs.· I just want to make sure that 20· taking care of stuff on the home front.· So that's 21· everyone sees the letter.· It's being passed around 21· where he is. 22· right now.· You know, we are very concerned about 22· · · · · · But as Tim said, we're getting started on 23· what's happening, and the Governor expressed his 23· the Border Transportation Master Plan, and want to 24· concerns to the President, and we're going to continue 24· make sure that it dovetails nicely with the Border 25· to communicate with the White House.· We have had high 25· Strategic Transportation Blueprint as well so there is

Page 119 Page 121 ·1· level meetings regarding that.· We are also working ·1· not a lot of overlap in tasks. ·2· with the Mexican government.· I had the opportunity to ·2· · · · · · Just to give kind of an overall ·3· visit with the new negotiator for NAFTA in the new ·3· understanding, there are 10 main tasks in this Master ·4· government.· Wonderful man, and I think he'll do a ·4· Plan update, and they are really kind of divided into ·5· great job.· He is being included in the conversations ·5· three sections, project setup, corridor analysis and ·6· now.· So looking forward to having a continued ·6· then the systems analysis.· All of these also have ·7· dialogue with him.· Great man. ·7· stakeholder outreach that is done throughout the ·8· · · · · · And also with respect to tariffs, I want to ·8· process, and that's a big component of this. ·9· thank Alveno Marrero.· He's been on the cutting edge ·9· · · · · · Today we want to kind of focus on the first 10· of ensuring that trade with Mexico, particularly for 10· three tasks, which are the project management plan, 11· Texas, stays on top of mind in Washington, D.C.· He's 11· the stakeholder plan and the goals and objectives 12· always up there.· Very sophisticated when it comes to 12· portion of this, and we would appreciate as we move 13· governmental affairs, and so I wanted to thank him for 13· along, feedback on all three of these tasks today. 14· all his good work. 14· · · · · · We have some questions we want to ask to 15· · · · · · So, Tim, let's move on to the next item and 15· just kind of get the committee's feedback as we go 16· we'll just move through these very quickly. 16· along. 17· · · · · · MR. JUAREZ:· Secretary of State Pablos and 17· · · · · · The first task is the project management 18· Commissioner Ryan and Commissioner New, we are going 18· plan.· And the overall overview of this project 19· to provide you an update on the development of the 19· management plan is to guide the development of the 20· Texas-Mexico Border Transportation Master Plan.· And 20· Border Master Plan, the update.· Also to identify 21· essentially, as you may recall from your April 21· tasks and project team responsibility to make sure we 22· meeting, the Border Master Plan is a binational, 22· have clear lines of responsibilities; provide a very 23· comprehensive approach to coordinate planning, 23· detailed and specific schedule of activities and how 24· programming and implementation of projects. 24· we are going to get to the end in the time frame 25· · · · · · It's going to focus at border crossings. 25· allotted; but also define protocols and communication Page 122 Page 124 ·1· between our binational partners both on the public and ·1· to outline procedures for review and comment of ·2· the private side to make sure that we are ·2· deliverables, support stakeholder engagement, really ·3· communicating well on both sides; and then lastly to ·3· want to try to facilitate quick communication and live ·4· incorporate communications plan and link it to Task 2, ·4· updates with the state staff, and then finally meet ·5· which is this strategic output. ·5· the expectations of our public and private partners. ·6· · · · · · So how do we tie those two together? ·6· · · · · · You know, once again, we have these ·7· · · · · · The key task deliverables for the project ·7· protocols in place on how we are going to be ·8· management plan are going to be the project management ·8· communicating and identifying those products, but we ·9· plan overall, the project schedule, and then our ·9· really want to make sure that the work product that we 10· communication plan, which includes progress reports, 10· deliver from a technical content is of the quality and 11· but also importantly includes an online dashboard that 11· of the information that's required for the project. 12· we want to make available to everybody, especially 12· · · · · · With that, I'll step back for just a second 13· this committee, so that there are key indicators that 13· because on Task 2 we want to open it up for the 14· can be tracked very quickly and at your fingertips and 14· Committee with three main questions just to get an 15· you can get that information very quickly and have 15· idea of we're starting, we're at the initial starting 16· that to you. 16· point on this, this won't be the only time that we ask 17· · · · · · And then lastly quality assurance and 17· these questions, we'll be asking other questions as we 18· quality control just to make sure that we are meeting 18· go along, but as we go through the Task 1, which is 19· the needs not only on the state level, but on the 19· the project management plan update, are there other 20· federal level as what this type of study requires to 20· areas of work product emphasis we need to consider? 21· make sure we're following through with that. 21· Are there identification for additional coordination 22· · · · · · The next two slides in your presentation 22· internally that we need to deal with?· And then as we 23· packet kind of outline the schedule.· There is a lot 23· look at the dashboard, this is very important and 24· of information here, and I'm really not going to go 24· we'll probably be asking for more feedback later, what 25· through all this stuff in detail.· I think the point 25· kind of information is important on that dashboard to

Page 123 Page 125 ·1· of this slide is a list of all 10 tasks, 11th task is ·1· have at your fingerprints. ·2· the final report.· And it shows how all these tasks ·2· · · · · · So if we can get that information from the ·3· are going to be overlapping and going concurrently ·3· committee either today or later on through the contact ·4· with one another.· These are not done in sequence. ·4· information that is provided at the end of this, it ·5· These are done concurrently. ·5· will be very helpful as we move forward. ·6· · · · · · So we're going to be moving at a pretty ·6· · · · · · I'm going to pause here to see if there is ·7· fast pace as we move along and your input as we move ·7· any questions or comments related to the Task 1?· As I ·8· along is very important. ·8· say it won't be the last time we come to you, so any ·9· · · · · · From a communications and correspondence ·9· information that you can provide will be helpful and 10· plan standpoint, the strategy is to identify 10· we really want to make sure that this dashboard is a 11· communication methods, support the stakeholder 11· living piece of this and so that you can use that very 12· engagement component in Task 2 and provide timely 12· effectively. 13· informational updates. 13· · · · · · The second task is stakeholder engagement, 14· · · · · · As my mentioned before, how we are going to 14· and this initial wave of tasks, this is probably our 15· do this is we're going to is develop the communication 15· most comprehensive effort in this initial startup 16· work product, whether it's some of the materials and 16· phase.· The objectives of this are to provide a 17· how we are going to communicate, create that online 17· comprehensive engagement of binational federal, state 18· dashboard, maintain a master correspondence file so we 18· and local, as well as public and private stakeholders. 19· have a good track record of decisions that were made 19· We want to make sure that we've got a good list of who 20· as we move along. 20· those are.· We also want to make sure that it's 21· · · · · · And then finally, utilize the methods 21· consistent with the strategic blueprint list as well, 22· identified from the strategic blueprint and make sure 22· make sure that we're supporting that also. 23· that those are consistent with one another. 23· · · · · · We do want to define goals, purpose and 24· · · · · · From a quality assurance, quality control, 24· need and benefits as well as overall process for 25· we are going to develop this QA/QC plan, we are going 25· development of the Border Master Plan.· We found as Page 126 Page 128 ·1· you go through these types of projects, it's very ·1· as we go forward, and we'll talk a little bit about ·2· important for stakeholders to understand the process ·2· that in a second. ·3· even if they may or may not agree with the output, as ·3· · · · · · We want to develop the quarterly engagement ·4· long as they buy into the process, that's a major step ·4· summaries as well so you can keep updated on where we ·5· forward. ·5· are on that as well. ·6· · · · · · We want to make sure we establish support ·6· · · · · · And then two questions we want y'all to ·7· and sustained stakeholder consensus and acceptance as ·7· think about is there anyone else that we should ·8· we move along.· We want to identify border related ·8· consider in the stakeholder engagement, and are there ·9· trade and economic opportunities from our, not only ·9· other methods that we should get out for engaging 10· from our private sector, our private folks, but also 10· those stakeholders as well? 11· from the public as well.· Make sure we understand what 11· · · · · · SECRETARY PABLOS:· If I may, I'd like to 12· has been going on.· There has been a lot of discussion 12· just emphasize with respect to groups, I would really 13· about public and private opportunities here and I 13· encourage you to seek out economic development 14· think that's something we want to carry forward. 14· professionals.· I see the list, you have them included 15· · · · · · Then we want to receive input to support 15· in there, but I think it's very important to bring 16· policies, programs and projects at the border regions, 16· them in.· And economic development organizations 17· state and national levels.· Whether the policies or 17· usually tend to cut across all of these areas, 18· the projects, it's all going to be part of this and 18· government and private sector. 19· how we make this overall facility, overall concept 19· · · · · · So please make sure that you identify them, 20· work. 20· and not only along the border, but also inland.· You 21· · · · · · The key deliverables in this task are the 21· know, San Angelo, up in Midland-Odessa, Houston, 22· Stakeholder Engagement Plan, the Stakeholder 22· Dallas, they all have something to do with trade with 23· Identification and Database that we mentioned, the 23· Mexico, so certainly would be important to include 24· outreach and education materials to include things 24· them. 25· like facts sheets, white papers and newsletters that 25· · · · · · And then obviously on the Mexican side, I

Page 127 Page 129 ·1· we are going to be doing on a basis, as well as the ·1· know you have your team ready to go.· We have many ·2· project website.· And then the summaries of how we get ·2· friends who can help us connect.· Secretaries are here ·3· that information disseminated out. ·3· that can help identify the individuals.· So I would ·4· · · · · · This slide has a lot of stakeholders, I'm ·4· encourage you to do that. ·5· not going to spend any time on this, but just to say ·5· · · · · · BRIAN SWINDELL:· I appreciate that. ·6· that we need your input on stakeholders that need to ·6· · · · · · Moving on to task three, goals and ·7· be included in this as we move forward.· That's one of ·7· objectives.· Goals and objectives are really going to ·8· the takeaways here. ·8· help guide the development of the Border Master Plan, ·9· · · · · · Some of the strategies that we have for ·9· whether it's the overall goals and objectives of the 10· stakeholder engagement, we want to make sure we 10· study as a whole, but we also understand that every 11· leverage the existing, but also develop some new 11· area has their own specific goals and objectives and 12· relationships as well.· We want to conduct the 12· we want to make sure we understand and we have a good 13· workshops and listening sessions as well, make sure 13· understanding of how that's going to drive the project 14· that we get good opportunity to be in front of people, 14· development. 15· make sure we're listening, and then engage the 15· · · · · · It's also going to serve as a gauge of how 16· committees, whether it's BTAC or some of the other 16· successful we are in the project.· And then provide, 17· committees that are developed, and then also our 17· facilitate discussion and generate consensus with 18· binational partners as well, make sure we address 18· binational stakeholders as well.· As I mentioned, it 19· that, also. 19· does help us provide the framework for the analysis, 20· · · · · · Education and outreach materials, we want 20· but also the prioritization of the projects, the 21· to make sure that we develop those outreach materials 21· processes that are identified.· So that's going to be 22· with a consistent brand, consistent with this 22· very important that we get good feedback, and we'll be 23· committee, that we also want to make sure we've 23· looking to this committee for feedback on that as 24· identified key performance indicators because these 24· well. 25· are things that are going to drive the overall study 25· · · · · · The key tasks deliverables are going to be Page 130 Page 132 ·1· the goals and objectives obviously, but also a tech ·1· I appreciate that. ·2· memo that talks about the process that we use to ·2· · · · · · BRIAN SWINDELL:· I think as we go through ·3· derive the goals and objectives and the preliminary ·3· the study, I think you will see that we'll be looking ·4· list of evaluation criteria for prioritizing projects. ·4· at packages of projects as well and how they ·5· That's what you are going to see primarily out of ·5· compliment one another, and we'll be looking at that ·6· that. ·6· as well. ·7· · · · · · The questions we have for task three are, ·7· · · · · · So the primary, I'm sorry, the next steps ·8· would be from the BTAC perspective, what are the major ·8· would be develop the project management plan, define ·9· goals and objectives to consider that are driving ·9· the project schedule and then develop the stakeholder 10· your, keeping you up at night and are driving the 10· engagement plan.· I brought the schedule back up here 11· things that you are interested in?· Are there other 11· just to re-emphasize the fact that we are not doing 12· sources of plans, programs or efforts to consider that 12· these first three tasks and then we are going to start 13· we haven't considered?· We want to make sure we check 13· on task 4.· All these tasks are going to be done 14· in on that question. 14· consecutively or concurrently, and they are going to 15· · · · · · And then finally the initial thought on 15· be working together as we develop this project. 16· priorities to consider.· What are the key drivers that 16· · · · · · So I put those last two schedule boards up 17· need to be considered as we evaluate priorities.· And 17· there again to show that. 18· we'll be checking back with you on those issues as 18· · · · · · With that, I'll just say that the contact 19· well. 19· information, you have already got Tim's contact 20· · · · · · I know that was a very quick overview, and 20· information.· Alalejandro's contact information is up 21· I kind of wanted to go through the next steps real 21· there as well.· I'll turn it back over. 22· quickly and that is basically develop -- 22· · · · · · MR. JUAREZ:· So Secretary Pablos, that's an 23· · · · · · SECRETARY PABLOS:· Yes, sir. 23· update of where we are.· We can continue to receive 24· · · · · · MR. VALE:· When you start talking about 24· information on a one-on-one basis from BTAC committee 25· goals and objectives, last time around I know we had 25· members as needed offline, but we want to know are

Page 131 Page 133 ·1· great struggles because we would have certain ·1· there any additional comments or questions for the ·2· participants from Mexico, and even if they are the ·2· team? ·3· right ones, we really need to learn the different ways ·3· · · · · · SECRETARY PABLOS:· Committee members, ·4· they make funding decisions in Mexico and the way ·4· anyone?· Thank you for the good work and if you need ·5· their funding process is working as opposed to what ·5· anything from us, please let us know.· We're here to ·6· TxDOT's funding process is and funding decisions ·6· get moving on this, and you have done a great job. ·7· because it's awfully hard when you are trying to ·7· Okay. ·8· create some sort of a fluid corridor, but sometimes ·8· · · · · · So we're kind of back on schedule.· Let's ·9· that's just not possible and you don't throw away the ·9· go ahead and go into our next item, which is our 10· whole project because you can't.· You just need to be 10· Laredo Region Transportation Update.· David Salazar. 11· able to anticipate and plan for it.· I think that is 11· · · · · · DAVID SALAZAR:· Thank you, Secretary 12· the most difficult thing you are going to find.· You 12· Pablos, Commissioner Ryan, Commissioner New.· The 13· don't want to have any more roadways that go somewhere 13· only member of this panel that's been elected and 14· and don't cross the border. 14· right before election I'm not feeling very popular 15· · · · · · SECRETARY PABLOS:· We have had those? 15· right now.· Try to get through this. 16· · · · · · MR. VALE:· We do that every now and then. 16· · · · · · Quick update of what's going in the Laredo 17· · · · · · SECRETARY PABLOS:· Well, harmonizing is 17· District as far as freight corridor projects.· What 18· really what this is all about, and having subject 18· you see before you is proposed highlights of the I-35 19· matter experts now at the table is really something 19· corridor projects.· These improvements run along I-35, 20· that hasn't been done.· So I'm hopeful that we can 20· 20 mile corridor, that are intended to decrease 21· move beyond that path and really have a line of 21· traffic congestion by increasing the roadway capacity 22· communication that allows for harmonizing these 22· and improving the safety and efficiency of the major 23· projects and with folks that straddle both sides of 23· street and highway connections. 24· the border and all of our other partners, they need to 24· · · · · · As you can see, the total estimated 25· be at the able to make sure that doesn't happen again. 25· construction costs for this 24 mile corridor is $460 Page 134 Page 136 ·1· million.· Currently we only have $234 million that are ·1· working on five overpasses at intersection of Shiloh, ·2· identified for funding. ·2· Del Mar, University, Jacaman and Airport.· This also ·3· · · · · · And I'd like to start with North Laredo if ·3· will have frontage roads. ·4· you like, or this could be the grade separation of the ·4· · · · · · Currently the construction cost of that is ·5· Union Pacific Railroad at the Milo interchange, just ·5· $234 million, which 140 has been funded for.· Still ·6· south of it, tying it into the Milo interchange, which ·6· looking for additional funding to complete this ·7· is the future I-69 loop 20 project, direct connector ·7· project, but the current design is under, going on, is ·8· project. ·8· ongoing right now. ·9· · · · · · Moving on north as we progress north, you ·9· · · · · · The importance of this project would be the 10· are going to run into the I-69 widening.· That's going 10· tie-in to the World Trade Bridge, to the U.S. 59 11· to be running from World Trade Bridge back to 35. 11· project on the south. 12· This project is currently under design and will be 12· · · · · · Moving on to our next slide, couple of 13· constructed. 13· things that are going on, the first one I want to 14· · · · · · As we head north out of the city limit, we 14· discuss Hachar Parkway Corridor which is a joint 15· are going to progress toward the Uniroyal 15· venture between the City of Laredo and Webb County. 16· intersection, which we're trying to develop right now 16· it's a little dashed line up on top.· This is going to 17· and currently under design is six lanes of traffic on 17· be a direct connector from 1472 to I-35. 18· I-35 versus the four that we currently have. 18· · · · · · If you look a little bit further west of 19· · · · · · Continuing north of the Milo interchange 19· the 1472, that is where the Columbia International 20· we're going to head out toward U.S. 83 where we are in 20· Bridge is at.· So this will alleviate traffic in 21· the process of designing an interchange over 83 to 21· central Laredo, and basically as a traffic comes in, 22· Union Pacific as well as a direct link to U.S. 83, and 22· head out 35 and head out towards San Antonio. 23· then moving on out toward I-35 will continue on up to 23· · · · · · The other project in conjunction with the 24· mile post 24.· In total $460 million in construction, 24· RMA is the Vallecillo Roadway.· Basically right under 25· of which only $234 million are allocated for, and this 25· where it says 69 west, again it's an east/west

Page 135 Page 137 ·1· is mainly to widen I-35 from the current four lanes to ·1· corridor that will take traffic from I-35, basically ·2· six lanes, three in each direction. ·2· take it away from central Laredo and move truck ·3· · · · · · Now, we are going to focus on the city ·3· freight up to San Antonio. ·4· limits of the City of Laredo, and this is U.S. 59, ·4· · · · · · 69 west, we talked about in a previous ·5· I-69 corridor, and I'm going to go over some projects ·5· slide, and 59 west is the north corridor. ·6· that we have completed or under construction right ·6· · · · · · South part of Laredo, is a final conclusion ·7· now. ·7· of Loop 20 which would encompass and possibly bring ·8· · · · · · West of 35, label A, is the World Trade ·8· traffic back down to bridge 4 and 5 that we've had ·9· International Bridge IV, widening of main lanes that ·9· several discussions.· That little portion would be the 10· will tie into the I-35 corridor. 10· last end of the Loop 20 project City of Laredo. 11· · · · · · The next project we have is currently under 11· · · · · · The importance there, looking current study 12· construction is the I-35, U.S. 59 corridor at the 12· is Laredo outer loop corridor, basically around the 13· Union Pacific flyover I-35, basically elevating the 13· entire city.· And right now we are in the process of 14· 930 crossing, that is currently under construction. 14· evaluating just to see where the best route is. 15· · · · · · And then we'll move on east of I-35, 15· · · · · · In essence, the proposed route would be 16· McPherson international overpasses that have been 16· from proposed Bridge 4, 5 from the top of Laredo, 17· completed and are open to traffic, these are corridors 17· traveling north up toward the 35 corridor just outside 18· of the I-69 that have been completed. 18· of the Laredo north side of town. 19· · · · · · And continue to move east, you will see 19· · · · · · Finally, moving on and discussing our 20· that we are going to go down to J and K, down to the 20· neighbors to the west, City of Eagle Pass, Maverick 21· south of U.S. 59, those overpasses, one has been 21· County, our final project is the final completion of 22· completed and one is currently under construction. 22· Route 480.· Representative Nevarez spoke about this, 23· · · · · · You will see something in bold there 23· north and south of Eagle Pass and 57.· This corridor 24· running from 59 back up to 35, labeled E, F, G, H and 24· when it gets built would be a final extension of Route 25· I.· This is the future 69 project that we're currently 25· 480 running from U.S. 57 back to 277 and getting the Page 138 Page 140 ·1· traffic coming into and out of Eagle Pass.· This will ·1· · · · · · I'd like to, if I may, speak a little bit ·2· help alleviate that.· It will be a great importance ·2· about what's going on in Webb County.· If anybody has ·3· and great benefit to the City of Eagle Pass. ·3· not been to Laredo or Webb County in recent years, I'd ·4· · · · · · Currently we are about 60 percent of the ·4· like to share and challenge you all to go down there. ·5· design phase of this project with construction costs ·5· Just be careful and don't drink too much water, don't ·6· estimated about $85 million, which would be a two lane ·6· eat too many tacos, because you will stay there, I ·7· roadway with several bridges along the pass. ·7· promise. ·8· Currently the project is not funded, but it is under ·8· · · · · · But with that said, we have five major ·9· design. ·9· corridors coming out of Webb County.· Webb County 10· · · · · · With that being said, Secretary of State, I 10· right now currently has about 240,000 people. 11· will take any questions or any questions that you may 11· Probably within the next 10 years, I'm sorry, the next 12· have as what's going on in Laredo.· If not, I would 12· census which is 2020 we are probably going to look at 13· like to turn it over to the Honorable Judge -- 13· 350, 360, that's the counted ones, not the unaccounted 14· · · · · · COMMISSIONER NEW:· When you go back to 14· ones.· It's real.· It's real.· It's what we have and 15· Laredo, it's definitely important to work on the I-69 15· what we work with and we are very proud of it. 16· corridor widening.· I know that you are working on 35, 16· · · · · · We have 97 and a half miles worth of river 17· but are you doing anything to go north toward Eagle 17· bank along Webb County alone, to give everybody an 18· Pass in the actual Laredo area? 18· idea of how much we have part of that river.· And so 19· · · · · · DAVID SALAZAR:· Currently what we have 19· that's something that we also look into. 20· going on is a continued projects basically from Laredo 20· · · · · · Commissioner New, you did, you said 21· going up to Carrizo Springs up to Eagle Pass, and 21· something that was very well pointed and it was from 22· currently under construction is the project from Eagle 22· Laredo to Corpus needs to be, I-69 corridor needs to 23· Pass toward Laredo that is under construction right 23· be helped out and worked on because that's something 24· now. 24· that especially, what happens with from our community 25· · · · · · COMMISSIONER NEW:· Thank you. 25· to Corpus, a lot of it is the boxed freight and so

Page 139 Page 141 ·1· · · · · · JUDGE TIJERINA:· Commissioner, you bring up ·1· that's where it comes in.· We definitely need help ·2· a very good point.· I actually live on the corridor of ·2· with that. ·3· North 83.· I live 27 miles north of town, I live on a ·3· · · · · · We have, and that's Highway 59, going to be ·4· ranch.· And I'll kill a cow, we'll be all right. ·4· 69, Eagle Pass.· To go to Eagle Pass, it's north 83, ·5· · · · · · With that said, that North 83 right now ·5· that also needs to be worked on.· And SA Highway 35, ·6· with traffic there is so many deaths on that highway ·6· let's face it, San Antonio is almost like my second ·7· because of the oil field traffic, it's unbelievable. ·7· home we drive it so much.· Right there where we are ·8· · · · · · COMMISSIONER NEW:· You are now part of ·8· at, we're definitely an extension, especially with the ·9· this, working on 83. ·9· Uniroyal and all that area. 10· · · · · · JUDGE TIJERINA:· Absolutely.· So that's one 10· · · · · · You know, we have an industrial park that's 11· of the main corridors that we probably need to work on 11· 2,100 acres that are fixing to get built there.· We 12· as well because the amount of traffic, and I'm 12· don't have an ingress, egress.· We need to figure that 13· noticing what's happening on the North 83 area, it's a 13· out.· We need help with that particular area. 14· little community.· What's happening now it seems like 14· · · · · · You know, I say it once and I'll say it 15· it's going to become an industrial park.· We're having 15· again, I hope y'all indulge me, if you see the State 16· a lot of trucks, companies that are going in there, 16· of Texas as a heart and the United States as a body, 17· and right now it's only a two lane highway. 17· I'd like to consider Webb County as the aorta. 18· · · · · · When I tell you that I have my kids 18· · · · · · And the reason for that is because if it 19· driving, myself driving and you have trucks turning on 19· gets plugged up, it will die, I promise.· It is 20· highway, on a highway, you know, going 65, 75 miles an 20· something that is essential.· It disheartens me very 21· hour and you have a truck on the shoulder, a truck on 21· much so to see even though we are just 260,000 22· the main road trying to turn to their work space, it 22· population, it disheartens me to see a lot of these A 23· makes it very dangerous, and we have seen a lot of 23· moneys, what they call them, going to these 24· wrecks happened. 24· metropolitan areas, Houston, Dallas, Austin, San 25· · · · · · So I appreciate you bringing that up. 25· Antonio even. Page 142 Page 144 ·1· · · · · · And you know what, they frankly they do ·1· like we all are in a majority in understanding that we ·2· need them, they have a lot.· But when you have 15, ·2· need a safe infrastructure.· We need definitely to ·3· 16,000 trucks going through there a day, it's pretty ·3· have adequate infrastructure to get around and move ·4· impressive and pretty scary. ·4· around and mobilize ourselves around Texas and the ·5· · · · · · Last week we had a major accident on ·5· United States, relieve congestion.· These are our ·6· Highway 35 that literally if we had a drone, we could ·6· goals. ·7· have used your drone, sir, if we had a drone, I ·7· · · · · · But more importantly, let's face it, time ·8· promise you it would have been about 17 miles worth of ·8· is money.· If you are in a business world, time is ·9· just congested traffic and it did move for four to ·9· money.· What happens?· When we start making everything 10· five hours.· Know what I was thinking, everybody is 10· go smoother, faster and more proficient to what we're 11· going through ranches and going through every which 11· doing, I guarantee you the consumer is going to feel 12· way to get to where they were going, and it's really 12· that, too.· Everything, all this stuff that's going 13· hard to move around in that congestion.· I start 13· on, and the reason why, I promise you, you know, it's 14· thinking could you imagine if something would ever 14· something that will alleviate and help with the moneys 15· catastrophically happen to our bridges or to our 15· that consumers is having to spend.· Seems like 16· roadways right there? 16· everything goes up and up and up.· I don't ever 17· · · · · · I promise you Texas will feel it and the 17· remember today saying it's cheaper today than it was 18· United States are going to feel it even more.· Because 18· yesterday.· It just doesn't happen.· It keeps going 19· we are a major, major component. 19· more and more and more. 20· · · · · · Couple years ago it really bothered me 20· · · · · · With our structure, with what's going to 21· because the federal government, not having anything to 21· happen, I'm really asking for help with the 4-5 bridge 22· do with TxDOT, the federal government was pulling out 22· as well.· That's something that's much needed. 23· some moneys for everyone.· They did some A moneys, B 23· Everybody is talking about this 30, 40 percent 24· moneys, C moneys, they stopped in Pearsall.· In 24· increase in cargo, increase in trucks.· Where do we go 25· Pearsall. 25· with that?· What do we do?· We have had five bridges

Page 143 Page 145 ·1· · · · · · So what, we just jump and skip and forget ·1· within our Mexico border built the last five years. ·2· about Laredo and go to Pearsall.· I can't understand, ·2· And nothing, I'm not going to, I will be the first one ·3· I can't fathom the thought process of why we're not in ·3· with the flag and waving it saying that they should ·4· consideration, not just in Webb County, but in our ·4· have one.· But I just can't understand how Webb County ·5· region as a whole needs to be considered as a major, ·5· has not been able to work with that and get overseen ·6· major infrastructure and to be able to help and ·6· with this bridge. ·7· alleviate. ·7· · · · · · So it's something that I really do want to ·8· · · · · · So if we can work on all that, I really do ·8· see and ask for your help, too.· With that said, I ·9· appreciate it.· Regardless, sometimes, and I'm going ·9· just want to thank TxDOT, I want to thank ya'll for 10· to be very blunt here, sometimes it doesn't matter 10· allowing me to speak and be on this panel.· Secretary, 11· what affiliated party you are in, it matters how we 11· I really appreciate, Commissioners, I really do 12· are helping, not only the Texans, and very proud to be 12· appreciate. 13· one, by the way, but also the United States. 13· · · · · · I will tell you this, you have a gem right 14· · · · · · This is something that's very, very 14· here.· Mrs. Mays is incredible, and yes, I get brownie 15· important, because, you know, we could, even though 15· points, you can pay me later.· I got her smiling.· But 16· we're a Democratic party, we're still servicing the 16· I want to thank you all very much.· You have any 17· needs of many and we are doing everything we can 17· questions feel free to ask them. 18· locally with the moneys that we have, with the MPO, 18· · · · · · SECRETARY PABLOS:· Any comments?· Okay. 19· with the RMA, I really do appreciate TxDOT for being a 19· · · · · · HENRY SAUVIGNET:· Henry Sauvignet, IBC 20· big supporter, I want to thank Mr. Salazar and Melissa 20· Bank.· I'd just like to underscore what the Judge is 21· and everybody else that's helped out.· They are doing 21· saying, and putting it into a picture of sorts.· You 22· a great job. 22· look at customs districts throughout the United States 23· · · · · · I'm not going to take much longer, but I 23· that process goods, and some of them come to mind 24· will say that what's our goal?· What's our goal?· What 24· right away.· You think of Los Angeles, and of course 25· are we doing here?· What are we discussing?· I feel 25· rightly so, it's the number one customs district in Page 146 Page 148 ·1· the United States in which goods go in and out. ·1· So from a TxDOT perspective, I know that TxDOT is ·2· · · · · · The next one after that comes to mind ·2· working hard. ·3· probably New York, and you're right. ·3· · · · · · I'm glad to see this map, the projects that ·4· · · · · · But the third largest custom district in ·4· you have.· I know that there is an interactive map on ·5· the entire country is the Laredo customs district. ·5· the web for TxDOT where you can go in and look at the ·6· And sometimes a couple of years it's gone above New ·6· projects and so I encourage you to visit that and take ·7· York. ·7· a look at everything that's going on. ·8· · · · · · Now, they have the number in terms of ·8· · · · · · But as I travel the state, every corner of ·9· population to build up some of that infrastructure ·9· the state has transportation needs.· And if we were 10· that goes in and out.· Laredo doesn't have that 10· all to work together to ensure that at least for this 11· population, but the infrastructure is still needed if 11· particular concept, which is our international trade 12· it's processing almost as much as, and it's not a 12· with Mexico, that we work together, we'll be able to 13· distant third, by the way, Los Angeles and New York. 13· get it done. 14· · · · · · And as the Judge said, all you have to 14· · · · · · So Commissioners, I want to thank you, the 15· witness, even a minor incident that clogged up 15· rest of the Commission for everything that you are 16· everything for hours, I saw that, it was just 16· doing, thank you for being here, your presence is also 17· incredible.· It just slowed down trade totally. 17· very important.· So I want to thank you. 18· Imagine if it was something a little larger than that. 18· · · · · · We'll move on to our last item.· Couple 19· If you want to clear congestion on Texas highways, 19· items real quick.· First and foremost, as I've been 20· permanently, shut the border and you won't have any 20· mentioning, I do seek to expand the Committee. 21· more problems north of Laredo.· Thank you. 21· · · · · · For the next meeting, what I would like to 22· · · · · · SECRETARY PABLOS:· Well, this is a very 22· do, for today what I would like to do is just get a 23· important item, you know, and as I mentioned earlier, 23· consensus that that is something that is acceptable to 24· things are only going to get better with respect to 24· this body.· I think bringing in our Mexican 25· trade with Mexico.· And you look at all of the 25· counterparts is important.

Page 147 Page 149 ·1· projections, Mexico will become the sixth largest ·1· · · · · · Let me tell you I have had so much interest ·2· economy in the world, and none of that is going to ·2· being expressed in participating in this committee, ·3· happen without Texas being a part of that. ·3· that I would also like to open it up to U.S. side, ·4· · · · · · So we do need to make sure that we address ·4· particularly the economic development arena and the ·5· the concerns.· I think TxDOT within its constraints is ·5· private sector arena. ·6· it doing an excellent job.· Texas is a big state.· And ·6· · · · · · So if I don't hear any objection, what I ·7· what I'm seeing here, if you look at the last 25 years ·7· would like to do is ask Caroline to add for next ·8· I think the border infrastructure has been developed ·8· meeting an item where we would actually vote on some ·9· tremendously.· Look at El Paso, and you have ·9· additions.· I think on the Mexican side, it's pretty 10· tremendous work.· There is still work to be done of 10· well established that we would have representatives 11· course, but I don't think that this should be focused 11· from the states and federal government, perhaps a 12· as a political issue.· I think this is an economic 12· couple from the private sector on the Mexican side and 13· development issue that requires both sides to 13· then on the U.S. side as well. 14· collaborate, and we're seeing it.· We're seeing some 14· · · · · · What that number looks like, I don't know. 15· really good work.· The fact that you are here at the 15· I need to sit down with staff to figure that out. I 16· table, Judge, is very important to me in particular. 16· don't want to flood the committee, but at the same 17· I know that with your passion and your broader vision 17· time this is such an important topic of discussion 18· now as a county and regional approach, I think it's 18· that I would encourage all of the participation that 19· important to have. 19· is possible. 20· · · · · · So I encourage you to come any time, share 20· · · · · · And so if I don't hear any objections, I'd 21· your thoughts with us.· Thank you for everything that 21· like to move that we place this item on the next 22· you are doing down there.· It's important that Laredo 22· agenda and then at that time we would vote on the 23· gets that support. 23· members, and we would invite our Mexican counterparts 24· · · · · · But again, we've got many trade corridors 24· to return so that we can get started with the 25· that need to be addressed and that's why we're here. 25· committee work. Page 150 Page 152 ·1· · · · · · Our next item if we have, Sam, part of my ·1· · · · · · SERGIO CONTRERAS:· Thank you, Secretary of ·2· role as Secretary of State is also to look into and to ·2· State.· For those in the audience, I will have some of ·3· participate in the Human Trafficking Committee.· I've ·3· these snapshots right over here to the side.· It's an ·4· asked Sam Taylor with my staff to give a 30 second ·4· economic snapshot of the Rio Grande Valley which ·5· presentation.· We have a handout on human trafficking. ·5· showcases and highlights the many different sectors ·6· So Sam, if you could just take a very brief moment in ·6· from border trade to also residential and commercial ·7· letting us know what this is all about, I'd appreciate ·7· retail and work force development. ·8· it. ·8· · · · · · I want to say thank you and congratulations ·9· · · · · · SAM TAYLOR:· Sure.· Thank you, Secretary. ·9· to your appointment, Commissioner New.· So we also 10· My name is Sam Taylor.· I'm the Communications 10· have it online on the website.· We look forward to you 11· Director for the Texas Secretary of State's Office and 11· reviewing it and we also want to thank all those 12· I just wanted to draw your attention to the handout 12· partners that are part of it.· Thank you. 13· that's going around now.· Two sessions ago the 13· · · · · · SECRETARY PABLOS:· Thank you, Sergio. 14· legislature created what's called the Human 14· Congratulations on all your good work.· I hope that 15· Trafficking Prevention Business Partnership Program. 15· there will be a time are where the entire Rio Grande 16· · · · · · Now, the goal of this was to engage the 16· Valley can come together from an economic development 17· private sector.· We have tons of non-profits all 17· perspective and work together to promote the entire 18· across the State of Texas that are very engaged on the 18· region. 19· issue of human trafficking, but really what the 19· · · · · · So I'm really excited about everything 20· legislature, I think the writers of this bill, wanted 20· that's going on down there, and I'm looking forward to 21· to engage the private sector and share training 21· coming down to Brownsville to the port.· I'm sorry I 22· materials, educational resources and best practices 22· had to cancel, but we had some change in our schedule, 23· for any companies and private sector organizations 23· but I certainly want to get down there to visit with 24· that are engaged in any kind of trade, any kind of 24· you. 25· large scale commerce, especially the ones that are 25· · · · · · Before we adjourn, are there any comments,

Page 151 Page 153 ·1· doing cross-border trade. ·1· any new business, anything anyone would like to add? ·2· · · · · · So I just wanted to encourage you all to ·2· Okay. ·3· spread this info sheet to any of the businesses that ·3· · · · · · Hearing none, the time is 12:32 and at this ·4· you work with, any of the organizations that you work ·4· time I'd like to adjourn today's meeting of the Border ·5· with and direct them to our website.· There is a large ·5· Trade Advisory Committee Meeting.· Thank you for being ·6· logo on our front page, has the partnership program ·6· here. ·7· logo right there.· If any of the businesses that you ·7· · · · · ·(Off the record at 12:32 p.m.) ·8· interact with on a regular basis have questions about ·8 ·9· this, feel free to reach out to me, our office, we ·9 10· will connect with you and give you more information 10 11· about how to receive a certificate of recognition from 11 12· our office.· Thanks. 12 13· · · · · · SECRETARY PABLOS:· Thank you.· Again, it 13 14· does impact our commerce to a certain level.· Being 14 15· that we are asking for now business participation, I 15 16· thought it would be important for him to speak. 16 17· · · · · · Our last item is I wanted to ask Sergio 17 18· Contreras, he has an economic development study that 18 19· he wants to pass out.· He was recently in Washington 19 20· with Mayor Saenz and others from the border 20 21· testifying.· I want to congratulate you for your 21 22· excellent testimony and for representing us well. 22 23· · · · · · Sergio, I'll give you the floor for a 23 24· minute so you can give us a briefing on what you have 24 25· there. 25 Page 154 ·1· · · · · · · · REPORTER'S CERTIFICATION · · · · · · · · · · · · July 24, 2018 ·2 ·3 · · · · · · ·I, Deborah Endler, RPR, hereby certify to the ·4 · · following: ·5 · · · · · · ·That the transcript is a true record of the ·6 · · proceedings; ·7 · · · · · · ·I further certify that I am neither counsel ·8 · · for, related to, nor employed by any of the parties or ·9 · · attorneys in this action in which this proceeding was 10 · · taken, and further that I am not financially or 11 · · otherwise interested in the outcome of the action. 12 · · · · · · ·Certified to by me this 1st Now day of 13 · · August, 2018. 14 15 · · · · · · · · · · · · · ______16 · · · · · · · · · · · · · DEBORAH L. ENDLER, RPR 17· · · · · · · · · · · · EXPIRATION DATE: · · · · · · · · · · · · · Firm Registration No. 631 18· · · · · · · · · · · · Kim Tindall & Associates, LLC · · · · · · · · · · · · · 16414 San Pedro, Suite 900 19· · · · · · · · · · · · San Antonio, Texas 78232 · · · · · · · · · · · · · Phone 210-697-3400 20· · · · · · · · · · · · Fax 210-697-3408 21 · · 22 23 24 25