Registration sheets listing others in attendance are on file with the Texas Department of Transportation s Chief Minute Clerk.

Transcription

1 August 25, These are the minutes of the regular meeting of the Texas Transportation Commission, which was held on August 25, 2005, in Austin, Texas. The meeting opened at 9:04 a.m. with the following commissioners present: Texas Transportation Commission: Ric Williamson John Johnson Hope Andrade Ted Houghton, Jr. Chair Commissioner Commissioner Commissioner Administrative Staff: Michael W. Behrens, Executive Director Steve Simmons, Deputy Executive Director Richard Monroe, General Counsel Roger Polson, Executive Assistant to the Deputy Executive Director Dee Hernandez, Chief Minute Clerk Registration sheets listing others in attendance are on file with the Texas Department of Transportation s Chief Minute Clerk. A public notice of this meeting containing all items on the proposed agenda was filed in the Office of the Secretary of State at 2:07 p.m. on August 17, 2005, as required by Chapter 551, of the Government Code, referred to as The Open Meetings Act. ITEM 1. RESOLUTIONS A resolution was read into the record to recognize Diane Burkett, commission secretary, upon her retirement after 36 years with the Texas Department of Transportation a. Resolution to recognize Luis Ramirez, Laredo District Engineer, upon his retirement after almost 28 years with the Texas Department of Transportation b. Resolution to recognize Jerry Dike, Vehicle Titles and Registration Division Director, upon his retirement after more than 37 years with the Texas Department of Transportation ITEM 2. Approval of Minutes of the July 28, 2005, regular meeting of the Texas Transportation Commission Commissioner Houghton made a motion, seconded by Commissioner Andrade, and the commission approved the minutes of the July 28, 2005, regular meeting of the Texas Transportation Commission.

2 August 25, ITEM 3. AVIATION a. Various Counties - Approve funding for airport improvement projects at various locations Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Aviation Division Director David Fulton: The Texas Department of Transportation (department) is authorized under AVN Transportation Code, Chapter 21 and Chapter 22, to assist in the development and establishment of airports in the State of Texas. The airports listed in Exhibit A are currently in need of improvements to preserve the airports or to meet standards. Due to the interest on the part of the airport sponsors, the department recommends that the improvements be funded. On Friday, July 22, 2005, a public hearing was held. Favorable comments were submitted regarding the grant requested by the City of McKinney. IT IS THEREFORE ORDERED by the Texas Transportation Commission that the executive director, or the director s designee, is authorized to enter into any necessary agreements to fund, through the Aviation Facilities Grant Program, the projects described in Exhibit A at an estimated cost of $16,455,853. Note: Exhibit A on file with minute order clerk. The commission received comments from Citizens for Responsible Economic Development representative Lin Libecap; Federal Aviation Administration Regional Administrator Mike Nicely; Castroville City Administrator Jack Yates; McKinney City Manager Larry Robinson; and Collin County Regional Airport Director Ken Wiegand. b. Various Counties - Approve funding for Routine Airport Maintenance Program at various locations Commissioner Houghton made a motion, seconded by Commissioner Johnson and the commission approved the following minute order presented by Aviation Division Director David Fulton: The Texas Department of Transportation (department) is authorized under Texas AVN Transportation Code, Chapter 21 and Chapter 22, to assist in the development and maintenance of airports in the state. The Routine Airport Maintenance Program (RAMP) provides financial assistance for publicly owned or operated general aviation, reliever, and non-hub commercial service airports included in the Texas Airport System Plan.

3 August 25, Due to the success of this program, the department requests continuation of the program by providing funds for airport maintenance and small capital improvements on a basis up to a maximum of $30,000 in state funds per eligible airport for Fiscal Year A public hearing regarding the funding of the RAMP was held on July 22, 2005, and no comments were received. IT IS THEREFORE ORDERED by the commission that the airports listed in Exhibit A be awarded grants in accordance with the RAMP and that the executive director, or the director s designee, is authorized to enter into any necessary grant agreements with the appropriate local government agencies necessary to carry out the directives of this minute order. Note: Exhibit A on file with minute order clerk. ITEM 4. PUBLIC TRANSPORTATION a. Appoint two new members to the Public Transportation Advisory Committee This minute order was deferred. b. Hays, Travis and Williamson Counties - Award STP funds through the 5311 grant program to the Capital Area Rural Transportation System for the purchase of two commuter buses Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Public Transportation Division Director Eric Gleason: The Texas Transportation Commission (commission) awards $480,000 to the PTN Capital Area Rural Transportation System (CARTS) rural transit district for a commuter project approved by the Capital Area Metropolitan Planning Organization (CAMPO). CAMPO has authorized the transfer of $480,000 in Surface Transportation Program Metropolitan Mobility and Rehabilitation funding for the purchase of two commuter buses. The flexed funding will be administered under the Federal Transit Administration (FTA) grant program, Formula Grants for Other than Urbanized Areas (49 U.S.C. 5311). The commission takes special note of its designation by the governor as the administering agency for the FTA grant program, in a letter dated June 13, 2002; and further acknowledges that federal program regulations require the Texas Department of Transportation (department) to ensure that these grant funds are distributed fairly and equitably within the state. Transportation Code, Chapter 455 assigns a broad spectrum of public transportation roles and missions to the department.

4 August 25, Transportation Code, Chapter 456 authorizes the commission to administer funds appropriated for public transportation. IT IS THEREFORE ORDERED by the commission that the executive director or the director s designee is authorized to submit the necessary state application to FTA, and enter into the necessary contracts with CARTS upon completion of all application requirements. ITEM 5. DISCUSSION ITEM Possible rule amendments concerning the approval of the connection of another entity s tolled or non-tolled highway to the state highway system Assistant Executive Director for Engineering Operations Amadeo Saenz presented this discussion item. The commission received comments from North Texas Tollway Authority Executive Director Allan Rutter. ITEM 6. REPORT Report on US 59 corridor improvements in Bee, Goliad and Live Oak counties The commission received comments from Bee County Judge Jimmy Martinez; Bee County Commissioner Susan Stasny; Live Oak County Judge Jim Huff; and Tri- County Coalition consultant David Flores. ITEM 7 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 1 - Management a. Amendments to 1.1, Texas Transportation Commission, and 1.2, Texas Department of Transportation (Organization and Responsibilities), and Amendments to 1.5, Public Hearings (Public Meetings and Hearings) Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by General Counsel Richard Monroe: The Texas Transportation Commission (commission) finds it necessary to propose OGC amendments to 1.1, 1.2, and 1.5, relating to organization and responsibilities, and the public hearing process to be codified under Title 43, Texas Administrative Code, Part 1. The preamble and the proposed amendments, attached to this minute order as Exhibits A, B, and C are incorporated by reference as though set forth at length verbatim in this minute order.

5 August 25, IT IS THEREFORE ORDERED by the commission that the amendments to 1.1, 1.2, and 1.5 are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A through C on file with minute order clerk. b. Amendments to 1.82, Statutory Advisory Committee Operations and Procedures, 1.84, Statutory Advisory Committees, and 1.85, Department Advisory Committees (Advisory Committees) Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by General Counsel Richard Monroe: The Texas Transportation Commission (commission) finds it necessary to propose OGC amendments to 1.82, 1.84 and 1.85, relating to advisory committees, to be codified under Title 43, Texas Administrative Code, Part 1. The preamble and the proposed amendments, attached to this minute order as Exhibits A and B, are incorporated by reference as though set forth at length verbatim in this minute order. IT IS THEREFORE ORDERED by the commission that the amendments to 1.82, 1.84 and 1.85 are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A and B on file with minute order clerk. (2) Chapter 9 - Contract Management Amendments to 9.1, Claims for Purchase Contracts (General) Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by General Counsel Richard Monroe: The Texas Transportation Commission (commission) finds it necessary to propose OGC amendments to 9.1, relating to claims for purchase contracts, to be codified under Title 43, Texas Administrative Code, Part 1. The preamble and the proposed amendments, attached to this minute order as Exhibits A and B, are incorporated by reference as though set forth at length verbatim in this minute order.

6 August 25, IT IS THEREFORE ORDERED by the commission that the amendments to 9.1 are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A and B on file with minute order clerk. (3) Chapter 9 - Contract Management Amendments to 9.15, Acceptance, Rejection, and Reading of Proposals, 9.17, Award of Contract, and 9.18, After Contract Award (Highway Improvement Contracts), and Amendments to 9.106, Sanctions (Contractor Sanctions) Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by Construction Division Director Thomas Bohuslav: The Texas Transportation Commission (commission) finds it necessary to propose CST amendments to 9.15, 9.17, 9.18 relating to highway improvement contracts, and relating to contractor sanctions, to be codified under Title 43, Texas Administrative Code, Part 1. The preambles and the proposed amendments, attached to this minute order as Exhibits A - D, are incorporated by reference as though set forth at length verbatim in this minute order. IT IS THEREFORE ORDERED by the commission that the amendments to 9.15, 9.17, 9.18, and are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A through D on file with minute order clerk. (4) Chapter 25 - Traffic Operations Repeal of , Subchapter G, Specific Information Logo Sign Program, and New , Subchapter G, Information Logo Sign and Tourist-Oriented Directional (TOD) Sign Program, and Repeal of , Subchapter K, Major Agricultural Interest Sign Program Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Traffic Operations Division Director Carlos Lopez:

7 August 25, The Texas Transportation Commission (commission) finds it necessary to propose TRF the repeal of and simultaneously propose new , relating to the information logo sign and tourist-oriented directional sign program, and also propose the repeal of , relating to the major agricultural interest sign program, to be codified under Title 43, Texas Administrative Code, Part 1. The preambles and the proposed repeals and new sections, attached to this minute order as Exhibits A - E, are incorporated by reference as though set forth at length verbatim in this minute order. IT IS THEREFORE ORDERED by the commission that the repeals of and and new are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A through E on file with minute order clerk. The commission received comments from Edward Manigold, owner, Spicewood Vineyards. (5) Chapter 29 - Maintenance Repeal of and New 29.48, concerning Boarding Priorities (for the Galveston/Port Bolivar and Port Aransas Ferries) Commissioner Andrade made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Maintenance Division Director Zane Webb: The Texas Transportation Commission (commission) finds it necessary to propose MNT the repeal of and new 29.48, relating to boarding priorities for state owned ferries, to be codified under Title 43, Texas Administrative Code, Part 1. The preamble and the proposed repeal and new section, attached to this minute order as Exhibits A - C, are incorporated by reference as though set forth at length verbatim in this minute order. IT IS THEREFORE ORDERED by the commission that the repeal of and new are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A through C on file with minute order clerk.

8 August 25, The commission received comments from Port Aransas Chamber of Commerce Executive Director Ann Bracher Vaughan; and City of Port Aransas Mayor Georgia Neblett. b. Proposed Adoption Under Title 1, Texas Administrative Code, and the Administrative Procedure Act, Government Code, Chapter 2001: (to be published in the Texas Register for public comment) Part 9, State Aircraft Pooling Board Chapter General Provisions and Chapter Rulemaking Procedure Repeal of , and ; and Repeal of Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Aviation Division Director David Fulton: The Texas Transportation Commission (commission) finds it necessary to propose AVN the repeal of Title 1, Texas Administrative Code, Part 9, Chapters 181 and 183, relating to the state aircraft pooling board. The preambles and the proposed repeals, attached to this minute order as Exhibits A - D, are incorporated by reference as though set forth at length verbatim in this minute order. IT IS THEREFORE ORDERED by the commission that the repeal of Title 1, Texas Administrative Code, Part 9, Chapters 181 and 183, are proposed for adoption and are authorized for publication in the Texas Register for the purpose of receiving public comments. The executive director is directed to take the necessary steps to implement the actions as ordered in this minute order, pursuant to the requirements of the Administrative Procedure Act, Government Code, Chapter Note: Exhibits A through D on file with minute order clerk. ITEM 8. DISCUSSION ITEM Discuss the proposed Texas Rail System Plan Transportation Planning and Programming Division Director Jim Randall presented this discussion item. ITEM 9. TRANSPORTATION PLANNING a. Approval of the Statewide Transportation Improvement Program Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall:

9 August 25, Title 23, United States Code, Sections 134 and 135 require each designated TPP metropolitan planning organization (MPO) and the State of Texas (state), respectively, to develop a Transportation Improvement Program (TIP) as a condition to securing federal funds for transportation projects under either Title 23 or the Federal Transit Act. Section 134(h) requires an MPO to develop its TIP in cooperation with the state and affected transit operators, and further requires the TIP to be updated at least once every two years and to be approved by the MPO and the Governor of Texas. Section 135(f) requires the state to develop a Statewide Transportation Improvement Program (STIP) for all areas of the state in cooperation with the MPOs designated for each metropolitan planning area and, with respect to non-metropolitan areas, in consultation with affected local officials, and requires that the STIP be approved by the Governor. By letter dated June 13, 2002, addressed to the commissioner of transportation, the governor delegated to the Texas Transportation Commission (commission) or its designees, the power and responsibility to approve the STIP granted to him by the Intermodal Surface Transportation Efficiency Act (ISTEA) and the Transportation Equity Act for the 21 st Century (TEA-21). Pursuant to Sections 134 and 135, the commission has adopted rules governing the development of transportation plans and programs, codified as 43 TAC Sections 134(h) and 135(f) and 43 TAC 15.7 and 15.8 specify the respective requirements and eligibility criteria for projects to be included in the respective TIPs. In accordance with those requirements, TIPs have been developed for each metropolitan planning area, as well as those areas of the state outside designated MPO boundaries (rural TIPs). The various TIPs developed by the designated MPOs have been presented for public comment by means of various public meetings conducted by relevant authorities throughout the state. In accordance with Sections 134 and 135, rural TIPs were made available to citizens, affected public agencies, representatives of transportation agency employees, freight shippers, private providers of transportation, providers of freight transportation services, representatives of users of public transit, and other interested parties for review and comment in each of the Texas Department of Transportation s (department) 25 district offices, and at the department s headquarters in Austin. After due deliberation and consideration, the commission finds that the requirements of Section 134 have been fully satisfied as they pertain to the development of the prescribed TIPs by each of the 25 MPOs, and that the STIP, attached as Exhibit A to this order, fully satisfies the requirements of Section 135 and 43 TAC 15.8 as they pertain to the STIP and is consistent with the Texas Transportation Plan, the Unified Transportation Program (2006 Statewide Preservation Program and 2005 Statewide Mobility Program), and the Strategic Plan. The commission also finds that the STIP:

10 August 25, (A) develops, operates, and maintains efficient and effective transportation systems and services; (B) improves public safety and security on transportation systems; (C) facilitates economic and social prosperity through the efficient movement of people and goods; (D) protects, when feasible, and enhances, when practicable, the environment in transportation activities; (E) improves and promotes the connectivity of transportation services and systems; and (F) optimizes transportation funding to meet the mobile needs of the state. IT IS THEREFORE ORDERED by the commission, pursuant to 43 TAC Chapter 15, Subchapter A and the authority delegated to this commission by the Governor of Texas, that the respective TIPs of each designated MPO, as well as those areas outside designated MPO boundaries as reflected in the STIP, attached as Exhibit A to this order, are hereby adopted. IT IS FURTHER ORDERED that the executive director, or his designee, shall sign all necessary certifications required by federal regulations. Note: Exhibit A on file with minute order clerk. b. Approve adjustments to participation ratios for projects located in economically disadvantaged counties Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall: Transportation Code, , requires the Texas Transportation Commission TPP (commission), when evaluating a proposal for a highway improvement project in a political subdivision that consists of all or a portion of an economically disadvantaged county, to adjust the minimum local matching funds requirement after evaluating the political subdivision s effort and ability to meet the requirement. Title 43, Texas Administrative Code (TAC), 15.55, states that the commission will consider a local government s effort and ability to meet the local matching funds requirement, and will consider the following criteria when evaluating a request for an adjustment to the requirement: (1) population level; (2) bonded indebtedness; (3) tax base; (4) tax rate; (5) extent of in-kind resources available; and (6) economic development sales tax.

11 August 25, Transportation Code, , defines an economically disadvantaged county as a county that has, in comparison to other counties in the state: (1) below average per capita taxable property value; (2) below average per capita income; and (3) above average unemployment. In accordance with these criteria, 62 counties are classified as economically disadvantaged for Fiscal Year The Texas Department of Transportation (department) received applications from political subdivisions in counties that have been classified as economically disadvantaged for Fiscal Year 2005 adjustments of the local matching funds requirement. The department reviewed the applications and found them to be in compliance with the requirements of Transportation Code, and 43 TAC, The commission has considered the criteria contained in 43 TAC, 15.55, has reviewed the applications for adjustment, and has determined that the local matching funds requirement should be adjusted in the amount indicated in Exhibit A. IT IS THEREFORE ORDERED by the commission that the adjustments to the local matching funds requirement described in Exhibit A are hereby respectively adjusted to the percentage indicated. IT IS FURTHER ORDERED that any existing advance funding agreement between the department and the respective local governments be modified to reflect the adjusted cost participation requirements, provided that funds already received by the department under the terms of existing agreements will not be adjusted or reimbursed. Note: Exhibit A on file with minute order clerk. c. Appoint members to the Texas Department of Transportation s Bicycle Advisory Committee Commissioner Houghton made a motion, seconded by Commissioner Johnson and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall: The Bicycle Advisory Committee (committee) provides the Texas Transportation TPP Commission (commission) with insight from the perspective of bicyclists. The primary mission of the committee is to advise the commission on bicycle issues and to provide a forum for communication among the Texas Department of Transportation, bicyclists and the public. The committee functions under Title 43, Texas Administrative Code, 1.85, concerning advisory committees. In addition, Senate Bill 602, 79 th Texas Legislature, Regular Session, 2005 tasks the committee with advising and making recommendations to the commission on the development of bicycle tourism trails in the state. The commission desires to appoint the committee to advise the commission on bicycle issues. The commission makes the following appointments:

12 August 25, Terms expiring August 31, 2007 Don Rogers Dripping Springs Robin Stallings Austin Michael R. Wyatt El Paso Terms expiring August 31, 2008 Gretchen Arnold Corpus Christi Tommy Eden Austin Regina Garcia Houston Annie Melton Dallas IT IS THEREFORE ORDERED by the commission that the individuals identified above are appointed for the terms specified as members of the Bicycle Advisory Committee. d. Authorize a feasibility study for La Entrada al Pacifico Trade Corridor Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall: House Bill 2115, 75 th Texas Legislature, Regular Session, 1997, added Section TPP , to Subchapter B, Chapter 225 of the Transportation Code, relating to the designation of certain highways as the future route of La Entrada al Pacifico Corridor. Minute Order , dated April 28, 2005, authorized projects in the Fiscal Year 2005 Federal Discretionary Program. This minute order included two projects, which were identified as the La Entrada al Pacifico Feasibility Study and the La Entrada al Pacifico Southern Route Study, with earmarked federal funding of $500,000 for each project. In order to fully address the feasibility and route analysis requirements for the corridor, the department is contributing an additional $500,000 to the study. State and local officials have expressed interest in the development of this corridor. The Texas Department of Transportation is committed to providing the citizens of the State of Texas with a transportation system that meets social, economic, and environmental needs. IT IS THEREFORE ORDERED by the Texas Transportation Commission, that the executive director is hereby authorized to proceed in the most feasible and economical manner with the feasibility and route studies for the La Entrada al Pacifico Corridor at a total estimated cost of $1.5 million. The commission received comments from MOTRAN Chairman Robin Donnelly.

13 August 25, e. Dallas County - Authorize CONSTRUCT authority for a bridge replacement project on FM 1382 at Draw Creek, in Category 6, Structures Replacement and Rehabilitation, of the 2006 Statewide Preservation Program Commissioner Johnson made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall: In DALLAS COUNTY (county), on FARM TO MARKET ROAD 1382 at Draw TPP Creek, it is necessary to advance a bridge replacement project to CONSTRUCT authority in Category 6, Structures Replacement and Rehabilitation, of the 2006 Statewide Preservation Program (SPP). One side of the bridge is currently closed due to halted construction. A project to replace the entire bridge had previously been let and construction started but was halted due to a deteriorative soil condition not recognized in the initial design criteria preventing completion of the structure s abutments. Due to the need for a redesign the initial contract was terminated and the project closed out. The project needs to be relet incorporating the newly designed abutments. In order to provide the citizens of the county with a safe and efficient transportation system, it is necessary to advance this bridge replacement project to CONSTRUCT authority. IT IS THEREFORE ORDERED by the Texas Transportation Commission that the executive director is hereby authorized to enter into any necessary agreements and to proceed in the most feasible and economical manner with the bridge replacement project, at a total estimated construction cost of $2,829,374 to be authorized in CONSTRUCT authority in Category 6, Structures Replacement and Rehabilitation, of the 2006 SPP. f. Webb County - Authorize projects in Category 3, Urban Area Corridor Projects, of the 2005 Statewide Mobility Program Commissioner Andrade made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Transportation Planning and Programming Division Director Jim Randall: The Texas Transportation Commission (commission) approved the 2005 TPP Statewide Mobility Program (SMP) by Minute Order , dated November 18, It is necessary to amend Category 3, Urban Area Corridor Projects, of the 2005 SMP to include additional projects. These projects generally promote mobility and add capacity on a major state highway corridor serving the transportation needs of the Laredo urban area.

14 August 25, IT IS THEREFORE ORDERED by the commission that Category 3, Urban Area Corridor Projects, of the 2005 SMP be amended to authorize additional projects for the amounts shown in the attached Exhibit A. Note: Exhibit A on file with minute order clerk. ITEM 10. TOLL PROJECTS a. Approval of the apparent best value proposal to plan, develop, acquire, design, construct, and maintain an Open-Road Toll Collection System for district toll project implementation support Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Texas Turnpike Authority Division Director Phillip Russell: Transportation Code, Chapter 223, Subchapter E (act) authorizes the Texas TTA Department of Transportation (department) to enter into comprehensive development agreements with private entities that provide for the design, construction, financing, maintenance, or operation of a toll project on the state highway system. Pursuant to that authority, the Texas Transportation Commission (commission) has adopted rules prescribing how the department will obtain and evaluate proposals from private entities to develop a toll project under a comprehensive development agreement, codified in 43 TAC (rules). Pursuant to the act and the rules, on December 3, 2004, the department issued a request for qualifications (RFQ) for the development, design, construction, and maintenance of a statewide open-road toll collection system on department toll roads through a comprehensive development agreement. The department determined that three proposer teams submitting qualification submittals were qualified to be on the shortlist of teams requested to submit detailed proposals. On May 24, 2005, the department issued a request for detailed proposals (RFDP). The RFDP provided that the comprehensive development agreement will be awarded to the proposer determined to provide the best value to the department. On July 15, 2005, proposals were received. The department separately evaluated technical and price proposals from the proposers. The evaluation resulted in the Raytheon proposal being ranked as the proposal providing the apparent best value. Raytheon committed to providing levels of system accuracy, reliability, response time, maintenance, availability, and integration which demonstrably exceed specified technical requirements. Raytheon s proposal consistently demonstrated innovative approaches. Additionally, Raytheon's pricing proposal was below TxDOT estimates for the open road toll collection system. Based upon the highly qualified proposal submitted by Raytheon, and the attractive pricing Raytheon has committed to in its proposal, the department recommends award of the comprehensive development agreement to Raytheon.

15 August 25, IT IS THEREFORE ORDERED by the commission that the determination that the proposal submitted by Raytheon provides the apparent best value to the department is approved, and the department is authorized and directed to commence and complete negotiations with Raytheon necessary to finalize the comprehensive development agreement to develop, design, construct, and maintain a statewide open-road toll collection system. IT IS FURTHER ORDERED that the comprehensive development agreement is awarded to Raytheon, subject to, and effective upon the occurrence of, all of the following: (1) the successful conclusion of negotiations, (2) the issuance of a Notice of Intent to Award by the department, (3) applicable FHWA approvals as identified by the department, and (4) the mutual execution and delivery of the comprehensive development agreement by the executive director of the department and the proposer. IT IS FURTHER ORDERED that if the executive director determines that the discussions with Raytheon cannot be successfully completed, and that therefore the proposal submitted by Raytheon will not provide the apparent best value, the department is authorized to issue an RFQ in order to provide for the development, design, construction, and maintenance of a statewide open-road toll collection system through a comprehensive development agreement. b. Travis County - Authorize the executive director to negotiate and develop an agreement with the Central Texas Regional Mobility Authority (CTRMA) for the planning, financing, design, construction, operation, and maintenance of US 290 East from US 183 to east of SH 130, including the license of state-owned right of way to the CTRMA for the purpose of developing a CTRMA turnpike project in the median of US 290 Commissioner Houghton made a motion, seconded by Commissioner Johnson and the commission approved the following minute order presented by Texas Turnpike Authority Division Director Phillip Russell: The Texas Department of Transportation (department) and the Central Texas TTA Regional Mobility Authority (CTRMA) developed a CTRMA/TxDOT Regional Implementation Program (program) that provides for the funding and development of certain transportation system improvements within the jurisdictional limits of the CTRMA. On July 12, 2004, the Capital Area Metropolitan Planning Organization (CAMPO) Transportation Policy Board approved amendments to CAMPO s 2025 Transportation Plan and the FY 2004-FY 2008 Statewide Transportation Improvement Program (STIP), authorizing the development of projects in the program as toll roads subject, in certain instances, to conditions imposed by certain clarifying resolutions.

16 August 25, Projects added to the 2025 Transportation Plan and the FY 2004-FY 2008 STIP as part of the program include: (1) US 290 West/SH 71 interchange (the Y in Oak Hill), (2) US 183 East from I-35 to SH 71, (3) SH 45 Southwest from Loop 1 to FM 1626, (4) US 290 East from US 183 to east of SH 130, and (5) SH 71 East from I-35 to the Austin- Bergstrom International Airport (Phase 2 projects). In Minute Order , dated April 28, 2005, the Texas Transportation Commission (commission) requested that the CTRMA take such actions or conduct such studies and evaluations as may be necessary to determine the viability of jointly developing and financing with the department the Phase 2 projects, and to present proposals identifying the relative rights and obligations of the department and the CTRMA in the planning, design, financing, construction, operation, and ownership of the Phase 2 projects. CTRMA has proposed an innovative plan for the financing and development of the US 290 East project that contemplates the planning, financing, design, construction, operation, and maintenance of the project by the CTRMA. CTRMA would be provided a license to use state-owned right of way to construct and operate a CTRMA owned toll project in the median of US 290 East, with the highway reconstructed and expanded to provide, on the highway and adjacent facilities, an equivalent or greater number of nontolled lanes than currently exist. The nontolled portion of the project would remain under the jurisdiction of the department. The CTRMA proposal would provide leveraged funding for the expeditious financing and construction of the project, including the proceeds of toll revenue bonds issued by the CTRMA or other funding provided by the private sector. The reconstruction and expansion of US 290 East from US 183 to east of SH 130 is a project of significant importance to mobility in the Austin metropolitan area and in the jurisdictional limits of the CTRMA. The commission recognizes that innovative financing methods, including tolls, are an effective means of maximizing the use of limited available resources, without compromising the quality of Texas transportation system. The commission encourages the development of partnerships (particularly with regional mobility authorities) and the employment of innovative methods to finance and construct needed transportation improvements. IT IS THEREFORE ORDERED by the commission that the executive director is authorized to negotiate and develop an agreement with the Central Texas Regional Mobility Authority for the planning, financing, design, construction, operation, and maintenance of the US 290 East project by the CTRMA, including a license of stateowned right of way to the CTRMA for the purpose of developing a CTRMA toll project in the median of US 290. IT IS FURTHER ORDERED that the executive director is directed to present the agreement to the commission for its future consideration. The commission received comments from Central Texas Regional Mobility Authority Chairman Bob Tesch.

17 ITEM 11. FINANCE a. Adoption of the FY 2006 Operating Budget August 25, Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Chief Financial Officer James Bass: The General Appropriations Act of the 79 th Legislature, 2005 Regular Session, FIN has appropriated funds for the operations of the Texas Department of Transportation (department) for Fiscal Year The funds shown below are necessary to effectively operate the activities of the department in accordance with the guidelines set forth in the General Appropriations Act. Texas Department of Transportation Operating Budget For Fiscal Year 2006 A. Goal: Transportation Planning ( Plan It ) Strategy A.1.1 Plan/Design/Manage $ 344,588,801 A.1.2 Contracted Planning & Design 460,209,333 A.1.3 Right-Of-Way Acquisition 605,314,000 A.1.3 Research 22,337,973 Total, Goal A: $ 1,432,450,107 B. Goal: Transportation Construction ( Build It ) Strategy B.1.1 Highway Construction $ 3,093,849,340 B.1.2 Aviation Services 87,100,861 Total, Goal B: $ 3,180,950,201 C. Goal: Maintenance and Preservation ( Maintain It ) Strategy C.1.1 Contracted Maintenance $ 2,119,905,000 C.1.2 Routine Maintenance 518,092,269 C.1.3 Gulf Waterway 948,788 C.1.4 Ferry System 23,544,155 Total, Goal C: $ 2,662,490,212 D. Goal: Optimize Services and Systems ( Use It ) Strategy D.1.1 Public Transportation $ 56,889,562 D.1.2 Medical Transportation 92,732,733 D.1.3 Registration & Titling 66,830,416 D.1.4 Vehicle Dealer Regulation 5,931,321 D.2.1 Traffic Safety 26,349,944 D.3.1 Travel Information 20,314,452 D.4.1 Auto Theft Prevention 12,939,288 Total, Goal D: $ 281,987,716 E. Goal: Indirect Administration ( Manage It) Strategy E.1.1 Central Administration $ 35,066,789 E.1.2 Information Resources 33,938,803 E.1.3 Other Support Services 36,446,351 E.1.4 Regional Administration 67,960,364 Total, Goal E: $ 173,412,307 GRAND TOTAL: Texas Department of Transportation $ 7,731,290,543

18 August 25, IT IS THEREFORE ORDERED by the Texas Transportation Commission that a cash operating budget of $7,731,290,543 be authorized for the operations of the department for Fiscal Year 2006; and the executive director is hereby ordered to administer this cash operating budget in the most feasible and economical manner within the guidelines prescribed by the 79 th Legislature, 2005 Regular Session. IT IS FURTHER ORDERED that the executive director is hereby authorized to make necessary adjustments to spending levels in accordance with the General Appropriations Act as may be necessary in the operations of the department. b. Adoption of the annual operating budget; annual maintenance budget; and annual capital budgets for the 2002 Project of the Central Texas Turnpike System Commissioner Houghton made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by Chief Financial Officer James Bass: Transportation Code, Chapter 228 and other applicable law authorizes the Texas FIN Transportation Commission (commission) to issue turnpike revenue bonds, bond anticipation notes, and other obligations to finance turnpike projects on the state highway system, and to enter into trust agreements and indentures of trust governing matters relating to the issuance of such obligations. In TRAVIS AND WILLIAMSON COUNTIES, pursuant to Minute Order , dated April 25, 2002, STATE HIGHWAY 130 has been designated as a toll project and a controlled access state highway from IH 35 at SH 195 to a southern terminus at US 183. In TRAVIS AND WILLIAMSON COUNTIES, pursuant to Minute Order , dated May 30, 2002, STATE HIGHWAY 45, has been designated as a toll project and a controlled access state highway from west of US 183 to SH 130. In TRAVIS AND WILLIAMSON COUNTIES, pursuant to Minute Order , dated May 30, 2002, LOOP 1 has been designated as a toll project and a controlled access state highway from the intersection of existing Loop 1 and FM 734 (Parmer Lane) in Austin to the intersection of Loop 1 and SH 45. The commission has previously issued $2,199,993, in obligations to finance a portion of the costs of the Central Texas Turnpike System (system), a toll project composed initially of the SH 130, SH 45, and Loop 1 project elements (2002 Project), pursuant to an Indenture of Trust and four supplemental indentures. The Indenture of Trust dated July 15, 2002 (indenture), prescribes the terms, provisions and covenants related to the issuance of toll revenue bonds and obligations to finance a portion of the costs of the 2002 Project. Pursuant to Section 702 of the indenture, the commission has covenanted that on or before August 31 in each fiscal year, it will adopt an annual operating, maintenance and capital budget for the System for the ensuing fiscal year and provide copies of such budgets to the Trustee and the US DOT.

19 August 25, As it is currently projected that a portion of the 2002 Project may be completed in FY 2006, the commission has directed the department to prepare the annual operating, maintenance and capital budgets for the system for FY The department has completed these budgets and they are attached as Exhibit A. In accordance with Section 702 of the indenture, the budgets were provided to the General Engineering Consultant for review and comment prior to adoption by the commission. IT IS THEREFORE ORDERED by the commission that the annual operating, maintenance and capital budgets for the system are adopted for FY Note: Exhibit A on file with minute order clerk. ITEM 12. PASS-THROUGH TOLLS a. Jefferson County - City of Port Arthur - Authorize the executive director to execute a pass-through toll agreement with the City of Port Arthur for improvements to FM 365 from Spur 93 to US 69 Commissioner Johnson made a motion, seconded by Commissioner Houghton and the commission approved the following minute order presented by Chief Financial Officer James Bass: On January 11, 2005, the City of Port Arthur (city) submitted a proposal for a FIN pass-through toll agreement. The city's proposal, among other things, provided for the city to construct and make improvements to FM 365 from Spur 93 to US 69. In accordance with Section (b), Transportation Code, the Texas Transportation Commission (commission) granted preliminary approval on April 28, 2005 by Minute Order authorizing the Texas Department of Transportation (department) to enter into an agreement with a the city that provides for the payment of pass-through tolls to the city as reimbursement for the construction, maintenance, or operation of a toll or non-toll facility on the state highway system, specifically for construction and improvement to FM 365 from Spur 93 to US 69 by the city. A passthrough toll is a per vehicle fee or a per vehicle-mile fee that is determined by the number of vehicles using a facility. The commission previously adopted rules, codified as 43 TAC , that prescribe the policies and procedures governing the department's implementation of Section (b), Transportation Code. Section 5.54 of the commission's rules provide that the commission may authorize the department's executive director or his designee to negotiate a pass-through toll agreement with a public entity after considering the following factors: (1) financial benefits to the state; (2) local public support for the projects; (3) whether the projects are in the department's Unified Transportation Program (UTP); (4) the extent to which the projects will relieve congestion on the state highway system; (5) the potential benefits to regional air quality that may be derived from the projects; (6) compatibility of the proposed projects with existing and planned facilities; and (7) the entity's experience in developing highway projects.

20 August 25, The department and the city have agreed to a reimbursement through passthrough tolls of $14,000,000 for the construction of the projects in their proposal. The per vehicle mile reimbursement rate will be $0.08 per mile. The minimum amount to be reimbursed in any year with all projects open to traffic is $933, and the maximum amount will be $1,400,000. The agreement will expire once the total amount of the agreement has been reimbursed. The project will be authorized in Category 12, Strategic Priority, and will be reimbursed from Strategic Priority funds. Before the projects in this proposal are planned, developed, or constructed using funds administered by the department, the projects: (1) must be included in the Beaumont-Port Arthur Metropolitan Planning Organization (B-PAMPO) Metropolitan Transportation Plan; (2) must be included in the department s UTP, thereby identifying committed funding for each project; (3) prior to construction, must be included in the B- PAMPO Transportation Improvement Program and the department s Statewide Transportation Improvement Program; and (4) will be subject to any and all applicable planning and environmental processes and approvals as mandated by state and federal regulations regarding such matters. IT IS THEREFORE ORDERED that the executive director or his designee is authorized to execute a pass-through toll agreement with the City of Port Arthur in accordance with the negotiated terms and such other terms the department determines are necessary. b. Kaufman County - City of Forney - Authorize the executive director to negotiate a pass-through toll agreement with the City of Forney for improvements to various highway projects in the city Commissioner Johnson made a motion, seconded by Commissioner Andrade and the commission approved the following minute order presented by Chief Financial Officer James Bass: On May 10, 2005, the City of Forney (city) submitted a proposal for a pass- FIN through toll agreement. The city's proposal provided for the city to construct improvements to FM 740 from Ranch Road to US 80, FM 741 from Bois D Arc to east of Forney High School, and a proposed interchange at the US 80/FM 548 intersection. Section (b), Transportation Code, authorizes the Texas Department of Transportation (department) to enter into an agreement with a public or private entity that provides for the payment of pass-through tolls to the public or private entity as reimbursement for the construction, maintenance, or operation of a toll or non-toll facility on the state highway system by the public or private entity. A pass-through toll is a per vehicle fee or a per vehicle-mile fee that is determined by the number of vehicles using a facility. The Texas Transportation Commission (commission) previously adopted rules, codified as 43 TAC , that prescribe the policies and procedures governing the department's implementation of Section (b), Transportation Code.