"It looked like it was a done deal to start with."
NTTA, city weigh next step in SH 121 debate
April 19, 2006
Amy Morenz
McKinney Courier Gazette
Copyright 2006
Two North Texas Tollway Authority board members aren’t clear about how requirements approved by the Regional Transportation Council last week will affect their agency.
Chair Dave Blair says the rules don’t look good for the NTTA to build and operate State Highway 121 toll roads. But Collin County representative Paul Wageman said the policy may apply only to private companies.
The NTTA’s staff is expected to meet with state transportation officials on April 28 to address varied issues, including its potential State Highway 121 role, Wageman said.
The NTTA is not sure if it will bid to build and operate SH 121 toll lanes after the transportation council set toll rates and decided SH 121’s approach last Thursday, Blair said.
“It doesn’t look very good with the current rules of the road,” Blair said. “They would require us to pay 75 percent of [expected revenue over a period of time] upfront, and we can’t do that. The rules of the way we do business, the bond market and legislation won’t allow us.”
In contrast, Wageman said the 75 percent requirement applies to private companies submitting a proposal through a Comprehensive Development Agreement. There’s a lot of confusion about requirements for those upfront payments, he said.
“That’s not the model the RTC wants us to pursue,” Wageman said. “We have to examine and see if the rules warrant our submitting a proposal. We’ll do that after consultation with the county and the four cities.”
Wageman’s requested an analysis from staff members before making a decision. The NTTA may consider developing future toll roads or serve as an operator for a private company, he said.
The tolls passed last week could mean a private company could pay $700 million to $900 million upfront, Plano Councilman Scott Johnson said. That amount will make it harder for the NTTA to compete for the job, he said.
Before submitting a proposal, the NTTA needs to know if the Texas Department of Transportation will conduct a “fair” evaluation, Blair said. Its representative on the Regional Transportation Council was not allowed to speak last week.
“It looked like it was a done deal to start with,” Blair said.
Johnson and Collin County Commissioner Jack Hatchell were two of the only three votes opposing an RTC plan adopting an average 14.5 cent rate per mile Thursday. The rate approved is 2.5 cents higher than the NTTA’s projections and will escalate to 17 cents per mile during peak hours.
Days after the meeting, Plano has not decided what its next step will be. The city may not have a reason to “stay in the arena” of regional cooperation supporting State Highway 121’s prospective toll roads, Plano Mayor Pat Evans said.
Allen, Plano, McKinney, Frisco and the county approved resolution supporting the NTTA as the builder of the toll road, preferring a lower toll rate. Frisco later dropped its support of the county-wide resolution.
“We were all against the proposal supported by the RTC and will have a serious discussion,” Evans said. “We’ll be discussing to see if there’s a reason to stay in. There may be a strategy we can come up with.”
From the start, the state has shown a preference for a private company to sign a Comprehensive Development Agreement to build and manage the toll lanes. Additional revenues from the SH 121 are predicted to finance road projects throughout the region.
“The other cities were bought because they won’t have to pay for their own roads,” Johnson said. “The state is not asking them for matching funds when we had to match our costs. That’s why they wanted to vote quickly.”
“I’m tired of paying for other people’s schools and other peoples roads,” Johnson said.
The public sector can’t compete with private companies, said Hatchell. Collin County thought it could develop a plan that would be approved regionally, but the resolution did not generate the revenue that the Texas Department of Transportation wants. Private companies are expected to submit their bids in November.
“There’s still an opportunity for the NTTA, but it’s very remote,” Hatchell said. “They are going to have to get aggressive.”
Collin County may need to “mend some fences” when it continues meeting with Texas Highway Commission members, Hatchell said. Collin County initially wanted to create its own entity to build and manage the tollway. County leaders later passed a resolution supporting the NTTA and lower toll rates.
“Some may feel we tried to push our ideas down their throats,” Hatchell said.
Contact staff writer Amy Morenz at 972-398-4263 or amy.morenz@scntx.com.
© 2006 Star Community Newspapers www.courier-gazette.com
April 19, 2006
Amy Morenz
McKinney Courier Gazette
Copyright 2006
Two North Texas Tollway Authority board members aren’t clear about how requirements approved by the Regional Transportation Council last week will affect their agency.
Chair Dave Blair says the rules don’t look good for the NTTA to build and operate State Highway 121 toll roads. But Collin County representative Paul Wageman said the policy may apply only to private companies.
The NTTA’s staff is expected to meet with state transportation officials on April 28 to address varied issues, including its potential State Highway 121 role, Wageman said.
The NTTA is not sure if it will bid to build and operate SH 121 toll lanes after the transportation council set toll rates and decided SH 121’s approach last Thursday, Blair said.
“It doesn’t look very good with the current rules of the road,” Blair said. “They would require us to pay 75 percent of [expected revenue over a period of time] upfront, and we can’t do that. The rules of the way we do business, the bond market and legislation won’t allow us.”
In contrast, Wageman said the 75 percent requirement applies to private companies submitting a proposal through a Comprehensive Development Agreement. There’s a lot of confusion about requirements for those upfront payments, he said.
“That’s not the model the RTC wants us to pursue,” Wageman said. “We have to examine and see if the rules warrant our submitting a proposal. We’ll do that after consultation with the county and the four cities.”
Wageman’s requested an analysis from staff members before making a decision. The NTTA may consider developing future toll roads or serve as an operator for a private company, he said.
The tolls passed last week could mean a private company could pay $700 million to $900 million upfront, Plano Councilman Scott Johnson said. That amount will make it harder for the NTTA to compete for the job, he said.
Before submitting a proposal, the NTTA needs to know if the Texas Department of Transportation will conduct a “fair” evaluation, Blair said. Its representative on the Regional Transportation Council was not allowed to speak last week.
“It looked like it was a done deal to start with,” Blair said.
Johnson and Collin County Commissioner Jack Hatchell were two of the only three votes opposing an RTC plan adopting an average 14.5 cent rate per mile Thursday. The rate approved is 2.5 cents higher than the NTTA’s projections and will escalate to 17 cents per mile during peak hours.
Days after the meeting, Plano has not decided what its next step will be. The city may not have a reason to “stay in the arena” of regional cooperation supporting State Highway 121’s prospective toll roads, Plano Mayor Pat Evans said.
Allen, Plano, McKinney, Frisco and the county approved resolution supporting the NTTA as the builder of the toll road, preferring a lower toll rate. Frisco later dropped its support of the county-wide resolution.
“We were all against the proposal supported by the RTC and will have a serious discussion,” Evans said. “We’ll be discussing to see if there’s a reason to stay in. There may be a strategy we can come up with.”
From the start, the state has shown a preference for a private company to sign a Comprehensive Development Agreement to build and manage the toll lanes. Additional revenues from the SH 121 are predicted to finance road projects throughout the region.
“The other cities were bought because they won’t have to pay for their own roads,” Johnson said. “The state is not asking them for matching funds when we had to match our costs. That’s why they wanted to vote quickly.”
“I’m tired of paying for other people’s schools and other peoples roads,” Johnson said.
The public sector can’t compete with private companies, said Hatchell. Collin County thought it could develop a plan that would be approved regionally, but the resolution did not generate the revenue that the Texas Department of Transportation wants. Private companies are expected to submit their bids in November.
“There’s still an opportunity for the NTTA, but it’s very remote,” Hatchell said. “They are going to have to get aggressive.”
Collin County may need to “mend some fences” when it continues meeting with Texas Highway Commission members, Hatchell said. Collin County initially wanted to create its own entity to build and manage the tollway. County leaders later passed a resolution supporting the NTTA and lower toll rates.
“Some may feel we tried to push our ideas down their throats,” Hatchell said.
Contact staff writer Amy Morenz at 972-398-4263 or amy.morenz@scntx.com.
© 2006 Star Community Newspapers
posted by Porkus Maximus Tex: at Wednesday, April 19, 2006
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