Wednesday, May 10, 2006

The future of the NTTA is on the line

Bigger role for tollway agency?

Authority may choose to turn down SH121 project, sell its services

May 10, 2006

By TONY HARTZEL
The Dallas Morning News
Copyright 2006

When the North Texas Tollway Authority decides the future of State Highway 121 today, it could affect more than just a 10-mile stretch of road in southern Collin County.

At stake could be the future role of the agency.

The tollway authority will weigh whether to abandon Collin County wishes that it build and operate Highway 121 in exchange for the chance to sell its services to outside agencies, including planning and evaluating toll roads regionwide and possibly statewide.

While the agency could make more money in an expanded role, some officials are concerned that toll rates could rise.

Without the tollway authority staking its premier position on toll roads, decisions about those roads, the revenue they create – and rates they charge motorists – eventually could be made in Austin, Dallas County Judge Margaret Keliher said.

"These [tollway authority] board members are not elected officials," Ms. Keliher said. "They have a fiduciary duty to the NTTA. They have a project that is a huge moneymaker and that the citizens want them to do. I don't know how they can explain voting for the NTTA to just be a toll collector."

Two major issues are driving the debate on a Highway 121 toll road. First is the revenue the toll road could raise. The road has been described as the most lucrative toll project in Texas. Second, Collin County and surrounding cities have repeatedly stated that if Highway 121 must have tolls, then the tollway authority should be the agency to build and operate the project.

"It's disappointing that the NTTA appears to be headed away from representing the region, which is exactly why we created them," said Collin County Judge Ron Harris. "The asset holders of the tollway authority in Collin and Dallas counties have been forgotten in all of this."

Rate concerns

For motorists, the end result of a tollway authority project on Highway 121 could have meant lower rates on tollway authority projects and higher rates on state toll roads, agency supporters say.

For example, the tollway authority's last proposal called for rates of 12 cents per mile on Highway 121 in Collin County, lower than other proposals.

"We want to build the road at the lowest rate possible while still allowing us to build other projects in the region," said tollway authority board member Paul Wageman of Collin County.

However, the Regional Transportation Council, which establishes transportation policy in North Texas, set maximum toll rates of 17 cents per mile during peak hours for Highway 121 and an average rate of 14.5 cents per mile. The tollway would be expected to offer similar rates under the new regional guidelines.

"This whole deal is all about money," said tollway authority board chairman David Blair, who represents Dallas County. His agency proposed the defined role in future toll road projects to get a concession as the state pushes private competition, Mr. Blair added. "TxDOT [the Texas Department of Transportation] is always asking us to give and give. We are asking what we can get out of it."

Mr. Blair said he remains inclined to support the agency's bid to build and operate Highway 121 as a toll road. The agency also must decide today whether to bid on State Highway 161 in southwest Dallas County.

A step forward?

The pending decision follows months of contentious debate that pitted the tollway authority against the Transportation Department. Even if it drops the Highway 121 project, the tollway authority would be considered for a potentially lucrative contract to collect tolls for the private company that will build and operate the road.

Others see the decision as a chance to move beyond fighting about which agency would build each toll road.

"You can look at this decision as about Highway 121, but strategically, that's a mistake," said tollway authority board member Bill Meadows of Tarrant County, who supports collaborating with the state.

"This is an opportunity for us to say to TxDOT that it would be our desire to not be forced into a competitive environment, but to decide who would be better to do a toll road project."

Although the tollway authority is considering a defined role in the new era of private toll roads, it can still compete with private bidders on the roads. The state, tollway authority and regional transportation officials will decide on a case-by-case basis which agency builds a toll project. In addition, the tollway authority will build several long-planned area projects, including the Bush Turnpike eastern extension, Trinity Parkway, the Lewisville Lake Toll Bridge and Southwest Parkway.

The Dallas County Commissioners Court recently passed a resolution stating it prefers the tollway authority to be the exclusive builder and operator of all regional toll roads.

Leaders in Denton County say that competition among bidders will bring more money for needed projects.

"I prefer to have competition," said Denton County Judge Mary Horn. "Whoever gives the taxpayers the best bang for the buck, that's the one I want to look at."

State leaders have stood firm against raising the gas tax from its existing 20 cents per gallon, and they argue that the state needs more than what a nickel or even dime per gallon tax could raise. Toll roads like Highway 121, they argue, are the only answer.

Allan Rutter, the tollway authority's executive director, said he would present both options to the board today without a recommendation.

"This is a very tough choice," Mr. Rutter said. "Various parties in the region will be pleased or displeased with whatever choice we make."

E-mail thartzel@dallasnews.com

© 2006 The Dallas Morning News Co www.dallasnews.com

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