TRANSPORTATION COMMISSION

COMMISSION MEETING

Thursday, October 27, 2005 Ortiz Center Nueces Room 402 Harbor Drive Corpus Christi, Texas 78401

COMMISSION MEMBERS:

Ric Williamson, Chairman John W. Johnson Hope Andrade Ted Houghton, Jr.

STAFF:

Michael W. Behrens, P.E., Executive Director Steve Simmons, Deputy Executive Director Richard Monroe, General Counsel Roger Polson, Executive Assistant to the Deputy Executive Director

2 I N D E X

AGENDA ITEM PAGE

CONVENE MEETING 8

Receive comments from area public officials, 14 community and civic leaders, and private citizens. Report by the Corpus Christi District. 69

1. Approval of Minutes of the September 29, 2005, 83 regular meeting of the Texas Transportation Commission

2. Public Transportation 84 El Paso County - Award Rural Transportation Assistance Program funds to El Paso County (MO)

3. Discussion Item Discussion on various Vehicle Title and 88 Registration public outreach and marketing efforts

4. Promulgation of Administrative Rules a. Proposed Adoption Under Title 43, Texas Administrative Code, and the Administrative Procedure Act, Government Code, Chapter 2001: (to be published in the Texas Register for public comment) (1) Chapter 17 - Vehicle Titles and Registration (MO) 108 Amendments to ''17.2-17.3, concerning Motor Vehicle Certificates of Title, ''17.21-17.24, '17.28, '17.30, '17.33, and '17.36, concerning Motor Vehicle Registration, '17.54, concerning Automated Equipment, (Registration and Title System), '17.61, '17.62, '17.65, and '17.68, concerning Nonrepairable and Salvage Motor Vehicles, and '17.72, '17.73 and '17.79, concerning Salvage Vehicle Dealers

(2) Chapter 21 - Right of Way (MO) 111 New Subchapter N, Rail Facilities, New '21.801, Acquisition of Real Property, and New '21.802, Disposal of Real Property (relating to rail facilities)

3 (3) Chapter 23 - Travel Information (MO) 113 New '23.13, Links to Community Web Sites from Rest Areas and Travel Information Centers (Travel Information)

(4) Chapter 28 - Oversize and Overweight 115 Vehicles and Loads (MO) Amendments to '28.11, General Oversize and Overweight Permit Requirements and Procedures (General Permits), '28.14, Manufactured Housing, and Industrialized Housing and Building Permits, '28.15, Portable Building Unit Permits (Highway Crossings by Oversize and Overweight Vehicles and Loads) and '28.92, Permit Issuance Requirements and Procedures (Port of Brownsville Port Authority Permits), New Subchapter H, Chambers County Permits, New ''28.100-28.102, Purpose

b. Final Adoption Under Title 43, Texas Administrative Code, and the Administrative Procedure Act, Government Code, Chapter 2001: (1) Chapter 7 - Rail Facilities (MO) 117 Chapter 7 - Rail Facilities; Subchapter B, Contracts, New '7.11, Comprehensive Development Agreements

(2) Chapter 15 - Transportation Planning 119 and Programming (MO) Amendments to '15.4, Unified Planning Work Program

(3) Chapter 25 - Traffic Operations (MO) 121 Repeal of ''25.400-25.409, Subchapter G, Specific Information Logo Sign Program and New ''25.400-25.409, Subchapter G, Information Logo Sign and Tourist-Oriented Directional (TOD) Program, and Repeal of ''25.700- 25.708, Subchapter K, Major Agricultural Interest Sign Program

5. Transportation Planning a. Approve the 2006 Statewide Mobility Program 123 (MO) (Draft SMP) b. Approve the Texas Rail System Plan (MO) 126 (Draft Summary) (Draft Plan)

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c. Various Counties - Application for approval 129 to deviate from the terms of the railroad clearance statutes for the following companies (MO): 1. Synsil Product, Inc. 2. Cemex, Inc. 3. Prime Rail Interest, Inc. 4. ConocoPhillips Sweeny Refinery 5. Rohm and Haas Company Bayport Plant

6. Toll Projects a. Bexar County - Consider final approval of 132 a request for financing from the Alamo Regional Mobility Authority to pay certain engineering, legal and financial planning costs to study and analyze competing proposals submitted for the proposed Loop 1604 and US 281 turnpike project and its impacts on other potential elements of a proposed toll system in Bexar County (MO) b. Bexar County - Authorize the executive 136 director to negotiate and develop an agreement with the Alamo Regional Mobility Authority (AlamoRMA) for the planning, financing, and potential design, construction, operation, and maintenance of managed or tolled lanes on I-35 from the Bexar/ Guadalupe County line to the Central Business District, managed or tolled lanes on SH 16 west from Interstate Loop 410 to Loop 1604 northwest, and the tolled at US 281 and , including the license or lease of state-owned right of way to the AlamoRMA for the purpose of developing these potential AlamoRMA turnpike projects (MO) c. Bexar County - Consider the preliminary 137 approval of a request for financing from the Alamo Regional Mobility Authority to pay for certain costs for developing preliminary feasibility, environmental, public involvement, schematics and preliminary financial plans for managed or tolled lanes on I-35 from the Bexar/ Guadalupe County line to the San Antonio Central Business District, managed or tolled lanes on SH 16 west from Interstate Loop 410 to Loop 1604 northwest, and the tolled interchange at US 281 and Wurzbach Parkway (MO)

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d. Travis and Williamson Counties - Accept 149 the General Engineering Consultant quarterly progress report as of August 31, 2005, for the 2002 Project of the Central Texas Turnpike System (MO)

7. Finance Travis and Williamson Counties - Accept the 152 Quarterly Investment Report as of August 31, 2005, for the 2002 Project of the Central Texas Turnpike System (MO)

8. Pass-Through Tolls a. Authority to Negotiate Agreement (1) Galveston County - Authorize the 154 executive director to negotiate a pass-through toll agreement with Galveston County for improvements to FM 646 from FM 1764 to FM 517 (MO) (2) Hays County - Authorize the executive 156 director to negotiate a pass-through toll agreement with Hays County for improvements to various highway projects in the county

b. Authority to Execute Agreement 167 Williamson County - Authorize the executive director to execute a pass-through toll agreement with Williamson County for improvements to various highway projects in the county (MO)

9. Traffic Operations, 176 Dallas, Harris, and Tarrant Counties - Proposed lane use restrictions for trucks on I-20 in Dallas County, I-10 and US 290 in Harris County, and I-30 in Tarrant County (MO)

10. Contracts a. Award or Reject Highway Improvement Contracts (1) Maintenance (see attached itemized list) (MO) 180 (2) Highway and Building Construction (see attached itemized list) (MO) 181

11. Routine Minute Orders a. Donations to the Department 194 (1) Brazos County - Consider a donation from Keep Brazos Beautiful for approximately $30,000 worth of wildflower seeds to be planted on state right of way (MO) 6

(2) Bridge Division - Acknowledge a donation from the Precast/Prestressed Concrete Institute (PCI) for a department employee=s travel expenses to attend the PCI Convention and National Bridge Conference that was held in Palm Springs, California from Oct. 16-19, 2005 (MO) (3) Human Resources Division - Acknowledge a donation from KARRASS for two department employees= registration fees to attend a showcase on a training program entitled, AEffective Negotiating in Your Own Organization.@ The showcase was held in Dallas, Texas from Sept. 15-16, 2005 (MO) (4) Live Oak County - Consider a donation from Mr. Bruce Harvey, a private landowner, for funds associated with upgrading highway fencing alongside I-37 (MO) (5) Texas Turnpike Authority Division - Consider a donation from Infrastructure Journal for a department employee=s travel expenses to participate in the Transportation Investment Forum to be held from November 7-8, 2005 in Glasgow, Scotland (MO) b. Eminent Domain Proceedings 194 Various Counties - noncontrolled and controlled access highways (see attached itemized list) (MO) c. Highway Designations 194 (1) Brown County - Designate a segment of FM 823 along a new location on the state highway system and redesignate a segment of FM 3064 as FM 823 in the city of Brownwood (MO) (2) Kaufman County - Remove a segment of FM 548 from the state highway system and return control, jurisdiction, and maintenance to the city of Forney (MO) d. Load Zones & Postings 194 Comanche County - Revise load restrictions on a bridge on FM 1689 (MO) e. Right of Way Dispositions and Donations 194 (1) Bexar County - Loop 1604 at Huebner Road in San Antonio - Consider the sale of a surplus drainage channel easement (MO) 7

(2) Chambers County - FM 2354 south of FM 565 - Consider the release of a surplus easement (MO) (3) El Paso County - FM 258 (Socorro Road) at Southside Road in El Paso - Consider the sale of a surplus maintenance site (MO) (4) Johnson County - I-35W at FM 917 in Burleson - Amend MO 109998 to revise the value of the consideration for surplus right of way (MO) (5) Travis County - US 183 at Tracor Lane in Austin - Consider the exchange of right of way (MO) (6) Travis County - FM 685 at CR 138 - Consider the release of a surplus channel easement (MO)

f. Speed Zones 194 Various Counties - Establish or alter regulatory and construction speed zones on various sections of highways in the state (MO)

12. Executive Session (none required) 195

OPEN COMMENT PERIOD 195

ADJOURN 196 8

1 P R O C E E D I N G S

2 MR. WILLIAMSON: Good morning.

3 AUDIENCE: Good morning.

4 MR. WILLIAMSON: What do you think, Richard, do

5 it again?

6 MR. MONROE: It's all up to you, Mr. Chairman.

7 MR. WILLIAMSON: Good morning.

8 AUDIENCE: Good morning.

9 MR. WILLIAMSON: Man, we're asleep. One more

10 time. Good morning.

11 AUDIENCE: Good morning.

12 MR. WILLIAMSON: Good morning. It's a great

13 day to be a Texan.

14 It is 9:24 a.m., and I call the October 2005

15 meeting of the Texas Transportation Commission to order

16 here in the Sparkling City by the Sea, Corpus Christi,

17 Texas. It's a pleasure for us to be here this morning and

18 we thank each of you for joining us.

19 Please note for the record that public notice

20 of this meeting, containing all items on the agenda, was

21 filed with the Office of the Secretary of State at 1:55

22 p.m. on October 19.

23 Before beginning today's meeting, we

24 characteristically stop, take a moment, pat our pockets,

25 find our cell phones, iPods, Dewberries, and everything

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 9

1 else we carry, and we ask everybody to put them on the

2 silent or no-ring mode so that we won't disrupt anybody

3 while they're offering testimony. If you will join with

4 me in doing that, I will be appreciative. Thank you.

5 This is officially the sixth time a highway or

6 transportation commission has convened a meeting in Corpus

7 Christi. Interestingly for us, the first meeting was held

8 on July 17, 1920, in the wake of the devastating 1919

9 hurricane. At that special called meeting, the Highway

10 Commission approved $100,000 in state funds to cover 25

11 percent of the cost to reconstruct the causeway. The

12 causeway, as most of you from Corpus Christi will remember

13 in your history lessons, was completely destroyed by the

14 hurricane.

15 In that era, counties were entirely responsible

16 for building and paying for their roads and their

17 transportation infrastructure. As motorized

18 transportation has become more important to the state's

19 economic growth, the federal government has joined with

20 the state government in providing funds for the

21 infrastructure business.

22 This $100,000 in 1920 was an early example of

23 state and local partnerships to solve a local and state

24 problem. The relationship between the state and local

25 transportation officials is a long-standing one, and as

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 10

1 you will learn from the meeting today, continues to grow

2 and evolve.

3 Now, it's our practice to take a commission

4 meeting on the road three or four times a year. It gives

5 us a chance to see firsthand what's going on in different

6 parts of this great state. It also gives us an

7 opportunity to listen directly to the leadership and the

8 citizens of every part of the state as they express their

9 compliments and their concerns about the future of

10 transportation in our state.

11 It is our custom to open our meetings by

12 permitting each commissioner to make a quick comment to

13 the audience and then proceed with our agenda. So with

14 your indulgence, Commissioner Houghton.

15 MR. HOUGHTON: It's a lonely way down here, the

16 far left, far right, depending on your perspective. It's

17 a beautiful facility, and to the hospitality by the

18 citizens and the employees of Corpus Christi, I thank you.

19 This has been a marvelous couple of days, and we look

20 forward to this meeting.

21 And to the leadership in this community,

22 there's a lot of great things happening in your court, as

23 demonstrated yesterday, and in the state of Texas many,

24 many things are going to happen in the next couple of

25 months that will be very profound.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 11

1 And I thank you again for your hospitality.

2 MS. ANDRADE: Good morning. I'd like to also

3 thank you all. Craig, last night was an incredible

4 evening with our staff. We truly enjoyed ourselves, and

5 you made us all feel so special. So thank you, City of

6 Corpus Christi, the hospitality that we have received

7 during this trip has been incredible. Thank you so much.

8 I applaud you and I congratulate you for such a

9 community that works together, and that understands the

10 challenges that we face and are willing to step up and

11 take advantage of the many tools that we have.

12 Thank you all for coming to listen to our

13 commission meeting and what we discuss here, and for

14 helping us keep moving transportation forward in Texas.

15 Thank you.

16 MR. JOHNSON: My turn?

17 MR. WILLIAMSON: Yes, sir.

18 MR. JOHNSON: First of all, a note of apology.

19 Craig, I know the district went to great ends for a fun-

20 filled, informative day yesterday, and I apologize for not

21 being here. I attended a baseball game last night and I

22 just heard on the news that the Astros bat rack was

23 examined this morning and they found a termite

24 infestation.

25 (General laughter.)

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 12

1 MR. JOHNSON: It was a great thrill to have a

2 World Series in Texas and in your hometown, and so I had

3 to avail myself of that opportunity, and unfortunately

4 wasn't here to partake in the hospitality of the district.

5 But as the Chairman alluded to, being in the

6 Sparkling City by the Sea is a great treat. I've come

7 here often as an adult, came here more as a child, and

8 it's wonderful to see what's happened here in terms of

9 community involvement, as Hope referred to, and getting

10 things done. This is really a gem. If there's a better

11 example of the success in multimodal challenges around

12 these United States, I would be surprised.

13 Congratulations to each and every one of you

14 for what you do and have done to get us where we are, and

15 of course, for what you will do to get us even in better

16 shape. Thank you.

17 MR. WILLIAMSON: And I'd like to associate

18 myself with those same remarks, Craig, to you and your

19 staff. It was a fun time last night, and we appreciate

20 the hospitality shown by yourself and earlier in the day

21 by the business leadership in welcoming the commission to

22 the city.

23 Let me remind you that if you wish to speak

24 during the commission meeting this morning, we have a

25 system -- we're an engineering firm at heart, so we've got

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 13

1 plans and procedures and a system for everything -- we

2 have a system for testimony.

3 If you are going to comment on an item that's

4 on the agenda, I need for you to fill out a yellow card,

5 and you'll find one of those in the lobby, and please take

6 time to tell us what item you're going to comment on.

7 If you want to comment in the open comment

8 period on just whatever is on your mind, please fill out a

9 blue card, and you can find those in the lobby.

10 We normally in our meetings in previous years

11 proceeded with the local presentation and at that time

12 recognized local legislators. For those of you who are

13 not aware, I did have the privilege of serving in the

14 legislature for 13-1/2 years, and it's my habit to first

15 permit sitting members of the legislature to speak if they

16 so choose. If they choose to be part of the program, then

17 that's their choice, but having been through the ringer,

18 I'm tremendously respectful of the time and the effort men

19 and women have to put into serving on the legislature, and

20 so I place their remarks at the highest top of the list

21 for attention, and I always try to operate on a seniority

22 basis, so I think Vilma is more senior.

23 MS. LUNA: We'll all come together if you'll

24 allow us.

25 MR. WILLIAMSON: You are a legislator, madam.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 14

1 Whatever you want is okay with us. Ms. Luna, Mr. Seaman

2 and Mr. Herrero.

3 MS. LUNA: And actually, you just forgot to

4 mention that Senator Chuy Hinojosa is right here standing

5 shoulder-to-shoulder with us, and in fact, does send his

6 regards and regrets that he's not able to be here.

7 First of all, I am Vilma Luna, State

8 Representative of District 33 and welcome each and every

9 one of you, Mr. Chairman, Commissioner Johnson,

10 Commissioner Andrade, and Commissioner Houghton. We are

11 so pleased to have you here and I know that it is a

12 tremendous amount of time and energy out of your very busy

13 schedules to come here, but we really welcome you.

14 I have been very lucky in my life -- and I

15 always share this with you guys and your staff knows

16 this -- but our family has a real direct link to TxDOT.

17 My grandfather worked for the State Highway Department for

18 45 years on a road crew, and as a matter of fact, I was

19 reminiscing with some of the staff this morning about it

20 was not unusual that one of our weekend outings would be

21 going from highway marker to historical marker to highway

22 marker because he was so proud, as were many of the other

23 gentlemen that worked with him on that crew, to show us

24 the work and so proud of the maintenance and the upkeep

25 that they did on roads and bridges throughout this entire

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 15

1 area. They had a big territory.

2 But more important is the work that you guys

3 now do, and we want to thank you. I know that you are

4 very focused on the needs of this region. I am very

5 heartened every time I hear you speak, Mr. Chairman and

6 the rest of you all, to hear you talk about what we're

7 going to look like in 35 years, in 35 years we won't have

8 the congestion, in 35 years we will have done our part for

9 air quality, in 35 years, in 35 years, and so on. But

10 it's not just looking down there, we're looking at all the

11 steps in between now and then, and I want to thank you all

12 very much for being so forward-thinking.

13 We have worked very closely together on

14 appropriations. As vice-chair of Appropriations and

15 sitting on LBB, I think I know your budget inside and out.

16 If there's any little thing I've missed, you know what,

17 Mike, brings it to my attention pretty quickly. So not

18 only does Mike and all the rest of your staff, but your

19 field staff do a tremendous job.

20 So we as a delegation would like you to know

21 that we appreciate very much the work that you're doing,

22 and ask you to please pay special attention to the needs

23 of our region. We have done our part. I think we are

24 being very forward-thinking in how we're trying to use our

25 dollars and our resources, be partners -- which is what I

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 16

1 consider us. I think you all are partners with us as

2 legislators; our local community wants to be a partner

3 with the state in making sure that we make the best use of

4 all available resources and be very forward-thinking and

5 creative.

6 And we do have an outstanding staff in this

7 region. Frankly, I think we have an outstanding staff

8 throughout the state of Texas, it's not just because my

9 grandfather was there all those years that you all have a

10 special place in my heart, but I do think that you've got

11 an outstanding staff, individuals that do not only a lot

12 of work for TxDOT but incredible work for the community,

13 such as Cliff Bost, who is my son's soccer coach.

14 And so thank you and welcome.

15 (Applause.)

16 MR. SEAMAN: And I echo what Vilma said. In

17 fact, when we came up, I said, Can I carry your purse?

18 Being the vice-chair of Appropriations handles the money,

19 I always want to carry her baggage.

20 As Murdock said, we're going to go from 22- to

21 44- in a couple of decades, million, and if we don't do

22 education and taxation -- this is from Sharp last week for

23 a session on the tax bill, and John Sharp, and education

24 and taxation but most of all transportation.

25 Thank you for being here, I commend you for

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 17

1 what you're doing, I support your goals. Thank you.

2 MR. HERRERO: Mr. Chairman and members, I'd

3 also like to reiterate the welcome. It is extremely

4 important, not only for Corpus Christi but also the

5 region, the issues regarding rail and port issues and also

6 highway.

7 And as Vilma mentioned, we are members of the

8 transportation industry. I worked for the Highway

9 Department also one summer, and so I cut brush under

10 highways, I poured sand on the hot asphalt as it was

11 beading on the highways, and so I understand the hard work

12 that it takes both in the field and behind the desk where

13 you work, and I understand the responsibility and the

14 dedication that all of you have as commissioners.

15 I'd also like to commend the work that your

16 executive director has done. Just in the short time that

17 I've been in the legislature, he's done a tremendous job,

18 and I want to thank him for the great work that he's done,

19 as well as your local district offices here, Craig Clark

20 as well. But I want to thank you, especially, because I

21 understand the significance and the importance that you

22 give to the commission and also that you bring to the

23 state of Texas. Thank you.

24 MR. WILLIAMSON: Thank you. We appreciate your

25 comments.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 18

1 (Applause.)

2 MS. LUNA: I'm sorry. Did you have a question

3 or a comment?

4 MR. HOUGHTON: No. Go ahead.

5 MS. LUNA: I was just going to say I'm calling

6 an emergency delegation meeting down the street, and so we

7 will allow you to go forward with your work and get out of

8 your hair, figuratively speaking.

9 MR. HOUGHTON: I'll let you go ahead, Ric, and

10 respond to that.

11 MR. JOHNSON: Thanks so much for searching for

12 our hair.

13 MR. HOUGHTON: Well, she obviously wasn't

14 referring to me.

15 (General laughter.)

16 MR. JOHNSON: Representative Luna, thank you

17 for everything that you said. I also wanted to thank you,

18 the last time our paths crossed here, I wasn't disheveled

19 but my tie was not exact, and you were nice enough to get

20 me more neatly dressed, and I remember that and I thank

21 you for it.

22 MS. LUNA: I've got to keep you looking good.

23 MR. JOHNSON: Well, I need a lot of help.

24 MR. WILLIAMSON: Ted?

25 MR. HOUGHTON: Representative Luna and I have a

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 19

1 common goal down in this part of the world and in El Paso,

2 and I look forward to working with you not only that but

3 the transportation issues. And Abel and Gene, thanks for

4 your support. It's something we take note of. Thank you.

5 MS. LUNA: Thank you all very much.

6 MS. ANDRADE: Thank you also so much.

7 Representative Luna, I had the pleasure of meeting you

8 last year, and I was touched by your story of your

9 grandfather working for TxDOT, but I have to tell you that

10 you're absolutely right, we cannot do this by ourselves,

11 we need partners and supporters, and you certainly have

12 been that, all three of you. So thank you for your

13 leadership, and I'm just looking forward to working

14 together with you all. Thank you.

15 MR. WILLIAMSON: Anything more, John?

16 MR. JOHNSON: No.

17 MR. WILLIAMSON: You know, I said this

18 yesterday to a slightly different audience, and I take

19 great pleasure in saying it to anyone who will listen: we

20 do not waste our time saying thank you to legislators,

21 past or existing, who do not understand the importance of

22 transportation, we just stay silent. When we have the

23 opportunity to address the legislators who understand

24 transportation, we never pass up that opportunity.

25 When Rick Perry sent me to the commission, he

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 20

1 reminded me there are no Democratic highways, there are no

2 Republican bridges, there are no Liberal right of ways,

3 there are no Conservative parking lots, transportation is

4 for all Texans, and we maintain that here at the

5 commission.

6 And in your representation, particularly with

7 Ms. Luna and Mr. Seaman, who I served with -- and Abel is

8 going to get tired of me saying this, when I get to serve

9 more with him, I'll understand him better, but he appears

10 to be the same way -- they understand the importance of

11 transportation, and we could not be where we're going to

12 be in 35 years if we didn't have you on the legislative

13 side as our partners, and we're very appreciative of your

14 leadership. You're to be commended for what you've done

15 for transportation in the last six years.

16 Thank you for being here, and we'll take care

17 of our business.

18 MS. LUNA: Very good. Thank you.

19 MR. WILLIAMSON: Okay, thanks.

20 (Applause.)

21 MR. WILLIAMSON: Mike?

22 MR. BEHRENS: Thank you, Mr. Chairman. We'll

23 begin today by introducing Craig Clark who is our district

24 engineer for the Corpus District, and he will lead the

25 district's delegation and then introduce the local folks

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 21

1 that have been our hosts and who are part of the backbone

2 of transportation here in the Corpus area. Craig?

3 MR. CLARK: While we're trying to find our

4 presentation, I would also like to recognize our local

5 political delegations who are so valuable to us and do

6 such good work for our area. We also have Esther Oliver

7 from Congressman Solomon Ortiz's office here with us, and

8 Sondra Zuniga with the office of Senator Chuy Hinojosa.

9 MR. WILLIAMSON: Well, Craig, while you're

10 looking for your CD, let me speak for the commission to

11 the young lady representing Congressman Ortiz.

12 Now, you don't need to hear me say it but

13 everyone else does. We consider Congressman Ortiz one of

14 the best transportation congressmen in the United States

15 Congress. He understands transportation to the level that

16 most people can only dream of. We're very grateful for

17 his service.

18 MR. CLARK: While we continue to look, we have

19 a team atmosphere in our community.

20 MR. WILLIAMSON: Are you going to try to read

21 it, Craig?

22 MR. CLARK: We recognize that Commissioner

23 Johnson was called up to the big show last night and

24 couldn't be with us at our event that we had with the

25 commission, but to make up for that and recognize him as

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 22

1 part of our local team, I would like to approach the dais

2 and provide Commissioner Johnson with this jersey for the

3 Hooks.

4 (Applause.)

5 MR. WILLIAMSON: We wish that he was really

6 called in to play and maybe we could have a little better

7 offense last night and made some more history.

8 MR. JOHNSON: Craig, I was at a Hooks game in

9 June -- I believe it was June -- and there was eleven

10 innings of free baseball, they played 20 innings that

11 night, and what an experience. This is great for the

12 community, Whataburger Field and the Hooks, a great family

13 atmosphere, and for the price of entertainment today,

14 there's no better value, and I had a fantastic night.

15 And I'm deeply appreciative for this; in fact,

16 I'm going to put it on. You can only wear one hat but you

17 can wear many jerseys. Where's Representative Luna when I

18 need her?

19 (General laughter.)

20 MR. JOHNSON: Send me in, Coach.

21 (Applause.)

22 MR. CLARK: Commissioners, we're going to

23 continue on with our team report, and I would like to

24 begin the first part of our presentation for our district

25 with the very durable city manager for Corpus Christi,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 23

1 Skip Noe.

2 (Applause.)

3 MR. SKIP: I have to admit I've been called

4 many things but durable has not been on the list. Thank

5 you, Craig.

6 Mr. Chairman, members of the commission,

7 members of the staff. Good morning and welcome to Corpus

8 Christi. We're very pleased you're here. We're very

9 excited to have the opportunity to share with you some of

10 the things that are happening in Corpus Christi.

11 Before I start, I really want to thank Craig

12 and his staff. This is about team work and we do have a

13 great working relationship with your folks here at the

14 district office. They work with us every day, day-in and

15 day-out, on all those little problems, making sure that we

16 get things done here in Corpus Christi, and we appreciate

17 the great relationship we have with the staff here.

18 You had an opportunity, a number of you, to

19 tour a number of things that are happening in Corpus

20 Christi yesterday, and we're going to take a minute today

21 to share some of the things that are happening.

22 You'll find two words in our vocabulary here:

23 one is investment, we're investing in our future; the

24 other is partnership, virtually all these projects we're

25 working on here have a partner we're working with, either

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 24

1 at the state or federal or local level.

2 This map shows you the five areas we cover just

3 so you can get a sense of the geography of the various

4 areas where there's been significant investment, and we'd

5 like to talk about them just for a few minutes.

6 We've been fortunate that the community and the

7 leadership of the community and the voters have been

8 willing to invest in our community for the last six years.

9 Beginning in 1999 with the decision in our airport, over

10 $30 million, a new terminal, reconstructed runways, new

11 parking areas, a new tower, all resulting in a

12 reinvigoration of our airport.

13 In fact, we were able to announce this last

14 week that for the first time in many, many years we'll

15 have international service out of the Corpus Christi

16 International Airport to Monterrey starting November 21.

17 The partnership with TxDOT, the JFK Causeway,

18 that improvement is significant to Corpus Christi, and we

19 learned that no better than this last hurricane season

20 when for the first time in the EOC we weren't sending

21 staff members out to check the level of the water over the

22 causeway to see if we could get folks off the island.

23 That improvement made a significant difference for folks

24 who live on the island, their ability to get out of the

25 way of those kinds of storms and disasters we've seen this

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 25

1 year.

2 A number of bond issues. In 2000 the voters

3 approved $30 million worth of improvements, as well as two

4 sales tax-supported propositions that paid for

5 improvements to the seawall and the marina.

6 The Packery Channel project, the decision, in

7 partnership with the Corps of Engineers, the General Land

8 Office and a number of others, to build the Packery

9 Channel project which has been on the agenda here in

10 Corpus Christi for many years, a partnership effort, $30

11 million.

12 The convention center expansion. Recognizing

13 that tourism is part of our future, reinvigorating our

14 convention center, a $25 million expenditure funded

15 predominantly from the hotel tax.

16 You all got a chance to take a peek at

17 Whataburger Field last night, our $29 million project, a

18 joint venture with not only Ryan-Sanders Baseball but also

19 the Port of Corpus Christi, the landowner and our partner

20 in the parking and development of that area.

21 Marina improvements. There's a big demand for

22 marina slips and a need to improve our facilities there.

23 We have our own Riverwalk, only it's called the Bayfront.

24 We're investing in new slips and facilities to support

25 our folks who have boat slips in the marina.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 26

1 And then lastly, in November of 2004 the voters

2 approved another $95 million in capital improvements all

3 intended to invest in our long-term future.

4 The Bayfront is obviously important for Corpus

5 Christi because of our tourism base, and this shows you a

6 number of the projects that we've been involved with, the

7 top being the arena on the left with the convention center

8 on the right, Whataburger Field -- and by the way, it did

9 exceed 500,000 fans this past year, which was a feat

10 that's only been accomplished several times in minor

11 league baseball.

12 In the middle there at the bottom you see the

13 marina facilities we're constructing, and then the

14 seawall.

15 The Packery Channel project, a major investment

16 on our part, $30 million, $20 million from the Corps of

17 Engineers, the federal government and $10 million funded

18 from a tax increment district on the island, causing and

19 spurring significant potential growth and real growth in

20 our community. To the right you see the channel itself

21 that cuts through to connect the Gulf of Mexico with

22 Laguna Madre, and the area in front of the seawall on the

23 island is being restored with the dredged sand material.

24 There's an opportunity there for significant development

25 and we're seeing that development occur.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 27

1 On the left you see a bigger picture of the

2 island itself. In the upper part of that picture you see

3 the JFK Causeway and the bridge over the Intracoastal

4 Waterway.

5 As this development occurs, we see continued

6 interest in looking for opportunities for a second

7 crossing in connection to the island as we try to deal

8 with the growth that occurs there.

9 Texas A&M Corpus Christi is part of our

10 foundation for our long-term future. It's the fastest

11 growing regional university in the state. They've seen

12 significant growth and development on the campus, and as

13 you might suspect, with the campus being an island of 240

14 acres, they're starting to run out of room.

15 There's a partnership developing with the city

16 and the university and the community on how we can assist

17 them to make sure they will continue to be able to grow in

18 the future. Part of that involves looking for

19 opportunities to develop off-site, either spinning

20 projects off the campus into the community or other sites

21 for development of university facilities.

22 One of those is a project that we hope to bring

23 to the commission soon. This is a picture of one of the

24 opportunities is a private developer who is willing to

25 donate property the university could use if Spur 3, which

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 28

1 is currently under construction by TxDOT, is extended

2 southward from 358 to 357, creating an opportunity to have

3 a connection to that property.

4 To assist the university in this effort, the

5 council has authorized an application for a pass-through

6 toll financing project that we submitted this last week,

7 and we're looking forward to having the opportunity to

8 discuss that with your staff over a period to accomplish

9 this important project.

10 The south side of Corpus Christi has seen

11 significant growth. What you see here is a facility near

12 the intersection of SH 357 and Farm to Market 2444. We're

13 fortunate enough to have the opening of the first HEB Plus

14 store, a store of over 180,000 square feet, a new concept

15 for HEB.

16 The good news is the great facility is

17 attracting lots of shoppers; the bad news, you might

18 suspect, an already congested intersection continues to

19 see growth and pressures. We know congestion management

20 and dealing with traffic is going to be a significant

21 issue on our south side as we deal with the growth that's

22 occurring there.

23 As we look to the future, the community is

24 committed to economic development. One of the things that

25 comes out repeatedly in all of our surveys is the high

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 29

1 priority on growing our economy and providing jobs for our

2 future. We recognize we need to take advantage of a lot

3 of the options we've been given by you and the legislature

4 to fund these kinds of projects and we're working on

5 those.

6 We're working to manage our congestion and

7 that's a bit of a challenge, but we know we need to do

8 that for the future and do it in advance of development.

9 And then lastly, with this hurricane season

10 we've spent a lot of time looking at the impact of storms

11 and potential storms on our ability to evacuate. Our

12 evacuation this last September with Hurricane Rita went

13 very smoothly, but we learned some lessons and -- the best

14 dollar of the day to assist us in the event of a

15 hurricane.

16 At this point I want to turn the program over

17 to Ruben Bonilla, the chairman of the Port of Corpus

18 Christi.

19 MR. HOUGHTON: I've got one question. What's

20 the enrollment at the university here?

21 MR. NOE: About 8,300.

22 MR. BONILLA: Good morning, Mr. Chairman. I

23 have the opportunity of introducing to you one of our

24 commission members for our presentation on the port, but I

25 first wanted to acknowledge fellow commissioner Mike

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 30

1 Terrell who is here. Mike is secretary of the Port

2 Commission, and I believe other than Commissioner Hawley,

3 we may not be graced with the presence of other

4 commissioners.

5 I did want to assure you that as we coordinated

6 your trip and visit with the World Series when we planned

7 this several months ago, we anticipated this Astros

8 rebound and we were assured of a sweep so that we could

9 celebrate today, but we forgot to tell them we wanted an

10 Astros sweep.

11 (General laughter.)

12 MR. BONILLA: But it is true what you said

13 earlier, there is a little bit of a problem with offense

14 in , and we attribute that here in the Port of

15 Corpus Christi to their problem with air quality. As you

16 know, we have a significant competitive edge here at the

17 Port of Corpus Christi, we have no problem with air

18 emissions, we have clean air, clean water, abundant

19 transportation arteries, and I think it all goes to the

20 issue of congestion and poor air quality in Houston.

21 And when you think about, the Houston Texans

22 have also got trouble with offense. They're also zero-

23 and-six or so. In fact, I don't know if you heard about

24 the anthrax scare that happened on the Houston Texans

25 practice field and they found a white powder and they

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 31

1 called in the FBI just two days ago. And the FBI arrived

2 and conducted a complete investigation, and of course, the

3 coach suspended practice while they did that

4 investigation.

5 They took it to the lab real quickly in

6 downtown Houston and then discovered that white powder was

7 actually the goal line chalk. That's why the Texans were

8 petrified because they hadn't seen that white powder all

9 year long.

10 (General laughter.)

11 MR. BONILLA: Well, that's just a mild-mannered

12 introduction. If it was a bad joke, blame Judy Hawley.

13 MS. HAWLEY: I thought it was a bad joke too.

14 (General laughter.)

15 MR. BONILLA: With all due respect to our

16 president.

17 The Port of Corpus Christi, Mr. Chairman and

18 members of the commission -- and my remarks are going to

19 be very brief because I don't want to duplicate Judy's

20 presentation -- we have a strategic vision that results

21 from our decision several years ago to diversify our

22 mission.

23 As you know, historically the Port of Corpus

24 Christi arose really from the debris and the tragedy of

25 the hurricane of 1919, that hurricane which moved inward,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 32

1 to the development of the Inner Harbor with the vote and

2 the endorsement and encouragement of our citizens, and it

3 began as an agricultural port, made a transition to a

4 petrochemical giant to where now we're the sixth largest

5 port in America in terms of tonnage.

6 We provide 90 percent of the gasoline that is

7 provided to the city of Austin via pipeline. We provide

8 about 56 percent of all diesel and jet fuel that's

9 consumed at DFW Airport, also by pipeline. So that its

10 importance strategically and economically is vast, and

11 therefore, that's why we've placed so much importance on

12 strengthening our security subsequent to the 9/11 tragedy.

13 With the help of federal and state grants, we believe we

14 are well positioned to protect our assets and to prosper

15 in the future.

16 So that's what Judy will set out for you is how

17 our diversification program is vital, is vibrant, it also

18 depends on seamless transportation arteries both by rail,

19 by road, by water. And we are appreciative to you for your

20 support in helping us carry out this mission, and we're

21 gratified that the community of the Coastal Bend has also

22 endorsed our efforts.

23 Lastly, I would say that Judy's presence on the

24 commission has transformed us and allowed us to be more

25 visionary, because we have taken the navigation district,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 33

1 the port authority into San Patricio County. This was a

2 result of legislation passed only a few years ago. Some

3 people were cynical about that, but what it has allowed us

4 to do is to position the Port of Corpus Christi into

5 greater growth, and we believe that the future growth and

6 prosperity of the port and the Coastal Bend is going to

7 extend far beyond the borders of Nueces County into San

8 Patricio County because of our assets at Naval Station

9 Ingleside which reverts to the Port of Corpus Christi, the

10 development of our container terminal and the elevation of

11 the Harbor Bridge, to name a few, that link us not as two

12 counties, eliminating those artificial boundaries, but as

13 one region that's going to provide great job creation for

14 the state of Texas.

15 Without further ado, let me call upon

16 Commissioner Judy Hawley to provide some highlights.

17 MR. WILLIAMSON: Thank you, Mr. Chairman.

18 MS. HAWLEY: Thank you. While we have this

19 slide up, I would like to just show you the parameters of

20 the navigation district now. You can see that the Port of

21 Corpus Christi really wraps around, it's kind of encircled

22 in that area, the blue area that's sort of like a

23 triangle. The Port of Corpus Christi literally has ship

24 channel going through San Patricio County and then coming

25 on into the Inner Harbor. So it is a greatly expanded

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 34

1 port and port jurisdiction, and a lot of that is what

2 we're going to talk about today.

3 You see the visual, this really does wrap all

4 the way around .

5 We'll go to the next slide which is one of our

6 first real successful joint ventures, and actually, this

7 was a first for TxDOT as well: the Joe Fulton Corridor

8 and the rail corridor.

9 What the Joe Fulton Corridor has done is it

10 has -- and I know some of you traveled it yesterday as you

11 came in early before the reception -- what it does is it

12 opens up 4-1/2 miles of deep water frontage on certainly

13 the largest tract in Texas and maybe one of the largest

14 tracts available in the United States.

15 What that does for us -- and you know how

16 timely this is with the events of the last few months --

17 is that is land, 1,200 acres that is eminently suitable

18 and appropriate for expanded refinery capacity, and deep

19 water right there, the infrastructure is already in place,

20 rail is going in, so you've got the pieces that are

21 already there, and you have partnered with us in making

22 this happen.

23 This was your largest project -- and Mike, you

24 were intimately in on this when we pulled this together,

25 and Billy Parks as well -- it's the largest project where

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 35

1 you have had a public entity be involved on the

2 contracting and project management and the engineering,

3 and it was one of those that just worked so successfully,

4 in record time, and with just tremendous trust between

5 TxDOT and the Port of Corpus Christi with our engineering

6 department led by Frank Brodie who has done such an

7 exemplary job with the management of this project.

8 Not only does this project open up huge assets

9 for the United States, for the state of Texas and for the

10 Port of Corpus Christi with the refining capacity, but it

11 also provides opportunities for some expanded trade, even

12 some spillover of the container trade that we're

13 anticipating once we have the La Quinta Trade Terminal

14 open.

15 Not only was it an engineering partnership that

16 was so eminently successful, but it was also a funding

17 partnership, and you can see that the very sources of

18 funds, just like all projects today, you just have to

19 cobble together the pieces wherever you can find them.

20 Local funds, federal funds, state funds, and the Port of

21 Corpus Christi actually put up half of the cash involved

22 in this project.

23 Those of you that travel that corridor can see

24 how close we are to being able to develop that and

25 actually have that materialize into some economic gains

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 36

1 for the state of Texas and certainly handle some of our

2 strategic refining capacity needs.

3 The La Quinta and Port-to-Port corridor has

4 been a project we've really worked on for the last ten

5 years, really before the container trade increased so

6 exponentially. And we've talked about that before with

7 the commission with the China trade, Far East trade, CAFTA

8 and NAFTA and lots of reasons for that happening, what's

9 happened at LA-Long Beach and on and on and on.

10 A couple of statistics that I'd like you to

11 just sort of hold in your back pocket, because I think

12 they are significant, is that in ten years the population

13 of both California and Texas together will increase to 65

14 million. In that same ten years, we are anticipating that

15 the container traffic coming into the United States -- and

16 this is really amazing -- will increase by 40 percent.

17 And to put that in just real terms from where we are right

18 now, in ten years that means we will need 12 more

19 , the capacity of 12 more Houstons to handle that

20 increased container traffic.

21 So it lets you see how timely we are and how

22 well positioned we are with the La Quinta Trade Corridor.

23 We have a lot of the infrastructure in place; we have the

24 permitting; the financing is in the Worther bill in front

25 of Congress right now, the parts that we don't have are

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 37

1 the parts where we have opportunities for partnerships

2 with you all, and that is capitalizing on that container

3 facility and linking it to our other corridors in

4 Mexico -- we're handling the water part, but the corridors

5 in Mexico and then the corridors on up into San Antonio

6 and points north, into Houston as well.

7 One of the advantages of having two container

8 facilities in Texas is it allows Texas to grow

9 exponentially. Houston does a great job, Houston is

10 expanding; Houston does not have the ability or the

11 capacity to handle all of the volume that's out there.

12 Chairman Williamson mentioned, I think last

13 night, if you go to Mobile, if you go to somewhere in

14 Louisiana, if you go to Florida, that trade is going to

15 come into the Gulf of Mexico, and we as Texans need to

16 capture that. Huge opportunities for export/import, huge

17 opportunities for expanded business opportunities, and

18 certainly more jobs.

19 The NASI redevelopment, as you know, we fought

20 a valiant fight to keep Naval Air Station Ingleside under

21 the Port of Corpus Christi. All the communities joined

22 together, it was a huge fight for us to keep that naval

23 facility in this area. We did not prevail. The Navy and

24 DOD decided to disseminate those assets to both coasts.

25 But there is the issue of the property which is

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 38

1 on a deep water ship channel, and the port is one of those

2 very few entities in the history of DOD which has

3 reversionary rights, and what that means is that we get

4 the right of first refusal. It's all in the details and

5 working out if there are going to be dollars associated

6 with that and what those dollars will be.

7 But the port, just as Austin was -- just as

8 actually Mobile was, Staten Island, there's just a handful

9 of examples, Pascagoula now is in that same position,

10 where instead of having to go through the public

11 conveyance process which is very time-consuming, you have

12 this option of just reverting back to this single entity

13 point of contact and then they can go ahead and handle

14 shift of the assets.

15 We're in that position in the Port of Corpus

16 Christi right now, and in that capacity we see that there

17 are many opportunities in that property, many of them

18 still militarily related. Before the BRAC, we had the

19 Coast Guard very interested in being there, the Army

20 Reserve wanted to put warehousing there, Military Sea Lift

21 wants to be there.

22 You know, you have partnered with us in a lot

23 of ventures to try and make us more military compliant for

24 the efficiency coming in, especially from Fort Hood and

25 Fort Bliss. That's another opportunity to handle that

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 39

1 military deployment there.

2 There are a number of other commercial

3 opportunities that avail themselves of that property. The

4 key to that is getting rail into there, and we were

5 working very closely with the Governor's Office as we were

6 going through the BRAC process about how to make that

7 property more military suitable, and part of that was to

8 bring in rail. We're still following that, looking to

9 bring that rail corridor in, working with the Governor's

10 Office, working with you all.

11 There are a number of options about how it

12 might be best to do that, but that rail into the La

13 Quinta/Ingleside area is critical for some of the economic

14 and certainly the military options that may be available

15 with that particular piece of property. So we'll continue

16 to visit with you on that.

17 Parlaying on this, I think you saw -- if you

18 haven't, please step out on the apron outside and you'll

19 see one -- again another deployment, and it's so

20 interesting to watch the loading of the material that's

21 heading over to Iraq.

22 We've played a huge role in this and we'll

23 continue to play a huge role, and I think you've been

24 briefed on this before, but with the relocation of a lot

25 of the force that were in Europe over back to Texas, Fort

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 40

1 Bliss has had a huge increase, Fort Hood as well, and a

2 number of those have just sort of funneled down into the

3 Gulf Coast, the Port of Beaumont and the Port of Corpus

4 Christi are going to have an even larger role in

5 deployment.

6 Even as the war winds down, we're still going

7 to have those military deployments for exercises, and we

8 are ramping up. We've invested a lot of our own dollars

9 into building some expanded apron space and staging areas,

10 and you all have come in and helped us. And this is a

11 huge success story because this is about not only doing

12 what's right to make things happen, this is about being

13 American.

14 What you all helped us do with this, and not

15 only did you help us find a way to fund it through some

16 dollars that we managed to move some dollars from one

17 project to another project and it's really been such a

18 creative way to handle problems of strategic importance,

19 but what we have done is we've been able to do it fast

20 enough to make a difference.

21 We started talking to you less than a year ago

22 about the extreme need to get expanded rail into the Port

23 of Corpus Christi so that we could deploy quicker. And

24 with this rail, $5.2 million that you have helped us work

25 through, with that rail expansion -- which will be

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 41

1 completed by the first of next year, of 2006 -- we will be

2 able to handle those military deployments twice as fast as

3 we've been able to up to this point. So tremendous

4 investment being able to deploy that material through here

5 much, much faster.

6 So thank you for that partnership, thank you

7 for being responsive, and on top of that, it's the right

8 thing to do. And you talk about economic development,

9 what greater partner do we have in Texas than the

10 military. The military is a huge economic partner as well

11 as being good friends, good neighbors and a vital part of

12 what happens in our state.

13 Another project that we have on line with the

14 port is the channel improvement project. What we have

15 now, if you watched the exercise, if you watch ships pass

16 in our ship channel, it's narrow for them to especially

17 pass. They call it Texas Chicken where they have to

18 literally kind of sidle up close to each other and pass.

19 Fortunately, we have, I think, probably --

20 well, I say think, I know we have the safest record in the

21 state of Texas as far as moving traffic, a great pilot

22 organization and they do a great job. But one of the

23 things we're going to do to be able to handle more traffic

24 is to expand and have barge shelves on the outside, and

25 you can see that that gives us 400 additional feet for the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 42

1 barges, and we have considerable barge traffic here.

2 We're also going to deepen to 530 feet and by

3 deepening, we'll be able to handle the larger ships, the

4 petrochemical ships, the tankers that are going to be

5 coming in. They don't have to be lighter so it becomes an

6 economic efficiency for them coming in to use this port.

7 So anticipating the huge size of those tankers, ultimately

8 positioning ourselves for some of the bigger container

9 ships as well.

10 Harbor Bridge air draft limitation. Right now

11 we are limited to 138 vertical clearance. You don't think

12 about that when you think about ships, but if you've ever

13 been on the Harbor Bridge and one of those tankers it was

14 kind of a close call. We have to have more air draft for

15 a couple of reasons. Some of the larger ships that are

16 coming through that have been developed have not been able

17 to use this ship channel, so that's one of the pieces that

18 helps us economically; the other, there's a huge interest

19 in the cruise industry in this area, and those larger

20 ships are not able to come through either.

21 But the big rationale from the port's

22 perspective is that it will allow us to take advantage of

23 bringing in these supertankers that do need an air draft

24 up to 200 feet, and we're limited right now to 138 feet.

25 And that's a project that we've done some initial work,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 43

1 one of the MPO's concerns, and you'll be hearing more

2 about that in the future.

3 And the Inner Harbor redevelopment initiatives,

4 one of the things that we have found in the port business

5 is successful ports use their assets wisely, and their

6 assets are waterfront assets but people also like to be by

7 the waterfront, and areas that maybe traditionally have

8 sort of been rundown can be converted into areas that the

9 public can use and take advantage of and they become real

10 assets for the community.

11 So that redevelopment, retail, sports,

12 entertainment, hotel district of which this is a part, is

13 part of that redevelopment effort to allow the public to

14 have more access and use that land better.

15 The Harbor Bridge replacement, you saw has

16 military labor, the Fulton Boat Dock 3, military labor

17 that's over there on the north side, and new terminal

18 locations that's on the north side as well.

19 So lots of projects that are going on, we're a

20 vibrant port, but the reason we've been so successful is

21 because of the great partnership we've had with the State

22 of Texas and the vision of this particular commission has

23 really made our job easier and it excites us to think

24 about the opportunities we have by working with you.

25 So thank you again for your presence here.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 44

1 Before I sign off, I would like to say, and I'd be remiss

2 in not saying thank you to our district engineers. We've

3 had such a great string of district engineers in this

4 area. Mike Behrens, once we have you, you're always ours,

5 and we had you for a while. Billy Parks is here, we had

6 him as a great district engineer. We had David Casteel

7 and you stole him from us, Hope, but we almost forgive you

8 for that, and he did a great job. And now we have Craig

9 Clark and what a super job you all did last night, I've

10 just heard rave reviews about that, and we're just

11 delighted to have your leadership in Corpus Christi as

12 well.

13 Thank you to the commission for being here.

14 MR. WILLIAMSON: Wait. Any questions for Judy?

15 (No response.)

16 MR. WILLIAMSON: Okay, thanks.

17 MR. BONILLA: Mr. Chairman, I'm back briefly

18 wearing a different hat, as Mr. Johnson stated earlier, as

19 chairman of the MPO. As a member of the Port Commission

20 and as chairman of the Port Commission, I have the

21 pleasure and privilege of serving on the MPO. It's called

22 the Corpus Christi Metropolitan Planning Organization

23 which is really a misnomer because it includes the City of

24 Corpus Christi, the City of Portland, Gregory and San

25 Patricio County through its able and very committed judge,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 45

1 Terry Simpson.

2 But let me recognize Thomas Fallon and his

3 staff from the MPO -- if you would stand, please -- just

4 so you'll know the team behind this effort, the staff that

5 is here. Thank you.

6 I have a few prepared remarks and I'd like to

7 make those for the record because these are matters of

8 achievement and matters of cooperative and collective

9 efforts between the MPO and your agency.

10 As chairman of the MPO, I'd like to thank the

11 commission for providing communities across Texas with

12 progressive financial alternatives that will enable us to

13 accelerate the development for needed projects on the

14 Coastal Bend.

15 As you know, the replacement of the Harbor

16 Bridge, its elevation is vital to the safety and increased

17 cargo opportunities, as outlined by Commissioner Hawley.

18 Linked to construction to the new Harbor Bridge is needed

19 capacity on State Highway 286, known locally as the

20 Crosstown and added capacity on Drive, or SH

21 358.

22 We're currently exploring the financing

23 alternatives available to build these projects in the next

24 ten years by using the tools you have provided.

25 Otherwise, it would take us 30 years.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 46

1 Local mobility projects are not the only

2 priority of the city and the Port of Corpus Christi.

3 Projects that provide regional connectivity are essential

4 to sustaining the economic vitality of .

5 The MPO is making certain we establish a

6 transportation network that capitalizes upon our global

7 competitive position, our productivity and our efficiency.

8 I would like to emphasize those projects of regional

9 significance that will establish a trade triangle between

10 Laredo, the city of San Antonio, Corpus Christi, all

11 leading, with seamless transportation arteries by rail and

12 land, into Mexico.

13 The first being what Judy referred to as the La

14 Quinta Terminal, that we also refer to as a Port-to-Port,

15 Laredo to La Quinta freightway. The continued development

16 of intermodal port facilities in Texas is vital and

17 necessary to meet the demands of international trade.

18 The need to link our inland ports like Laredo

19 to seaports that have the capacity to efficiently move

20 freight and cargo are readily apparent. The MPO continues

21 to stress the feasibility of developing an exclusive

22 freight corridor between the Port of Corpus Christi and

23 Laredo.

24 A TxDOT-sponsored feasibility study is underway

25 that is developing a concept for a truck-only tollway

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 47

1 linking Corpus Christi and the 21-mile Camino Colombia

2 Tollway which was recently acquired by TxDOT. This

3 exclusive freightway will be designed for overweight,

4 high-speed operation of trucks only from the inland port

5 of Laredo to the Port of Corpus Christi and the La Quinta

6 container terminal.

7 The second project of regional significance is

8 the US 77 Cross-Border Trail. Connectivity to the Rio

9 Grande Valley is equally as important as trade routes from

10 Latin America and Mexico seek alternatives to the Laredo

11 port of entry. A coalition of economic development

12 interests from Harlingen to Corpus Christi have been

13 exploring the benefits of an initial phase appropriating

14 existing US 77 from the Valley to I-37 in Corpus Christi,

15 providing an interface with the highway system in Mexico.

16 Projects in the TxDOT Pharr District have

17 resulted in the majority of US 77 being improved by the

18 controlled access corridor. However, major projects in

19 the Corpus Christi District remain unfunded, including a

20 relief route around Driscoll, a relief route around

21 Ricardo, and additional intersection crossings at

22 Kingsville, Ricardo and Sarita.

23 Development of this trade corridor benefits the

24 entire Gulf Coast, including the Port of Corpus Christi

25 and our colleagues at the Port of Houston.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 48

1 Recent natural tragedies like Katrina and Rita

2 have underscored the need of having significant

3 alternative ports of entry. During the recent hurricanes,

4 almost 35 percent of our nation's refining capacity was

5 shut down. Much cargo was diverted to the Port of Corpus

6 Christi, and with these improved corridors, we can expect

7 increased freight traffic as shippers learn the

8 opportunities and the efficiencies available in South

9 Texas.

10 The third regional project which was also

11 referred to in Judy's comments is the strategic military

12 support, but it has a highway linkage. Due to the war

13 against terrorism, the efficient deployment of military

14 materials and vehicles through the strategic military

15 ports of Corpus Christi and Beaumont have become a high

16 priority.

17 The development of a strategic military

18 highway, utilizing US 181, State Highway 123, and the new

19 Austin toll road, SH 130 between Fort Hood and the Port of

20 Corpus Christi, will support the capability of the Port of

21 Corpus Christi. Obviously other supporting projects are

22 in various stages such as improved rail access which has

23 been earlier explained.

24 In addition, improvements to the Port Avenue

25 which is the entry path of Whataburger Field leading to I-

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 49

1 37 will permit the improvement and the movement of

2 oversized and overweight cargo from I-37 to dock

3 facilities in our port efficiency operations. The

4 planning and design is scheduled for 2006 and accelerated

5 funding is being sought for construction.

6 Project number 4 is the South Loop. This is a

7 creative idea arising from the growth of South Texas which

8 has resulted in significant population growth on Padre and

9 Mustang islands.

10 Safe access to the island was enhanced with the

11 elevation of SH 358 causeway, but planning for the

12 development of additional capacity is needed. The initial

13 concept of a relief route from I-37 to south Corpus

14 Christi and Padre Island was developed in the late '90s.

15 The funding for the first phase, the environmental

16 review -- which I believe is $1.5 million -- is programmed

17 for this year, and is a collaboration between the MPO,

18 TxDOT, the county, and the City of Corpus Christi that is

19 of high value to our region.

20 This new corridor will provide not only a

21 relief from I-37 around Corpus Christi with a new

22 connection to the island but will also provide a relief

23 route around Robstown that connects US 77 to SH 55 and IH

24 37. The development of this new capacity is only possible

25 utilizing the new financial tools offered by the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 50

1 legislature and by the commission.

2 Lastly, a word about the importance of

3 hurricane preparedness. Recent events have shown the

4 vulnerability to our coastal transportation network.

5 Although improvements to SH 358 and US 181 causeway has

6 improved the region's evacuation potential, other water

7 crossings, such as the I-37 bridge over the ,

8 are of concern.

9 The MPO Policy Committee has asked our MPO

10 staff to explore the issues associated with the safe

11 evacuation of our area and improvements needed to ensure

12 access by relief vehicles and equipment following an

13 emergency event.

14 The demands on our transportation network have

15 increased as health, safety and security have become

16 increased priority for our region. Our MPO supports

17 collaborative planning and welcomes the financial tools

18 you have provided to make our plans a reality. Our

19 regional mobility with the Free Trade Alliance in San

20 Antonio, USA, and the San Antonio Economic Foundation

21 headed by Mario Fernandez, as well as stakeholders'

22 incentives in Laredo will help refine our trade triangle

23 in Texas and promote seamless transportation links by sea,

24 land and rail into Latin America.

25 Finally, just a couple of days ago there was a

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 51

1 headline here where the city council okayed flights to

2 Monterrey, providing needed air service, direct passenger

3 service between our two great communities that compliments

4 the thoughts and strategies that are outlined and

5 envisioned by your body and supported by the MPO.

6 We believe that the Coastal Bend, and

7 specifically the Port of Corpus Christi, is indeed the

8 gateway to the world. It's a message that we are shouting

9 across the country.

10 I might just conclude, Mr. Chairman, that as I

11 see you sitting under the Port of Corpus Christi

12 Authority, the same seating where Commissioner Carrell and

13 Commissioner Hawley and I sit, that your presence here

14 certainly elevates the stature of our port commission.

15 I'll be happy to entertain any questions.

16 MR. WILLIAMSON: I thought the joke was good.

17 I don't think the Houston Texans do know where the goal

18 line is.

19 (General laughter.)

20 MR. BONILLA: My son at the University of

21 Texas, who thinks the BCS is the greatest thing in the

22 world, was the architect of that joke, so I'll be sure and

23 advise him of that.

24 MR. WILLIAMSON: Being from North Texas, I can

25 tell you the Dallas Cowboys are having a hard time finding

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 52

1 the chalk line too.

2 Well, I'm sure we have several questions,

3 Commissioner, Chairman. We, first of all, want to thank

4 you for the presentation.

5 Anything specific, members?

6 MR. JOHNSON: I have one or two. I had a

7 question. Commissioner Hawley's presentation talked about

8 deepening the channel, and I was curious as to both the

9 additional depth that the channel is going to and also the

10 additional width, and what do you see as the timing of

11 that.

12 MS. HAWLEY: Well, the timing, of course,

13 depends on the financing and the financing or the big hunk

14 of that is right now in WRDA and I think it's passed the

15 House but it hasn't passed the Senate. It's been in WRDA

16 since last year and they just didn't pass the WRDA bill

17 which is the Water Resources Development Act, they just

18 didn't get it done. So our consultants in Washington are

19 giving us a little more hope that it's going to get

20 through this year.

21 The La Quinta project, part of that deepening

22 is tied up with this, but if the WRDA does not come

23 through at this point in time, we have the authority to go

24 ahead and deepen that and then when WRDA comes through

25 then being compensated for that. So the La Quinta project

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 53

1 we could and would move forward regardless of that, but

2 we're looking at as soon as the funding is made available,

3 and there will be a local match, of course, that we'll

4 have to come up with. And that's still variable, they're

5 not sure if that's going to be 15 percent, 10 percent. It

6 hasn't been defined yet, so there are still some issues

7 out there, and that, of course, will determine when we

8 start as well. But it's a project that we'd like to get

9 underway as soon as possible.

10 MR. CARRELL: I think the cost is significant

11 as far as the match because the deeper you go, the more

12 the sharing.

13 MR. JOHNSON: What is the additional depth?

14 MR. CARRELL: Forty-five to 50 feet.

15 MR. JOHNSON: And the additional width?

16 MS. HAWLEY: Four hundred; 200-foot barge

17 shelves on each side.

18 MR. BONILLA: If we go to 55 feet, there's a

19 more favorable sharing formula, the percentage for the

20 Port of Corpus Christi is less, and that legislation is

21 tied up in Congress, and since the attention seems to be

22 focused on Supreme Court nominations today, we may or may

23 not have that legislation passed favorably this session.

24 But it's presented each congressional session and this is

25 the first time it has passed one of the houses, so we

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 54

1 believe it's inevitable.

2 And as we deepen the channel we'll be able to

3 receive ships of greater depth so they'll be able to bring

4 in more cargo, and that will ultimately reduce the cost

5 of, we believe, fuel, also reduce the cost of consumer

6 goods.

7 MR. WILLIAMSON: Just to give us some

8 comparison, how deep is the Houston Ship Channel.

9 MR. BONILLA: Houston just went to 45 recently,

10 and we've been at 45, Frank?

11 MR. BROGAN: Since 1989.

12 MR. CARRELL: I think part of the significance

13 of having the port -- we keep referring to Frank. Frank

14 you might want to come up.

15 MS. HAWLEY: Frank is the engineer to whom I

16 referred and sort of the brains behind the Joe Fulton

17 Corridor process.

18 MR. CARRELL: Yesterday when Commissioner

19 Houghton and I were taking a tour of the Fulton Causeway,

20 I think he made a comment about how many times ships get

21 to the port, and I think you said three to five different

22 times to lighten it to get to the size where it can

23 transport into the Port of Corpus Christi.

24 And back on Chairman Bonilla's comment about

25 the cost, help us on that.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 55

1 MR. BROGAN: Total project price for the

2 deepening, widening and extension is $200 million total.

3 That would include government share, local share and

4 private share for things like pipeline lowering.

5 MR. CARRELL: And I thought at a 50-something-

6 foot depth we had like 50 percent sharing and at 45 it's

7 only 75-25.

8 MR. BROGAN: That's correct. The old formula

9 was 75-25 and the break point if we went deeper than 45

10 feet, then the local sponsors were obligated to put up 50

11 percent. And as more ports around the nation are going

12 deeper than 45, the West Coast and the East Coast, there

13 is increasing pressure to revisit that matching formula

14 and try and adjust that to get it back to the 75 federal

15 and 25 local, so that's an effort we're working on.

16 MR. CARRELL: And I think if WRDA takes enough

17 time, we'll finally outlast them and have a better

18 equation, because we can't move forward without the WRDA

19 bill.

20 MR. BROGAN: And I think one of the significant

21 advantages that our own port has over other ports in the

22 gulf is that we're closer to the deep water line out in

23 the Gulf of Mexico than any other port is, and what that

24 does is that reduces the length of the channel that has to

25 be dredged and reduces the cost.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 56

1 Houston, for example, wanted to go from 40 feet

2 to 50 feet, but that cost is going to exceed $1 billion to

3 do that because their channel is so much longer. Because

4 our channel is so much shorter, then our cost is that much

5 less. But it's just a few miles offshore to get to 52

6 feet, whereas it's much, much longer in Houston, and

7 that's why we've always had that advantage. We're the

8 first port on the Gulf Coast to have 45 feet, and with any

9 luck, we'll be the first port to have 50 feet. But other

10 ports around the nation are getting ahead of us, on the

11 West Coast and the East Coast, and we need to continue to

12 press forward with that project.

13 MR. JOHNSON: Mr. Chairman, with your

14 permission and indulgence of the port commissioners, and

15 with this many potential voters in the room, I wanted to

16 talk about the importance of Proposition 1 on the ballot

17 Tuesday.

18 There's an interplay here between the port and

19 rail that it's a multimodal issue. The port owns 26 miles

20 of rail that circulates throughout the port assets, and

21 the creation of the Texas Rail Relocation Fund provided

22 for in Proposition 1 will serve as a twin to the Texas

23 Mobility Fund which has been the huge shot in the arm for

24 surface transportation. And this will enable a fund to

25 relocate rail and to do rail improvements, and I think the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 57

1 port will benefit and our urban areas around the state

2 will benefit.

3 I mentioned this morning it's sort of been

4 conspicuous by its absence, the fact that there is an

5 election on the 8th and early voting is on seems to not be

6 in the public focus. So I want to take this opportunity

7 to mention that and how important it is from a multimodal

8 aspect, and as I mentioned in my prelude, I don't think

9 there's any community that I'm aware of that has done the

10 job on a multimodal basis as Corpus Christi and the

11 surrounding area.

12 So please consider that one vote and please

13 consider that when you do vote.

14 MR. WILLIAMSON: I appreciate you bringing that

15 up because you're right, the linkage between the rail

16 relocation fund and what the commission wishes to do with

17 their port is pretty apparent.

18 Ted?

19 MR. HOUGHTON: It looks to me that your

20 container operations is a big part of your future. Who is

21 your partner, or do you have a partner in that on the

22 private side?

23 MR. BONILLA: We're engaged in discussions. We

24 had an MOU with ICT-SI for about six months, and that's

25 one of the largest Philippine container terminal operators

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 58

1 in the world. That did not quite materialize when they

2 shifted their focus to Asia.

3 However, we have engaged another firm and we

4 have met with their senior staff and we anticipate taking

5 some action on that in November. So while it hasn't been

6 ratified by the commission, therefore it's still

7 proprietary information, we're very optimistic. We have

8 cleared all the environmental hurdles, we've received

9 permitting by the Corps of Engineers, the community of San

10 Patricio County and Nueces have endorsed the project so

11 that we have uniform stakeholder support. And we've even

12 spoken to GLO about some innovative financing tools that

13 may enable us to sell the land and lease it back.

14 So there's various financing tools, and we're

15 very confident we're going to have a private equity

16 partner here in less than 30 days.

17 MR. HOUGHTON: Is there a demand by the

18 manufacturers/shippers for a container port here?

19 MR. BONILLA: We believe there is. For

20 example, as a result of CAFTA, we're seeing new

21 opportunities in Central America. We have just announced

22 the importation of melons for the first time into Corpus

23 Christi from Honduras via shipping interests in Colombia.

24 Just this week we had a Colombia vessel bring in imported

25 meats.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 59

1 As Judy was explaining, the idea is that we

2 develop alternatives to the congestion on the West Coast.

3 We don't have the labor problems that exist on the West

4 Coast and we don't have the congestion that exists on the

5 West Coast. And while the West Coast, Long Beach and LA

6 may bring in 12 to 13 million containers a year, China is

7 building new ports almost every six months that are

8 generating 15 million containers per port, so the

9 congestion is only going to increase. And what Asian

10 shipping lines are looking at is an alternative, and that

11 alternative, one alternative, other than the Panama Canal

12 and on into La Quinta, would be coming to the West Coast

13 ports of Mexico, Lazaro Cardenas, specifically.

14 And there was a slide earlier -- we might bring

15 it up -- linking Lazaro Cardenas with Laredo and then on

16 into the Port of Corpus Christi, and that underscores the

17 importance of that freight corridor.

18 Kansas City Southern, you may recall, bought

19 out TexMex and TFM, and so now Kansas City Southern has

20 seamless transportation link from Kansas City right to

21 Lazaro Cardenas. There needs to be some rehab on some of

22 the rail in Mexico, but it's going to happen. And so La

23 Quinta, as it develops, we believe, is going to be an

24 ideal location and will not in any way be in a competitive

25 environment with the Port of Houston.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 60

1 Lastly, we're looking for a major retailer that

2 will set up a distribution hub. That has to be a Wal-

3 Mart, could be a Target, could be a Toys R Us, a Lowe's,

4 and once that distribution center is set up at La Quinta,

5 then we believe that the shipping lines will come

6 automatically because they're going to follow the cargo.

7 We have already a 500,000-square-foot cotton

8 compress warehouse facility at La Quinta, so we already

9 have an agricultural hub, so ultimately we will not only

10 have a general cargo distribution center but also be a

11 magnet and a distribution export center for cotton

12 worldwide.

13 MS. HAWLEY: Ruben, just to follow up on what

14 you said, in some of our conversations with some of the

15 major retailers, we have learned -- this is anecdotal --

16 that had we already had La Quinta operational, that would

17 have affected/impacted their decisions on where to locate

18 their distribution centers. So it's the chicken-and-egg

19 thing.

20 So we know that there's huge interest, it's

21 just when they needed to the access, they need it now, and

22 we're still three years away from having something

23 operational. So that's one.

24 And the other thing -- and Hope knows this --

25 in the interchange with Kelly Field and Toyota, there's a

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 61

1 lot of interest in getting our container terminal.

2 There's a lot of drive there because the cost of shipping

3 containers to them is exponentially less. So we're

4 getting some demand from that direction just because of

5 our location.

6 MR. JOHNSON: I probably shouldn't say this

7 because I might not be able to return home, but don't be

8 apologetic about being competitive to the Port of Houston.

9 If nobody is going to challenge them, they're not going

10 to get bigger and they're not going to get better. I

11 believe very firmly that the only way we improve is that

12 somebody is challenging us, whether that's in your

13 business or what you're trying to provide, you know, it's

14 the people of this area and the people of the state. So

15 don't be apologetic, please.

16 MR. BONILLA: Well, an example of that,

17 Commissioner, is the strategic military designation. I

18 really welcome and appreciate your comments because when

19 that opportunity arose in the mid-'90s , not too many

20 ports wanted it. You know, we were at peacetime, relative

21 peace, and the Port of Corpus Christi, under the

22 leadership of Frank Brogan and Alice Faber, sought it

23 aggressively. Port of Houston did not express any

24 interest, the Port of Beaumont had an interest.

25 So now these two ports, Beaumont and Corpus

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 62

1 Christi, provide almost 50 percent of all cargo that's

2 being shipped to Iraq in defense of our freedom, so it's a

3 great story and I think it underscores the importance of

4 your declaration. So thank you.

5 MS. ANDRADE: Mr. Chairman, I have a question.

6 First of all, for the record, I'd like to thank you for

7 all the support that you've given this corridor from

8 Laredo to Corpus Christi. I want to thank you for

9 arranging the meeting a couple of months ago where

10 Commissioner Houghton and I were present. I truly think

11 that was a historical moment when we got two communities

12 together to support this, so thank you.

13 But my question on La Quinta is if all

14 negotiations move forward with the potential partner that

15 you may have, when do you think you will hang a sign "Open

16 for Business"?

17 MR. BONILLA: I'll let Frank Brogan answer that

18 one.

19 MR. BROGAN: Three years is, I think, a very

20 realistic time frame, and if possible, we may be able to

21 cut some time off that. But I think three years is the

22 target I would set.

23 MS. ANDRADE: Thank you.

24 MR. BONILLA: And I might add that -- without,

25 I guess, violating the public trust here -- we have

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 63

1 already scheduled meetings between senior staff and the

2 private party, so it's gone beyond the policy level, and

3 that's in anticipation of refining the MOU and having

4 strategic timetables about construction.

5 MS. ANDRADE: That's great. I still remember

6 when I came here, it was your dream and your vision, so

7 congratulations.

8 MR. BONILLA: Thank you. We look forward to

9 working with you as that project unfolds.

10 MS. ANDRADE: We do too.

11 MR. WILLIAMSON: I want to echo something John

12 said. Don't be apologetic about Houston. I mean, we're

13 going to invest in Houston. The state is going to invest

14 in Houston, its going to invest in Brownsville, it's going

15 to invest in Corpus Christi. The state is going to invest

16 wherever there's an economic opportunity to be increased

17 for its citizens, and if that's Corpus Christi, that's

18 fine, and we believe our partners in Houston understand.

19 We know in the past there's been some perhaps

20 sibling rivalry in our state between ports, but we hope

21 the governor has kind of made clear to everybody those

22 days are over, no more whining, no more begging. You

23 know, we need to get ready for 35 years from now, 30 years

24 from now, and that includes an aggressive deep water port

25 in Corpus Christi, without a doubt.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 64

1 MR. BONILLA: Thank you, Mr. Chairman. Using a

2 sports analogy, we don't expect to strike out. As a

3 matter of fact, Houston needs us because our Hooks are

4 hitters.

5 MS. HAWLEY: We'd better sit down.

6 (General laughter.)

7 MR. WILLIAMSON: Was Mr. Noe coming back up, or

8 is he done with his piece?

9 MR. BONILLA: He's done.

10 MR. WILLIAMSON: Let me just comment right

11 quick about you made a couple of points in your

12 presentation about some projects you're going to be

13 working with us on.

14 We don't want to be scary but we do believe in

15 being direct about where we're headed. We will

16 increasingly tell our employees in the districts and they

17 will increasingly tell their contacts in the communities,

18 we're going to ask the question how does this project

19 reduce congestion or increase safety or improve air

20 quality or offer economic opportunity or conserve and

21 improve the value of our asset, because that's the key

22 question.

23 That question popped into my head when you were

24 talking about the spur and helping Texas A&M Corpus

25 Christi. The first thing I thought about was: Well,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 65

1 where does the state benefit from that.

2 And so we're trying to look at things like is

3 this a local road and are we primarily addressing a local

4 issue and is it local congestion, local air quality or

5 whatever, or is this a regional road and are we addressing

6 a regional issue, or is this a statewide road and are we

7 addressing a statewide issue.

8 You know, by inference, things that are more

9 local and less regional and state that don't reduce

10 congestion or improve air quality or advance economic

11 opportunity or improve the safety or improve the value of

12 our assets are going to be less attractive for state

13 partnering than regional roads or state roads that do meet

14 those qualifications.

15 So the governor's instructions were clear, he

16 didn't want Texans to have to beg for their own money. He

17 wanted a process in place where every Texan, whether it

18 was a Texan from Brownsville or Texarkana or Amarillo or

19 El Paso, knew what the criteria was for hoping to have the

20 state as a partner in these projects. And I would just

21 emphasize that to you on your work with the locals.

22 We're going to be very aggressive in helping,

23 but we have filters we have to use to keep from building

24 the road to nowhere for no reason.

25 MR. NOE: And we certainly understand that. In

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 66

1 our application there's areas of transportation congestion

2 and arguments for our proposal, and it's in the

3 application

4 MR. WILLIAMSON: And maybe I shouldn't have

5 focused on this. That one just happened to catch my eye.

6 I mean, it's any of them, really. Like helping with the

7 rail in the yard, that meets the highest check mark

8 qualifications for everywhere we want to go. That's why

9 the governor was so quick to tell us to do that, because

10 it meets his criteria.

11 So I don't want to like throw cold water on

12 your project, but we are looking at things a little bit

13 differently across the state so that we can honestly tell

14 the citizens, you know, your money is being leveraged with

15 the private sector and partnered with local and regional

16 government on a rational basis that will produce clear

17 results.

18 MR. NOE: And we appreciate that.

19 MR. WILLIAMSON: Did you ever find your

20 business, Craig?

21 MR. CLARK: What's that?

22 MR. WILLIAMSON: Weren't you looking for your

23 CD or something?

24 MR. CLARK: That was the CD.

25 MR. WILLIAMSON: I thought we were looking for

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 67

1 a new CD.

2 MR. CLARK: No. It's all the same one, and I

3 appreciate your indulgence while we obviously go into

4 extra innings.

5 MR. WILLIAMSON: And Johnson is sent to the

6 showers. It's a long walk down the dugout.

7 (General laughter.)

8 MR. HOUGHTON: I did notice one thing on the

9 presentation that I should have pointed out real early,

10 the campus of Texas A&M -- I don't know if you can pull

11 that slide back up. I'm helping John kill some time here.

12 It's slide number 7, page 7. Now go and enlarge that.

13 Do you notice anything there, Ric? Did you

14 have a private beach at your university? Did you notice

15 that private beach sitting there?

16 MR. CLARK: It is a research site.

17 (General laughter.)

18 MR. HOUGHTON: We've got a lot of beach out in

19 El Paso but we don't have any water.

20 MR. WILLIAMSON: We didn't have a private beach

21 but we did have a football team that could score a

22 touchdown. It's okay, it's been a few years since we

23 could say that, though.

24 MR. HOUGHTON: I was just curious. That is

25 quite interesting, a private beach. Very nice.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 68

1 MR. WILLIAMSON: How are you going to enlarge

2 the campus? Are you going to go across the water or are

3 you going to recover, or what are you going to do?

4 MR. NOE: The university is in a long-range

5 planning process. There are number of things that are

6 currently focused on campus that can be located out in the

7 community, the nursing program and a number of others.

8 They're also looking for another second campus site that

9 can serve as a point for a much larger campus.

10 MR. HOUGHTON: Are they capped out on

11 enrollment?

12 MR. NOE: There's not a cap. They're growing

13 at significant rates and will be at 10,000 probably in the

14 next two years.

15 MR. WILLIAMSON: Well, the problem that is

16 unfortunate is that -- and the legislative members aren't

17 here -- the problem the state faces -- our focus is

18 transportation and we will stay focused on our business,

19 but the problem the state faces is if your population is

20 going to 50 million, the implication is you've got to have

21 more universities, you've got to have more medical

22 schools, you've got to have more law schools, you have to

23 have more public schools, and we have been for so long a

24 state of -- and I think should remain -- a state of

25 limited service, limited taxation and limited regulation.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 69

1 It is sometimes hard for us to kind of get a

2 grasp on the fact that there's a reason why these college

3 guys go beg for more money because they've got more

4 students to educate. And if we wanted to put colleges on

5 100 percent toll collection and make the students pay for

6 everything, they wouldn't come ask us for money. It's a

7 dilemma for the state to figure out how to deal with this

8 stuff. But it's a good dilemma, it means we're tight-

9 fisted and we watch the people's money carefully.

10 John is back. I didn't know they let people

11 return in the pros, I thought once you were out, you were

12 out.

13 MR. JOHNSON: So does that mean I'm supposed to

14 leave?

15 MR. WILLIAMSON: I'm like Ted, I'm just trying

16 to buy some time.

17 (General laughter.)

18 MR. CLARK: As a district, we welcome you to

19 the Corpus Christi District, an area where thousands of

20 people come every year seeking sun, the beach, fish and

21 birds, our rich history, and every 30 years or so a white

22 Christmas.

23 Located along the Gulf Coast between San

24 Antonio and the Rio Grande Valley, we include ten counties

25 covering 7,806 square miles. There are just over 550,000

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 70

1 people and 440,000 registered vehicles. We have 2,800

2 centerline miles and almost 6,900 lane miles of highway.

3 Truly multimodal, the Corpus Christi District

4 includes a port, a ferry system, the Gulf Intracoastal

5 Waterway, an international airport, 14 general aviation

6 airports, a regional public transportation system, and a

7 rural public transportation system.

8 As you have seen in the previous presentations

9 from Corpus Christi, the port, and the MPO, we have many

10 transportation challenges. We have emerging congestion,

11 arterials clogged by commercial development, high growth

12 areas needing commuter connections, and corridor

13 transportation limitations that impede commercial and

14 industrial growth.

15 But we have a plan and we have new tools, and

16 when we combine these tools with willing local partners

17 and combine with conventional resources, we can meet these

18 challenges.

19 Transportation planning in a coastal area

20 requires consideration of hurricane evacuation. The

21 Corpus Christi District has several projects coming to

22 completion to enhance our evacuation.

23 Two projects totaling $18.4 million provided

24 signs and paving that allowed for reconfiguration of 83.5

25 miles of the northbound lanes of Interstate 37 to convert

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 71

1 a 10-foot shoulder to a 13-foot hurricane lane that can be

2 opened to provide added capacity. This allows for the

3 existing three-lane urban section to operate as four lanes

4 and the existing two-lane rural section to operate as

5 three lanes. Our friends in the San Antonio District have

6 a project currently under construction that will continue

7 this section all the way to Pleasanton.

8 We also have raised the JFK Causeway eight

9 feet, increasing the available evacuation window for a

10 growing island population. We widened northbound Graham

11 from SH 358 to Interstate 37 to allow for a two-lane

12 connection and enhanced operation in an evacuation. We

13 raised and added capacity to US 181 from the Nueces Bay

14 Causeway to Portland, and we are constructing a grade

15 separation in Gregory that will allow for continuous

16 traffic flow.

17 Hurricanes Katrina and Rita threatened us early

18 and allowed us to test our evacuation plans. We also got

19 the chance to view evacuation experiences from other areas

20 and apply them to our situation. We intend to collect a

21 wide variety of lessons learned and improve our plans,

22 infrastructure and public information efforts.

23 Our three-year transportation improvement plan,

24 developed through our MPO in the metro area and through

25 regional rural TIP meetings in the rural area, includes

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 72

1 115 projects totaling nearly $380 million.

2 Our district allocation under the UTP provides

3 almost $800 million over a ten-year period in the

4 Statewide Mobility Program fund and $360 million in

5 Statewide Preservation funds, and this provides the base

6 funding to plan for our needs and leverage or use in

7 equity for plans that we develop with our local partners

8 to deliver transportation infrastructure with new funding

9 tools.

10 The increased demands for transportation in

11 Texas requires that we plan in terms of corridor needs.

12 The improvement along the US 181 corridor is needed to

13 meet the demands of expanding industrial activities, to

14 provide critical hurricane evacuation capacity for growing

15 populations, as well as allow access to tourists at

16 recreation areas east of I-37.

17 As was indicated in the port and MPO

18 presentations, the Harbor Bridge presents a significant

19 mobility impediment for US 181. It's a 46-year-old steel

20 structure over saltwater, squeezing six lanes with no

21 shoulders that cross 60,000 vehicles a day. With a steep

22 vertical grade and sharp horizontal curves on each end,

23 the bridge presents a safety risk. With high truck

24 volumes and many petrochemical cargos moving through

25 population areas, there's also a public safety issue as

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 73

1 well.

2 The US 59 corridor is a rural trunk system

3 corridor that provides east-west connectivity from Laredo

4 to Victoria, then Houston. This corridor was the subject

5 of a report to the commission in August by the Tri-County

6 Coalition. We are interested in working with our counties

7 along this vital corridor to look for ways to advance

8 capacity and add operational improvements.

9 The US 77 corridor provides a vital commercial

10 route from the Rio Grande Valley Border areas to Corpus

11 Christi and on to Victoria and Houston. We have a couple

12 of active projects adding controlled access highway

13 sections in Corpus Christi and Kingsville. We have a $6.5

14 million earmark in the Federal Highway Bill to be used to

15 help fund the continuation of a controlled access section

16 of highway through Robstown. We will continue to look for

17 opportunities to enhance mobility along this critical

18 corridor.

19 The Port-to-Port project envisions a truck

20 tollway that would provide high-speed and extra weight

21 traffic east and west from the ports of entry at Laredo to

22 the Port of Corpus Christi and other Gulf Coast ports. We

23 are studying the market forces and potential that would

24 allow this corridor to provide enhancements needed to meet

25 growing international trade and economic development.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 74

1 SAFETEA-LU also provides a $5 million earmark

2 to study a site near Robstown for a trade-processing and

3 inland center. We've expanded our Port-to-Port study area

4 to include this location and explore the effect of this

5 combination to improve and enhance trade and

6 transportation.

7 The Corpus Christi District lies in the

8 crossroads of the TTC I-35 and I-69 TTC segments of the

9 Trans-Texas Corridor. Thirty-one public meetings have

10 been held in the Corpus Christi District on the Trans-

11 Texas Corridor, and many in our area are keenly aware of

12 the huge economic advantages available from this proximity

13 to these super corridors.

14 In the BUILD IT component of our business, we

15 have a robust current construction program of 59 projects

16 across the district totaling $464 million. We have

17 several active projects adding controlled access highway

18 sections. We have several projects that provide

19 operational improvements that mitigate congestion and

20 delay. There are a number of projects around the district

21 that provide added capacity and operational improvements

22 on clogged local arterials.

23 In our USE IT business category, we start with

24 our ferry operations. Currently we have six 20-car boats

25 in operation with four sets of landings. This system

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 75

1 carries well over 2 million vehicles per year. We can see

2 rapid resort and residential development and ever-

3 increasing peak demands that will exceed our existing

4 capacity. We have a fifth set of landings under

5 construction and SAFETEA-LU included an earmark of

6 $320,000 for the design of a larger 28-car ferry boat.

7 We held a public hearing in Port Aransas on

8 September 19, 2005, regarding the rules for establishing

9 fees for priority boarding. There was good attendance and

10 great interest in how this would apply to our ferry

11 operations.

12 There was also legislation passed last session,

13 Senate Bill 1131, that would allow Port Aransas direct

14 access to many of the new funding tools and apply them to

15 ferry operations.

16 We're excited about the implementation of our

17 ITS system here in Corpus Christi. Besides the ability to

18 improve traffic operations and safety on our urban

19 expressways, we are looking forward to applying the

20 technology to our hurricane evacuations and exploring

21 applications to enhance trade and freight movements.

22 As I mentioned before, we have 14 general

23 aviation airports in the district and many of them have

24 made good use of TxDOT programs for maintenance and

25 capital improvements.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 76

1 We have three active rural public

2 transportation providers serving our rural populations.

3 Our district is active in TxDOT traffic safety

4 activities. We have great cooperation from our local law

5 enforcement, local media, and local groups interested in

6 traffic safety. We are convinced that our efforts have a

7 positive effect on driver behaviors and improve safety and

8 save lives.

9 We very much appreciated the great help and

10 cooperation we received from the new Whataburger Stadium

11 and the Corpus Christi Hooks on our Click-it or Ticket

12 event, so much so that I was led to showcase my services

13 on the mound. I offered to work into the rotation, but so

14 far the Hooks have not called me.

15 (General laughter.)

16 MR. CLARK: In our MAINTAIN IT category our

17 area presents some great challenges to highway

18 maintenance. Much of our district is low elevation with

19 large flat flood plains and active clay soils. Besides

20 the coastal climate and geological challenges, we have a

21 mix of marine, petrochemical and agricultural traffic.

22 This brings a lot of routine wide and heavy loads,

23 sometimes super-heavy loads.

24 The load shown is a Texas record that moved

25 through the Corpus Christi District and weighed in at

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 77

1 nearly 2 million pounds.

2 These conditions, combined with a large volume

3 of narrow pavements, create many problems for our

4 maintenance forces. As you can see, over 50 percent of

5 the FM mileage in our district is deficient. We are

6 fortunate to have dedicated personnel in our maintenance

7 operations that are innovative in finding solutions to

8 preserve a quality transportation system.

9 Besides our Harbor Bridge, Corpus Christi has

10 over 1,200 bridges on this on-system of many types and

11 eras, from the first segmental bridge built in Texas to 28

12 steel-timber structures. Our current three-year TIP

13 includes 15 on-system bridge replacements totaling over

14 $16 million. Our three-year off-system bridge plans to

15 replace 19 bridges totaling over $7 million.

16 To manage these challenges and the many areas,

17 I am blessed with an outstanding district organization,

18 comprised of dedicated and talented people. We maintain

19 our personnel numbers to stay close to our FTE allocation

20 of 437 and maintain a staff-to-supervision ratio of nearly

21 12.5 to one.

22 We have a relatively young but highly

23 experienced management group. Our directors average 19

24 years with TxDOT; my area engineers average 20 with TxDOT.

25 Across the organization, over 70 percent have more than

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 78

1 five years' experience.

2 To help us meet these many challenges, we're

3 fortunate to have a good local pool of consultant

4 engineers available with a wide variety of disciplines and

5 experience.

6 As I wrap up our district report, I am showing

7 a slide from the time when the Harbor Bridge was new and

8 our challenges were different but our dedication to the

9 task was still the same.

10 I would like to end by allowing the Honorable

11 Glenn Guillory, our Aransas County judge, to come up and

12 address the commission. He has requested an opportunity

13 to thank the commission for the work that TxDOT has done

14 in Aransas County.

15 JUDGE GUILLORY: Mr. Chairman, members, thank

16 you very much for the opportunity to address this body.

17 We're talking a project that we recently completed in

18 Aransas County. By some standards it's a piddling little

19 contract, it only cost about $20 million, but the

20 importance of it will be made up in a minute.

21 I know you want me to be brief --

22 MR. WILLIAMSON: No. Take your time.

23 JUDGE GUILLORY: Thank you, sir. I'm a

24 Louisiana Cajun by birth and a Texas politician by

25 occupation, so I've got two strikes against me.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 79

1 (General laughter.)

2 JUDGE GUILLORY: About a decade ago, there was

3 a four-lane, divided highway with access roads and

4 overpasses designed to replace the Highway 35 between the

5 San Patricio County line and Rockport. Unfortunately, due

6 to budget constraints, a two-lane highway was built.

7 In the first year of operation of that highway,

8 we lost 16 people, the next year we lost people at the

9 average of about one a month. To put that in perspective,

10 if we opened the Houston-Galveston highway, just on a

11 census basis, the first year they would have lost 500

12 people. If you would have extended that by distance that

13 they have four times as much highway as we do, it would

14 have been 2,000 people. Of course, that wasn't

15 acceptable.

16 So we put together a delegation -- San

17 Antonio -- with about 2,000 signatures on a petition which

18 is about 10 percent of the people in the county. When we

19 got to San Antonio to make our presentation, we found that

20 we were behind Houston asking for $200 million and San

21 Antonio asking for about $150 million. So we figured by

22 the time they got to our $20 million we had about a chance

23 of a snowball in hell of getting funded, we thought the

24 commission would probably be out robbing banks to try to

25 fund those projects.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 80

1 Well, we were wrong. The project was funded,

2 the commission in the meeting made a commitment to try to

3 fund that project, and in fact it was. They scratched

4 around and found bits here and there, they went ahead and

5 redesigned the project, and over the next five-year

6 period, that project was built.

7 As Judy mentioned -- and Judy was at the

8 delegation, she was a representative then, and Gene Seaman

9 was as well -- there were three managers during the term

10 of that project: Billy Parks who has subsequently retired

11 and gone over to the dark side --

12 MR. WILLIAMSON: Absolutely.

13 (General laughter.)

14 JUDGE GUILLORY: -- and of course, David and

15 Craig. And there's been an amazing amount of consistency

16 over those three managers during the project, but that's

17 not the amazing part either, although I would be probably

18 remiss in not mentioning one more name, and that's Bill

19 Wrightman who was the engineer for the entire project.

20 He's your engineer out of Sinton and he did a wonderful

21 job.

22 It's a marvelous project, and the marvelous

23 thing about the project is that 4-1/2 years, with all the

24 heavy equipment running up and down that highway, the

25 amount of work that was done, over a million cubic yards

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 81

1 of dirt moved over a five-year period, there were two

2 deaths, and that's just amazing.

3 It shows you can get things done if you try

4 hard enough, and it's a credit to your predecessors and

5 yourselves, and of course, the work that TxDOT did to make

6 that project come together the way it did that really

7 strikes us to the heart. And we want to thank you very

8 much and your predecessors very much. If you ever sit up

9 here and think that the time you spend may be spent

10 better, don't, because there's no higher project result

11 than to save lives.

12 So on behalf of myself, the commissioners court

13 and the citizens of Aransas County, we thank you and TxDOT

14 very much.

15 MR. WILLIAMSON: Well, you're very kind to say

16 that.

17 (Applause.)

18 MR. CLARK: And that would conclude our

19 marathon report.

20 MR. WILLIAMSON: Questions, members?

21 (No response.)

22 MR. WILLIAMSON: Craig, I've just got a couple.

23 You touched on the corridor and the chairman touched upon

24 the importance of the Laredo-Corpus Christi-Lower Rio

25 Grande Valley triangle. I guess we're all kind of dancing

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 82

1 around and touching around 281/77, which is it, which

2 should it be and so forth, and that's what the public

3 hearings are attempting to do. We're smart enough to not,

4 if we even have a preference, to indicate what that would

5 be publicly while the hearing process is going on.

6 I would just, I think, encourage you to

7 encourage your business community and your civic community

8 to be thinking logically about where's the logical path of

9 an international corridor to be, and to begin to talk to

10 those who would be impacted by that path and see if you

11 can't begin to create if not partnerships, at least least-

12 resistance decisions kind of ahead of time.

13 We understand how difficult it is, probably

14 more than most people, to sell these wide corridor

15 concepts. We're also totally convinced this is the

16 correct thing for the future but we understand that it may

17 not be so important right now.

18 But it will be very important four years from

19 now when we have an excess of electric generation we need

20 to ship to Mexico in exchange for other natural resources

21 not yet processed that can be brought back into Texas and

22 processed by high-quality Texas labor. We understand that

23 if someone were thinking about that in the year 2005,

24 someone in the year 2025 will say thank you for figuring

25 that out 20 years earlier.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 83

1 So we do understand the difficulty in this. We

2 also understand it's the correct thing to do and we

3 encourage you and Judy, the port, the city and county to

4 be talking. We know you're talking west but if you're

5 thinking south, then you need to start talking south as

6 well. The more talking that can be done, the better, I

7 think.

8 Members, anything else before we take a quick

9 break?

10 (No response.)

11 MR. WILLIAMSON: Well, you did a good job and

12 you thoroughly educated us about your operation and the

13 Corpus Christi area. It's our custom, members of the

14 audience, to take a break at this time and give everybody

15 a chance to relax, and we'll do so and return to the

16 state's business, and we hope you come back to watch us

17 work. About 15 minutes, please.

18 (Whereupon, a brief recess was taken.)

19 MR. WILLIAMSON: We are going to return from

20 our brief recess and take up the regular order of

21 business. And the first order of business, members, is

22 the approval of the minutes from last month's meeting. Do

23 I have a motion?

24 MR. HOUGHTON: So moved.

25 MS. ANDRADE: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 84

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor of the motion will signify by saying

3 aye.

4 (A chorus of ayes.)

5 MR. WILLIAMSON: All opposed, no.

6 (No response.)

7 MR. WILLIAMSON: Motion carries.

8 Michael?

9 MR. BEHRENS: Going to agenda item number 2,

10 under Public Transportation we'll have a minute order

11 looking to award Rural Transportation Assistance Program

12 funds to El Paso County. Eric?

13 MR. GLEASON: Good morning, members of the

14 commission, Mr. Chairman, Mr. Behrens.

15 The minute order before you awards $145,000 of

16 federal funds under the Rural Transit Assistance Program

17 to El Paso County Rural Transit District in support of

18 development of a public transportation system there in El

19 Paso County. This award is actually part of a much larger

20 project in El Paso County that is not only looking at ITS

21 development to assist in coordination of services and

22 efficiencies in customer service improvements, but it's

23 also one that includes the introduction of a new vehicle

24 in service in El Paso County, one that does have the

25 latest technology in natural gas engine technology, and

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 85

1 includes with it something called hydraulic line assist

2 which helps in the fuel consumption by assisting the

3 vehicle in initial acceleration. So that when it consumes

4 quite a bit of fuel, it assists that phase of the

5 acceleration thereby reducing fuel consumption, and

6 coupled with the natural gas technology, it improves air

7 quality as a part of that.

8 The Intelligent Transportation System portion

9 of the project of which these funds are a portion, again,

10 a larger overall effort, looks specifically at researching

11 and then assessing the feasibility and developing the

12 software applications to address issues of automatic

13 vehicle location programs, systems to allow the operator

14 to know exactly where its vehicles are, to help with

15 communication between the central dispatch center and

16 those operators in the field, to ultimately allow for the

17 introduction of automated fare payment or smart car

18 technology as a part of the operation, as well as

19 passenger information, real-time passenger information on

20 the service.

21 What these $145,000 will do specifically is

22 that initial assessment of technology and its application

23 in the El Paso County area. In addition to our funds, as

24 a part of that there is a significant CMAQ contribution

25 which, as I understand, is up for approval tomorrow. That

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 86

1 actually constitutes about 80 percent of the ITS

2 investment, our share is about 20 percent.

3 This project intends then to have, by the fall

4 of 2007, 17 vehicles operating in El Paso County that are

5 equipped with an automated dispatch system radio, the

6 technology to allow for communication, and will begin to

7 assess some of the benefits of that application to the

8 extent of improving the coordination of our services, and

9 the significance of that improvement with respect to

10 overall statewide to coordinate our systems better. It

11 will allow us to examine the impact of fuel technologies

12 on fuel economy and fuel consumption.

13 So I recommend your approval of this award

14 today and will be glad to answer any questions you might

15 have.

16 MR. WILLIAMSON: Members, you've heard the

17 explanation. Do you have questions?

18 MS. ANDRADE: Mr. Chairman, I have a question.

19 Eric, will you keep us posted as to how well

20 it's doing?

21 MR. GLEASON: Absolutely. I had a conversation

22 yesterday with the project manager where one of the things

23 that we talked a lot about was making sure that we had

24 both some up-front work around the outcomes and what we

25 would expect to happen and then the ability throughout the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 87

1 project to measure the results with respect to those

2 anticipated outcomes, not so much in the context of

3 success or failure but in the context of learning what we

4 can learn from this for other applications throughout the

5 state.

6 MS. ANDRADE: And we've invested $145,000, and

7 what's the price of the total project?

8 MR. GLEASON: The total cost of the ITS

9 development portion of the project is $725,000; the

10 balance of the funds are coming from the CMAQ area.

11 MS. ANDRADE: Thank you.

12 MR. WILLIAMSON: Any other questions or

13 comments, members? Do I have a motion?

14 MR. JOHNSON: My sense is this is a tremendous

15 project, first of its kind and certainly worth doing and

16 following it to see how it does.

17 MR. WILLIAMSON: Absolutely. Okay, do I have a

18 motion?

19 MR. HOUGHTON: So moved.

20 MS. ANDRADE: Second.

21 MR. WILLIAMSON: I have a motion and a second.

22 All those in favor of the motion will signify by saying

23 aye.

24 (A chorus of ayes.)

25 MR. WILLIAMSON: Opposed, no.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 88

1 (No response.)

2 MR. WILLIAMSON: Motion carries.

3 Eric, how are you finding Texas, buddy?

4 MR. GLEASON: I'm finding it fascinating. It

5 is a real challenge. It is a very different environment

6 than I'm used to working in. I'm enjoying it

7 tremendously.

8 MR. WILLIAMSON: Well, by all accounts, you're

9 doing a good job. Everybody is very complimentary.

10 MR. GLEASON: Thank you.

11 MR. WILLIAMSON: Thank you, sir.

12 MR. BEHRENS: Commissioners, agenda item number

13 3 is a discussion item where Mike Craig of our VTR

14 Division will talk about our public outreach and our

15 marketing efforts in order to try to increase vehicle

16 registration in Texas. Mike?

17 MR. CRAIG: Thank you very much. Good morning.

18 We've got quite a few projects underway, four of which we

19 feel like have enough visibility or interest either on the

20 legislative side or enough impact statewide that we wanted

21 to bring them to you and let you kind of get some idea

22 what's going on so if you're starting to hear things about

23 it, you're aware.

24 The first one is the marketing and sales of

25 special license plates. This is one that has legislative

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 89

1 interest. It was presented in two forms, one in the 78th

2 Legislature and again in the 79th Legislature, and it

3 changed at that point.

4 As you can see, it was not mandatory in the

5 78th, it was optional, it was permitted if we wanted to

6 pursue it. Definitely we had a lot of projects going and

7 that was one that definitely wasn't a priority.

8 It's an unprecedented type of program in the

9 United States, there's no other state that has this, so we

10 feel like there was a high risk involved with it until we

11 had time to do more analysis. So we did not move out

12 initially with it.

13 MR. WILLIAMSON: But we weren't afraid to be

14 the first one to do it?

15 MR. CRAIG: We're never afraid to be the first.

16 As long as we can make money and help people in the

17 public move goods and products.

18 MR. WILLIAMSON: We don't ever want to be

19 afraid of taking risks.

20 MR. CRAIG: We're not afraid to take risks at

21 all.

22 So in the 79th they changed that up quite a

23 bit. Came back to us, required us, in effect, to

24 implement this program, but in so doing, they also gave us

25 some benefits associated with that. In the prior bill

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 90

1 they had not provided funding up front. We shared that

2 risk with whichever vendor was the successful one that we

3 were to select. So in that respect, we benefitted from

4 it.

5 We have moved out on that and as you can see

6 there, there's certain things that it provides for:

7 personalized plates, organizational plates, collegiate

8 plates. Those are all involved in this process, plus they

9 can bring new plates to us as well, new plate designs. It

10 does specify that we recover all costs, but under this

11 provision, as we'll see later in the slide, those costs

12 ultimately would be paid back off the revenue generated

13 from the sale of these plates -- which we'll get into a

14 little pricing scheme as well later on.

15 Our goal is to increase revenue to the state.

16 We've had two bidders on this project, both feel that they

17 can do a really good job marketing and selling plates and

18 getting us an increased revenue from them.

19 As I mentioned earlier, the cost-sharing, the

20 risk-sharing, if you will, $632,000 was estimated by us to

21 start this project. Out of that, half of that would be

22 paid up front by this vendor. So they feel it's a very

23 viable project, we feel it's viable, and we're both going

24 to put money into it to prove it truly is a viable

25 project.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 91

1 To give you some idea of the timelines, we

2 initiated the initial RFP based on prior legislation in

3 February of 2005. This rocked along during the 79th

4 Legislature. At that point, it appeared that new

5 amendments to that law were going to be passed. We went

6 ahead and published the RFP as it was, based on the prior

7 legislation, and then provided through interviews and

8 negotiations with the two bidders, that we would work in

9 those new provisions and they would agree to it, and then

10 they would base their bids on that. So that's where we

11 are today.

12 We show there that October 27 is when we were

13 wanting to announce this winning bidder. We actually, at

14 this point, because of legislative interest, we knew even

15 prior to this that we wanted to brief those legislators

16 who did have interest, or their staff, as to where we were

17 on this, what we did, how we got to where we are, and why

18 we made the selection that we had, so that's going to

19 happen actually on November 2, next week. As soon as we

20 can brief those folks up on that, then we'll announce the

21 winning bidder.

22 Any questions on that? I've got four here so

23 I'll break at each one.

24 MR. JOHNSON: Mike, what sort of steps are they

25 going to take and venues are they going to use or outlets

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 92

1 to market specialty plates that, you know, we don't sort

2 of already do internally? How are they going to increase

3 outreach, I guess is my question.

4 MR. CRAIG: Correct. We don't really market

5 specialty plates, currently we don't have that capability,

6 we don't dedicate funds for that. Organizations who come

7 in, if there's an organizational plate, they do it

8 possibly, as well as the colleges if they want to. We

9 don't do that; this provides us that mechanism.

10 They'll go into dealerships where there's an

11 opportunity at that point where they're buying the

12 vehicle, hey, would you like a special plate with that?

13 Obviously we can put it in other venues as well, similar

14 to another project that we'll be talking about which you

15 and I have met with the press earlier on.

16 MR. JOHNSON: I think since the chairman is not

17 here that we should appoint him a committee of one. His

18 alma mater, I think, has moved to number three in terms of

19 the number of college license plates, and we should make

20 him the chairman and sole member of the committee to get

21 them back up, especially proportionate to their population

22 of graduates and interested parties.

23 MR. CRAIG: As we deal with our new vendor,

24 we'll certainly make that one a priority.

25 MR. JOHNSON: Well, volunteer his services.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 93

1 (General laughter.)

2 MR. CRAIG: Any other questions?

3 (No response.)

4 MR. CRAIG: Let me move on. The next project

5 we have that you would like to know about is the vehicle

6 registration compliance and public awareness campaign.

7 This is one that we've had going in a grassroots method

8 for the last number of months, and basically what we found

9 out, for a little background, Texas residents, as we all

10 know, need to title and register vehicles before they're

11 operated on the highways of our state.

12 We've got about 18.7 million vehicles

13 currently, and obviously as we get our toll roads and our

14 infrastructure in place and provide more opportunities for

15 industry, we're going to have more vehicles coming in.

16 And that brings in about $1.3 billion a year total; out of

17 that, a third goes to local government, to the local

18 county for their road and bridge funds, so it helps them

19 maintain their roads as well.

20 As we went through this bid process, there were

21 five bidders. We selected one bidder, obviously, named

22 Think Street. They've done a very good job, very creative

23 in the way they're going to market this campaign

24 statewide. We've had some public outreach already on

25 these things and I'll get into that just a little later,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 94

1 but so far we've been very pleased with what they've done

2 to this point.

3 The project scope, we didn't want to go into it

4 with a negative, you know, we want to beat you over the

5 head because you haven't registered your vehicle, we

6 wanted to make it positive to the public who may or may

7 not be aware what the requirements are associated with the

8 registration of vehicles and where that money actually

9 goes.

10 So what we tried to do is we have a very

11 diverse population, we're putting this out not only in

12 English but Spanish as well, to get it to everybody who

13 may have a vehicle that's operating. We're rolling it

14 out, as I said, with a positive message. It's basically

15 to remind current Texans and any newcomers who are coming

16 into the state because any newcomers who are in here that

17 are operating off the previous state's registration, they

18 have six months, eight months, ten months left on that and

19 they don't know that once they've established residency,

20 they've got to register their vehicle and title it in

21 Texas. Many of these people are going to want to comply

22 and if we just get the information out there to them, we

23 think they will.

24 Within 18 months we're seeking to reduce

25 registration noncompliance by a minimum of half a percent,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 95

1 and half a percent of what, I think, begs the question.

2 We have done ten years of public parking lot surveys, and

3 through that period of time we've consistently found of

4 Texas-plated vehicles, 4.5 percent are not currently

5 registered. So that's our base. From that we're trying

6 to reduce that by half a percent.

7 What that equates to is through that analysis

8 of that 4.5 percent, it comes to about 720,000 vehicles a

9 year that are not registered for the entire year.

10 Extrapolate from that $60 in registration, it comes to

11 $43.2 million of just the Texas vehicles. We can't

12 quantify those that are coming in with out-of-state

13 plates, out-of-country plates, we don't know if they're

14 truly Texas residents or not. That's where the

15 information, the public awareness will be targeted.

16 If we can reduce that by half a percent, we

17 bring in $43.2 million. Well, overall if we did all 4.5,

18 this half percent, we basically get $5.6 million.

19 We benchmarked this, we've gone through and

20 modeled the program that we currently have in progress.

21 We take that data on, we'll extrapolate from that later on

22 to developing our improvement. We're going to follow up

23 with research again in 2005 into 2007 to gauge the

24 effectiveness of this campaign. We really encourage

25 Texans, let's go out and do the right thing. And Texans,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 96

1 if we know about it, all tend to do the right thing, and I

2 believe that we find that to be true with Hurricane

3 Katrina, Hurricane Rita, Hurricane Wilma, everybody steps

4 up and tries to help. In this case, you've got a product

5 that you're paying for that you're actually going to

6 benefit from because you're putting that much back into

7 it.

8 The cost of the project is $2.5 million over a

9 two-year period. Again, if you think back to what I just

10 mentioned, if we can drop it by half a percent, we can

11 more than pay for the project within 18 months, and we

12 feel like we can beat that.

13 As I mentioned earlier, the out-of-state/out-

14 of-country registrations that are running on our highways,

15 if those in fact turn out to be Texas residents and they

16 will come in and register their vehicles, we think there's

17 more money to be had than the $43.2 million. So we think

18 this will make some real inroads on that.

19 Actions to date and timeline. We have done

20 posters; we have done phone calls. We found that one-

21 fifth of Texans think that registration is a source of

22 revenue-building to maintain Texas highways, only one-

23 fifth. Eighty percent don't; they weren't aware of it.

24 When told where the money goes, they are much more

25 supportive, much more inclined to come in on time to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 97

1 register their vehicles.

2 We did telephone calls. More than 95 percent

3 of these folks agreed that liability insurance -- which is

4 another area I'll touch on a little bit later in another

5 presentation -- is very important, and obviously we all

6 want our vehicles that are out there to have current

7 insurance. Almost three-fourths believe that individuals

8 who drive without vehicle registration are also less

9 likely to have that insurance, so there's a connection.

10 The target audience was identified, strangely

11 enough, as the 18 to 34 group which that's in my rearview

12 mirror, but there certainly is a large contingent out

13 there of those folks and we're trying to touch that

14 particular group.

15 We're doing a statewide radio campaign that

16 began in September and it's going to run through December

17 of this year. Public relations grassroots efforts is

18 being conducted in three pilot markets, and that's

19 underway right now. Those three were in Longview, El Paso

20 and Houston.

21 Commissioner Johnson and Commissioner Houghton

22 were nice enough to come out and meet with us, we had

23 press conferences there, we think they went very well, and

24 we think that this is certainly a process where as we see

25 changes may need to be made of what we're presenting to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 98

1 the public, but I think we're very positive on how that's

2 going to work for us. And that's going to go through the

3 end of this year.

4 We've got special promotional events underway.

5 We've already done one at the Astros game, prior to the

6 end of the season, obviously, that we were actually in the

7 booth with the announcers and they were discussing this

8 with us. That's going to continue on with the Houston

9 Texans games. Hopefully they'll score some touchdowns and

10 more people will be watching. But that's going to

11 continue as well.

12 As I said, we've got bilingual available print

13 material and you'll see some of those things in the press

14 package you got. We've got rack brochures, bumper

15 stickers, posters, we've got all kinds of things. We're

16 going to style this somewhat along the lines, hopefully as

17 successful, as the Don't Mess With Texas campaign. We

18 hope to get to that level of success.

19 Statewide kickoff. As we finish these

20 grassroots, we're going to move to a statewide

21 implementation in '06 in January. You're going to see a

22 whole lot of heavy television and radio spots on this,

23 you're going to be seeing more and more of it. You'll

24 also notice in your package you got CDs that have musical

25 jingles and they really are catchy. Put them in your cars

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 99

1 as you drive around and I think you'll find them very

2 interesting.

3 Outdoor advertising obviously is another area

4 that we're going to really focus on to try to get the

5 information out there.

6 As said, we're going to try to get this into

7 the driver's education curriculum in the schools too. We

8 think that if the young child is aware of it and they

9 notice their parent's windshield is not displaying a

10 current registration that they may place a little pressure

11 on them. It's not a punitive issue; it's one of

12 encouragement by their child.

13 Any questions on that particular campaign?

14 MS. ANDRADE: I have one. I have to say that I

15 really like the Spanish one, and [speaks in Spanish] is

16 very catchy, but do you have a bumper sticker in Spanish?

17 MR. CRAIG: Yes, we do. All those are going to

18 be bilingual.

19 MS. ANDRADE: Great.

20 MR. CRAIG: This campaign they have three

21 registered trademarks. What they're focusing on is Put

22 Texas In Your Corner.

23 MS. ANDRADE: I really like that.

24 MR. CRAIG: That's the one. They also have

25 Registered Texan, and Check the Date and Love your State.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 100

1 We feel like we can get the folks, when they step in

2 their car every day and put the key in and look over at

3 their windshield, if they will do that and check that

4 date, even if we don't get them a renewal notice -- which

5 occasionally we don't -- it will prompt them for coming in

6 and registering their vehicles. This will certainly be

7 daily prompt for them if they will just get in the habit.

8 MS. ANDRADE: Thank you.

9 MR. JOHNSON: Mike, how are we progressing on

10 the issue of the sticker itself and unbundling that from

11 its paper container when you receive it in the mail and

12 making it either childproof or genius-proof, pick your

13 poison?

14 MR. CRAIG: Well, what you're asking about is

15 our current point of sale sticker that we've just

16 implemented and had some issues with. I'll steal a quote

17 I recently heard, without attribution, we've got a

18 problem, we've got a plan and we're moving up to correct

19 that.

20 (General laughter.)

21 MR. WILLIAMSON: That's the best way to deal

22 with it.

23 MR. CRAIG: That's where we're going. We're

24 working with our partners which are the tax assessor-

25 collectors, they're giving us good input from the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 101

1 customers. Obviously we're getting direct input from the

2 customers as well.

3 The process itself, the system itself is

4 flawless, the automated system has been perfect. We're

5 working, right as we speak, to improve that project, the

6 actual functional portion of that project to get something

7 out. It's going to take three months to simulate actual

8 usage through our lab with Thomas Bohuslav and

9 Construction, but once we get that new design in and make

10 sure it works as it should under laboratory conditions,

11 but we're also going to look at the practical application

12 as well to make sure that we don't slow down the customer

13 and cause any inconvenience.

14 MR. JOHNSON: Well, laboratory conditions are

15 fine but field trials might even be better.

16 MR. CRAIG: And in truth, we had field trials.

17 We piloted this in numerous counties and never had a

18 problem with it. The problems really came up where we've

19 got the larger counties and we do more volume, and they're

20 more vocal.

21 MR. JOHNSON: So the larger volume created an

22 inconsistency in the way people received their

23 registration stickers and how do you unbundle the

24 registration sticker from its contents?

25 MR. CRAIG: I think they're more vocal about

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 102

1 it.

2 MR. JOHNSON: Or the larger areas just more

3 bumblers and fumblers like I am and can't separate it.

4 MR. CRAIG: It seems like where you have a more

5 rural group, and we were in the smaller counties or less

6 metropolitan counties, smaller metropolitan counties, they

7 had more direct contact and conversation with those

8 customers and were able to explain it better to them, or

9 they would physically show them how that works, and so

10 there was less dissatisfaction.

11 Then we had actually defective forms. It was a

12 little complex on how you did it anyway, and then you

13 factor in the defective forms as well, then you have some

14 real problems, and we are addressing those.

15 MR. JOHNSON: Thank you.

16 MR. WILLIAMSON: John, whenever you move out to

17 Old Washington, you'll find that those of us who live in

18 the country have a little more time to do things.

19 MR. JOHNSON: Well, I look forward to that day.

20 (General laughter.)

21 MR. CRAIG: Any other questions on this?

22 (No response.)

23 MR. CRAIG: The next one we had is the vehicle

24 registration renewal outsourcing. This is a brand new

25 bill that was introduced last session, a new statute.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 103

1 Previously we had not had the capability to advertise in

2 our renewal notices that we send out each year to 18-

3 something million of our customers. This provides that

4 under House Bill 2702.

5 What it provides is -- and the commission does

6 have involvement here because they are the ones who

7 authorized us to proceed with this -- a contract with a

8 vendor for not only the insertion of the advertising in

9 the renewal, but we're looking potentially at having them

10 do the whole process for us, we'd like to outsource it

11 all, if possible. That would be the printing, the

12 inserting, the envelopes. If they feel like it's

13 advantageous to them to change the size of the envelopes,

14 the style of the renewal, they'd pick up all the costs of

15 that.

16 There is precedent for this one, as opposed to

17 the special plate marketing that I spoke of earlier. We

18 checked and there are two other states currently doing

19 this, there's New York and Florida. And they've realized

20 benefits from it, it seems to have worked well for them to

21 this point. We talked to both jurisdictions and they

22 fully support it.

23 The project scope, as I mentioned earlier, they

24 will produce these inserts, they will coordinate these

25 with any, like General Motors or Ford Motor Company, any

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 104

1 of the larger corporations who would like to advertise,

2 and they'd use that revenue to offset any additional costs

3 associated with this.

4 It's a cost-sharing project. We'll pay for

5 basically what we have done in the past, but if they add

6 weight to that mail package, it goes above an ounce,

7 they're going to pay the cost of that. As I said earlier,

8 they're going to pay for any programming associated with

9 this and any changes that are associated with the

10 envelopes or the renewal notices themselves.

11 And basically it's a possible bonus. We would

12 see this as a potential bonus of about a million dollars a

13 year for the department.

14 Our goals, again, reduce costs associated with

15 the mailing of approximately 1.5 million -- that's 18

16 million a year, that's 1.5- monthly, and then there's no

17 computer program costs associated, they pick up all the

18 costs.

19 Where we are now, we've got our timeline

20 developed for it, we've got our RFP being developed, we're

21 going to try to get this out on the street by January

22 2006, and basically do the things that I spoke about,

23 their redesign, all those things would be part of our

24 discussions with that vendor as to how we're going to

25 proceed.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 105

1 Any questions on that?

2 (No response.)

3 MR. CRAIG: Okay. Last but not least is our

4 financial responsibility verification program. This is a

5 subject that's been tackled by the legislature for a

6 number of years without resolution. It was also at one

7 point given to the Texas Department of Public Safety to

8 address. They came out with a report recommending a

9 delay, if you will.

10 In the last session under Senate Bill 1670 it

11 was given to the Texas Department of Insurance to lead but

12 partnering with TxDOT, with DIR, Department of Information

13 Resources, and also with the DPS, to sit down and try to

14 work out a program that will provide a means to reduce,

15 obviously, noncompliance, those that don't have current

16 insurance to come in and register their car or get their

17 driver's license or get their vehicle inspected, to have

18 that in place when they do come in.

19 And in addition to that, it's not just an

20 event-based process, so when you come in and register your

21 vehicle and you walk out and you go cancel your insurance

22 and nobody knows about it. What we want to do is provide

23 a means that we have ongoing verification so when you walk

24 out the door and you cancel that insurance, we know about

25 it, and we get back to that person to bring him back into

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 106

1 compliance or we flag their record in some way to cause

2 them to provide more evidence the next time they come in

3 as to what their current status is.

4 So we're trying to fulfill the goals of 1670,

5 we're trying to decrease the number of uninsured motorists

6 in Texas, we want to enhance the goals to validate proof

7 of insurance and we want to provide ability to law

8 enforcement to identify insurance coverage on vehicles

9 involved in accidents. And we feel like we're moving

10 ahead quickly on this.

11 The cost. We have a $6 million appropriation

12 for this to spend on this. That money is in actually

13 TxDOT's Fund 6 budget. From that the TDI, as they sort of

14 pay for this development or whatever costs associated with

15 it, the implementation and maintenance will start to build

16 out of that fund.

17 Actions to date, the project charter has been

18 approved. I have noted there a request for proposal.

19 It's actually an invitation to negotiate. I found out

20 after we did this kind of what the difference is, but it's

21 similar, I would think. Those responses are due back. We

22 have a pretty strict timeline on this. By law the vendor

23 is supposed to be on board by December, so the window is

24 closing rapidly to get that done.

25 And implementation of the system is due, and

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 107

1 again mandated by the legislation, for the end of 2006.

2 What we really foresee at this point is a phased

3 implementation, doing the passenger vehicles first and

4 commercial vehicles last. So that's the status on that.

5 We really do feel like this program and the

6 level of interest of all the departments involved and the

7 agencies, along with the insurance industry -- that

8 obviously has a high interest in how this is going to be

9 structured -- that we're going to come out with a very

10 good product.

11 Any questions?

12 MR. WILLIAMSON: Questions, members?

13 MR. HOUGHTON: Good show.

14 MR. WILLIAMSON: We like what you're doing.

15 MR. CRAIG: We'll keep you posted as things

16 move along.

17 MR. HOUGHTON: Remember the committee that

18 Chairman Williamson is a member of one.

19 MR. CRAIG: You weren't here, Mr. Chairman, but

20 you were volunteered in absentia.

21 MR. WILLIAMSON: As a committee of one?

22 MR. CRAIG: Yes, I think it was. I didn't see

23 any other hands go up.

24 (General laughter.)

25 MR. CRAIG: Okay, that's all I've got.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 108

1 MR. BEHRENS: Okay, Mike, you can just stay up

2 there.

3 We'll go then to agenda item number 4(a)(1)

4 where we're going into our proposed adoption of rules.

5 MR. WILLIAMSON: Mike, have you heard anything

6 from the automobile industry about any of this, from the

7 automobile dealers?

8 MR. CRAIG: About which?

9 MR. WILLIAMSON: About any of this.

10 MR. CRAIG: Well, let's see, there's really not

11 anything negative. The insurance issue is one that we've

12 already dealt with as far as the dollar fee that's

13 collected. Dealers are not required to verify insurance

14 by law, however, we do provide that they can collect a

15 dollar insurance fee. So as long as they're exempted from

16 that requirement to verify insurance, I doubt if we're

17 going to have an issue with it at all. I think that would

18 be the only one that would kind of lap over something they

19 might be concerned about.

20 MR. WILLIAMSON: Okay.

21 MR. BEHRENS: These rules pertain to some

22 corrections in rules that pertain to VTR.

23 MR. CRAIG: What I'm bringing to you today are

24 proposed amendments that we would like to obviously

25 present to you for an option and they're really clean-ups,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 109

1 there's not a lot to them. They were bringing forward

2 some statutory cite changes from the 78th Session, and

3 then we've got specific ones that are just non-

4 controversial legislation that was passed in the 79th.

5 I can walk through this with you real quickly,

6 if you'd like. Just for example, we're touching on cotton

7 vehicles and the ability of those to also transport chili

8 peppers, to use that same statute, which provides a little

9 broader width for operation of those modules on the

10 highways. Again, not controversial at all.

11 We've got classic travel trailers. Again,

12 these are older vehicles, 25 years old or older, that can

13 operate the vehicles without limitation. They pay an

14 additional $15 fee for registration of that vehicle.

15 All-terrain vehicles were also addressed the

16 last session of the legislature. Basically instead of

17 having only a three-wheel vehicle and only having a

18 saddle. they've also now provided for a multi-wheel

19 vehicle, a redefinition of that, and also a bench seat as

20 opposed to just a saddle. You can see these are not real

21 complex.

22 The last one that I can address for you was

23 salvage vehicles, they redefined that to less complex but

24 probably equally contentious at some point by the public

25 because it provides for totaling of vehicles by insurance

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 110

1 companies that many people feel like older vehicles should

2 not be totaled, but by the value, pre-damage value. If

3 the damage itself is of such a dollar value, the insurance

4 company tends to total those out, and the upshot of that

5 is when they do that under current law -- used to you

6 could pay a total loss and the individual would keep that

7 vehicle and continue to operate the vehicle as if it were

8 not totaled out, now we have to be notified. We then flag

9 that record, they do become salvage vehicles, and that's

10 noted on their subsequent title which reduces the value of

11 it, and there's money associated with that process that

12 the customer has to pay.

13 But for this purpose, all we're doing is citing

14 that change to that definition of what a salvage vehicle

15 is.

16 So having said all that, I would recommend at

17 this time and propose that we adopt these amendments.

18 Any questions?

19 MR. WILLIAMSON: Members, you've heard the

20 recommendation. Do you have questions or comments?

21 MR. JOHNSON: So moved.

22 MR. HOUGHTON: Second.

23 MR. WILLIAMSON: I have a motion and a second.

24 All those in favor of the motion will signify by saying

25 aye.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 111

1 (A chorus of ayes.)

2 MR. WILLIAMSON: All opposed, no.

3 (No response.)

4 MR. WILLIAMSON: Motion carries.

5 MR. BEHRENS: Agenda item 4(a)(2), these are

6 rules pertaining to right of way, and John Campbell will

7 present these for you.

8 MR. CAMPBELL: Good morning. For the record,

9 my name is John Campbell, director of the Right of Way

10 Division.

11 I'd like to present for your consideration this

12 morning Minute Order Number 4(a)(2) which provides for the

13 proposed adoption of new Section 21.801 and new Section

14 21.802 concerning acquisition and disposal of real

15 property from rail facilities.

16 Section 21.801 is a new section which adopts

17 essentially the same acquisition procedures that apply to

18 right of way to accommodate rail facilities. It describes

19 the requirements for those purposes, it provides for a

20 unique two-step process of review and approval by the

21 commission. So the commission will actually first approve

22 the investigation of the purchase of the property, and

23 then will come back to follow up with approval of the

24 actual acquisition. It also clarifies that the department

25 may use a right of way acquisition provider under a CDA to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 112

1 acquire real facility property.

2 Section 21.802 essentially adopts the same

3 procedures for existing real property, disposal for rail

4 facility property. It also creates a priority for

5 consideration of the sale of surplus rail property and

6 that also allows for a little bit more flexibility when we

7 have an exchange situation so that we can deal with a

8 party to an exchange.

9 It also authorizes the commission to consider

10 the cost of future maintenance as fair value consideration

11 for the transfer of property to another governmental

12 entity. It also directs the revenue from the sale of any

13 rail facility property be credited to the State Highway

14 Fund.

15 Staff recommends your approval of these

16 motions. Any questions?

17 MR. WILLIAMSON: Members, you've heard the

18 explanation. Do you have any questions or comments?

19 MR. JOHNSON: So moved.

20 MR. HOUGHTON: Second.

21 MR. WILLIAMSON: I have a motion and a second.

22 All those in favor of the motion will signify by saying

23 aye.

24 (A chorus of ayes.)

25 MR. WILLIAMSON: All opposed, no.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 113

1 (No response.)

2 MR. WILLIAMSON: Motion carries.

3 MR. BEHRENS: Agenda item 4(a)(3) concerns

4 travel information and is to link community websites to

5 our rest areas and to our travel information centers.

6 Doris?

7 MS. HOWDESHELL: Good morning, commissioners.

8 For the record, my name is Doris Howdeshell and I'm the

9 director of the Travel Division.

10 The minute order before you today is for

11 proposed adoption of new 23.13 concerning links to

12 community websites from rest areas and travel information

13 centers. The purpose of this minute order is to outline

14 the policies and procedures that communities must follow

15 in order to make that link.

16 The purpose of the links is to provide

17 information to the traveling public when they are standing

18 in a rest area, for example, that has a Wi-Fi connection.

19 There are paragraphs in here that provide for how to get

20 approval for links and also removal if there are

21 complaints in regard to the link.

22 Staff recommends approval and I'll be glad to

23 answer any questions.

24 MR. WILLIAMSON: Members, you've heard the

25 explanation and recommendation. Do you have questions or

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 114

1 comments?

2 MR. JOHNSON: Doris, you mentioned what would

3 be one of the reasons that there might be a removal?

4 MS. HOWDESHELL: If we get three complaints

5 from the traveling public, for example, if the information

6 on that community's website is outdated or inaccurate,

7 then we would work with that community to get the

8 information either updated or remove it from the link.

9 MR. JOHNSON: While I've got you in my sights,

10 I wanted to mention personally the terrific job the Travel

11 Division did on the film at the short course. I thought

12 it was exceptional. I made those comments but I didn't

13 get to see you and congratulate you.

14 And then more subtly, I want you, for mapping

15 purposes, to consider the difference between Yellowstone

16 National Park and Old Faithful, just a subtle difference

17 there.

18 MS. HOWDESHELL: Thank you very much. Thank

19 you for your comments.

20 MR. WILLIAMSON: Do you want to respond to that

21 Old Faithful-Yellowstone shot or just leave that lay.

22 MR. JOHNSON: No. That's another issue that

23 we've been discussing.

24 MR. WILLIAMSON: Members, do you have other

25 questions or comments for staff?

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 115

1 MR. HOUGHTON: So moved.

2 MR. JOHNSON: Second.

3 MR. WILLIAMSON: I have a motion and a second.

4 All those in favor of the motion will signify by saying

5 aye.

6 (A chorus of ayes.)

7 MR. WILLIAMSON: All opposed, no.

8 (No response.)

9 MR. WILLIAMSON: Motion carries.

10 MR. BEHRENS: Agenda item 4(a)(4), these are

11 proposed rules for adoption concerning oversize and

12 overweight vehicles. Carol?

13 MS. DAVIS: Good morning. I'm Carol Davis,

14 director of TxDOT's Motor Carrier Division.

15 The minute order you have before you proposes

16 rule amendments to Chapter 18 concerning oversize and

17 overweight limits. These amendments are mostly clean-up:

18 they clarify motor carrier registration requirements for

19 permit applicants; they clarify escort vehicle

20 requirements; implement several bills that were passed

21 during the past session; they eliminate a requirement for

22 certain permit applicants to provide tax lien information;

23 and clarify reporting requirements for an extended

24 expiration date for Port of Brownsville permits.

25 We also have a new section, Subchapter 8, which

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 116

1 implements provisions of House Bill 1044. This

2 establishes the Chambers County permitting program,

3 provides for the county to issue permits for the transfer

4 of overweight loads on FM 1405 and the frontage roads of

5 SH 99 and Cedar Crossing Business Park. And requirements

6 in these proposed rules were modeled after the Port of

7 Brownsville permitting program.

8 We are recommending approval of the minute

9 order.

10 MR. WILLIAMSON: Members, you've heard the

11 explanation and recommendation. Do we have questions or

12 comments?

13 MR. JOHNSON: Carol, again while I've got you

14 in my sights, I think few people realize or recognize the

15 amount of work that you and your team did in concert with

16 the districts as a result of Hurricane Rita and her visit

17 and the repercussions afterwards, and I appreciate what

18 everybody did and what you were able to do in response to

19 my call in terms of some of these overweight and oversized

20 residential moving of residences getting back into place.

21 MS. DAVIS: Thank you. I appreciate that.

22 MR. WILLIAMSON: Other questions or comments,

23 members?

24 MR. JOHNSON: So moved.

25 MR. HOUGHTON: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 117

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor of the motion will signify by saying

3 aye.

4 (A chorus of ayes.)

5 MR. WILLIAMSON: All opposed, no.

6 (No response.)

7 MR. WILLIAMSON: Motion carries.

8 MR. BEHRENS: Moving to our rules for final

9 adoption, agenda item 4(b)(1) concerning rail facilities

10 and comprehensive development agreements. Doug?

11 MR. WOODALL: I'm Doug Woodall, TP&D for the

12 Turnpike Division. I'm here for Mr. Russell who is on a

13 well-deserved vacation.

14 MR. WILLIAMSON: He sure doesn't look like

15 Phil. Now, who determined well-deserved, his employees?

16 I mean, who was the well-deserved vacation? Did you need

17 a vacation from him?

18 MR. WOODALL: Yes, sir.

19 MR. WILLIAMSON: One thing about this

20 commission is we'll help you dig that hole just as deep as

21 you can.

22 (General laughter.)

23 MR. WOODALL: House Bill 2702 of the 79th

24 Legislature --

25 MR. WILLIAMSON: Is this your first appearance?

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 118

1 MR. WOODALL: Pardon?

2 MR. WILLIAMSON: This is the first time you've

3 been in front of us?

4 MR. WOODALL: Yes, sir.

5 MR. WILLIAMSON: Oh, man, this is a free shot.

6 MR. HOUGHTON: There's no video record of this

7 either.

8 (General laughter.)

9 MR. WOODALL: House Bill 2702 authorized the

10 department to enter into comprehensive development

11 agreements for rail facilities or rail systems. This

12 minute order would adopt new Section 7.11 concerning

13 comprehensive development agreements for these facilities

14 or systems.

15 Rules implementing this were part of a new

16 Texas Administrative Code Chapter 7 entitled Rail

17 Facilities. The additions to the rules were posted in the

18 Texas Register, an opportunity for comments was offered

19 till 5:00 p.m. on September 12, 2005. We received no

20 comments.

21 Staff recommends your approval.

22 MR. WILLIAMSON: No comments?

23 MR. WOODALL: That's correct, sir.

24 MR. WILLIAMSON: Everybody liked it?

25 MR. WOODALL: Pretty straightforward, a little

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 119

1 bit over one page of rules that pretty much defer the

2 processes and procedures for rail facilities to Chapter 27

3 which is our established process for comprehensive

4 development agreements.

5 MR. WILLIAMSON: Members, you've heard the

6 explanation and the recommendation. Do we have questions

7 or comments?

8 MR. HOUGHTON: So moved.

9 MR. JOHNSON: Second.

10 MR. WILLIAMSON: I have a motion and a second.

11 All those in favor signify by saying aye.

12 (A chorus of ayes.)

13 MR. WILLIAMSON: All opposed, no.

14 (No response.)

15 MR. WILLIAMSON: Motion carries.

16 MR. BEHRENS: Jim is going to talk about final

17 rules for adoption concerning our Unified Planning Work

18 Program.

19 MR. RANDALL: Yes, sir. Good afternoon,

20 commissioners. Jim Randall, director of the

21 Transportation Planning and Programming Division.

22 Item 4(b)(2), this minute order adopts

23 amendments to Title 43, Texas Administrative Code Section

24 15.4 relating to the Unified Planning Work Program.

25 Section 15.4 currently provides that travel outside the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 120

1 metropolitan area boundary by a metropolitan planning

2 organization staff and other agencies participating in the

3 MPO planning process shall be approved by the department

4 and funded from the Transportation Planning funds. The

5 amendment to Section 15.4 removes this requirement and

6 instead requires department approval of travel outside of

7 Texas.

8 The amendments further provide that the travel

9 through Arkansas by the Texarkana MPO staff and travel

10 through New Mexico by the El Paso MPO staff shall be

11 considered in-state travel.

12 The proposed rules were published in the August

13 12, 2005, issue of the Texas Register and comments were

14 received through September 12. One comment was received

15 from the Association of Texas Metropolitan Planning

16 Organizations, or TMPO. TMPO agrees with the amendments

17 to remove the requirement that the department approve

18 travel beyond metropolitan area boundaries but raised

19 other issues outside the scope of the proposed rules. The

20 department staff will consider TMPO's other comments for

21 possible future rule amendments.

22 Adopting these rules will reduce administrative

23 burdens on both the department and the MPO staffs. Staff

24 recommends approval of this minute order.

25 MR. WILLIAMSON: Members, you've heard the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 121

1 explanation and the recommendation. Do we have questions

2 or comments?

3 MR. HOUGHTON: So moved.

4 MR. JOHNSON: Second.

5 MR. WILLIAMSON: I have a motion and a second.

6 All those in favor of the motion will signify by saying

7 aye.

8 (A chorus of ayes.)

9 MR. WILLIAMSON: All opposed, no.

10 (No response.)

11 MR. WILLIAMSON: Motion carries.

12 MR. BEHRENS: Agenda item 4(b)(3) are rules for

13 final adoption concerning our Logo Sign Program. Carlos?

14 MR. LOPEZ: Good afternoon, commissioners. My

15 name is Carlos Lopez and I'm director of the Traffic

16 Operations Division.

17 The minute order before you provides for final

18 adoption of rules to implement Senate Bill 1137 and House

19 Bill 2453 of the last legislative session. The rules

20 allow for implementation of a tourist-oriented directional

21 sign program for wineries, agricultural interest

22 facilities, and other tourist-oriented businesses, allow

23 24-hour pharmacies to participate in the Logo Sign

24 Program, and repeal the Major Agricultural Interest Sign

25 Program.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 122

1 The proposed rules were published in the Texas

2 Register on September 9, 2005, and we received two

3 comments. The Railroad Commission of Texas has requested

4 that propane retailers be allowed to participate in the

5 Tourist-Oriented Directional Sign Program. The department

6 declined to accept this comment since propane retailers do

7 not represent a significant or unique tourist attraction,

8 however, these proposed rules would allow gas stations

9 that have propane-refueling capabilities to have a propane

10 legend added to their logo sign.

11 A private citizen requested that the proposed

12 rules be amended to allow the use of an RV-friendly symbol

13 on the logos of those businesses that meet certain

14 requirements for the parking and movement of recreational

15 vehicles on their property. The department agreed with

16 this comment and has incorporated in it the new language.

17 We recommend approval of this minute order.

18 MR. WILLIAMSON: So now we can drink and get

19 plenty of propane on our way, those signs tell us where to

20 do that.

21 MR. LOPEZ: Yes, that's exactly right.

22 MR. WILLIAMSON: This would be Frank Madla's

23 pet project.

24 Members, you've heard the explanation and

25 recommendation. Do we have questions or comments?

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 123

1 MR. HOUGHTON: Move to approve.

2 MS. ANDRADE: Second.

3 MR. WILLIAMSON: You have some thoughts, John?

4 MR. JOHNSON: I don't have any comments, no.

5 MR. WILLIAMSON: I have a motion and a second.

6 All those in favor of the motion will signify by saying

7 aye.

8 (A chorus of ayes.)

9 MR. WILLIAMSON: Opposed, no.

10 (No response.)

11 MR. WILLIAMSON: Motion carries.

12 MR. BEHRENS: Agenda item number 5 is our

13 Transportation Planning minute orders; there are three

14 minute orders and Jim Randall will present those to you.

15 MR. RANDALL: Again, good afternoon,

16 commissioners. Jim Randall, director of the

17 Transportation Planning and Programming Division.

18 Item 5(a), this minute order approves the 2006

19 Statewide Mobility Program of the Unified Transportation

20 Program, or UTP. The UTP is the basic transportation

21 planning document that guides and controls project

22 development and construction for the department.

23 In order to align the UTP with the simplified

24 budget strategies outlined in the Strategic Plan, the

25 department has divided the UTP into two documents: the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 124

1 Statewide Preservation Program and the Statewide Mobility

2 Program.

3 The Statewide Mobility Program is part of the

4 BUILD IT strategy and contains all the department's

5 categories which enhance the transportation system.

6 Additionally, the 2006-2008 Aviation Capital Improvement

7 Program, as recommended by the Aviation Advisory Committee

8 at its August 4, 2005, meeting, is being submitted with

9 the SMP for your consideration.

10 Also included in the SMP are public

11 transportation project listings and program information

12 for 2006 through 2009. Actual transit program allocations

13 and your grant recipients will be approved by future

14 minute orders.

15 The 2006 SMP will authorize over $12 billion in

16 transportation projects through Fiscal Year 2009. Along

17 with the major mobility categories, the SMP will allocate

18 $840 million in new programs for congestion mitigation and

19 air quality funding, STP mobility funding for our eight

20 largest metropolitan areas, district discretionary

21 funding, and other transportation programs for state

22 parks, railroad crossings and landscaping.

23 The 2006 SMP incorporates funding from the

24 recently passed federal transportation bill SAFETEA-LU.

25 As part of SAFETEA-LU, Congress authorized new

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 125

1 congressional high-priority projects for Texas. In the

2 2006 SMP, we will ask the commission to authorize $660

3 million in new federal earmarks for project development

4 and construction.

5 Overall, SAFETEA-LU will provide an estimated

6 $14.5 billion for Texas through Fiscal Year 2009. This is

7 the third such increase over the last federal bill TEA-21.

8 A 30-day comment period regarding the draft

9 2006 SMP ended October 7 with no comments received. With

10 approval of this minute order, the department may continue

11 the project planning and development for Fiscal Year 2006

12 and beyond.

13 Staff recommends approval of this minute order.

14 MR. WILLIAMSON: Now, Jim, you said this would

15 result in what level, what dollar contract level in 2009?

16 MR. RANDALL: In 2009 we're probably looking at

17 at least $3 billion. This is $12 billion over the four-

18 year period, 2006 through 2009.

19 MR. WILLIAMSON: And how does that compare with

20 say the current year?

21 MR. RANDALL: I believe we're over that right

22 now as far as we're in the $3- to $4 billion, I believe,

23 as far as actual letting.

24 MR. WILLIAMSON: So by inference, the plan

25 itself doesn't anticipate what changes might occur at the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 126

1 local or regional level, nor what concessions the regions

2 might be executing.

3 Members, you've heard the explanation and the

4 recommendation. Do you have questions or comments?

5 MR. JOHNSON: So moved.

6 MR. HOUGHTON: Second.

7 MR. WILLIAMSON: I have a motion and a second.

8 All those in favor will signify by saying aye.

9 (A chorus of ayes.)

10 MR. WILLIAMSON: All opposed, no.

11 (No response.)

12 MR. WILLIAMSON: Motion carries.

13 MR. RANDALL: Thank you, sir.

14 Item 5(b), this minute order approves the 2005

15 Texas Rail System Plan and plan summary. The purpose of

16 the plan is to identify current and proposed rail

17 projects, determine infrastructure and capacity needs on

18 the Texas rail system, and to develop an awareness of the

19 issues and processes by which to address transportation

20 needs by policy-makers around the state.

21 The plan focuses on major rail relocations and

22 improvements to the state's rail system that provide

23 public benefits related to improved safety, reliable

24 mobility, economic vitality and system preservation.

25 House Bill 3588 and House Bill 2702 passed by

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 127

1 the 78th and 79th Texas legislatures, respectively,

2 broadened the department's responsibility concerning rail

3 facilities.

4 In an August 31, 2005, letter to the Federal

5 Railroad Administration, Governor Rick Perry designated

6 the department as the agency that will administer and

7 coordinate Texas's participation in rail-planning

8 activities and responsibilities as required by federal

9 regulations.

10 A public hearing notice was published in the

11 Texas Register on September 9, 2005, with comments

12 accepted through October 10, 2005. A public hearing on

13 the plan was held in Austin on September 23, 2005. Six

14 oral comments and 34 written comments were received, and a

15 summary of the comments and responses is shown as Exhibit

16 A.

17 I might also mention yesterday we received a

18 letter from Speaker Craddick also supporting the Rail

19 Plan.

20 Upon approval of this minute order, the 2005

21 Texas Rail System Plan will be submitted to the Federal

22 Railroad Administration through the Federal Highway

23 Division office.

24 Staff recommends your approval of this minute

25 order.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 128

1 MR. WILLIAMSON: I was just reading through

2 some of the comments. You didn't just print all the nice

3 ones, did you?

4 MR. RANDALL: Oh, no, sir. Go back to the

5 back.

6 MR. WILLIAMSON: Oh, there's some in back? I

7 didn't get there yet.

8 MR. RANDALL: As far as the comments they were

9 basically that they were pleased that we have the plan,

10 they were encouraged with and wanted us to put a little

11 more emphasis on passenger rail, especially high-speed

12 passenger rail. And of course, we got various comments on

13 supporting various corridors around the state. They

14 encouraged safety, also encouraged us looking at new

15 technologies to implement in the future.

16 One of them recommended that we reroute

17 existing proposed corridor beyond the existing one. This

18 was, I believe, out in the Coupland area those folks would

19 like to see us go farther out to the east if we could,

20 consider maybe rerouting that area.

21 Also, we made two slight revisions in the

22 document itself. We had mistakenly included a designation

23 of major metropolitan districts, leaving out Corpus and

24 Lubbock, and they showed us the error of our ways, so we

25 removed that reference from the report and the map,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 129

1 corrected that. Also, some mistake over affiliations we

2 needed to update.

3 MR. WILLIAMSON: Okay, members, you've heard

4 the explanation and recommendation. Do you have questions

5 or comments?

6 MR. HOUGHTON: So moved.

7 MS. ANDRADE: Second.

8 MR. WILLIAMSON: I have a motion and a second.

9 All those in favor of the motion will signify by saying

10 aye.

11 (A chorus of ayes.)

12 MR. WILLIAMSON: All opposed, no.

13 (No response.)

14 MR. WILLIAMSON: Motion carries.

15 MR. RANDALL: Item 5(c), this minute order

16 recommends the approval of five applications --

17 MR. WILLIAMSON: Isn't it amazing that we're

18 talking about rail? It's amazing. Six years ago, who'd

19 have thought we'd be talking about rail? It's amazing.

20 Go ahead.

21 MR. RANDALL: Okay, sir. We recommend the

22 approval of five applications seeking to deviate from

23 statutes on railroad safety that concern minimum clearance

24 distances between railroad tracks and structures.

25 On October 1, 2005, the department assumed all

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 130

1 powers and duties of the Texas Railroad Commission that

2 relates to railroads and the regulation of railroads, and

3 with the new law established by House Bill 2702, the

4 department is authorized to perform any act and issues in

5 your rules in orders permitted by the Federal Railroad

6 Safety Act of 1970.

7 Five applications concerning railroad safety

8 were filed with the Railroad Commission that are now

9 pending before the department. The applicants have

10 provided information such as plans, site restrictions and

11 photographs to describe obstructions within clearance

12 zones and the relative locations of existing and proposed

13 rail facilities.

14 A summary of the applicant information and

15 their requested railroad clearance deviations is shown in

16 Exhibit A. Each applicant has requested a deviation from

17 requirements specifying the minimum clearance between

18 railroad tracks and structures.

19 All plans and sites have been requested and

20 reviewed by department rail safety inspectors. The claims

21 for deviation requests have been reviewed and are

22 recommended for approval with specific qualifying

23 conditions.

24 Department rail safety inspectors will conduct

25 follow-up site visits to ensure the qualifying conditions,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 131

1 such as warning signs, lighted signs and other safety

2 features are installed as outlined in their applications.

3 Inspectors will also ensure that the servicing railroad

4 companies are notified of the clearance deviations.

5 Your approval will allow for greater, more

6 cost-effective use of these rail facilities while ensuring

7 the safety of railroad employees and facilities.

8 Staff recommends approval of this minute order.

9 MR. WILLIAMSON: This includes the item the

10 governor wrote us about with regard to cement?

11 MR. RANDALL: Yes, sir. There were five

12 applications pending that came over to us effective

13 October 1.

14 MR. WILLIAMSON: Mike, how bad is the cement

15 shortage impacting us on our construction business?

16 MR. BEHRENS: I think it's somewhat better but

17 there still are some contracts where they're still having

18 to get in line to get some cement, but I don't think it's

19 as bad as it was several years ago. But I think it's

20 probably if you have a bigger concrete business like some

21 of our contractors, they probably have some priorities.

22 If you're a small person, it probably is more of an

23 impact. Say the individual that goes out, he might have

24 to wait in line while large pours are being made.

25 MR. WILLIAMSON: Members, you've heard the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 132

1 explanation and the recommendation. Do you have questions

2 or comments?

3 MR. HOUGHTON: Move to approve.

4 MR. JOHNSON: Second.

5 MR. WILLIAMSON: I have a motion and a second.

6 All those in favor of the motion will signify by saying

7 aye.

8 (A chorus of ayes.)

9 MR. WILLIAMSON: All opposed, no.

10 (No response.)

11 MR. WILLIAMSON: Motion carries

12 MR. BEHRENS: Agenda item number 6 concerns

13 toll projects. We'll have Doug come back up, and there's

14 three minute orders concerning Bexar County and the Alamo

15 Regional Mobility Authority, and then one concerning our

16 quarterly report concerning Travis and Williamson counties

17 on the Central Texas Turnpike System. Doug?

18 MR. WOODALL: Good afternoon again. My name is

19 Doug Woodall with the Turnpike Division.

20 Item 6(a), the minute order grants final

21 approval of a request by the Alamo RMA for financial

22 assistance in the amount of $1 million to enable them to

23 participate in the CDA procurement process on the US

24 281/Loop 1604 project, and also allow the RMA to obtain

25 engineering, financial and legal services for project

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 133

1 development and developmental financial terms proposed by

2 the Alamo RMA for inclusion in the CDA.

3 This minute order also directs the executive

4 director to implement the actions authorized and required

5 by these provisions.

6 Staff recommends your approval.

7 MR. WILLIAMSON: Why?

8 MR. WOODALL: To allow for participation of the

9 Alamo RMA with the Department of Transportation on this

10 project.

11 MR. WILLIAMSON: You're good. He only skipped

12 one beat.

13 (General laughter.)

14 MR. WILLIAMSON: We have the Honorable Dr.

15 Thornton with us, but if you don't mind, we'll lay out all

16 three and then speak about all three after all three are

17 laid out, if that's okay with you.

18 Is that okay, Richard?

19 MR. MONROE: Yes, sir.

20 MR. WILLIAMSON: Amadeo, can I talk with you a

21 moment, please? I'm sure the members have questions

22 besides myself, but I need to clarify something.

23 I'm keenly aware that when we do things we're

24 basically laying the groundwork to treat everybody the

25 same in the future, and I'm for all doing this, but I just

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 134

1 want to be sure I understand.

2 MR. SAENZ: For the record, Amadeo Saenz,

3 assistant executive director for Engineering Operations.

4 What we're doing here is we're working closely

5 in partnership with the Alamo RMA in the evaluation of the

6 CDA proposals that were received for the toll system

7 project on US 281 and Loop 1604. These toll equity

8 requests for $1 million will be allowed so that the Alamo

9 RMA staff can have resources to help us in the evaluation.

10 We're treating this toll equity request as a

11 loan with the understanding that we will have a success

12 story. If we have a success story, then the money that we

13 have basically provided to the RMA for their evaluation

14 can be paid back to the department so that we can then

15 have that money to be used for the development of other

16 potential projects across the state.

17 MR. WILLIAMSON: So if you're the Nueces RMA

18 some day, or you're the Coastal Bend RMA, and you're in

19 the process of thinking about your first project and

20 Kiewit comes along and proposes a CDA, much the same way

21 as the Cintra or Zachry American did to Alamo, we're

22 basically saying to the Coastal Bend RMA we're sitting

23 here ready to advance you the money to help you analyze it

24 along with us.

25 MR. SAENZ: Yes, sir.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 135

1 MR. WILLIAMSON: By habit, we're not going to

2 treat one area different from another.

3 MR. SAENZ: No, sir. We're going to basically

4 treat every area the same. We will advance you the money

5 so that you have the resources to be able to evaluate,

6 whether you're evaluating as part of the team, both of us

7 together, or if the project team be you as an RMA that was

8 independent, it could have a toll equity request for doing

9 the evaluation, but then as you go to closing and you go

10 out there and either get a concession fee back to the RMA

11 or you go out there and do your bond issuance to finance

12 the project, and at that point then you would basically

13 reimburse the department so that we would basically have

14 that money to be used elsewhere across the state.

15 MR. WILLIAMSON: And how will your

16 recommendation as the lead staff person differ if Kiewit

17 makes that proposal to the Coastal Bend RMA, not to us?

18 MR. SAENZ: It will work the same way. If the

19 RMA had already selected the project and were moving

20 forward with the project and they needed assistance for

21 the preliminary development and selection of a potential

22 concession, they would be doing the work, they would be

23 taking the lead, they can still come back and ask for toll

24 equity and we would treat it exactly the same.

25 But when they finish and go through their

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 136

1 process and do select someone to do the project, whether

2 they get a concession or they go through a bond issuance

3 where they get the resources to pay for the project as a

4 design-build project, and at that point that money could

5 be reimbursed back to the department. So it works the

6 same way, whether we're lead or they're lead.

7 MR. WILLIAMSON: Members, you've heard the

8 staff's explanation and recommendation and Amadeo has

9 answered my questions. Before I ask staff to lay out the

10 next one, do you want to ask questions about this, or do

11 you want to wait and hear them all?

12 MR. JOHNSON: Hear them all.

13 MR. WILLIAMSON: Okay, thank you, Amadeo.

14 Mike, if you don't mind, let's go ahead and lay

15 all three of them out and let Dr. Thornton speak.

16 MR. WOODALL: Item 6(b), this minute order

17 grants preliminary approval for the executive director to

18 negotiate and develop an agreement with the Alamo RMA for

19 the planning, financing, and potential design,

20 construction, operation and maintenance of several

21 projects by the Alamo RMA.

22 This will also include a license of state-owned

23 right of way to the Alamo RMA for the purpose of

24 developing these potential projects. These projects are

25 from the Bexar-Guadalupe County line down to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 137

1 Interstate 37 in the San Antonio Central Business

2 District, State Highway 16 west from Interstate Loop 410

3 to Loop 1604 north, and the US 281/Wurzbach Parkway

4 interchange.

5 This minute order also directs the executive

6 director to present the draft agreement to the commission

7 for its future consideration.

8 MR. WILLIAMSON: Again, members, want to

9 question and comment now or wait for the third? Okay, go

10 ahead.

11 MR. WOODALL: 6(c), this minute order will

12 grant preliminary approval of a request by the Alamo RMA

13 for financing in the amount of up to $7.5 million, also in

14 the form of a loan. The requested assistance will be

15 utilized for project-related work performed by the Alamo

16 RMA staff and administration, as well as legal, financial

17 and engineering consulting, for the purpose of developing

18 preliminary feasibility, environmental, public

19 involvement, schematics and preliminary financial plans.

20 The assistance may also include plans, specifications and

21 estimates, as needed.

22 The initial projects will include adding

23 capacity on the projects in the previous minute order:

24 Interstate 35, State Highway 16, and the US 281/Wurzbach

25 Parkway interchange.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 138

1 This minute order also directs the executive

2 director to implement the actions authorized and required

3 by those provisions.

4 MR. WILLIAMSON: Do you have questions?

5 (No response.)

6 MR. WILLIAMSON: Okay. We have as our witness

7 the Honorable Dr. Bill Thornton, who is the chair of the

8 Alamo Regional RMA. Bill, good morning, sir.

9 DR. THORNTON: Hi, Ric. How are you doing?

10 MR. WILLIAMSON: Fine. How are you?

11 DR. THORNTON: Hope, in all this misery of

12 athletic teams, you should remind them that San Antonio is

13 the home of the World Champion Spurs. We don't worry

14 about chalk and things like that.

15 (General laughter.)

16 DR. THORNTON: Let me say to Corpus Christi, as

17 a former mayor, former chairman of our chamber, the things

18 I heard this morning are very exciting, and I will tell

19 you clearly that those decision-makers in San Antonio, led

20 by primarily our Commissioner Hope Andrade, we look

21 forward to working with Corpus Christi and doing it in a

22 regional way, as you mentioned several times, to benefit

23 the people of Texas. It's very exciting what you're

24 doing. Congratulations.

25 Ric, I think we're seeing that vision you and I

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 139

1 talked about once casually and the governor's plan to

2 involve local involvement in addressing congestion

3 problems. This action today is a major step forward in

4 accomplishing that and taking it to a reality, and I think

5 it will be an exemplary act that you take here, and we

6 will take this very seriously and do a very good job.

7 These three items are significant. I remember,

8 Commissioner, and you said this is going to be a

9 challenging task, and we know that it is, and we take that

10 very seriously. But it also then binds us more closely,

11 which I talked about at your meeting in Austin. What

12 we're recognizing, I think, even more as you take this

13 action today is our partnership, our proper relationship

14 with TxDOT, that being the RMA and TxDOT.

15 As we talked about, we'll be using your right

16 of ways, we're using your resources, we will fit into your

17 system, we will fit into the interoperability of these

18 toll projects around the state. You clearly are what

19 binds all of this together, yet you, I think, very wisely

20 and generously allow for local participation.

21 This partnership is developing now with people,

22 not just documents and dollars, and I will tell you that

23 our engineer -- I call him ours -- David Casteel and his

24 staff, have done an exceptional job in bringing us into

25 this. And also Amadeo Saenz which we've talked personally

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 140

1 several times just simply to say thank you for the way

2 we're being managed, and this partnership is being

3 nurtured, I think, very, very well.

4 Let me say our community, since our meeting in

5 Austin last month when other polls were coming from other

6 communities, our community of those citizens who live

7 closest to this project are supporting these efforts at

8 the rate of 62 percent. That's a good estimate, and

9 that's before we've even started putting our message out

10 of the benefits of acceleration of these projects and

11 moving them along much quicker.

12 The task is before us. If you vote favorably

13 on this, you've given us an opportunity. We're here to

14 say thank you for that. The resources are tremendously

15 important for us. Every dollar we're spending is a loan

16 borrowed from the city and the county to this point and

17 then from TxDOT here.

18 Let me just add parenthetically, some way in

19 there, if there are ways to find some of our just day-to-

20 day, turning on the lights and paying the phone bills,

21 that would be helpful too, but clearly these are funds to

22 carry us through these major projects.

23 This nascent movement of RMAs, I promised you

24 several months ago we would become your favorite one and

25 that we would try to be a model for those who would

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 141

1 follow, and we do share advice with other RMAs that call

2 us. We take this very seriously and we're saying thank

3 you.

4 I will also tell you this, first one -- and I

5 mentioned this to Amadeo -- that we're going through with

6 your leadership -- and this, Commissioner Houghton, goes

7 back to what you were talking about -- as we look at these

8 future three projects, we will not look for separation

9 from TxDOT but rather we will be looking for more

10 partnering with TxDOT as we do any of our functions in the

11 future. We recognize how closely tied we are.

12 So we hope for a favorable vote on these and we

13 promise to do some good work for you, Mr. Chairman.

14 MR. WILLIAMSON: I appreciate those kind words,

15 Bill. You've worked hard and I think we've all

16 demonstrated patience as we go through the rough spots.

17 Tell me, it appears to me -- it could be a good

18 friend of mine once said you tend to project to the public

19 that which you wish to occur, you have to be careful about

20 that -- but it appears to me that almost suddenly across

21 the state people have kind of blinked twice and said,

22 Well, you know what, we don't have any money, I guess we

23 really do have to do this. It doesn't seem to have near

24 the emotional negativism that I saw even a couple of

25 months ago. It's almost like overnight people have kind

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 142

1 of opened their eyes and said, Look, it's either

2 congestion or pay for it; don't think it really matters,

3 gas tax or tolls, you've got to pay for it.

4 Are you seeing that in the San Antonio area?

5 DR. THORNTON: We are. Our polling shows and

6 our meetings with the citizens groups, if someone is

7 finally confronted with the truth of limitation of

8 funds -- and I point it out, I said, TxDOT is spending

9 money in San Antonio, 410 and I-10, 410 and 281, I-10 as

10 it comes into the downtown, hundreds and hundreds and

11 hundreds of millions of dollars, TxDOT is spending in San

12 Antonio. Now, if you want further dollars spent, we're

13 going to have to bring new dollars for these projects to

14 be accelerated. And people understand that.

15 If they recognize an effort, a tremendous

16 effort is being made but if we want more, we're going to

17 have to bring new dollars. And if you give them the

18 choice: raise your taxes, isn't going to happen; raise

19 your gas tax, I don't believe will happen. And both of

20 those are not choices, they are impositions, and everybody

21 in Bexar County will pay those when you fill your car or

22 pay your taxes, as opposed to tolling which is a choice

23 and only those who benefit from the improvement will pay.

24 So I think the vision, the creation of what

25 you've done several years ago -- and that's why I say this

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 143

1 nascent movement -- it's going to be received well if

2 people understand. And if we can get 62 percent of the

3 people before we send our message out, Commissioner

4 Andrade, already 62 percent, when we get the message out,

5 it's going to be much less volatile, it will be a welcome

6 approach to solving these problems in our cities.

7 MR. WILLIAMSON: Well, it just seems to me

8 like -- and I was talking with Mike last night -- I travel

9 the state a lot and just almost overnight it's changed,

10 it's been remarkable.

11 DR. THORNTON: You have served in elected

12 office. There are always those who say no, there are

13 always those who say no.

14 MR. WILLIAMSON: The easy way out, grabbing the

15 Road Fairy.

16 DR. THORNTON: But I will tell you, this effort

17 that you are giving us an opportunity to participate in

18 addresses these problems, I think, very fairly and very

19 effectively, and you involve local participation. It's a

20 very creative, farsighted way to do it.

21 MR. WILLIAMSON: Members, we've got three

22 minute orders before us, and you've heard staff's

23 explanation and recommendation and the witness speaks on

24 all three. Are there questions or comments of the

25 witness?

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 144

1 MS. ANDRADE: I'd like to make a comment.

2 Chairman Thornton, it's great to see these agenda items,

3 and I'm pleased at what we finally have arrived, and I

4 know that we've been through some rocky roads together,

5 but at the end I knew I was confident that it would all

6 work out. I think it was just the infancy of the RMA, and

7 as a parent, I think that we still wanted to make sure

8 that it was going to be okay.

9 And as a parent also, I'll tell you that you

10 are my favorite RMA, but we parents have a way of showing

11 that all of our children are our favorites, so Cameron

12 County is also our favorite RMA and so forth.

13 But thank you for your leadership, thank you

14 for hanging in there with us, and I'm glad that we're

15 going to make this loan, and I think it proves our

16 commitment to keep you involved in the decision making.

17 So thank you for your patience in all this.

18 MR. THORNTON: I'm not an engineer, but any

19 great road that's going to last a long time is going to

20 have to have some dirt moved and some disruption of

21 people's lives to get a foundation. We established a firm

22 foundation to build something that will last long beyond

23 my time. I tell people all the time: we will not see the

24 benefits of RMAs and their ability to address problems in

25 the future, but it's on a firm, firm foundation.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 145

1 Thank you to you, Hope, and Mr. Chairman, to

2 you.

3 MS. ANDRADE: Thank you.

4 MR. WILLIAMSON: Ted, did you have anything?

5 MR. HOUGHTON: The message that I've been

6 preaching -- it sounds like I'm preaching -- across the

7 state is One Texas, and Mr. Chairman, that message I've

8 taken to Houston Monday that we are One Texas, as Houston

9 goes, goes the state, as Dallas goes, goes the state, and

10 no one is bigger than the state of Texas. And I look

11 forward to working with the Alamo RMA as well as all the

12 other RMAs, and this is a dynamic state, it's incredible

13 what we've got going. And when we look at as the whole,

14 the whole is bigger than the pieces, if the pieces start

15 falling apart, we're in trouble.

16 So with that said, it's going to be lot of fun.

17 There's a lot of heavy lifting but it's a lot of fun

18 heavy lifting. Look forward to working with you.

19 MR. WILLIAMSON: John?

20 MR. JOHNSON: I listened to a conversation

21 between a reporter and one of the members of the

22 commission, and I was under the impression this item was

23 going to be deferred.

24 MR. WILLIAMSON: We were just trying to pull

25 that reporter's leg.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 146

1 MR. JOHNSON: Oh, so I didn't hear that

2 accurately?

3 DR. THORNTON: That's not funny, sir.

4 (General laughter.)

5 MR. WILLIAMSON: Well, you know, is this as big

6 as CTRMA, Bob, the initial projects at the Alamo, are they

7 bigger than the initial projects at CTRMA.

8 MR. DAIGH: Everything is always bigger in

9 Austin, sir.

10 DR. THORNTON: That's slow-pitch softball,

11 isn't it.

12 (General laughter.)

13 MR. DAIGH: This is substantially larger than

14 the CTRMA.

15 MR. WILLIAMSON: So this will be basically the

16 next step, this will be our largest RMA effort now.

17 MR. DAIGH: Yes, sir, but we'll be back.

18 (General laughter.)

19 MR. WILLIAMSON: Bill, I want to thank you for

20 pointing out about the state's commitment in regular gas

21 tax dollars, because that does get lost in the background

22 noise. And I know Patrick and Ben in Austin and other

23 guys in North Texas, they've got to write about what

24 they've got to write about, but no one has stopped

25 investing gas tax money in Travis County, in Bexar County,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 147

1 in Harris County, in Dallas and Tarrant counties. I'm

2 thinking that we've let something like $400 million so far

3 in gas-tax-related construction projects in Bexar County.

4 We're going to keep on doing that, it's just a

5 question of no road, slow road, or the toll road. If you

6 want to get it faster and if you want the economic

7 opportunity, the congestion relief, the improvement of air

8 quality and safety that comes with it, then this is the

9 choices that we make.

10 DR. THORNTON: You are doing a lot of work in

11 San Antonio for which we're grateful.

12 MR. WILLIAMSON: Thanks for coming all the way

13 down here, we appreciate it, and we appreciate your

14 comments.

15 DR. THORNTON: Thank you, sir.

16 MR. WILLIAMSON: Members, do we have questions

17 or comments to staff?

18 (No response.)

19 MR. WILLIAMSON: Well, Mike, let's bring the

20 first one forward, please, sir. It's item what now?

21 MR. BEHRENS: 6(a).

22 MR. WILLIAMSON: I have item 6(a) before you,

23 members.

24 MS. ANDRADE: So moved.

25 MR. HOUGHTON: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 148

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor of the motion will signify by saying

3 aye.

4 (A chorus of ayes.)

5 MR. WILLIAMSON: All opposed, no.

6 (No response.)

7 MR. WILLIAMSON: Motion carries. I have item

8 6(b) before you.

9 MS. ANDRADE: So moved.

10 MR. HOUGHTON: Second.

11 MR. WILLIAMSON: I have a motion and a second.

12 All those in favor of the motion will signify by saying

13 aye.

14 (A chorus of ayes.)

15 MR. WILLIAMSON: All oppose, no.

16 (No response.)

17 MR. WILLIAMSON: Motion carries. And now I

18 have item 6(c) before you.

19 MS. ANDRADE: So moved.

20 MR. HOUGHTON: Second.

21 MR. WILLIAMSON: I have a motion and a second.

22 All those in favor of the motion will signify by saying

23 aye.

24 (A chorus of ayes.)

25 MR. WILLIAMSON: All opposed, no.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 149

1 (No response.)

2 MR. WILLIAMSON: Motion carries all three times

3 on the very capable and strong back of Hope Andrade.

4 Thank you, guys. Let's go forward and build

5 some roads. Hey, the real fun is going to be when we

6 figure out how to move that railroad out of downtown San

7 Antonio and Austin. That's going to be fun. If we get

8 Proposition 1 passed, we'll get that done first.

9 MR. BEHRENS: Okay, Doug, let's go to 6(d).

10 MR. WOODALL: Item 6(d) seeks your acceptance

11 of the General Engineering Consultant's quarterly progress

12 report for the Central Texas Turnpike Project. The

13 project is on schedule; it's open to traffic with

14 construction completion on or before December 2007.

15 The estimated completion cost is currently $437

16 million lower than the original GEC's projections. The

17 current costs are estimated to be approximately $2.5

18 billion compared to approximately $2.9 billion in the

19 original GEC report.

20 Some progress items to mention since the last

21 report. On Sections 1 and 2 which is the MoPac North

22 extension, the southbound frontage roads and major utility

23 tie-ins are completed, and that frontage road facility is

24 open to traffic. On Section 8 which is east from the

25 Parmer Lane/620 interchange over 183, the westbound

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 150

1 frontage road is completed and open to traffic. The

2 traffic switches allow mobility along the corridor while

3 facilitating completion of the main lanes, allowing more

4 room for completion of the main lanes.

5 On State Highway 130, some milestones on 130

6 with the opening of the State Highway 195 bridge over

7 Interstate 35. Also construction has begun on three main

8 lane toll plazas and eight ramp plazas. Substructural

9 work has being completed at three of the interchanges and

10 the largest utility relocation along the project in terms

11 of scope was completed, that's a reroute of the TXU

12 utility line along FM 685, and that has been completed

13 under this quarterly report.

14 As far as the right of way, a total of 411

15 parcels were required for construction; 329 of those

16 parcels are now available for construction; the remaining

17 82 parcels are primarily corner clips, slivers and minor

18 acquisitions. Segments 1, 2 and 3 of State Highway 130

19 are under construction and scheduled to be completed prior

20 to September of '07, and Segment 4 they're anticipating

21 initiating construction this December and will be

22 completed with that segment on or prior to December of

23 2007.

24 Staff recommends your approval of the quarterly

25 report.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 151

1 MR. WILLIAMSON: Members, you've heard the

2 explanation and recommendation. Do you have questions or

3 comments?

4 MR. JOHNSON: I have a question.

5 MR. WILLIAMSON: Mr. Johnson.

6 MR. JOHNSON: Doug, concerning the

7 interoperability of electronic tolling of our other toll

8 systems around the state, are we satisfied that we are

9 well advanced in making sure that all these systems are

10 interoperable, especially the CTTP?

11 MR. WOODALL: In discussions with Mr. David

12 Powell of the Turnpike Division, it's my understanding we

13 obviously have agreements with the existing toll

14 authorities and have numerous options available to us for

15 the advancing RMAs, their projects, and we feel confident

16 that we'll have interoperability on every system.

17 MR. JOHNSON: Well, you know, agreements are

18 one thing but the actual interoperability of the toll tags

19 and the readers and the toll plazas is another. We need

20 to make sure that everything works.

21 MR. WOODALL: Yes, sir. And the tags that we

22 have in place and I believe in August you approved the CDA

23 for systems integration, and that system that's proposed

24 under there would be interoperable with the existing

25 systems in place. So we think we're well on our way to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 152

1 achieving interoperability.

2 MR. JOHNSON: Good. Thank you.

3 MR. WILLIAMSON: Other questions or comments?

4 (No response.)

5 MR. JOHNSON: So moved.

6 MR. HOUGHTON: Second.

7 MR. WILLIAMSON: I have a motion and a second.

8 All those in favor of the motion will signify by saying

9 aye.

10 (A chorus of ayes.)

11 MR. WILLIAMSON: All opposed, no.

12 (No response.)

13 MR. WILLIAMSON: Motion carries.

14 MR. WOODALL: Thank you very much.

15 MR. WILLIAMSON: That wasn't too bad, was it?

16 MR. WOODALL: No, sir, not at all.

17 MR. BEHRENS: Agenda item number 7 under

18 Finance will be the Quarterly Investment Report for that

19 same Central Texas Turnpike System. James?

20 MR. WILLIAMSON: James, I'm glad you finally

21 decided to travel with us for once.

22 MR. BASS: Mr. Munoz was busy today.

23 For the record, I'm James Bass, director of

24 Finance at TxDOT.

25 Agenda item 7 presents the Quarterly Investment

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 153

1 Report for the fourth quarter of Fiscal Year 2005 which

2 ended on August 31.

3 At the end of August, the balance of investment

4 funds for the 2002 project stood at $1-1/4 billion. The

5 detail of those investments have been provided to you in

6 the quarterly report.

7 Staff recommends your acceptance of the report

8 and will be glad to answer any questions you may have.

9 MR. WILLIAMSON: Did we buy natural gas futures

10 with some of that money?

11 MR. BASS: No. I don't believe you have

12 allowed that in our investment policy.

13 (General laughter.)

14 MR. WILLIAMSON: Okay, members, you've heard

15 the report and the recommendation. Do you have questions

16 or comments?

17 MR. JOHNSON: So moved.

18 MR. HOUGHTON: Second.

19 MR. WILLIAMSON: I have a motion and a second.

20 All those in favor of the motion will signify by saying

21 aye.

22 (A chorus of ayes.)

23 MR. WILLIAMSON: All opposed, no.

24 (No response.)

25 MR. WILLIAMSON: Motion carries.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 154

1 MR. BEHRENS: Agenda item number 8 concerning

2 pass-through toll financing, we have two minute orders,

3 one requesting that we have the authority to negotiate an

4 agreement, and one to give us the authority to execute a

5 pass-through toll agreement. James?

6 MR. BASS: The first item seeks authorization

7 to begin negotiations with Galveston County on a pass-

8 through toll agreement. The county submitted a pass-

9 through toll proposal providing for improvements to Farm

10 to Market 646.

11 Your approval today would in no way be an

12 agreement to any specific terms but would simply allow the

13 department to begin negotiations with the county in hopes

14 that we would then be able to come back in a future month

15 and provide you with those specific terms for your final

16 consideration at that point.

17 Staff recommends your approval of this minute

18 order.

19 MR. WILLIAMSON: Amadeo? Is this a local road

20 or a regional road or a state road?

21 MR. SAENZ: This is a regional road in

22 Galveston County.

23 MR. WILLIAMSON: Is this solving primarily a

24 local problem, a regional problem, or a state problem?

25 MR. SAENZ: It's solving a regional problem,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 155

1 it's solving some safety issues and some mobility issues.

2 As we go through it and evaluate it further, we'll be

3 able to tell how much of each of those will gain benefit.

4 MR. WILLIAMSON: So it's primarily to reduce

5 congestion and improve safety project?

6 MR. SAENZ: Yes, sir. And this will lead to

7 some economic development in the area by being able to add

8 capacity to this corridor.

9 MR. WILLIAMSON: I'm sure it will assist in

10 economic development but will it provide any additional

11 economic opportunity?

12 MR. SAENZ: I think as we look forward that you

13 allow for this added capacity you will have some economic

14 opportunity for making some changes in the type of

15 development that will be there, for example, if we're

16 building residential there's some potential economic

17 opportunity in more commercial development that would

18 allow the possibility for having some facilities to move

19 into the area that will bring additional jobs.

20 MR. WILLIAMSON: Members, you've heard the

21 presentation and recommendation and heard Amadeo's

22 comments about this particular project. Do you wish to

23 authorize staff to negotiate on this matter?

24 MR. HOUGHTON: So moved.

25 MR. JOHNSON: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 156

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor signify by saying aye.

3 (A chorus of ayes.)

4 MR. WILLIAMSON: All opposed, no.

5 (No response.)

6 MR. WILLIAMSON: Motion carries. Don't get too

7 far, Amadeo.

8 MR. BASS: Item 8(a)(2) seeks your

9 authorization to begin negotiations with Hays County on a

10 pass-through toll agreement. The county has submitted a

11 pass-through toll proposal providing for improvements to

12 US 290, Ranch to Market 12, Farm to Market 1626, and Farm

13 to Market 967.

14 Once again, your approval today would simply

15 give us the authority to begin negotiations and would not

16 be agreement to any specific terms.

17 Staff recommends your approval, and I would

18 like to bring to your attention that Hays County

19 Commissioner Will Conley is in the audience in case you

20 might have any questions for him.

21 MR. WILLIAMSON: Is he the one that is always

22 saying no toll roads under any circumstances?

23 MR. BASS: I'm not so advised.

24 MR. WILLIAMSON: I suspect that's from Comal

25 County, that's not from Hays County.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 157

1 Okay, Amadeo. I'm going to take you through

2 each one, one at a time.

3 MR. SAENZ: Yes, sir.

4 MR. WILLIAMSON: 290, local, regional or state?

5 MR. SAENZ: 290 is a regional and state. In

6 this area where we're talking about here, it's a regional

7 area providing some added capacity and mobility

8 improvements on 290.

9 MR. WILLIAMSON: So as it's used now, this

10 section of 290 is thought to be a regional and a state

11 road?

12 MR. SAENZ: Yes, sir.

13 MR. WILLIAMSON: And is this problem we seek to

14 solve a local, regional or state problem?

15 MR. SAENZ: A regional problem with some

16 statewide issues.

17 MR. WILLIAMSON: And is it primarily focused on

18 which of our five benefits?

19 MR. SAENZ: It will be focused on the reduced

20 congestion; it will focus in the Austin area because

21 they're near non-attainment and to some improvement of air

22 quality; it will be focused on safety that we're going

23 from a four-lane, undivided to a four-lane, divided

24 facility; it will be some congestion relief. So that's

25 four of the five, and of course, economic opportunity will

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 158

1 also come as this corridor gets developed.

2 MR. WILLIAMSON: Farm to Market Road 1626?

3 MR. SAENZ: 1626 and 967 are a major commuter

4 route from the south to the northern part of Hays County

5 in Austin, parallel to 35, so it's a regional road. It

6 will solve a regional problem and allow, I guess, some

7 statewide benefits in that if you have this corridor you

8 could move some traffic off of 35 which is a statewide

9 corridor.

10 MR. WILLIAMSON: So it's primarily congestion

11 relief?

12 MR. SAENZ: It's congestion relief.

13 MR. WILLIAMSON: So would you anticipate an

14 improved level of service for both these roads?

15 MR. SAENZ: Yes, sir. Both these roads that

16 we're building and some slight level of service as traffic

17 moves off of 35 and into this facility that we could see

18 some improvements on 35.

19 MR. WILLIAMSON: Highway 12, the fourth

20 project?

21 MR. SAENZ: Highway 12 is a regional, more

22 local. It's from San Marcos going west and for traffic

23 that travels from the west to San Marcos, to access San

24 Marcos but also 35. So there is some local and some

25 regional, maybe leaning more towards the regional. This

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 159

1 also will solve a safety issue in that it is through the

2 Hill Country area. It will also solve a congestion issue

3 and you have some benefits then for regular access to 35.

4 MR. WILLIAMSON: It's okay to solve a local

5 problem, but it's more a local problem we're solving.

6 MR. SAENZ: Yes, sir.

7 MR. WILLIAMSON: On a regional road.

8 MR. SAENZ: Yes, sir.

9 MR. WILLIAMSON: Members, do you have questions

10 of Mr. Saenz?

11 MR. HOUGHTON: Amadeo, when are these projects

12 slated to be improved in the Unified Transportation Plan?

13 MR. SAENZ: These projects are not currently in

14 the Unified Transportation Plan.

15 MR. HOUGHTON: Not at all?

16 MR. SAENZ: No. Hays County, of course, is

17 part of the CAMPO area and they are not in their short-

18 range plan, they're somewhere in the middle- to the long-

19 range plans. Hays County is very aggressive and has done

20 bond elections and has some resources, and they'd like to

21 partner with us as they develop these projects, either

22 through some partnership money, or some of them, like 290,

23 as well as some pass-through toll opportunities on the

24 other projects.

25 MR. HOUGHTON: What's their total investment

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 160

1 and our commitment? Obviously, ours is a payback over

2 time.

3 MR. SAENZ: Right. We have been in

4 communication with the county. $43 million is the total

5 cost of all the projects, of which they're asking for $33

6 million in pass-through tolls, so they're investing close

7 to $10 million in the proposal. And we will meet with

8 them and discuss the terms and conditions, applying the

9 benefits and the indexes to determine kind of what the

10 final number really is.

11 MR. HOUGHTON: So we don't have a real formal

12 index to analyze the road as to the state issues versus

13 regional issues versus local?

14 MR. SAENZ: No, sir. Some of these indexes

15 we're still in the process of developing to determine what

16 is the actual benefit to air quality. We know that as you

17 add capacity to the road, you add capacity so your volume

18 over capacity ratio improves. When you have a lower

19 volume over capacity ratio, you get an improvement in air

20 quality, so we know there's a benefit there.

21 We also know that if you add capacity to this

22 road and traffic moves to this road can have an impact to

23 the roads around it, both positive and negative, so that

24 could give you a regional or a very wide air quality

25 impact, and we're working to develop those.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 161

1 It's the same thing with some of our congestion

2 indexes and such and so forth.

3 MR. HOUGHTON: I can't see the future but I can

4 sure see what people are maybe starting to think is

5 solving local problems with pass-through financing which

6 may not be in our best interest. That's my view.

7 MR. SAENZ: Yes, sir. We will look into that.

8 I think one way to look into that is that as we go

9 through it, if the road is local and it's only local,

10 maybe the level of investment from the department and the

11 level of investment from the local entity that their

12 shares maybe need to change so that you have more of an

13 equal, so that you can have some kind of balanced level of

14 input into the project.

15 MR. WILLIAMSON: Well, it's a shame that we'd

16 be having this conversation in Corpus Christi and not in

17 Austin, but I hope we'll continue next month in Austin and

18 in December.

19 But you make a good point, Ted, and I think all

20 members have to start focusing on and project to the

21 public our concerns. I'm aware that the department has

22 approached TTI for some help on finalizing the measurement

23 indexes, and I think it's time for us to be talking about

24 them so that Bob Daigh and David Casteel and Craig Clark

25 all understand the criteria.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 162

1 MR. HOUGHTON: The thing is these aren't on the

2 Unified Transportation Plan, they pop up as well, here, we

3 found a road that needs to be improved, where we have this

4 plan out here as major state and regional roads that are

5 sitting out here five or ten years from now and not being

6 brought forward, but we may be solving local issues with

7 state funds and that, in my opinion, may not be in our

8 best interest.

9 MR. WILLIAMSON: But it also might be in our

10 best interest.

11 MR. HOUGHTON: It might.

12 MR. WILLIAMSON: And I haven't asked you about

13 the timeline of solutions, I'll start asking you about

14 that next month. I need for you to be prepared, and in

15 turn, your employees need to be prepared to tell you just

16 straight up is this a local or a regional or a state road,

17 and is this a local problem, a regional problem or a state

18 problem. And next month I'm going to be asking is this

19 solution long-term, short-term, or mid-term, and then

20 we're going to know what the indexes are that measure the

21 impact of the investment.

22 That's the only way we can get to a point that

23 this program will be self-sustaining and is supportable by

24 the legislature.

25 MR. HOUGHTON: Are some of these communities

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 163

1 abandoning these long-term projects or these short-term

2 fixes? I'm sorry, that's a loaded question.

3 MR. SAENZ: Well, I think every proposal is

4 different. These are certainly priorities, for example,

5 in Hays County, these are the priorities they've

6 identified. Unfortunately, through the resources that

7 they have, working through their normal traditional funds

8 that come through the MPO and such, they were not able to

9 fund these projects, so these projects kind of got left

10 behind.

11 MR. HOUGHTON: So they could be circumventing

12 the MPO.

13 MR. SAENZ: Right, and that's where we need to

14 evaluate to see what impact these projects have on the

15 system with respect to the indexes, and that will

16 determine the level of commitment or reimbursement that we

17 can maybe put into these projects to see what happens.

18 There was a time that these projects competed with all the

19 other projects at their level and they did not make that

20 list.

21 MR. HOUGHTON: Didn't make it.

22 MR. SAENZ: Yes, sir.

23 MR. HOUGHTON: And now some communities could

24 be, in fact, circumventing the MPO, they didn't get what

25 they want and they show up here.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 164

1 MR. SAENZ: Yes, sir, and that's the first

2 thing we check because there are some projects that we've

3 received that were in the plan but may have been in the

4 plan somewhere down the road, and so the community wants

5 to advance them because it's a huge project that solves

6 either a local problem or solves a regional problem, some

7 of them are statewide problems. But the area as a whole

8 did not see it as a highest priority so they put it on

9 down, but maybe the regional importance and the local

10 importance are such that the local community will now want

11 to spend money on that project and bring it forward, it's

12 important to them and we're all going to benefit because

13 that asset is put on the ground.

14 MR. WILLIAMSON: Again, not unlike Category 12

15 has been treated in the past, but hopefully towards a

16 little bit more self-control by requiring that the local

17 government put the cash up first and take a chance on

18 whether or not they're going to get their money back very

19 fast.

20 But it was time for us to start having this

21 conversation and we need to spend about three months

22 talking about it.

23 MR. SAENZ: That's why we set some standards as

24 to how much and at what rates we will pay back to make

25 sure that we are going to be paying back based on the

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 165

1 usage. So if the traffic is there, then that repayment

2 will be fast.

3 MR. WILLIAMSON: That poor Hays County

4 commissioner is sitting back there saying, Holy crud, you

5 guys are fixing to bust my deal.

6 MS. ANDRADE: Amadeo, I have a question. And I

7 agree, I think I'd feel much more comfortable when we have

8 guidelines so that when we go into communities and we talk

9 about if it's a local road, this is what we have. But I

10 would ask you, at what point do we start reimbursing them

11 on these pass-throughs?

12 MR. SAENZ: We do not start reimbursing them

13 until the project is completed and open to traffic.

14 MS. ANDRADE: At the end of the year?

15 MR. SAENZ: Well, what we do, once we negotiate

16 it and we come back to you with the terms -- as you'll act

17 on the next item -- then we will execute an agreement.

18 The local entity will go out there and build a project and

19 in that agreement we'll decide whether we're going to

20 reimburse you every six months or once a year, and it's

21 all based on the traffic that uses the facility over that

22 period of time.

23 MS. ANDRADE: Okay, thank you.

24 MR. WILLIAMSON: Just one final question,

25 Amadeo, is this package --

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 166

1 Or maybe you know, Mike -- is this wrapped up

2 in a previous deal we had with Hays County for them to do

3 something else and we wanted done?

4 MR. SAENZ: Yes.

5 MR. WILLIAMSON: I mean, this is a little bit

6 of us holding up our end of the deal?

7 MR. SAENZ: Yes, sir. This is one, as I

8 mentioned, we have been in communication with the county

9 judge, and one of the things that we had suggested to the

10 county is that if they went out there and they did certain

11 things, we would entertain a pass-through toll agreement.

12 MR. WILLIAMSON: Certain things on our

13 statewide long-term system.

14 MR. SAENZ: Yes, sir.

15 MR. WILLIAMSON: Seek a long-term solution to a

16 statewide problem on a statewide road.

17 MR. SAENZ: Yes, sir. So this is tied to that.

18 We will take that into consideration as we move forward.

19 MR. WILLIAMSON: Any other questions or

20 conversations with Amadeo, members?

21 (No response.)

22 MR. WILLIAMSON: You've heard the explanation

23 staff and the recommendation.

24 MR. JOHNSON: So moved.

25 MR. HOUGHTON: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 167

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor of the motion will signify by saying

3 aye.

4 (A chorus of ayes.)

5 MR. WILLIAMSON: All opposed, no.

6 (No response.)

7 MR. WILLIAMSON: Motion carries.

8 MR. BASS: Item 8(b) would authorize the

9 department to enter into a pass-through toll agreement

10 with Williamson County. Under the agreement, the county

11 would initially finance the construction of various

12 improvements.

13 The department would reimburse the county over

14 time based upon the actual traffic on the improved roads

15 at a rate of 10 cents per vehicle mile, with a minimum of

16 just under $7.6 million per year which would lead to a 20-

17 year payback, and a maximum of just under $15.2 million

18 per year which would equate to a payback over a ten-year

19 period, until such time as just under $152 million is

20 reimbursed to the county.

21 There are a couple of things I'd like to point

22 out before moving to the staff recommendation. One of

23 those is a technical correction to the minute order you

24 have before you. The next to the last paragraph on the

25 first page, you will note on the second line it says,

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 168

1 "Through tolls of $152,942,000." That should read

2 "$151,942,000."

3 MR. WILLIAMSON: Oh, they won't mind giving us

4 another million; leave it like it is.

5 MR. BASS: No, this is what we pay them.

6 (General laughter.)

7 MR. BASS: The second thing I would like to

8 point out, from Williamson County with us today, Judge

9 John Doerfler and Commissioner Frankie Limmer are also

10 here in the audience, I believe.

11 MR. WILLIAMSON: Oh, there they are over in the

12 hole. Hey, guys. Where's Krusee? I saw him last night.

13 He must be stuck out in the bay fishing.

14 MR. BASS: And staff would recommend your

15 approval.

16 MR. HOUGHTON: Is this the first one that gets

17 approved, executed?

18 MR. BASS: No. This would be the fourth one

19 that has received final approval with the terms from the

20 commission.

21 MR. WILLIAMSON: Okay, Amadeo, step up and

22 let's go through it. We have done a lot of this already

23 about these projects, so I don't want to drag it out, I

24 just need to be sure that we go through the exercise.

25 Let's take, for example, item number 2 out to

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 169

1 the right, project 2.

2 MR. SAENZ: Project 2?

3 MR. WILLIAMSON: That is clearly a regional

4 road.

5 MR. SAENZ: Item number 1 and number 2 are

6 regional roads but really with statewide implications. US

7 79 in Williamson County is a four-lane, undivided

8 facility.

9 MR. WILLIAMSON: Does it go all the way to A&M?

10 MR. SAENZ: I'm sorry.

11 MR. WILLIAMSON: Does it go to A&M or Hearne?

12 MR. JOHNSON: Jacksonville.

13 MR. WILLIAMSON: Oh, is that the Robert Nichols

14 Express?

15 MR. JOHNSON: It will have a special toll lane

16 for him.

17 MR. WILLIAMSON: That's right, a high-speed

18 toll lane for Robert Nichols.

19 (General laughter.)

20 MR. SAENZ: As you go past into Milam County,

21 then it goes into a four-lane, divided highway with a

22 grass median, so this closes the gap.

23 For this project, like I said, it's regional

24 because it provides regional mobility but it also provides

25 statewide mobility. If you look at the traffic on those

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 170

1 two projects, as you get closer into the Austin are,

2 they're operating at levels of service where you do have

3 congestion. As you get further away, they're operating at

4 a little bit higher level, Cs and Ds, A and B being very

5 good, C and D being fair to good, and E and F being

6 basically you're experiencing congestion.

7 By changing the facility from what I would call

8 a four-lane, undivided with no shoulders to a four-lane,

9 divided with crossovers and left-turn lanes where you

10 control the access to both sides of the highway, you

11 improve that level of service to C in the areas near

12 Austin and to A and B in the areas further away. So in

13 essence, you're improving that whole corridor from a

14 congestion perspective.

15 MR. WILLIAMSON: This has got to be a mid-term

16 to short-term solution, this can't be a long-term solution

17 for that area.

18 MR. SAENZ: This is a mid-term solution. I

19 think eventually the next solution would be the

20 possibility that you would expand and as traffic builds up

21 that this facility would be developed as a potential

22 controlled access facility expressway, with the

23 possibility of future main lanes to be managed lanes or

24 tolled lanes.

25 MR. WILLIAMSON: So has Williamson County done

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 171

1 its traditional fine job of advance planning and acquired

2 enough right of way for those express lanes?

3 MR. SAENZ: This project will be acquiring

4 right of way. We will be working with Williamson County

5 with respect to the amount of right of way so that we do

6 have it.

7 One of the other projects that we'll talk

8 about, the 183 project, is regional for the projects we're

9 talking about, but the 183 also has very significant

10 statewide implications. But that project, what is simply

11 being done right now is getting the right of way, widen

12 out and build only the frontage so that in the future you

13 can expand the main lanes as tolled lanes, and it will tie

14 into the 183A system that is currently being developed by

15 the CTRMA.

16 MR. WILLIAMSON: I just want to be sure on that

17 with regard to particularly the 79 part, that we've either

18 negotiated with them to be sure and get the right of way

19 bigger or we ourselves are going to go out and buy bigger

20 right of way, because you can never buy it cheaper than

21 right now.

22 MR. SAENZ: Yes, sir. The right of way is a

23 big expense on those projects, and we negotiated and I

24 will verify that, but I'm sure that we are buying enough

25 right of way to be able to address the future expansion.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 172

1 The other projects are more regional and local,

2 the project on 1660 and 2338. For example, the 1660

3 project, is the realignment of an existing farm to market

4 road, and this will allow for, in essence, almost a bypass

5 around Hutto that will improve safety, mobility, move

6 commercial traffic out of the downtown area of Hutto

7 because 1660 goes through Hutto. So it will improve

8 safety, it will improve mobility.

9 All these projects, as you add the capacity, as

10 I mentioned earlier, will have a positive impact on air

11 quality. I don't have what the measure is but that's

12 something that's being developed.

13 So all these projects will meet all of the

14 factors that we've been talking about and have a positive

15 impact for the whole area.

16 The 2338 is also a major arterial that's going

17 from a two-lane highway to a five-lane, curb-and-gutter

18 rural facility with left turns. It will improve mobility,

19 it will reduce congestion. That one, for example, is

20 currently operating at level F which is basically almost

21 gridlock. By expanding the extra lanes and putting in

22 your left-turn lane, you, in essence, improve that level

23 of service to B. So you have now a facility that will

24 operate. That is, like I said, a local-regional facility.

25 MR. WILLIAMSON: Let's let members ask

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 173

1 questions, Amadeo.

2 Members, questions or comments for Amadeo?

3 MR. HOUGHTON: Mine is the same one, the

4 Unified Transportation Plan, were these in the plan or did

5 these just pop up because they were not approved?

6 MR. SAENZ: These projects were in the long-

7 range plan but were out in past the ten-year mark, more

8 into the longer term. And again, Williamson County has

9 gone through and they're willing to go out there and bring

10 these assets forward.

11 MR. HOUGHTON: So our investment is $151

12 million.

13 MR. SAENZ: Right, $151-. Their original

14 request was $174-, and we're at $151,942,000, $152-, and

15 we would pay it over a ten-year period, so we would

16 probably start paying in 2010, and if the traffic is such,

17 we would pay it in a minimum of ten years so we would pay

18 out by 2020, but if the traffic is not there, then it

19 really would be stretched out till 2030.

20 MR. WILLIAMSON: Krusee's original request was

21 like $600 million; this is pared way down.

22 MR. HOUGHTON: They're willing to vote for

23 bonds in Williamson County for $600 million?

24 MR. WILLIAMSON: Mike is an aggressive guy.

25 (General laughter.)

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 174

1 MR. SAENZ: What James brought before you when

2 we presented the original submittal, it was presented with

3 a lot more projects, but working with Williamson County

4 and their folks, they decided to break it up into a Phase

5 1 and Phase 2.

6 MR. WILLIAMSON: And I might have been

7 overstating it. How close was it? It was much bigger

8 than this originally, was it not?

9 MR. SAENZ: It was like $272- or something like

10 that.

11 MR. WILLIAMSON: Okay, $272-. $600- was what

12 he dreamed about. I like Krusee, he's not afraid of

13 anything.

14 Any other questions of Amadeo?

15 MR. SAENZ: Just a few more statistics with

16 respect to the safety index and looking at the crash rates

17 for these facilities. A four-lane, undivided facility,

18 for example, on 79, the crash rates on 79 which is the

19 number of accidents per 100 million vehicle miles, is

20 running about in the 100 to 110. If you look at the

21 statewide average for similar roads, that's pretty close

22 to the statewide average.

23 That piece of 79 that is towards the Milam

24 County line, between 1999 and 2001 had six fatalities.

25 Going to a four-lane, divided highway will certainly

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 175

1 improve that because now you have, in essence, separated

2 the traffic. Right now you've got four lanes and no

3 shoulder, so if someone wants to turn left, they're

4 turning left just immediately next to the oncoming

5 traffic, and now you'll be able to control that with left-

6 turn lanes and crossovers.

7 So those projects, from the safety index, have

8 a great improvement in safety.

9 MR. WILLIAMSON: Any other questions of Amadeo,

10 members?

11 (No response.)

12 MR. WILLIAMSON: James is back up. James has

13 given you his explanation and his recommendation.

14 MR. BASS: With a minor revision.

15 MR. WILLIAMSON: As revised.

16 MR. JOHNSON: So moved.

17 MR. HOUGHTON: Second.

18 MR. WILLIAMSON: I have a motion and a second.

19 All those in favor of the motion will signify by saying

20 aye.

21 (A chorus of ayes.)

22 MR. WILLIAMSON: All opposed, no.

23 (No response.)

24 MR. WILLIAMSON: Motion carries.

25 MR. HOUGHTON: Don't leave, James. Can I ask

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 176

1 you one more question back on 6(d), what out of the $2.9

2 billion for the project is equity from all parties?

3 MR. BASS: On which item?

4 MR. HOUGHTON: Texas 130.

5 MR. BASS: There was $700 million from the

6 state and $500 million from the local governments into the

7 project.

8 MR. HOUGHTON: Thanks.

9 MR. BEHRENS: Agenda item number 9, Traffic

10 Operations, this is a minute order to recommend some lane

11 use restrictions in Dallas County and Tarrant County and

12 Harris County.

13 MR. LOPEZ: Good afternoon, commissioners.

14 Again for the record, my name is Carlos Lopez, I'm

15 director of the Traffic Operations Division.

16 The minute order before you authorizes the

17 creation of a left-lane restriction for trucks on portions

18 of I-20 in Dallas County, I-10 and US 290 in Harris

19 County, and I-30 in Tarrant County.

20 This restriction will prohibit trucks from

21 operating in the left lane of these highways. Trucks

22 would be allowed to use these lanes to pass other vehicles

23 and to exit the highway. The department conducted traffic

24 studies and determined that these restrictions could be

25 beneficial for safety and mobility.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 177

1 The department published notices requesting

2 public comment on these restrictions in the August 19 and

3 August 26 editions of the Texas Register and also held a

4 series of public meetings. No comments were received.

5 We recommend approval of this minute order.

6 MR. HOUGHTON: Can you amend it for I-10 in

7 Harris and El Paso counties, Carlos?

8 (General laughter.)

9 MR. LOPEZ: I think Chuck is looking at I-10 in

10 El Paso.

11 MR. SAENZ: We're working on El Paso County on

12 I-10.

13 MR. LOPEZ: Yes, Amadeo is looking at that.

14 MR. JOHNSON: Carlos, I've been under the

15 impression that there are lane restrictions for trucks on

16 I-10 East in Harris County.

17 MR. LOPEZ: Yes. This is adding another about

18 nine miles to that, and it covers that same distance

19 because they're going to change it to a 24-7 operation

20 instead of a 6:00 a.m. to 8:00 p.m. operation. By the

21 way, all the ones in Houston will be 24-7.

22 MR. JOHNSON: And when will these go into place

23 as being enforced?

24 MR. LOPEZ: As soon as we can get signs up and

25 the cities pass ordinances.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 178

1 MR. JOHNSON: So we're waiting on the city in

2 this case.

3 MR. LOPEZ: This is the first step in making it

4 all happen. I think, in any case, our signs are already

5 getting fabricated, hoping that you will approve this

6 minute order and the ordinances will be passed.

7 MR. HOUGHTON: A leap of faith.

8 MR. LOPEZ: Trust.

9 MS. ANDRADE: Carlos, I have a question. Do we

10 work closely with that community to see if they can also

11 enforce it? I mean, it's okay we put the signs up, but if

12 they don't enforce it, it doesn't do us any good.

13 MR. LOPEZ: One of the first things we ask our

14 district engineers to do -- and they've been doing this --

15 is see if they get that commitment from enforcement,

16 because you're exactly right, a sign doesn't make it all

17 happen, you've got to have the enforcement in place also.

18 Up to now we've been very fortunate. I talked

19 to Houston before yesterday and they report a very high

20 compliance rate in Houston, that they just had a real good

21 focus on enforcing this in that area. They're not getting

22 complaints from the public or the trucking industry. The

23 public perceives them working well and they're asking for

24 more.

25 So this is something that started off with a

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 179

1 letter that Commissioner Johnson sent back in 2000 and I

2 think it's starting to catch on around the state.

3 MS. ANDRADE: Sometimes the general public

4 doesn't know when it happens, so maybe we should have a

5 press conference or something to announce it, just not

6 hang up the sign and not do anything else.

7 MR. LOPEZ: I think in Dallas it might be more

8 kind of a big splash.

9 MS. ANDRADE: Good.

10 MR. JOHNSON: Hope's point is a good one,

11 though, in terms of enforcement. My recollection is that

12 on I-10 East there in Harris County, the City of Houston

13 really did a bang-up job in enforcement and got people

14 recognizing the fact, and the traffic accident rates with

15 trucks involved were reduced 68 percent. So I mean, these

16 are meaningful ways to deal with the safety issue, as

17 long, as she points out, enforcement is there. If it's

18 not, people are going to take shortcuts and leeways.

19 MR. LOPEZ: Right, and I'll just point out

20 that's something that we'll continue to do is look at

21 these after a period of time to make sure they're doing

22 what we intend for them to do.

23 MR. WILLIAMSON: Members, you've heard the

24 explanation and the recommendation.

25 MR. JOHNSON: So moved.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 180

1 MR. HOUGHTON: Second.

2 MR. WILLIAMSON: I have a motion and a second.

3 All those in favor of the motion will signify by saying

4 aye.

5 (A chorus of ayes.)

6 MR. WILLIAMSON: All opposed, no.

7 (No response.)

8 MR. WILLIAMSON: Motion carries.

9 MR. LOPEZ: Thank you, Mr. Chairman.

10 MR. WILLIAMSON: Thank you, Carlos.

11 MR. BEHRENS: Agenda item number 10 is our

12 contracts for the month of October, maintenance contracts

13 and highway and building construction contracts. Thomas?

14 MR. BOHUSLAV: Good afternoon, commissioners.

15 My name is Thomas Bohuslav and I'm the director of the

16 Construction Division.

17 Item 10(a)(1) is for consideration of award or

18 rejection of highway maintenance contracts let on October

19 6 and 7, 2005, whose engineers' estimated costs are

20 $300,000. We had 20 projects, an average of 3.35 bidders

21 per project, total bid almost $10 million.

22 There's one project we recommend for rejection,

23 Project Number 4013 in Collin County. This is a sweeping

24 and debris removal contract that came in at 143 percent

25 over. It's a bit high and we want to go back and see if

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 181

1 we can get better prices for that contract.

2 Staff recommends award of all projects with the

3 exception noted.

4 MR. WILLIAMSON: Members, you've heard the

5 explanation and recommendation.

6 MR. HOUGHTON: So moved.

7 MR. JOHNSON: Second.

8 MR. WILLIAMSON: I have a motion and a second.

9 All those in favor of the motion will signify by saying

10 aye.

11 (A chorus of ayes.)

12 MR. WILLIAMSON: All opposed, no.

13 (No response.)

14 MR. WILLIAMSON: Motion carries.

15 MR. BOHUSLAV: Item 10(a)(2) is for the

16 consideration of award or rejection of highway and

17 building construction projects let on October 6 and 7,

18 2005, and it also includes Cameron County Project Number

19 3208 which was deferred last month. We had 89 projects,

20 an average number of bidders of 3.45 per project, total

21 bid amount almost $410 million.

22 We have three projects to recommend for

23 rejection. The first project is Project Number 3227 in

24 Panola County. It was 40 percent over, we had two bidders

25 on the project that overbid about $5.8 million, for

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 182

1 widening of about 50 miles of lane sections on FMs in

2 Panola County for some safety work.

3 We feel this price is too high and we'd like to

4 go back and relet it, and hopefully get additional

5 contractors to bid as well.

6 Another project recommended for rejection in

7 Terry County is Project Number 3214. It was 85 percent

8 over and two bidders on it, $2.9 million was the total

9 bid. This is for some safety work for end treatments over

10 a nine-county area, 16 separate project locations.

11 These prices are high, and again, we'd like to

12 go back and see if we can actually change a specification

13 requirement in there that might help us get more material

14 suppliers for concrete there and that they might supply

15 the product as well and get better prices for that reason.

16 The last project recommended for rejection is a

17 project in Grayson County, Project Number 3233. It's 45

18 percent over, we had two bidders, $2.7 million was the

19 total bid. It's reconstruction of some frontage roads

20 there, and we believe we can get better prices by going

21 back and reletting that one and hope to solicit more

22 competition for that one as well.

23 Staff recommends award with the exceptions

24 noted. Any questions?

25 MR. WILLIAMSON: Thomas, I want to ask you

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 183

1 about one. You know, every month when I go through these

2 things, I look for the largest contracts and kind of put

3 my eagle eye on those and see what I know about them, and

4 I was reading through here and I think the largest single

5 low bid amount is this one in Goliad County on US 59.

6 Does that sound right to you? Corpus Christi District.

7 Do you want the controlling project number?

8 MR. BOHUSLAV: I see it there. It's sequence

9 number 3201.

10 MR. WILLIAMSON: That's the biggest one this

11 month, isn't it? I believe it is.

12 Now, the reason that I honed in on that was

13 because I had remembered receiving some letters or some

14 copies of some letters from a county judge about that

15 project, so I went back to my file, and then strangely

16 enough, I think yesterday -- and I can't be sure, but I

17 think yesterday that same county judge accosted me at a

18 public meeting about this project.

19 And I want to ask you a couple of questions

20 because this county judge wrote some pretty serious things

21 for the public record that bothered me quite a bit, and I

22 want to be sure we're not approving a contract that in the

23 end is going to cause more trouble than it's going to help

24 in Goliad County, because based on this fellow's words,

25 I'm not sure we want to move forward with this contract.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 184

1 And I didn't find his first letter, I just

2 found the second. He addressed this letter to the

3 Assistant Attorney General of all people, he doesn't

4 address it to the chairman of the commission or the

5 executive director, doesn't address it to his district

6 director, he addresses the letter to the Attorney General.

7 And he says: "Dear Mr. Click, We appreciate

8 your efforts" -- this is him saying this to Mr. Click; I

9 don't know what he's got to do with our highways -- "in

10 continuing our quest for a facility that by TxDOT's own

11 estimation will satisfy the traffic numbers anticipated

12 for another 40 to 50 years. Goliad County has been on

13 this quest for five years" -- this is the egregious

14 part -- "and when we became aware TxDOT was not

15 considering our input for this project from the results of

16 various public meetings, we decided" -- I guess we, there

17 must be more than one county judge involved in this -- "we

18 decided to make the attorney general, the comptroller" --

19 what in the heck has she got to do with anything? --

20 "members of the Highway Commission and the Board of

21 Professional Engineers aware of our frustrations.

22 "Our request today is obtain from the following

23 counties and other persons such correspondence and

24 graphics as they have in their files, Michael Behrens,

25 Craig Clark, Carole Keeton Strayhorn, Comptroller, members

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 185

1 of the Highway Commission," the three senior members

2 only -- sounds like an open records request.

3 "You began receiving our correspondence about

4 the same time Commissioner Andrade began receiving

5 duplicates of our submission. Time is of extreme

6 importance. We ask your immediate attention with complete

7 presentations for two pieces of correspondence. These are

8 necessitated by the news article appearing on August 19,

9 submitted by Turner Collie & Braden."

10 What's that all about? What do you know about

11 this, Thomas?

12 MR. BOHUSLAV: I'm not involved on those

13 aspects of planning for this project, but the DE is here,

14 he probably would be able to respond to this.

15 MR. HOUGHTON: I'd like to state one thing,

16 they said the three senior members, it's those three down

17 there.

18 (General laughter.)

19 MR. WILLIAMSON: Well, I mean, I see a copy of

20 this letter less than a month ago and this project pops up

21 now, we're approving it, it seems to me that we've got a

22 very angry county judge that doesn't like the way we're

23 doing business, why would we approve this project? I

24 think we need to stop and make sure we've got him

25 satisfied.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 186

1 MR. HOUGHTON: I'd like to ask a question.

2 Craig?

3 MR. WILLIAMSON: Craig, I'm just telling you, I

4 take great offense at people who write letters like this,

5 and I don't want to make him any madder than he obviously

6 already is.

7 MR. HOUGHTON: Can there be, I call it, bait-

8 and-switch? Can we award this project and then the county

9 judge or somebody intervene and want to change the design

10 of this project?

11 MR. CLARK: Not at the point that we would

12 award the project and proceed.

13 The difficulty with this judge and this project

14 predates me in this district, even predates my

15 predecessor, David Casteel. I think it began when Billy

16 Parks was district engineer here when they began a process

17 of public hearings and design development for this

18 expansion of this section of 59.

19 In the course of that public involvement, this

20 judge was particularly interested in some different design

21 approaches that would be made in this section of highway,

22 some different standards by which it would be built that

23 differed from the controls and the limitations that we had

24 associated with the trunk system program that this project

25 was being advanced under.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 187

1 Those discussions with my predecessors, myself,

2 and Commissioner Andrade were all made in terms of trying

3 to re-enfranchise this judge in our process and in the

4 ultimate facility that we were going to deliver. We have

5 been able to meet with him and bring some of the proposals

6 that they had into our design at the time that we were

7 advancing it, but we didn't completely satisfy him.

8 MR. WILLIAMSON: Should we carry forward with

9 this contract? I mean, this letter was dated September

10 13, that's less than two months ago. If we're going to

11 keep having him complain about what we're doing, why would

12 we spend $49 million, why don't we wait till we satisfy

13 his complaints and go spend this $49 million someplace

14 where people are satisfied?

15 MR. CLARK: I believe that the information he

16 tried to convey to you and mentioned to me, as late as

17 yesterday when we had the meeting hosted by the city, was

18 that he believed that this project should be approved and

19 awarded as it was let because of the need of his

20 constituents in that county for this facility and the

21 problems that it would address.

22 MR. HOUGHTON: Is there an election coming up?

23 MR. CLARK: Probably.

24 MR. WILLIAMSON: I mean, people ought not to

25 write letters they aren't serious about. Was this need

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 188

1 not apparent as recently as two months ago?

2 MR. CLARK: I think that that letter and

3 previous letters were mainly to try to influence design

4 decisions in that project and change design decisions.

5 MR. WILLIAMSON: By writing the attorney

6 general of the state and the comptroller who doesn't know

7 anything about building roads?

8 MR. JOHNSON: Craig, are you including routing

9 decisions when you say design decisions? My recollection

10 was early on he wrote at least one and maybe more letters,

11 but it was a routing issue to the west of Goliad, 59 after

12 you cross the river.

13 MR. CLARK: And more of his routing was in

14 another section of 59 that we have yet to advance. The

15 section that we're talking about here, there was some

16 routing areas that they did not agree with the exact

17 alignments, but they weren't greatly different, and we

18 were able to, I think, address most of those with him.

19 MR. WILLIAMSON: What's his reference to this

20 Turner Collie & Braden news article of August 19? Do you

21 know anything about that?

22 MR. CLARK: That article, I believe, was part

23 of a press event in Victoria where they talked about a

24 variety of projects, this being one, and I think Turner

25 Collie & Braden was involved in some of the other

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 189

1 projects, but because of Mr. Parks's knowledge of this

2 particular roadway segment, he made comments with respect

3 to it, and that's what they focused in on the article.

4 MS. ANDRADE: Mr. Chairman, let me add to

5 Craig's comments. I've had two personal visits, along

6 with Craig, to this judge. I've gone to Goliad and met

7 with him, and this has been an ongoing issue. In fact,

8 one of the challenges that I gave Craig was let's end this

9 because it's just been going on.

10 He's got a different view as to where he wants

11 this and we pulled the public hearings that were held and

12 that didn't prove that, because he kept saying that the

13 community wanted it also, and it did not prove that. This

14 is where he wants it. The choices that we gave him were:

15 this is where we have it funded; if you want it over

16 there and your constituents want it also, this is how much

17 extra it costs, if you're willing to pay for it, we'll put

18 it there. But he doesn't want to pay for it.

19 MR. WILLIAMSON: So it's your view that we're

20 not going to have someone unhappy even after we spend this

21 money. Oh, no, you're not saying that? You're just

22 saying we have to move forward.

23 MS. ANDRADE: I believe the community deserves

24 this. It's been going on for years and years, and it's

25 time that we get it done. It's just the way he, and I

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 190

1 believe his brother also has worked with TxDOT before.

2 But we've given him the time.

3 MR. WILLIAMSON: Oh, that got Monroe up.

4 MS. ANDRADE: Oh, I'm sorry. We've given him

5 the time and I think Craig spent a whole afternoon with

6 him when we did the second visit. So we've made every

7 effort to listen to him and made every effort to meet his

8 needs.

9 MR. WILLIAMSON: Don't let us go too far here,

10 Richard.

11 MR. MONROE: For the record, Richard Monroe,

12 general counsel of the department.

13 I believe this is one of at least two letters

14 I'm aware of that the judge has written. Grady Click has

15 referred both of those to me, and I wrote to the judge

16 saying these other people are not in a position to answer

17 your questions. Your questions and requests for

18 information should be addressed to this department.

19 However, I think if you will read that letter

20 carefully, it is difficult to find out what information he

21 is actually asking for. So in this letter of which I am

22 speaking back to the judge, I said you will need to be

23 specific and define for me what information you want and

24 then we will proceed accordingly under the provisions of

25 the Public Information Act.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 191

1 To my knowledge, he has never responded to my

2 letter, but if you'd like, I can check into that with the

3 people that actually handle the Public Information Act

4 requests. But usually a request from a person such as

5 this and with my prior involvement, I probably would have

6 been made aware if he had ever responded to my letter. As

7 I say, as far as I know, he has not.

8 MR. WILLIAMSON: But it's your feeling,

9 Commissioner Andrade, is we need to move forward no matter

10 what.

11 MS. ANDRADE: Yes. It's been a project there

12 for many years.

13 MR. JOHNSON: Is my recollection in the

14 ballpark as being accurate that we had a visit from that

15 three-county delegation, Bee, Goliad and Victoria, and the

16 Bee County judge was the spokesperson and they were

17 requesting improvements on 59, talking about safety

18 issues?

19 MR. CLARK: Yes. That was in August.

20 MR. WILLIAMSON: I think they were requesting

21 something different than this.

22 MR. JOHNSON: But basically it was 59, it

23 wasn't necessarily this specific, because it covered a

24 three-county area where 59 is quite prominent. In the

25 big-picture, small-picture sort of mentality, I'm

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 192

1 confused.

2 MR. CLARK: The Tri-County Coalition, Goliad

3 being one of the tri-counties, was looking to update the

4 commission on the activities on the 59 corridor in total.

5 In some of the other segments of this 59 corridor, we

6 have projects that are operational changes, that being

7 Super 2 construction of two-lane roadways, that would help

8 the safety but not necessarily adding capacity, and they

9 were trying to make a case with the commission that the

10 conditions have changed and the demands on the system may

11 require us to look again at the possibility of adding

12 capacity.

13 MR. WILLIAMSON: Okay. Well, I was just caught

14 off guard, Mike, because I saw the county, I saw the

15 amount, a bell went off, I went back and looked at my

16 file, I found this letter, and I'm asking myself why we're

17 approving the contract when the county judge, an important

18 official in the county, this guy obviously is angry,

19 obviously doesn't like what we're doing, and we obviously

20 have a shortage of money everywhere, so why are we moving

21 forward with a contract that's just going to make somebody

22 madder when we can stop it and go do someplace else until

23 he gets calmed down and we've worked it out.

24 But are you saying it's not going to work out

25 and the citizens have been waiting many years and we need

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 193

1 to move forward no matter whether this person is happy or

2 not?

3 MR. HOUGHTON: With that said, Ric, you and I

4 were the only ones at the event last night and he made it

5 a point to talk to me about this and said, I really would

6 appreciate your vote to approve it. And I said, Sure, be

7 glad to approve it. I was unaware of the letter since he

8 referred to the three senior members of the commission.

9 (General laughter.)

10 MR. WILLIAMSON: Well, like I said, I take

11 things like this really serious.

12 MR. HOUGHTON: And I did threaten that I could

13 take the money out to El Paso, and he proceeded to tell me

14 I'll come find you. But he was very, very much proactive

15 in his remarks on approval.

16 MR. WILLIAMSON: Okay. Well, you've heard the

17 explanation and recommendation and probably more than you

18 wanted to hear about one in particular about this minute

19 order. What's your pleasure?

20 MR. JOHNSON: I have one question of Thomas.

21 Where did you get them boots?

22 MR. BOHUSLAV: The tall man's store.

23 (General laughter.)

24 MR. JOHNSON: So moved.

25 MS. ANDRADE: Second.

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 194

1 MR. WILLIAMSON: I have a motion and a second.

2 All those in favor of the motion will signify by saying

3 aye.

4 (A chorus of ayes.)

5 MR. WILLIAMSON: All opposed, no.

6 (No response.)

7 MR. WILLIAMSON: Motion carries. Thank you,

8 Thomas.

9 MR. BEHRENS: Agenda item number 11 is our

10 routine minute orders, and they've all been duly posted as

11 required. I've looked at all the minute orders and I don't

12 think any of them have any impact on any of the

13 commissioners. I'll go through them if you'd like to;

14 otherwise, I recommend approval of the routine minute

15 orders.

16 MR. WILLIAMSON: I do have one question about

17 11(a)(4). Now read that sentence, the explanation.

18 MR. BEHRENS: "Consider a donation from Mr.

19 Bruce Harvey, a private landowner" --

20 MR. WILLIAMSON: Okay, stop. Now, if he wasn't

21 a private landowner, what else would he be? I kept

22 looking for the hidden trick in this deal. What's the

23 deal?

24 MR. HOUGHTON: Engineers don't have tricks.

25 (General laughter.)

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 195

1 MR. WILLIAMSON: Members, you've had time to

2 look it over. What's your pleasure?

3 MR. HOUGHTON: So moved.

4 MS. ANDRADE: Second.

5 MR. WILLIAMSON: I have a motion and a second.

6 All those in favor of the motion will signify by saying

7 aye.

8 (A chorus of ayes.)

9 MR. WILLIAMSON: All opposed, no.

10 (No response.)

11 MR. WILLIAMSON: Motion carries.

12 Mr. Monroe, do we have reason to go to

13 executive session?

14 MR. MONROE: No, sir.

15 MR. WILLIAMSON: Okay. Thank you, Mike, for a

16 job well done.

17 MR. BEHRENS: We have no open comments.

18 MR. WILLIAMSON: We have no open comments. We

19 thank Craig one more time for your hospitality, and

20 members, the most privileged motion is in order.

21 MR. JOHNSON: I don't have a World Series game

22 to go to, so I'm not going to make the motion.

23 MR. HOUGHTON: Move to adjourn.

24 MS. ANDRADE: Second.

25 MR. WILLIAMSON: I have a motion and a second

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 196

1 to adjourn. All in favor of the motion, signify by saying

2 aye.

3 (A chorus of ayes.)

4 MR. WILLIAMSON: All opposed, no.

5 (No response.)

6 MR. WILLIAMSON: For the record, we stand

7 adjourned as of 1:48 p.m. Thank you, members.

8 (Whereupon, at 1:48 p.m., the meeting was

9 concluded.)

ON THE RECORD REPORTING 10/27/2005 (512)450-0342 197

1 C E R T I F I C A T E

2

3 MEETING OF: Texas Transportation Commission

4 LOCATION: Corpus Christi, Texas

5 DATE: October 27, 2005

6 I do hereby certify that the foregoing pages,

7 numbers 1 through 197 inclusive, are the true, accurate,

8 and complete transcript prepared from the verbal recording

9 made by electronic recording by Penny Bynum before the

10 Texas Department of Transportation. 11 12 13 14 15 16 10/31/05 17 (Transcriber) (Date) 18 19 On the Record Reporting, Inc. 20 3307 Northland, Suite 315 21 Austin, Texas 78731 22

ON THE RECORD REPORTING 10/27/2005 (512)450-0342