Wednesday, February 28, 2007

In New Jersey: "We want to hear from people and get their input into the process."

Public to have say on toll roads' fate

02/28/07

The Associated Press
Copyright 2007

TRENTON — Though Gov. Corzine has yet to propose a plan to lease New Jersey toll roads, his administration is already promising it won't auction off Garden State toll roads without public input.

Polls have shown huge opposition among residents, and just two of 120 state legislators support putting the New Jersey Turnpike, Garden State Parkway or Atlantic City Expressway into private hands. Lawmakers are already discussing ways to block it even before a plan is proposed.

"I'm not enthused," said Thomas Frawley of Toms River.

But once a proposal is ready, Corzine plans a big pitch to convince residents and lawmakers that making billions off state properties is a good way to pay down debt and pay for other crucial state needs.

"We're not going to spring anything on people," state Treasurer Bradley Abelow said. "There's going to be a deliberative and I think structured and lengthy public process in addition to the legislative process, assuming we decide to go ahead."

Besides leasing toll roadways, the administration is also looking at ideas like leasing the lottery and selling development naming rights of state properties to raise billions.

Abelow has been leading the state's analysis of how to proceed and said he hopes to make recommendations to Corzine in four to six weeks. Once a plan is unveiled, Abelow said he expects to see heavy public involvement that could last months and involve public hearings.

"We want to hear from people and get their input into the process," Abelow said. "We also might change what we think based on what we hear from the public."

Assemblyman John Wisniewski, the Assembly Transportation Committee chairman, said legislators will continue demanding answers from the administration, even if no plan has been proposed.

"You're taking tomorrow's revenues and you're spending it today, and that's an issue that concerns many of the members here," said Wisniewski, D-Middlesex. "It's appropriate for this committee to ask those questions."

Other states have leased roadways for cash. Chicago will get $1.83 billion for a 99-year lease of the Chicago Skyway. Indiana will get $3.85 billion for a 75-year lease of its toll road.

However, tolls will increase regularly in those states and lawmakers here are wary of similar deals coming to New Jersey.

Abelow said they won't, and noted that lawmakers' support is crucial since legislators will have to approve bidding for private companies to submit lease proposals.

"We're not going to compromise on the safety, maintenance, security, operations — you can go right down the list," Abelow said. "We need to come back to the governor with a plan that meets his conditions and we're not sure that what we've seen in Chicago and Indiana does that."

© 2007 The Associated Press: www.ap.org

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Senator Ogden: "There's a huge political force out there saying, 'We don't care' or 'This is too embarrassing.' "

Senator questions will of state officials to fix problems

Ogden cites problems at transportation and youth commissions, Houston college


February 28, 2007

By Laylan Copelin
Austin American-Statesman
Copyright 2007

The chairman of the powerful Senate Finance Committee on Tuesday questioned the collective will of state officials to address three controversies confronting the Legislature.

Sen. Steve Ogden, R-Bryan, spotlighted fiscal mismanagement at Texas Southern University, sexual abuse allegations at a Texas Youth Commission facility and the state Transportation Department's negotiations with private developers to build a system of toll roads.

"Two of them are broken," Ogden told the Austin American-Statesman. "And one is out of control."

Ogden urged that drastic measures be taken at the youth commission and Texas Southern, including conservatorship, a rarely used remedy that puts control of a state agency under a new management team.

"Fire everybody and start over," Ogden said.

As for the Transportation Department, Ogden suggested that the Legislature curb its powers to delegate construction and operation of a generation of toll roads to private contractors.

The comments were extraordinary in that Ogden, who requested the interview, seldom needs the media to make his point. His position as chief budget writer for the Senate usually requires no amplification. But his comments, and the reactions from his legislative colleagues and Gov. Rick Perry, underscored a great divide, at least on the state's transportation future.

His comments also put a spotlight on Perry, because his appointees run the three institutions.

Ogden said he spoke out because he feared that political opposition, albeit undefined, would make significant change impossible.

"There's a huge political force out there saying, 'We don't care' or 'This is too embarrassing,' " Ogden said. "What keeps the Legislature from hiding from problems? You have to shine a spotlight on it."

He urged reporters to pay greater attention to the three issues and pledged to use the appropriations process to make changes.

Ogden said he is concerned about the Transportation Department's plans to allow private contractors, for a large upfront fee, to build roads and charge tolls — perhaps forever. He said the department has as many as 21 projects under consideration, including one announced by Perry on Tuesday in the Dallas-Fort Worth area.

"Do we really want to be turning over state highways to private contractors?" Ogden asked.

The irony is that Ogden was the Senate author of the 2003 bill that expanded the commission's powers to construct roads.

"I'm trying to correct the sins of the past," Ogden said, adding that he is considering legislation that would end collection of tolls once a highway has been paid for. He said he is concerned about plans to use toll revenue, long after a highway is paid for, to build more roads.

He said legislators are hearing from constituents who want the agency's powers curbed.

"Every (legislative) member is paying a political price for what they are doing," Ogden said. "TxDOT needs to be more sensitive and accountable to the Legislature."

Sen. Kirk Watson, D-Austin, said senators have had a hard time getting straight answers to basic questions about how much Texans will be asked to pay and where the money will go.

"Not only is TxDOT increasingly perceived as a closed, unaccountable agency," Watson wrote in an e-mail to constituents, "but its leadership appears indifferent to the widespread concern over this."

Perry's office and state Rep. Mike Krusee, chairman of the House Transportation Committee, defended the state's toll road policy.

"The Legislature, including Sen. Ogden, had denied our cities adequate funding for transportation for years," said Krusee, R-Williamson County. "If we now remove the only effective tool, it's our cities and our citizens, not TxDOT, who will be harmed, with more congestion, more pollution and less economic opportunity."

He said that to abandon the state policy would return Texas to the days of 20-year highway projects.

Krusee's legislative district includes part of Williamson County, which is in Ogden's Senate district.

Krusee noted that toll roads Texas 130, Texas 45 and the Loop 1 extension have been built since the 2003 bill that he and Ogden co-sponsored.

"It's ironic that, after the senator's district benefited with literally billions of dollars of projects, he would prevent other cities from benefiting, too," Krusee said.

Perry spokesman Robert Black said Dallas-Fort Worth officials "were ecstatic" about the toll road plan.

He said Perry expects his appointees to be responsive to the Legislature.

Further, he said, Perry's office is tackling issues at Texas Southern and the youth commission. He said Perry gave his college trustees 30 days to come up with a plan to address the university's wasteful spending and red ink.

As for the youth commission, Black said, "Everybody agrees that it's an intolerable situation that must be corrected."

But conservatorship, he said, "is the most drastic step," Black said. "And it should be the last step."

The controversies

Texas Youth Commission: Two former administrators at the West Texas State School for troubled males 11 to 21 years old have been accused of sexually abusing youths in 2004 and 2005. Sen. Juan 'Chuy' Hinojosa, D-McAllen, said the problem is statewide, and Sen. Steve Ogden, R-Bryan, said he thinks the agency tried to cover up the problems.

Texas Southern University: The historically black university in Houston is asking for $25 million in emergency appropriations because of fiscal mismanagement. Hundreds of thousands of dollars were spent on a former president's house while the basements of classroom buildings flooded. The athletic department has overspent its budget $2 million. Gov. Rick Perry has given regents 30 days to come up with a plan to fix the problems.

Texas Department of Transportation: The agency has steered into controversy by negotiating agreements with private developers to build roads and charge tolls. Its critics question the leasing or selling of state assets to private enterprise.

lcopelin@statesman.com

© 2007 Austin American-Statesman: www. statesman.com

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"I think we’re all in favor of pulling it to a halt.”

Senate hearing on TTC on Thursday

February 28, 2007

By JOANN LIVINGSTON, Managing Editor
The Waxahachie Daily Light
Copyright 2007

The Australian, a newspaper based in Sydney, described Texas as “the toll road El Dorado” in a recent online article that also referenced “vast toll road riches up for grabs in Texas.”

A Spanish term, El Dorado means “the golden one” and typically is used as the name of a fabled land of gold and riches.

More recently, the term has been used metaphorically to reference any place where wealth could be rapidly acquired, according to Wikipedia, an online encyclopedia.

Whether toll roads are indeed a road to riches or not is about to be determined in Texas, where public private partnerships involving such roadways are coming under increasing fire during the 80th Legislature.

Last week, a State Auditor’s Office report criticized the Texas Department of Transportion and the proposed Trans-Texas Corridor, a project that could encompass about 8,000 miles if built out completely.

Earlier this week, TxDOT officials were subjected to intense questioning on several areas in front of the House Appropriations Committee.

Tomorrow, a state Senate Transportation and Homeland Security Committee hearing gets under way at 8:30 a.m. with discussion to include toll roads, the Trans-Texas Corridor and public/private partnerships.

“We have initiated some sweeping changes in transportation policy over the last four years,” said state Sen. John Carona, committee chairman, in an earlier press release announcing the public hearing. “The state has aggressively pursued a new toll policy, rapidly expanded the use of public-private partnerships for transportation infrastructure, and accelerated the process of developing the Trans-Texas Corridor.

“In the process, we clearly have not fully heard or taken into consideration the views of the public,” the Dallas Republican said. “Before we go any further, the policy makers need to hear from the people.”

Those wanting to testify can do so orally or in writing. Witness forms are available from the committee office at (512) 463-0067, on the committee Web site at http://www.senate.state.tx.us/75r/Senate/commit/c640/c640.htm, by fax via (512) 463-2840 or by e-mail from john.webb_sc@senate.state.tx.us. Testimony will be taken through the hearing, which is expected to conclude at about 6 p.m.

"I'm looking forward to watching Sen. Carona's hearing," said state Rep. Jim Pitts, whose district would be impacted by the TTC-35 portion of the Trans-Texas Corridor.

"It's refreshing to see so many members asking tough questions of TxDOT," the Waxahachie Republican said. "I've been pressing TxDOT for answers to some of these questions for more than a year, and it's time they gave members of the public a straight answer on how the corridor will affect them and how these toll roads will be managed."

On Friday, a march and rally are planned in Austin as protestors of Gov. Rick Perry’s massive transportation project converge on the state Capitol to make their feelings known.

“Not only will the TTC be a new tax for Texans to pay, but thousands of acres of land will be condemned, taking valuable property away from Texas land owners,” said Gina Parker Ford of the National Eagle Forum, who will be among the speakers.

“Some will come on horses, some on tractors, and many more on motorcycles - all united together against wasteful spending, questionable tactics by Gov. Perry, and a virtual double-tax on our roadways through toll fares,” Ford said.

Despite the opposition, toll roads appear to be moving ahead in Texas. On Tuesday, a Spanish transportation company contracted to build the Trans-Texas Corridor won a recommendation to turn State Highway 121 into a toll road through Collin and Denton counties.

Earlier today, the Transportation Commission approved the comprehensive development agreement for that project with Cintra Concessiones de Infraestructuras de Transporte. The CDA will provide more than $5 billion for State Highway 121 and other transportation projects in North Texas.

The agreement will bring completion of the SH 121 project by 2011 - a quarter century faster than would have been possible with traditional gasoline tax revenue, TxDOT officials said.
“Austin, we have a solution,” said Michael Morris, director of transportation for the North Texas Council of Governments in announcing that Cintra was being recommended to the Transportation Commission as the best of three private-sector proposals to complete and maintain the 26-mile Lewisville to McKinney toll project.

After hearing the details of the Cintra proposal, the five-member commission voted unanimously to approve it.

“This is an incredible transportation milestone not only for North Texas, but the whole state,” said TxDOT executive director Mike Behrens. “Regional government officials, not Austin or Washington, made this happen.”

The agreement with Cintra, a joint venture with a fund advised by JPMorgan Asset Management, is expected to close this summer. It will bring North Texas a $2.1 billion concession payment plus $560 million for design and construction of SH 121 in Denton and Collins counties. In addition, Cintra will pay $700 million in lease payments over the next 49 years as well as $1.7 billion for operation and maintenance of the toll road.

The CDA will allow for completion of SH 121 some 25 years sooner than would have been possible with gasoline tax revenue said Bill Hale, TxDOT’s Dallas District engineer. The Collin County segment of SH 121 should be finished by the fall of 2009, with an interchange at U.S. 75 completed a year later, followed by an interchange with the Dallas North Tollway by 2011.

The next step in the process is final environmental approval of the Collin County segment of the project, followed this summer by formal closure of the contractual agreements and receipt of the $2.1 billion concession payment.

At the same time the governor’s office and TxDOT officials are touting the pros of such projects, lawmakers are taking a closer look at the situation.

State Sen. Kip Averitt, R-McGregor, addressed a group from Ellis County on Wednesday at the Capitol, saying lawmakers are concerned with what appears to be a lack of responsiveness on the part of TxDOT to lawmakers and their constituents’ wishes.

He noted legislation has been filed that ranges from overhauling the agency to killing the Trans-Texas Corridor project outright.

“TxDOT is not being responsive to what we’re hearing from our people,” Averitt said. “I think we’re all in favor of pulling it to a halt.”

Carona said the Cintra deal for State Highway 121 includes provisions that bar the state from building its own roads in the area during the 50-year contract. That puts the state in a financial bind if it wants to build roads to help a growing population.

“The advantage is roads will be built sooner,” Carona said. “What you won’t hear about is toll rates will be raised unlike anything we have seen today.”

Senate Finance Committee chairman Steve Ogden, who pushed the 2003 bill that helped set up the toll road initiative, said he was “asleep or not smart enough” to recognize potential problems.

“We are giving away a public asset and don’t have much say about it for 50 years,” said Ogden, R-Bryan.

On the House side, Speaker Tom Craddick, R-Midland, issued the following statement: “I am very glad to see the audit concerning the Texas Department of Transportation. I appreciate its clarification of the policies and procedures the agency is following.

“Many members have concerns over such issues as the Trans Texas Corridor, and I welcome any suggestions for improvement,” Craddick said, noting that House Transportation Committee chairman Mike Krusee, R-Austin, and House Appropriations Committee chairman Wayne Chisum, R-Pampa, will study the audit.

“I look forward to their feedback,” Craddick said.

Cintra-Zachry, a Spanish-American consortium, plans to build the Trans-Texas Corridor, a state-owned toll road. The consortium, made up of Spain-based Cintra and San Antonio-based Zachry Construction, would get to operate the road and collect tolls.

The Associated Press contributed to this report.


© 2007 The Waxahachie Daily Light: www.waxahachiedailylight.com

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The Fuse has been lit

Fireworks ahead

Feb. 28, 2007

Opinion
Fort Worth Star-Telegram
Copyright 2007

Things have been testy between Texas Transportation Commission Chairman Ric Williamson of Weatherford and state Sen. John Carona, R-Dallas, the chairman of the Senate Committee on Transportation and Homeland Security.

Their clashing transportation funding philosophies will be a hot topic in Austin when Carona's committee holds an 8:30 a.m. public hearing Thursday on toll roads, the Trans-Texas Corridor and public-private partnerships. The hearing in the Extension Auditorium at the Texas Capitol could go until 6 p.m. to allow as many speakers -- each gets three minutes -- as possible.

(Witness forms also are available on the committee Web site at www.senate.state.tx.us/75r/Senate/commit/c640/c640.htm or by phone at 512-463-0067. A live webcast of the hearing can be accessed via www.senate.state.tx.us.)

In January, Carona said Gov. Rick Perry should replace longtime friend Williamson as leader of the commission that oversees the Texas Department of Transportation. Carona, a critic of Perry's Trans-Texas Corridor plan, said Williamson's "abrasiveness" and unyielding commitment to toll roads "has worn out his welcome in many communities across the state," according to a Jan. 19 article in the Austin American-Statesman.

Carona favors raising the state's 20-cent-a-gallon gasoline tax to help pay road construction costs. He is critical of Williamson's support for agreements with private companies such as Spain-based Cintra to finance and build major toll roads. Carona contends that such agreements could result in motorists paying higher tolls than if government agencies were financing and operating the toll roads.

Williamson says his approach build badly needed roads sooner.

Although the Star-Telegram Editorial Board favors construction of toll roads for some projects, members also believe that a substantial increase in the state gas tax is necessary to boost transportation funding. That issue and others important to Texas' transportation future are likely to be aired at Thursday's hearing.

© 2007 Fort Worth Star-Telegram: www.dfw.com

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© 2007 Austin American-Statesman: www.statesman.com

"Many lawmakers regret voting in 2003 to give the Transportation Department more power."

Toll backlash could delay projects here

Feb. 28, 2007

By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2007

An anti-toll road sentiment is sweeping through Austin, and Tarrant County officials worry that key projects such as the expansion of Interstate 35W, Northeast Loop 820 and Airport Freeway could be delayed for years.

"We're going to take the biggest hit if there's any kind of moratorium on toll roads," said North Richland Hills Mayor Oscar Trevino. "The 820 project has already been delayed for so many years. If there's a toll road backlash, it won't answer our congestion problems today, or for that matter the next five years."

A transportation hearing is scheduled for Thursday in Austin, and several dozen Metroplex officials plan to attend. Crowds of toll road opponents may attend, too, joined by legislators who feel that the Texas Department of Transportation has become too powerful and autonomous in pushing for toll roads.

Opposition to toll roads, especially the proposed Trans-Texas Corridor from North Texas to San Antonio, has been brewing for several years in parts of the state.

But Tarrant County officials generally have been more supportive of the Transportation Department's -- and by extension Gov. Rick Perry's -- plans to use private financing and toll collection as a way to offset gas taxes and build roads more quickly.

As a result, plans to expand I-35W, 820 and Airport Freeway have been pushed to the front burner, and the Transportation Department is seeking private bidders to build and manage new toll lanes on those roads.

But several bills could postpone those plans, including a provision that would roll back the department's ability to enter into development agreements with private companies, and another that would impose a two-year moratorium on new toll roads.

Already-approved projects such as Southwest Parkway in Fort Worth and the Texas 114/121 DFW Connector in Grapevine, both of which are scheduled to be under construction early next year, could be delayed, too.

Also, a state audit released last week was highly critical of Trans-Texas, saying that because of the transportation department's accounting weaknesses, the public won't be able to determine how much the project actually costs.

Legislators may be willing to accept a gas tax increase of roughly 8 cents a gallon as an alternative to toll financing, Vic Suhm, director of the Tarrant Regional Transportation Coalition, told members during a recent meeting.

Suhm cited a recent report by Perry's business council that concluded that a gas tax increase could raise enough money to build the roads the Transportation Department wants.

Department officials have said that the report is flawed and that it would take a gas tax increase of about $1.40 a gallon to raise enough money, which is why alternative funding must be found.

The price of gasoline in Texas now includes a state tax of 20 cents a gallon and federal tax of 18.4 cents a gallon.

Suhm told Tarrant County leaders that the anti-toll road sentiment is very real and could have lasting impact on legislation passed this session. He suggested that they take gas tax proposals seriously and not necessarily fight them.

Many lawmakers regret voting in 2003 to give the Transportation Department more power, Suhm said.

"There is a sense of frustration among the legislators," Suhm said. "They are saying, 'We were sure hurried, and now we're hearing from our constituents who don't want toll roads, and we don't want our agricultural land taken,' and that sentiment is very much out there."

Maribel Chavez, the department's Fort Worth district engineer, urged Tarrant County leaders not to accept a gas-tax increase in lieu of private financing and tolls.

"It can't just be either the private investment or the gas tax," she said. "It has to be both of them."

Transportation showdown

The future of toll roads and other transportation plans will be the subject of a hearing Thursday by the state Senate Transportation and Homeland Security Committee. The meeting in Austin will be broadcast live online.

8:30 a.m. Thursday

Capitol Extension Auditorium, room E1.004

www.senate.state.tx.us

SOURCE: Texas Senate
Gordon Dickson, 817-685-3816 gdickson@star-telegram.com


© 2007 Fort Worth Star-Telegram: www.dfw.com

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"Texans, they are your roads, your tax dollars, and your future."

A fight for what is right for Texas

March 01, 2007

By Gina Parker Ford - Special To The News
The Mexia Daily News
Copyright 2007

One of the best political appointments this year occurred in the Texas Senate when Lt. Governor David Dewhurst chose Dallas Senator John Carona to lead the Senate on transportation issues.

Carona has never been one to shy away from his convictions, and Dewhurst realized that the rising tide of concern in the public regarding toll roads and the Trans-Texas Corridor needed to be addressed. Once again, Dewhurst chose to put good public policy over politics and selected a Senator known for seeking the truth and fighting to do what is right for Texas. Carona and Dewhurst are working to open the doors of state government and give the public a greater voice in how their transportation dollars will be spent and allocated.

As Chairman of the Senate Committee on Transportation & Homeland Security, Carona will hold critical hearings on Thursday, March 1, 2007, in Austin to review state policy regarding toll roads, the proposed Trans-Texas Corridor and public-private partnerships in the area of road and highway construction. These are the first hearings in perhaps a decade that will review state transportation policy with a critical eye and allow the public to voice their concerns.

The hearings could not have come at a better time: The current Chairman of the Texas Transportation Commission, former State Representative Ric Williamson, recently snubbed Carona as the Senator attempted simply to get an appointment to discuss transportation issues with Williamson. In full public view, Williamson declined to give the Senator even the courtesy of saying “Yes, I’ll be happy to meet with you.”

Even new State Senator Dan Patrick of Houston expressed wonderment at the public showdown between his colleague, Senator Carona, and Transportation Chairman Williamson. Patrick said he did not understand why the Senate Transportation Chairman could not get a meeting with an agency head that is, in fact, in his job due to Senate confirmation. “Who’s in charge here?” Patrick asked.

Senator Patrick may have good reason to be concerned. Technically, Williamson’s term on the Transportation Commission expired on February 1, 2007, making him, for the moment, a holdover commissioner. He will continue to serve as long as the Governor has failed to appoint a successor.

Rumors sweeping Austin are that Perry will either reappoint Williamson to the Commission following the legislative session or simply choose not to appoint anyone - allowing Williamson to continue serving indefinitely both as a Commissioner and as Chairman, thus bypassing the Senate process to confirm what is likely the most important gubernatorial appointment in Texas.

Williamson apparently has a long history of such behavior; quotes like these, “Lobbyists say that he can be bullying and is too sure of himself” and “Williamson is regarded as arrogant by some and as eccentric by others [not without cause on both counts]” came from write-ups about Williamson’s legislative career. Apparently these same personal characteristics are now following him in his current post at TxDOT.

The public hearings on March 2, 2007, may be the public’s best chance to have their concerns heard. Transportation policy in the Texas House is controlled by State Representative Mike Krusee of Round Rock, an ardent supporter of toll roads.

Krusee appears to be no less strident in his zeal for the double taxation of our roadways even though voters sent him a clear message opposing his policies last November when he won re-election with just 50.4% of the vote, defeating an under-funded Democrat by just 2,300 votes. Only four years earlier Krusee had won re-election in the same district with more than 64% of the vote before he began promoting toll roads and the Trans-Texas Corridor.

Krusee may well be trying to lay the groundwork this session for a job as a lobbyist for transportation interests (given his diminishing political base and the long odds he would face in a re-election campaign), so taxpayers may well be “up the creek” on the House side. Therefore, supporting Senator Carona in these hearings is crucial if our State Legislature is to understand fully the importance of reforming state transportation policy to meet the needs of taxpayers rather than special interests.

By attending the 8:30 A. M. hearing on March 2 in the Extension Auditorium in the Texas Capitol, Texans can voice their concerns regarding these critical issues and the future of Texas transportation policy.

Texans, they are your roads, your tax dollars, and your future. Make sure the voice of “we the people” is heard throughout the Capitol that day.

Thanks to both Lt. Governor Dewhurst and Senator Carona for giving the people a voice in this process.

Gina Parker Ford -CEO of Dental Creations, Ltd., a dental manufacturing company, and a successful attorney - is the National Eagle Forum Chairman for Judicial Reform. Mrs. Ford also served as a Bush and Perry appointee to the Texas Department of Licensing and Regulation. She serves on the American Family Radio Advisory Board (Texas), and she was both the former Republican Party of Texas Treasurer and Associate General Counsel. For more information, please visit www.ginaparker.net.

© 2007 The Mexia Daily News: www.mexiadailynews.com

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Tuesday, February 27, 2007

"Cintra also won the contract to develop the Trans-Texas Corridor in 2004."

TxDOT to Push for Cintra As Toll Road's Developer

2/28/07

by Jason Philyaw
The Bond Buyer
Copyright 2007

DALLAS — The Texas Department of Transportation will recommend Cintra Concesiones de Infraestructuras de Transporte as the private developer for the State Highway 121 toll road to the Texas Transportation Commission at a meeting today.

The TTC oversees all the financing and construction efforts by TxDOT, which built part of SH 121 before determining last year the entire project should be opened as a toll road.

If approved by the commission, awarding of the deal to the Madrid-based toll-road construction firm must still clear various regulatory hurdles, including an environmental impact study and financial-closing conditions.

Cintra is one of the larger players in toll-road construction across Texas, as it also won the contract to develop the Trans-Texas Corridor in 2004.

Three firms competed for the right to build the toll road through Denton and Collin counties northwest of Dallas since last summer, when the TTC decided to allow a private firm to complete the road under a comprehensive development agreement, or CDA, which is what public-private partnerships are called in Texas.

In addition to Cintra, the other two firms that submitted proposals were Macquarie Infrastructure Group of Australia and Skanska Infrastructure Development of Sweden.

As part of its proposal, Cintra agreed to pay $2.8 billion to the Regional Transportation Council, a committee of the North Texas Council of Governments, for transportation projects across North Texas.

“This CDA will allow us to leverage scarce transportation funding to address critical transportation improvement needs in the region,” Michael Morris, director of transportation for the council of governments, said in a release. “The money from this CDA will allow us to build transportation improvements we could otherwise not afford.”

The public-private partnership, or P3, provides the funds for all the costs of developing, operating, and maintaining SH 121 and gives Cintra the right to collect tolls on the roadway for the next 50 years.

The U.S Department of Transportation in October authorized Texas to issue nearly $2 billion of tax-exempt private-activity bonds for the SH 121 project. Toll revenue would be used to repay the bonds.

SH 121 will be the first toll road in Texas under legislation proposed by Gov. Rick Perry and passed last year that authorizes the financing of Lone Star state roadways with toll revenue.

Collin and Denton counties are home to some of the fastest-growing communities in Texas.

The estimated 2007 population of Frisco, which is in western Collin County right near the county line with Denton, is about 93,000, representing an almost three-fold increase since 33,714 at the 2000 Census.

Roughly 25 miles to the west, the city of Denton’s population was 80,537 in 2000, but it is now more than 105,000 and expected to continue to climb by about 3% to 5% annually through 2010.

Denton County has added more than 100,000 residents since the 2000 Census and the population is projected to reach nearly 650,000 by 2010.

© 2007 The Bond Buyer and SourceMedia Inc.: www.bondbuyer.com

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"What keeps the Legislature from hiding from problems?"

Finance chairman warns of political force against reform

February 27, 2007

By Laylan Copelin
Postcards from the Lege
Austin American Statesman
Copyright 2007

Fearing that state officials lack the collective will to act, the Senate Finance Committee chairman said this morning that three state agencies must be reined in despite the embarrassment it may cause.

Sen. Steve Ogden, R-Bryan, cited the Texas Department of Transportation, the Texas Youth Commission and Texas Southern University as severe problems that he fear will be swept under the Capitol rug.

“Two of them are broken,” he said. “And one is out of control.”

In an interview with the American-Statesman, Ogden warned that political forces were trying to keep lawmakers from dealing with the issues to avoid embarrassing the Legislature and Gov. Rick Perry.

He said he was speaking out to put a spotlight on the problems of fiscal mismanagement at Texas Southern University in Houston, sexual abuse allegations at a Texas Youth Commission facility and the transportation department’s negotiations with private developers to build and toll a system of roads.

“There’s a huge political force out there saying, ‘We don’t care or this is too embarrassing,” Ogden said. “What keeps the Legislature from hiding from problems, you have to shine a spotlight on it.”

He urged reporters to pay greater attention to the three issues and pledged to use the appropriations process to make changes.

“If I was king, TYC and Texas Southern would be in conservatorship — that means fire everybody and start over,” Ogden said. He predicted there would be more resignations at TYC — the executive director quit last week — and said he believes there is evidence of a cover-up at the agency.

The allegations of sex abuse at a TYC facility in West Texas are “as bad as it gets,” the senator said. “Isn’t this what the lieutenant governor it talking about giving the death penalty for?”

The powerful senator said the transportation department has “too many tools in their arsenal” to construct highways and the Legislature should take some of them back.

Ogden said he is concerned about the department’s plans to allow private contractors, for a large upfront fee, to build roads and charge tolls — perhaps forever. He said the department has as many as 21 projects under consideration.

“Do we really want to be turning over state highways to private contractors?” Ogden said.

The irony is that Ogden was the Senate author of the bill that in 2003 expanded the commission’s powers to construct roads.

“I’m trying to correct the sins of the past,” Ogden said.

He is considering legislation that would force the tolls to go away once a highway is paid for. He said he is concerned with plans to use toll revenue, long after a highway is paid for, to build more roads.

He said the Legislature is hearing from constituents who want the agency’s powers curbed.

“Every (legislative) member is paying a political price for what they are doing,” Ogden said. “TxDOT needs to be more sensitive and accountable to the Legislature.”

The executive director of the Texas Youth Commission resigned last week after internal review found that agency officials had ignored, for more than a year, staff complaints that administrators at a West Texas State School had molested young inmates.

Texas Southern University is asking for $25 million in emergency appropriations because of fiscal mismanagement, including hundreds of thousands of dollars inappropriately spent on the president’s house while the basements of classroom buildings are flooded and the athletic department has overspent its budget by $2 million.

The transportation department has steered the state into controversy with plans to execute the governor’s plans for the Trans Texas Corridor by negotiating agreements with private developers to build the roads and charge tolls.

© 2007 Austin American-Statesman: www.statesman.com

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“My bill allows Texas to scrap the Trans-Texas Corridor plan and start over.”

Kolkhorst files two bills that would kill the state's controversial corridor proposal

February 27, 2007

The Brenham Banner Press
Copyright 2007

AUSTIN - State Rep. Lois W. Kolkhorst (R-Brenham) has filed two bills which she says would kill the state's controversial Trans-Texas Corridor highway proposal.

If passed, House Bill 1881 will repeal the Trans-Texas Corridor from the transportation code, effectively killing the proposal by removing the enabling legislation which would have served as the foundation for any future corridor project.

“I've been fighting against the Trans-Texas Corridor for several years, and it's not because I want to stop progress. We need to look at new ways to fund roads, but this isn't it,” said Kolkhorst.

“Some toll systems work, such as Harris County, but many don't. Plenty of people share my concerns about these private toll roads and how they'll threaten communities, violate our property rights and create an unregulated transportation monopoly.

“My bill allows Texas to scrap the Trans-Texas Corridor plan and start over.”

Kolkhorst said she has received literally hundreds of calls, comments, letters and e-mails against the Trans-Texas Corridor over the past few years She also has worked with the anti-corridor group Corridorwatch.org and received an A-rating from group.

Additionally, Kolkhorst filed House Bill 1880, which prohibits any public pension fund from investing in a private toll road project, such as the Trans-Texas Corridor.

The bill cuts off billions of dollars of funding that private toll road vendors, both foreign and domestic, would attempt to use in order to raise equity.

“No public money from a public pension fund should be used for a private toll road,” Kolkhorst said. “It's risky to invest our retiree pension funds into an unproven investment, especially with a foreign company.

“ Texas doesn't need a middle-man to build a road. Private companies should not leverage taxpayer dollars and then turn around and ask taxpayers and the public to give up oversight of a toll road project.”

One group will hold a rally Friday in Austin in opposition to the Trans-Texas Corridor.

Citizens for a Better Waller County (CBWC) will be chartering a bus to take Waller County residents to Austin.

Buses will depart at 11 a.m. from Hempstead at the VF Outlet off U. S. Business 290, returning at 8 p.m.

Box lunches from the Secret Garden will be offered and drinks will be provided.

The cost is $25 per person. The only way to reserve a spot is to make payment in advance.

Checks can be mailed to CBWC, P.O. Box 1802, Waller, Texas 77484, or payment can be made to Trey Duhon, 2611 Washington, Suite A, in Waller during regular business hours. Persons can also reserve spots by contacting Duhon at (936) 931-2187 or citizens@wallercountycitizens.org.

Space is available on a first-come, first-served basis.

© 2007 The Brenham Banner Press: www.brenhambanner.com

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Sen. Ogden admits he was "asleep or not smart enough" to recognize potential problems.

Spanish company wins North Texas toll road contract

Feb. 27, 2007

The Associated Press
Copyright 2007

MCKINNEY, Texas — A Spanish transportation company contracted to build Gov. Rick Perry's Trans-Texas Corridor won a critical recommendation Tuesday to turn state Highway 121 into a toll road through Collin and Denton counties.

Officials from the Texas Department of Transportation plan to recommend Cintra Concesiones de Infraestructuras de Transporte as the developer of the toll road during a Wednesday meeting of the Texas Transportation Commission.

If the commission approves the deal, Cintra will pay $2.8 billion to the Regional Transportation Council, a North Texas group responsible for transportation planning in the region. In exchange, Cintra will operate and collect tolls on the highway for the next 50 years.

Collin County officials hailed the deal as one solution to its traffic problems.

"At a time when budgets are stretched thin to meet every transportation need in North Texas, this project can be a valuable source of income to help us pay for other projects needed in this county," Collin County Commissioner Joe Jaynes said.

But some state lawmakers are starting to get frustrated with the state's pursuit of privately financed toll roads and wonder about the ultimate cost.

Sen. John Carona, R-Dallas, chairman of the Senate Committee on Transportation and Homeland Security, said the Cintra deal includes provisions that bar the state from building its own roads in the area during the 50-year contract. That puts the state in a financial bind if it wants to build roads to help a growing population.

"The advantage is roads will be built sooner," Carona said. "What you won't hear about is toll rates will be raised unlike anything we have seen today."

Senate Finance Committee Chairman Steve Ogden, who pushed the 2003 bill that helped set up the toll road initiative, said he was "asleep or not smart enough" to recognize potential problems.

"We are giving away a public asset and don't have much say about it for 50 years," said Ogden, R-Bryan.

Cintra-Zachry, a Spanish-American consortium, plans to build the Trans-Texas Corridor, a state-owned toll road. The consortium, made up of Spain-based Cintra and San Antonio-based Zachry Construction, would get to operate the road and collect tolls.

© 2007 The Associated Press: www.ap.org

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Union Pacific and Burlington Northern Santa Fe oppose Arizona eminent domain bill that would impact rail routes to proposed seaport in Mexico

Ariz. Seeks New Check on Eminent Domain

April 27, 2007

By PAUL DAVENPORT
The Associated Press
Copyright 2007

PHOENIX — Spurred by controversy over Union Pacific's expansion plans, a bill approved by the Arizona Senate would require new state regulatory oversight of use of eminent domain by railroads to acquire property.

The Senate voted 26-0 on Thursday for the bill, which now goes to the House. The House originally passed the bill when it dealt with an unrelated topic.

Omaha, Neb.-based Union Pacific and Fort Worth, Texas-based Burlington Northern Santa Fe, the other major railroad operating in Arizona, oppose the bill.

Supporters include agricultural groups and land owners of property in two areas being eyeballed by Union Pacific for planned or possible projects.

One is near Picacho Peak in Pinal County where the railroad wants to build a new switching yard off a stretch of its Sunset Route mainline. The second is a possible new spur line that might cross farmland near Yuma to reach Mexico to serve a proposed new seaport.

A cotton farmer now leasing state land at the Picacho site objects to possibility of being evicted, and there is also concern about an underground water-recharge facility operated by the state under the farmer's fields. Meanwhile, Yuma-area farmers say their operations and their crops could be damaged economically and environmentally by the line to Mexico and exhaust from trains running on it.

When initially proposed in the Senate, the bill would have required that railroads obtain approval from the state Corporation Commission to use existing eminent-domain authority to compel land sales.

Union Pacific objected that the requirement to obtain state approval conflicts with federal law giving exclusive authority to approve railroad projects to the Surface Transportation Board.

In an attempt to deal with the railroad's objection, the Senate earlier this week to delete the requirement to obtain state approval. Instead, the bill requires a railroad seeking to use eminent domain to hire experts to brief the Corporation Commission on economic, natural resource, water and other possible impacts and to allow the commission to suggest alternatives.

On a different front, Corporation Commission members have expressed unease about Union Pacific's plan to add a second track to the Sunset Route across southern Arizona without converting any at-grade crossings to underpasses or overpasses. That expansion is intended to accommodate additional train traffic to and from Pacific Ocean ports.

© 2007 The Associated Press: www.ap.org

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"Texas is regarded as the toll road El Dorado."

MIG awaits green light to take its toll on Texan roads

February 27, 2007

David Nason, New York correspondent
The Australian
Copyright 2007

THE Sydney-based Macquarie Infrastructure Group will know tonight if it has garnered an early slice of the vast toll road riches up for grabs in Texas.

The announcement by the Texas Department of Transportation of the winning bidder for State Highway 121 - a planned 42km toll road in northern Dallas, one of the fastest growing areas of the US - shapes up as the first big test of MIG's decision to all but jettison its Australian routes for a shot at the far larger but less developed US markets.

Texas, which is forecast to double its population to 50 million by 2030, is regarded as the toll road El Dorado, with the SH121 project the first in an estimated $US250 billion ($315 billion) worth of roadwork and toll road administration to be privatised in the Lone Star state over the next decade.

The biggest prize is expected to be the new Trans-Texas Corrider, a toll road that would stretch from the Mexican border to Oklahoma and utilise some existing freeways and toll roads.

An MIG-led consortium is one of five shortlisted bidders for the rights to build and operate the toll road for 50 years. The deal is expected to net Texas an upfront payment of about $US2 billion and a share of toll revenues.

Like many states, Texas is reluctant to raise taxes to address its chronic shortfall in transportation infrastructure and has been forced to go to the private sector.

All up, more than 20 states are considering the sale or lease of major highways. They include Oregon, Indiana, California, Utah, Colorado, Illinois, New York, New Jersey, Delaware, Pennsylvania, Virginia, North Carolina and South Carolina.

But opposition to public-private partnerships, also known as PPPs, can be strong, especially in the case of public assets that are debt-free.

In New Jersey overnight the state legislature's transportation committee was due to debate proposed legislation that would require voters to approve the sale or lease of any state asset worth more than $US100 million.

The legislation would also ban foreign companies from any involvement.

MIG has expressed interest in the state's busy New Jersey Turnpike and Garden State Parkway which could earn the state $US15 billion for a 75-year lease.

At last year's Merrill Lynch's Australian Investment Conference in New York, MIG chief executive Stephen Allen warned that US-based competitors would exploit xenophobia to keep foreign companies from lucrative US toll-road opportunities.

"It is a real issue and it's one we need to deal with," Mr Allen said at the time.

"The market here is going to get more competitive. All the major investment banks are all starting infrastructure funds. In the marketing, they'll be promoting the US side of the business."

Ironically, MIG's main opposition for SH 121 is expected to come from two foreign consortiums - one led by Sweden's Skanska BOT, the other by the Spanish Cintra group.

MIG's consortium partners are Kiewit Texas Construction LP, a division of leading US transportation contractor Kiewit Corp, and Texas highway constructor JD Abrams.

MIG currently has an interest in four US toll roads. In 2005 Chicago leased its I-90 Skyway to an MIG-Cintra consortium for $US1.83 billion to pay off city debt and fund non-transportation projects. In 2006, Indiana leased the partners the Indiana Toll Road for $US3.85 billion.

Earlier this month the Macquarie Media Group paid $US80 million for American Consolidated Media which publishes 40 community newspapers and shopping publications serving nine communities in Texas and Oklahoma - many of them along the proposed route of the Trans-Texan Corridor.

The sale has drawn criticism the newspapers will become propaganda vehicles for MIG.


© 2007 The Australian: www.theaustralian.news.com.au

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Monday, February 26, 2007

Ferrovial's purchase of Webber pays off

Ferrovial reports 1,426 million-euro net profit for 2006

2/26/07

Construction and Maintenance News (Belarus)
Copyright 2007

Spanish building group Ferrovial reported today its revenue grew by 48.5% to 12,354.6 million euro for the year. Construction expanded by 17% due to progress with projects in Spain and abroad, including Budimex (+17%) and Webber, in Texas, which contributed 322 million euro in revenues. The Services division increased revenues by 34%, mainly due to integrating Swissport and Owen Williams for a full year, and Infrastructure revenues surged by 285% as a result of consolidating BAA for half the year, plus new concessions and good traffic performance at toll roads and airports.

As a result, net profit amounted to 1,426 million euro in 2006 (242.8% more than in 2005). Excluding changes in consolidation scope and discontinued operations, pro-forma net profit increased by 35.5%. EBITDA increased 105.6% to 2,324.3 million euro, boosted by all business areas, mainly the more recurring activities (services and infrastructure), which grew by 132.7% and now account for 82% of the total.

In 2006, Ferrovial invested 4,445.8 million euro, the largest figure in its history, to buy UK airport company BAA (3,672.1 million euro), the Indiana Toll Road concession (302.9 million euro), another 10% of the R-4 toll road (54.9 million euro), as well as capital increases at the Madrid-Levante toll road (22 million euro) and the N4-N6 toll road (28.1 million euro), and the acquisition of engineering firm Owen Williams in the Services division (35.2 million euro).

Notable divestments include the sale of the real estate business to Habitat (for 2,200 million euro EV, including 600 million euro in debt), Europistas (334 million euro) and Bristol airport (150 million euro).

Despite those sizeable investments, Ferrovial ended the year with a net debt position (excluding concession companies' debt) of 3,064.1 million euro (46% leverage). In 2006, Ferrovial's operating cash flow net of taxes amounted to 806.9 million euro.

© 2007 Construction and Maintenance News: home.nestor.minsk.by

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CTRMA banks on the projections of Vollmer Associates

183-A tollway has some competition

Road will offer fast alternative in clogged northwest corridor, but other options may win out.

February 26, 2007

By Ben Wear
Austin American-Statesman
Copyright 2007

Cedar Park commuters on U.S. 183 no doubt have the Gantlet of Red Lights memorized by now: RM 1431, Cedar Park Drive, Park Street, Brushy Creek Road, Cypress Creek Road, Lakeline Boulevard.

Then, blessed relief, the bridge over RM 620 and miles of open expressway south to Central Austin.

Officials with the Central Texas Regional Mobility Authority are counting on that infernal list of stoplights along U.S. 183 to drive motorists to their 183-A tollway when it opens in Austin's northwestern reaches on Saturday. Up to 60,000 cars a day slog along the formerly scenic country highway that in recent years has become a homely, stop-and-go tour of suburban commerce.

Taking the six-lane 183-A tollway may trim several minutes off the 4.5-mile trip between RM 1431 and RM 620, which will be supplanted soon by the Texas 45 North tollway. And the connecting 7.1 miles of free road the mobility authority added to the north (with periodic traffic lights interrupting the drive) will feed people from Leander and points north to the tollway. But saving time and anxiety will come at a price: $1.80 for people with electronic toll tags, or about 40 cents a mile.

That tab, along with several competing, free roads and other factors, could make the Austin area's fourth toll road the one most in danger of falling short of expectations. But mobility authority officials sound confident that projections, done three years ago by a traffic and revenue consultant, are not out of line

"If we miss the target, we have money set aside to help out," said Mike Heiligenstein, executive director of the mobility authority. "But I don't think we're going to need that because our estimates were fairly conservative."

Heiligenstein said that Vollmer Associates first settled on the traffic it thought the road would generate and then trimmed 40 percent to 50 percent from that. The lower projections show 17,700 cars a day on 183-A by the end of this year, almost 24,000 daily by the end of 2008 and nearly 53,000 a day by the end of the road's fifth full year.

The predicted traffic would have the toll road comfortably in the black by the third year.

Katherine Paterson, who lives on New Hope Road north of RM 1431, will probably be among those 183-A drivers from time to time.

"Out here, 183 is bumper-to-bumper, and it doesn't matter what time you use it," she said. "I won't use (183-A) too often. But, yes, I will use it. I think it's great."

Will enough people think it's great for the agency to pay back the almost $235 million it borrowed to build 183-A? The agency believes that after a couple of lean years, during which it will need money already granted by the state to stay out of the red, the road will be profitable.

The agency estimates that by 2011 the road will be generating a $5 million profit, growing to $8 million annual profit after a decade of operations. Over four decades, according to the estimate, the road would spin off more than $1 billion, although the bulk of that occurs in the final 20 years. That excess money, by state law, can be used only for other Central Texas transportation projects.

The road, however, faces a number of challenges, some of them imposed by the agency itself:

•Ways not to pay. Drivers in the increasingly developed northwest corridor have several free alternatives to 183-A.

There is U.S. 183, which could lose a few of the cars that have been stacking up at those lights. So 183-A could create a sort of accordion effect there, drawing people away and then sending them back if there are reports that its stodgy but free older brother has become less of a nightmare.

For people living east of the tollway, Parmer Lane, spacious and lightly populated with stoplights, will remain an attractive option. But southbound drivers, when they reach Texas 45 North on Parmer, will face an uninviting choice of paying to use that tollway and its Loop 1 partner (at a cost of about $1.35 with a toll tag), staying on Parmer for a few more lights to reach MoPac Boulevard or turning west to go south on the expressway portion of U.S. 183. The 183-A tollway will be faster for many people than those alternatives.

People living west of U.S. 183 will still have Lakeline Boulevard, which cuts through the Crystal Creek and Buttercup Creek neighborhoods and allows people to avoid those U.S. 183 stoplights.

•A different kind of hybrid. The 183-A tollway will be a strange mixture, with the southernmost 1 1/2 miles open only to people with electronic toll tags and the northernmost three miles or so open to anyone. At least some people without toll tags inevitably will blunder onto that all-electronic section, get a violation notice in the mail, get mad and disseminate bad PR for the road to their friends.

Heiligenstein, who said there wasn't room to install cash booths in that section of road, thinks that commuters in that area will quickly figure out that situation. The agency has no plans to add cash booths to the southern section.

•Why bother? For many people living south of RM 1431, the trip on the tollway may be so short as to render the time savings inconsequential. Or, provided they have a toll tag, they may take only a brief section south of Brushy Creek Road costing 45 cents.

•No way east. At least initially, 183-A drivers will not be able to seamlessly head east on Texas 45 North to get to Round Rock. The flyover bridges at the interchange, a state Transportation Department project, aren't done yet, and the agency hasn't said when they will be. Until then, eastbound travelers will have to exit and go through several traffic lights.

•Commuter rail? Capital Metro is opening a passenger line to Austin, originating in Leander, that will directly compete with the tollway. But the line won't open until late 2008, well after 183-A has taken root, and initially during rush hour the rail line will be able to carry just 1,000 or so people, many of whom may already be riding express buses from the area.

To prime the pump, the mobility authority will be following the strategy used by the state when it opened its three Austin-area tollways last fall: Give the product away for a while.

The 183-A tollway opens late Saturday and will be free to all drivers in March and April. In May, cash customers (on the parts where they're allowed) will begin paying full price, while the road will still be free to toll tag users.

Then in June, people with toll tags will pay half the cash price. In July they'll begin to pay their permanent rate, 90 percent of the cash price.

The agency is counting on familiarity with the road breeding contentment and aversion to returning to those U.S. 183 red lights. We'll know by later this year if that turns out to be the case.

bwear@statesman.com; 445-3698


© 2007 Austin American-Statesman: www.statesman.com

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Sunday, February 25, 2007

“We’re all so much in limbo, none of us knows where to turn.”

Landowners frustrated as specter of toll road spooks would-be buyers

February 25, 2007

By DEEDEE CORRELL
The Gazette (Colorado Springs)
Copyright 2007

CALHAN - Wanda Pridgen might have an easier time selling her house if it were haunted by actual ghosts.

But it’s got something else to make buyers squirm — the specter of a highway going straight through her living room.

“Now I can’t put it on the market,” said Pridgen, who figures her ranch — with its 40 acres, a row of stately pines and a house she’s put a lot of work into — might otherwise entice someone looking for a little space and quiet.

Pridgen is one of thousands of landowners in eastern Colorado whose land titles are clouded by notices of a toll road company’s intent to build a road.

The cloud that descended earlier this year, residents say, has paralyzed the market, making all but the most daring of buyers afraid to buy, while lenders are reluctant to lend and sellers are in limbo.

“The impact on citizens is just unbelievable,” said Lin Watkins, a real estate agent.

Never mind it’s unknown whether the toll road will materialize.

In the mid-1980s, Ray Wells, president of the Prairie Falcon Parkway Express Co., began planning a 210-mile highway that would run almost the length of the state, but the project stalled until 2004, when Wells said some investors expressed interest in financing it.

Many eastern plains residents reacted with fury, saying the road, dubbed Super Slab, would rob them of land they’d worked their lives to buy.

At the time, private toll roads had the power of eminent domain. Lawmakers since have banned the practice, while allowing the Colorado Department of Transportation to condemn property for private toll roads if there is an overriding public need.

With some residents saying they bought property in the corridor without knowing about the proposed road, lawmakers also passed a bill requiring toll roads to file a notification with county clerks.

In January, Wells did that, filing a blanket notice against all of the properties in the three-mile-wide corridor where he hopes to build the road.

What that means for the landowners — about 1,000 in El Paso County — is that a title search will reveal a notice that residents say dooms a sale.

“There is a cloud over the property,” said Bob Hoban, attorney for Save Our Homes Coalition, a group fighting the toll road.

He said the notices have caused at least 100 instances in which owners encountered problems refinancing or selling their land “because title companies are refusing to insure against it. That scares buyers away.”

The telephone lines across the Plains are alive with tales of such incidents:

Watkins tells of a contract that collapsed because the lender — unwilling to accept the property as collateral — shied away from the loan.

In Calhan, Millie Manyik describes how some buyers fell in love with a 35-acre piece of the family farm she and her husband, Delmer, are trying to sell. When they learned of Super Slab, the buyers changed their minds.

Manyik said they’ve scarcely had a showing since; these days, she calculates their chances of selling at “nil — absolutely nothing unless you go to such a low price, it would be ridiculous.”

Near Kiowa, horse trainer Mindy Bower and her husband have a 127-acre ranch they can’t seem to sell.

They’ve heard horror stories of other Elbert County residents whose sales fell through when the buyers read the notices. “It makes me sick to my stomach,” Bower said.

Residents agree buyers have the right to know what’s going on. But why, they ask, place a shadow on a title over something that may never happen?

“This is really choking the life out of people,” Pridgen said.

Those who don’t absolutely have to sell are lucky, observed Beverly Crockett, who lives in Colorado Springs but owns land in Calhan.

She counts herself among that group but knows that could change someday.

A bill introduced by state Rep. Marsha Looper, R-Calhan, would remove the requirement that county clerk and recorders send the notices, which are then attached to the titles. The bill remains in limbo before the House Transportation and Energy Committee.

Jason Hopfer, spokesman for the toll road company, said the filing “doesn’t confer any legal interest in the property.”

Residents should take up their concerns with the title companies, he said.

Not having the notices would be a disservice to buyers, said Eric Morgan, executive director of the Land Title Association of Colorado. “We’re trying to protect consumers,” he said.

Hoban said he’s working with legislators to determine how to deal with the notices.

A lawsuit by landowners whose property values have diminished because of the claim might also be possible, he said.

“It’s a terrible situation. We’re going to see what we can do to relieve the pressure,” Hoban said.

Lawsuits and new laws take time, however. Residents say they want help now.

“We’re all so much in limbo, none of us knows where to turn,” Manyik said.

http://www.gazette.com/display.php?id=1330419&secid=1

© 2007 The Gazette, a division of Freedom Colorado Information: www.gazette.com

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SH 121 bill will be awarded to Swedish, Australian or Spanish firms

Lucrative toll contract for 121 to be awarded

February 25, 2007

Tony Hartzel
Dallas Morning News
Copyright 2007

It's a billion-dollar-plus decision time for the State Highway 121 toll road in Denton and Collin counties.

On Tuesday, regional leaders and the Texas Department of Transportation plan to announce the winning bidder for the Highway 121 toll road.

Three groups – all of which prominently feature toll road companies with Swedish, Spanish or Australian connections – submitted proposals to operate the road for an estimated 50 years. Transportation officials have been evaluating the proposals in the fierce competition for months.

The Highway 121 toll road, which will run from Central Expressway west to the Business 121 merge in Coppell, has been described as one of the most potentially lucrative in the nation.

The winning bidder is conservatively expected to bring at least $2 billion in upfront payments to the region, and hundreds of millions of dollars in shared toll revenue over the life of the contract. The money will go toward several major regional projects, including the expansion of Interstate 35E and FM423 in Denton County.

Although the tolls will be in place for decades, local officials say, the decision will allow them to handle the population growth in some of the fastest-growing areas of the country.

"We are having to deal with more and more traffic congestion," Denton County Judge Mary Horn said. "It could get to the point that traffic affects the local economy, and we don't want that to happen."

The $2 billion payment is based upon toll rates set by regional leaders and the North Central Texas Council of Governments, the area planning agency. When the road opens fully in 2010, motorists will pay an average 14.5 cents per mile to travel on Highway 121. The rate eventually will vary based on the time of day, and it can be raised every two years to keep up with inflation.

The first portion of the toll road from Coppell east to Carrollton opened last year. The next section, from Carrollton through The Colony and ending at Hillcrest Road in Frisco, should open in early 2008. The final section from Hillcrest to Central in McKinney should open in mid-2010. Highway 121 interchanges at the Dallas North Tollway and Central should open in 2011.

Got an opinion about the Highway 121 tolling plan? The Texas Department of Transportation is holding a public hearing Monday night. The debate and decision about whether to place tolls on the highway occurred last year, but the state wants to hear about environmental concerns.

The meeting will be at Legacy Church, 4501 Legacy Drive in Plano. It will start with an open house at 6 p.m.; a presentation and public comments start at 7 p.m.

thartzel@dallasnews.com

© 2007 The Dallas Morning News Co www.dallasnews.com

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Saturday, February 24, 2007

"We’re hearing new language from pro-corridor forces. The talk is all about ‘transparency.’ But it’s too late for transparency.”

‘Fiscal irresponsibility’

February 24, 2007

By JOANN LIVINGSTON, Managing Editor
Waxahachie Daily Light
Copyright 2007

The Trans-Texas Corridor, Gov. Rick Perry’s massive transportation project, hit some speed bumps Friday.

A sharply-worded report from the State Auditor’s Office was released - and a member of the Republican leadership in the House filed a bill to repeal the plan, which could encompass up to 8,000 miles.

Brenham Rep. Lois Kolkhorst’s bill is almost identical to one already filed by Democrat state Rep. David Leibowitz of Helotes, near San Antonio.

With lawmakers from both sides of the aisle questioning the project, organizers of a March 2 are hoping thousands of Texans will make their way to the state Capitol for a protest.

Friday evening, Corridor Watch spokes-man David Stall didn’t mince words after reading the audit, much of which focused on the corridor’s first portion, the TTC-35.

The 560-mile TTC-35 would bisect the state and connecting with the Mexican and Oklahoman borders.

“My main point about the report is that no one has any accurate costs or revenues, indirect or direct, to the state,” Stall said. “The report provides significant evidence that enormous financial decisions are being made to move the TTC forward without any disclosure, debate, analysis or review.”

The audit states in part, “ … weaknesses in (the Texas Department of Transportation’s) accounting for project costs create risks that the public will not know how much the state pays for TTC-35 or whether those costs are appropriate.”

The report estimated a $105.6 billion price tag for the TTC-35 portion alone of the massive transportation project.

TTC-35 represents 14 percent of the Trans-Texas Corridor’s proposed tollways, which would criss-cross the state. A 2002 estimate by TxDOT placed the cost for the entire Trans-Texas Corridor at between $145 and $184 billion. More than just a roadway, Perry’s plan would see separate lanes for passenger and truck traffic, high-speed rail and freight lines, and utilities bundled into the Trans-Texas Corridor’s routes.

Taken as a whole, the Trans-Texas Corridor on its completion could become “the longest network of toll roads in the world,” according to the audit.

“It’s been a bad week for the governor on a host of fronts, but the big nightmare for him has only really just begun,” said Linda Curtis of Independent Texans. “Now that the depth of the fiscal irresponsibility of the corridor is now - finally - coming to light, we’re hearing new language from the pro-corridor forces. Now the talk is all about ‘transparency.’

“But it’s too late for transparency,” Curtis said. “That is, unless they’re going to put it on the ballot and let the people vote on it.”

A Daily Light request for comment from Perry’s office went unanswered. Several lawmakers said they needed time to read the 62-page audit - which was just made public Friday - before making a response.

Stall is hopeful that critics of the project have lawmakers’ attention in the Legislature. He points to a number of bills filed that relate to the corridor and an upcoming hearing before the state Senate Transportation Committee as positive signs.

“I think they will be moved to action,” he said, noting “an extremely large number” of bills have been filed that could have an impact on the corridor.

In the several years past, Stall said the attitude from TxDOT and the governor’s office was one of “this is a matter of we’re going to do it and we’ll explain it if we have to as we go.”

“This is much like the vaccines and other things. (Perry) is unswayed by anybody, even his own party,” Stall said. “The Republican Party has had it in its platform for two conventions now to do away with the Trans-Texas Corridor. Perry isn’t taking any leadership from the party or any other officials. He’s marching to his own tune.”

Stall said he would expect Perry to strike down any bill with an adverse effect on the corridor but notes one lawmaker has filed a constitutional amendment that would automatically call the Legislature back into session for three days to consider whether or not to override a veto on any bill.

“That amendment is an example of legislation that has been filed that would have an impact,” Stall said.

Of particular concern to Stall are the audit’s findings about non-compete clauses. Auditors note that if TxDOT builds a road within a stipulated non-compete zone, with certain exceptions, the developer could be entitled to compensation. The non-compete clauses need to be clarified and thought out, the report indicates.

“There’s about three paragraphs (from TxDOT) trying to explain away the non-compete,” Stall said. “In the first paragraph they say they are not constrained. In the next paragraph is wording that they will compensate the concessionaire. If you have to compensate, it’s a non-compete. You are restrained not only from building, but you have to pay damages.”

Such language would considerably raise the cost of any improvements to Interstate 35, Stall said.

“Today we are having problems coming up with money to improve Interstate 35,” he said. “Can you imagine in the future not only having to come up with funds to make improvements but also pay the private operator of the toll road?”

Revenues and payments to the state also need to be addressed, according to the audit, which notes the state could receive a concession payment of $3 billion relating to TTC-35.

“However, these concession payments could be reduced if factors such as the cost of financing each road segment, inflation and interest rates increase the developers’ costs,” the audit reads. “Significant changes in the cost of financing each road segment could result in the department foregoing any concession payment. Instead, if the department chooses to build the road segment, the state may have to pay a portion of the costs from available resources.”

In response to the above, TxDOT said developers are not guaranteed to earn the 12 percent rate of return that had been used for planning purposes. The agency said the actual rate could be higher or lower and that it plans “to delete language about a ‘12 percent guaranteed return on equity’ in the Master Development Plan.”

Stall described the audit as “very unflattering” toward TxDOT and the corridor.

“The most entertaining portion of it was the management response from TxDOT, which just aggravates me to no end,” he said. “It’s spin. If you know the actual details, you can see they embroidered all around the edges to make it sound good.”

Although Perry has touted the Trans-Texas Corridor as a project that would use private money - leaving state money for other projects - the audit notes several costs the state could end up paying toward TTC-35.

Those costs include $3.5 million to produce the Master Development Plan, shared costs for plan updates and costs related to the environmental studies and preliminary engineering.

The state may fund 55 percent or $16.5 billion of the $25.9 billion cost of constructing all of the high-speed rail lines and freight rail lines for all of TTC-35, according to the report, which notes the developers, Cintra Zachry LP, may fund 24 percent or $7.2 billion of the rail line cost.

“The Master Development Plan for TTC-35 shows that the remaining $6.2 billion in financing (for the rail line) could come from interest earned on cash balances from project funds that have been raised but not yet spent,” the report reads, noting also, “The state may also pay $563.3 million to construct two of the seven near-term facilities of TTC-35.”

The report notes that toll road developers may apply for federal loans to fund the construction of the seven near-term facilities, which would comprise a 333-mile stretch of the TTC-35 running from the Oklahoma border to San Antonio and set for completion from 2010 to 2017.

Corridor opponents aren’t giving up, Stall said.

“There’s a lot of things on a lot of fronts that are happening,” he said. “There’s a lot of different ways to skin a cat. We’re not giving up. After five years, we’re not giving up.”

As time goes on, he expects more people to come to the same viewpoint.

“I think it’s a flawed project that is the result of a flawed process,” Stall said. “I think anybody would look at it objectively and see the same thing. I’m not surprised the report was negative. Any objective report based on the facts of this project would have to be negative.”

See the audit online at www.thedailylight.com/media/ttc.pdf

Also online:

www.corridorwatch.com

www.indytexans.com

www.keeptexasmoving.com

E-mail JoAnn at editor@waxahachiedailylight.com


© 2007 Waxahachie Daily Light: www.waxahachiedailylight.com

To search TTC News Archives click HERE


To view the Trans-Texas Corridor Blog click HERE


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TxDOT’s own projections indicate TTC-35 will not take the burden off of I-35."

News

Audit: Few expected to use TTC tollway

February 24, 2007

By JOANN LIVINGSTON, Managing Editor
Waxahachie Daily Light
Copyright 2007

Corridor Watch spokesman David Stall is concerned about the TTC-35 projected tolls - and the impact on how that expense would affect people’s decisions to use the roadway.

“They’re going to make the tolls as much as people are willing to pay,” Stall said of any private entity that would take on any of the TransTexas Corridor’s planned 4,000 miles of toll roads.

“That’s exactly the opposite with what we have now (with state-run toll roads) that keep the toll as low as necessary,” he said, noting state-run toll roads’ motive is to keep traffic moving - not to make a profit.

“Private operators can raise the tolls as high as the market will bear,” Stall said, noting privately-run toll roads are familiar to people in California, where high tolls have led to the toll roads being nicknamed “Lexus lanes.”

“Some of these are extremely expensive,” Stall said.

The projected toll for the TTC-35 are among the highest in the nation at $0.125 per mile per car and $0.48 per mile per 5-axle truck, according to a table included with the audit.

The 333-mile trip from Oklahoma to San Antonio would cost $41.63 for a passenger vehicle, with a truck-tractor semi-trailer paying $159.84.

This compares to a car paying $24.87 for a 641-mile trip on the New York Thruway, where a big rig would pay $126.34.

A 606-mile trip on the Oklahoma Turnpike System would cost $26.55 for a passenger vehicle and $94.10 for a big rig. The 450-mile Florida Turnpike has a toll of $28.90 for a passenger vehicle and $99.25 for a big rig.

Although it’s not an issue addressed in the state audit made public Friday, Stall said the price of tolls impacts the number of people who ultimately choose whether or not to use a pay-to-drive roadway.

Although Perry has pushed for the Trans-Texas Corridor by citing immediate, pressing needs, TxDOT’s own projections seem to indicate the TTC-35 will not take the burden off of I-35.

According to TxDOT:

The segments that are needed most (the near-term facilities) stretch from Dallas to San Antonio. These segments could be complete within five to 10 years (by 2017), with other segments of the TTC-35 to be built “when they are needed.”

A 2006 traffic study conducted by TxDOT showed that by 2014, approximately 18 percent of the total traffic on I-35 between San Antonio and Austin could be diverted to TTC-35 and by 2030, this number could reach 24 percent.

This same traffic study concluded that by 2014, 15 percent of the traffic on I-35 between Austin and Waco could be diverted to TTC-35, with a total diversion of 23 percent by 2030.

“They’re not interested in how many cars they can move, but in how much money they can make,” Stall said. “If they can double the tolls, cut the number of cars in half, they keep the same revenue - and their maintenance costs go down. It’s economics.”

See the audit online at www.thedailylight.com/media/ttc.pdf

Also online: www.corridorwatch.com

www.indytexans.com

www.keeptexasmoving.com

E-mail JoAnn at editor@waxahachiedailylight.com


© 2007 Waxahachie Daily Light: www.waxahachiedailylight.com

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To view the Trans-Texas Corridor Blog click HERE


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House Bill 1881 would will repeal the Trans-Texas Corridor from the transportation code

Kolkhorst bill would halt highway proposal

February 24, 2007

The Huntsville Item
Copyright 2007

AUSTIN — Two bills have been filed by state Rep. Lois W. Kolkhorst of Brenham which would terminate the state’s controversial Trans-Texas Corridor highway proposal.

If passed, House Bill 1881 will repeal the Trans-Texas Corridor from the transportation code, effectively killing the proposal by removing the enabling legislation which would have served as the foundation for any future corridor project.

“I’ve been fighting against the Trans-Texas Corridor for several years, and it’s not because I want to stop progress,” Kolkhorst said. “We need to look at new ways to fund roads, but this isn’t it.

“Some toll systems work, such as Harris County, but many do not. Plenty of people share my concerns about these private toll roads and how they’ll threaten communities, violate our property rights, and create an unregulated transportation monopoly. My bill allows Texas to scrap the Trans-Texas Corridor plan and start over.”

Kolkhorst said she has received literally hundreds of calls, comments, letters and e-mails against the Trans-Texas Corridor over the past few years.

She also has worked with the anti-corridor group Corridorwatch.org and received an A-rating from group.

Additionally, Kolkhorst filed House Bill 1880, which prohibits any public pension fund from investing in a private toll road project, such as the Trans-Texas Corridor.

The bill cuts off billions of dollars of funding that private toll road vendors, both foreign and domestic, would attempt to use in order to raise equity.

“No public money from a public pension fund should be used for a private toll road," Kolkhorst said. “It’s risky to invest our retiree pension funds into an unproven investment, especially with a foreign company. Texas doesn’t need a middle-man to build a road.

“Private companies should not leverage taxpayer dollars and then turn around and ask taxpayers and the public to give up oversight of a toll road project.”

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TxDOT uses 'strategic misrepresentation' to promote TTC-35

Auditor scolds agency for corridor project

Texas Department of Transportation downplayed costs, withheld information, audit says

February 24, 2007

By Ben Wear
Austin American-Statesman
Copyright 2007

The Texas Department of Transportation has downplayed the potential costs of the Trans-Texas Corridor and potentially inflated expected gains for the project, state auditors said in a report released Friday.

Auditors also said department officials have not been sufficiently open about information on the massive road project and should involve the state comptroller's office in overseeing future corridor contracts.

The department, in a response included in the 73-page audit, agreed with most of the auditors' observations and recommendations. But the department defended its decision to withhold for more than a year portions of its contract with corridor developer Cintra-Zachry. And it said the auditor was wrong to conclude that the contract commits the department to guarantee Cintra-Zachry a 12 percent rate of return on what it spends building a 300-mile toll road alternative to Interstate 35.

"The 12 percent was merely a modeling assumption," the agency's response says.

The state plans to delete language about a "12 percent guaranteed return on equity" now in the master development plan, the audit says.

The report also says the $3 billion in payments from the developer that the state expects to get could be reduced to nothing if interest rates and inflation are higher than expected. The agency in its response did not address that assertion.

Austin state Sen. Kirk Watson, a Democrat who serves on the Senate Transportation and Homeland Security Committee, in a statement said the audit should put the brakes on the corridor project pending further study.

"Texas cannot rush into a project that will help define our future when there are so many uncertainties about the present." Watson said. "We must step back, demand answers, and (ensure) the public is protected before work proceeds on the Trans-Texas Corridor."

The Trans-Texas Corridor was proposed in 2002 by Gov. Rick Perry as a 4,000-mile network of tollways, railroads and utility corridors roughly paralleling existing interstate highways in Texas. The department in late 2004 announced that it had selected Cintra-Zachry to create a master plan for developing the first and most-needed of those corridors, the twin to I-35.

The department and Cintra-Zachry in March 2005 reached a $3.5 million agreement for the partnership to create a plan, and the agency released much of the contract. But the agency said release of certain sections was not required until the actual plan was complete, an assertion that Texas Attorney General Greg Abbott's office disputed. Perry's gubernatorial opponents seized the opportunity to criticize.

The rest of the contract was released last fall when the master plan was completed.

The audit said "it is important that the Department makes all documents, plans, and contracts related to the project public in a timely manner." The audit did not define "timely." Even so, the agency remained defiant about its decision to keep the information confidential temporarily.

"Providing information prior to approval (of the plan) could jeopardize competition during the procurement process," the agency said in its audit response.

bwear@statesman.com; 445-3698

© 2007 Austin American-Statesman: www. statesman.com

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Friday, February 23, 2007

State Auditor's Office report is sharply critical of the Trans-Texas Corridor

Audit rebukes corridor costs

Report says TxDOT estimates unreliable for Trans-Texas plan

Feb. 23, 2007

By CLAY ROBISON
Houston Chronicle Austin Bureau
Copyright 2007

AUSTIN — The State Auditor's Office issued a sharply critical report on the Trans-Texas Corridor on Friday, concluding that taxpayers may never know how much they could end up paying for a toll road that parallels Interstate 35 from San Antonio to Oklahoma.

And if the Texas Department of Transportation doesn't improve its accounting of project costs, taxpayers won't know if the public costs are appropriate, auditors said.

The route, known as TTC-35, is the first phase of an ambitious, long-term transportation network proposed by Gov. Rick Perry to help ease congestion on Texas highways.

Eventually, TTC-35, stretching from Laredo through North Texas, could cost more than $105 billion, it has been estimated.

Although costs for the Trans-Texas tollway, including financing, are to be provided through a developer, some costs could be partially paid by the state, the audit report said.

Texans could pay $13.6 billion in financing costs for the initial phase of TTC-35 plus a possible $16.5 billion for additional rail line projects, according to the audit.

A TxDOT spokesman defended the "corridor concept" and said the agency disagreed with some of the auditor's recommendations.

The corridor concept "is the most logical, most attainable way for us to relieve congestion," spokesman Randall Dillard said.

But the report, released less than a week before a scheduled Texas Senate committee hearing on toll roads, is sure to add fuel to a political controversy that has raged for months.

The Department of Transportation in March 2005 entered into a $3.5 million contract with Cintra Zachry LP, a private consortium, to develop a long-range plan to design, build, finance, operate and maintain the TTC-35 project.

Cintra is a Spanish company; Zachry is based in San Antonio.

The state agency has succeeded in carrying out part of the agreement with the consortium, auditors noted.

"However, weaknesses in the department's accounting for project costs create risks that the public will not know how much the state pays for TTC-35 or whether those costs are appropriate," they concluded.

The audit noted a "lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income."


The transportation agency plans to enter separate contracts with developers for each segment of TTC-35 and is negotiating a contract for the first segment, Texas 130 near Austin.

Although the state could receive $3 billion in concession payments from developers, such payments could be reduced if inflation, interest rates and other factors increase the developers' costs, auditors said.

Auditors recommended more legislative oversight of the Trans-Texas Corridor, the transfer of toll revenue projections from TxDOT to the state comptroller and increased public access to information about the project.

They also proposed that TxDOT officials provide regular financial forecasts to the governor, the Legislature and the comptroller and submit development agreement contracts of more than $250 million to the attorney general for review and approval.

David Stall, co-founder of Corridor Watch, a citizens group critical of the project, applauded the audit.

"They brought up certainly a number of valid points and things Corridor Watch has been concerned about," he said.

TxDOT's Dillard said the agency cooperated fully with the auditors and said the agency already has implemented some of the recommendations.

Perry spokesman Ted Royer said the governor "always appreciates new ideas for improving transparency and accountability in government."

The Texas Transportation Commission also has been seeking proposals for development of TTC-69, between Northeast Texas and the border. It would pass near the Houston area.

clay.robison@chron.com


© 2007 Houston Chronicle: www.chron.com

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"The report is sure to add fuel to a political controversy that has raged for months.

Auditors expose holes in TTC-35

02/23/2007

Clay Robison, Austin Bureau
San Antonio Express-News
Copyright 2007

AUSTIN — The state auditor's office issued a sharply critical report on the Trans-Texas Corridor on Friday, concluding that taxpayers may never know how much they could end up paying for a toll road that would parallel Interstate 35 from San Antonio to Oklahoma.

And if the Texas Department of Transportation doesn't improve its accounting of project costs, taxpayers won't know if the public costs are appropriate, auditors said.

The route, known as TTC-35, is the first phase of an ambitious, long-term transportation network proposed by Gov. Rick Perry to help ease congestion on Texas highways.

Eventually, TTC-35, stretching from Laredo through North Texas, could cost more than $105 billion, it has been estimated.

Although costs for the Trans-Texas toll way, including financing, are to be provided through a developer, some costs could be partially paid by the state, the audit report said.

Texans could pay $13.6 billion in financing costs for the initial phase of TTC-35, plus a possible $16.5 billion for additional rail line projects, according to the audit.

A TxDOT spokesman defended the "corridor concept" and said the agency disagreed with some of the auditor's recommendations.

The corridor concept "is the most logical, most attainable way for us to relieve congestion and improve safety on Interstate 35 and provide the transportation system needed for the future economic well-being of the state," spokesman Randall Dillard said.

But the report, released less than a week before a scheduled Texas Senate committee hearing on toll roads, is sure to add fuel to a political controversy that has raged for months.

The Department of Transportation in March 2005 entered into a $3.5 million contract with Cintra Zachry LP, a private consortium, to develop a long-range plan to potentially design, build, finance, operate and maintain TTC-35.

Cintra is a Spanish company, and Zachry is based in San Antonio.

The state agency has succeeded in carrying out part of the agreement with the consortium, auditors noted.

"However, weaknesses in the department's accounting for project costs create risks that the public will not know how much the state pays for TTC-35 or whether those costs are appropriate," they concluded.

The audit noted a "lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income."

The Texas transportation agency plans to enter separate contracts for each segment of TTC-35 with developers and is negotiating a contract for the first segment, Texas 130 near Austin.

Although the state could receive $3 billion in concession payments from developers, such payments could be reduced if inflation, interest rates and other factors increase the developers' costs, auditors said.

"Significant changes in the cost of financing each road segment could result in the department foregoing any concession payment," they wrote. "Instead, if the department chooses to build the road segment, the state may have to pay a portion of the costs from available (state) resources."

The master development plan also anticipates that developers may apply for $3.9 billion in federal loans for some construction costs, according to the audit.

Auditors recommended more legislative oversight of the Trans-Texas Corridor, the transfer of toll revenue projections from TxDOT to the state comptroller and increased public access to information about the project.

They also proposed that TxDOT officials provide regular financial forecasts to the governor, the Legislature and the comptroller and submit development agreement contracts of more than $250 million to the attorney general for review and approval.

David Stall, co-founder of Corridor Watch, a citizens group critical of the project, applauded the audit.

"They brought up certainly a number of valid points and things Corridor Watch has been concerned about," he said, including the "gross underestimate of costs."

TxDOT's Dillard said the agency cooperated fully with the auditors and said the agency already has implemented some of the recommendations.

"We will be reviewing the report and taking any other steps we feel appropriate to improve our processes in the development of this important alternative route to Interstate 35," Dillard said.

Some of the auditor's recommendations would require legislative action, he said.

Perry spokesman Ted Royer said the governor "always appreciates new ideas for improving transparency and accountability in government."

The audit report pointed out that TxDOT kept portions of its agreement with Cintra Zachry confidential for 18 months, citing proprietary concerns, though the attorney general's office ruled it was a public record.

The contract was made public in September.

"Given the scope and public nature of the Trans-Texas Corridor project, it is important that the department makes all documents, plans and contracts related to the project public in a timely manner," the audit said.

clay.robison@chron.com

© 2007 San Antonio Express-News: www.mysanantonio.com

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The cost of TTC-35 is the tip of the iceberg

TTC-35: $105.6 billion

February 23, 2007

By JOANN LIVINGSTON,Managing Editor
Waxahachie Daily Light
Copyright 2007

A State Auditor’s Office report on the Texas Department of Transportation and the Trans-Texas Corridor set for public release today estimates a $105.6 billion price tag for the TTC-35 portion alone of the massive transportation project.

The TTC-35 represents 14 percent, or 560 miles, of the Trans-Texas Corridor’s proposed 4,000 miles of roadway criss-crossing the state. A 2002 estimate by TxDOT placed the cost for the entire Trans-Texas Corridor at between $145 and $184 billion.

Taken as a whole, the Trans-Texas Corridor on its completion could become “the longest network of toll roads in the world,” according to the audit. The TTC-35 portion of the project will bisect the center of the state from Mexico to Oklahoma, roughly paralleling Interstate 35.
“Although there are weaknesses in the Department of Transportation’s oversight, the department has been successful in administering certain key aspects of its Comprehensive Development Agreement contract with Cintra Zachry LP and negotiating the first road project for TTC-35,” according to a copy of the audit obtained by the Daily Light. “Weaknesses in the department’s accounting for project costs and monitoring of the developer create risks that the public will not know how much the state pays for TTC-35 or whether those costs were appropriate. Not adequately monitoring developers also exposes the state to future financial liability.”

The audit notes that the Master Development Plan anticipates that the TTC-35 could be developed through a series of 50-year contracts, with the “near-term road projects” or 330-mile stretch of the TTC-35 running from the Metroplex to San Antonio set for completion from 2010 to 2017.

The near-term segments are planned to open with four vehicle lanes, with the audit noting that the Master Development Plan specifies that the TTC-35’s various components (vehicle lanes, truck lanes, high-speed rail lines, freight rail lines and utility right-of-way) will not be developed simultaneously.

“After analysis of traffic patterns on those (four initial vehicle) lanes, the need for additional lanes will then be evaluated,” reads the audit, which notes if high-speed rail lines are constructed, those might not be open until 2024. The utility right-of-way is not expected to be developed until 2030.

“In addition, these rail lines are not currently planned to parallel all portions of TTC-35,” the audit reads. “Instead they could be constructed from Fort Worth to Dallas to San Antonio.”

The audit’s background information notes that “financial plans associated with TTC-35 are expected to change and updates are required every six months. Changes in a variety of factors - such as interest rates, construction costs and revenue forecasts - could result in significant changes to the financial plans for TTC-35.

The Master Development Plan developed by Cintra Zachry LP notes that “the design, right of way, construction, operations, maintenance and financing costs will be provided through a developer, but in some cases these items could be partially paid by the state.

“There will be a separate contract for each segment, or group of segments of TTC-35; each contract will be between the segment’s developer and (TxDOT),” the audit notes. “As of January 2007, none of these segment development contracts had been executed, although the department is currently negotiating such a contract for State Highway 130 (segments 5 and 6) with Cintra Zachry LP.”

The audit continues, “There is a lack of reliable information regarding projected toll road construction costs, operating expenses, revenue and developer income. Auditors made an effort to sum the elements of costs, operating expenses, revenue and developer income contained within the TTC-35 Master Development Plan.

“Upon its review of the sums, (TxDOT) states that this financial information was not correct because it is not possible to accurately estimate profits due to many unforeseen variables. This report contains financial information auditors summed from the Master Development Plan for every 10 years of the 50-year life of the projects,” according to the audit, which notes the plan met the requirements of the Comprehensive Development Agreement.

A key point noted in the audit is that while TxDOT could receive $3 billion in concession payments from the developers of TTC-35, “it could be required to forgo that revenue and, instead, the state could pay from available resources for any segment to be built.”

Concession payments could be reduced if factors such as the cost of financing each road segment, inflation and interest rates increase the developers’ costs, reads the audit, adding that the development of the TTC-35 could involve the use of public funds.

Although the plan says the project will require minimal public funds, with the near-term facilities requiring no public funds, the audit writes that public funds have the potential to be used relating to costs associated with the plan, costs for two of the near-term projects, freight rail lines and high-speed rail lines.

“Additionally, the department does not define federal credit assistance as public funds,” the audit notes. “The Master Development Plan anticipates that developers may apply for $3.9 billion in federal Transportation Infrastructure Finance and Innovation Act loans to fund the construction of the seven near-term facilities of TTC-35.”

Yet another key point in the audit is that TxDOT did not initially make all documentation related to the Trans-Texas Corridor public.

Although noting the department’s reasoning for not disclosing the conceptual financial plan and conceptual development plan for 18 months, the audit writes, “Given the scope and public nature of the Trans-Texas Corridor project, it is important that the department makes all documents, plans and contracts related to the project public in a timely manner.”

The audit makes several recommendations, including that the Legislature increase the availability and reliability of financial information by requiring TxDOT to increase transparency by increasing the public’s access to information about the Trans-Texas Corridor.

The audit also recommends that TxDOT transfer the toll revenue projection function and associated resources from itself to the Office of the Comptroller of Public Accounts.
“Having an independent third party project toll revenue could play a valuable role in increasing the reliability of financial estimates,” reads the report, which also recommends that the State Auditor’s Office audit each annual financial statement for a toll road segment or combination of segments.

The audit also recommends that the Texas Transportation Code be clarified to require that surplus toll revenue and other revenue paid to the department be deposited into the State Highway Fund and be subject to legislative appropriations.

TxDOT should prepare a financial forecast that includes toll revenue, construction costs, operating expenses and developer income before a contract is signed for each toll segment, according to the audit, saying copies should be provided to the governor, Legislature and the Office of the Comptroller of Public Accounts.

“(TxDOT should) account for project costs in a manner that allows the public to know how much the state pays for TTC-35 and whether those costs were appropriate,” the audit reads. “In addition, it should post these costs on its Web site in a timely manner.”

The audit also recommends that any Comprehensive Development Agreements contracts and draft agreements “to design, build, operate, maintain, lease or fianc/ sections of tolls road that will last more than four years or involved the state or another entity spending more than $250 million” should go to the Office of the Attorney General for review and approval.

TxDOT’s response to the audit is included within the report, which notes the department is generally in agreement with most of the recommendations.

Other findings and recommendations:

  • The department doesn’t always charge costs to the correct project and excludes indirect costs from total project costs. An example cited by the audit was $52,000 of a $628,000 invoice that was charged to engineering was actually for public relations expenses. The audit also notes that 21 of 32 sampled invoices showed $4.3 million allocated to incorrect projects.
  • The department does not always require vendors to submit information that could enable it to allocate costs to specific projects.
  • The department should strengthen its monitoring of the developer’s compliance with the Comprehensive Development Agreement contract.
  • While the department complied with applicable laws, rules and regulations in procuring the Comprehensive Development Agreement, the audit notes some areas could be strengthen to enhance the integrity of the process, including retaining proposal evaluation scoring sheets.
  • Not retaining the individual scoring sheets of each committee member can lead to an appearance of impropriety in the selection process,” the audit reads.
  • In comparing the draft segment agreements for segments 5 and 6 of State Highway 130, the audit notes the department should review the areas of non-compete clauses, toll enforcement, toll rates and financing for consideration to effect on future facility agreements.
A draft copy of the report was shared with TxDOT officials in late January, with the 62-page audit released Thursday to member of the Legislative Audit Committee, which includes Lt. Gov. David Dewhurst; House Speaker Tom Craddick; state Sen. Steve Ogden, chairman of the Senate Finance Committee; state Sen. Thomas Williams; state Rep. Warren Chisum, chairman of the House Appropriations Committee; and state Rep. Jim Keffer, chairman of the House Ways and Means Committee. Copies also were provided to Gov. Rick Perry and members of the Texas Transportation Committee.

“We found the discussion helpful and productive,” TxDOT executive director Michael W. Behrens, P.E., wrote in a letter dated Feb. 21 extending his appreciation to the State Auditor’s Office. “We share your goal of having a good audit report that is factual and understandable.”

In his letter Behrens references “the new and innovative tools that our elected officials have provides us to address the state’s transportation needs.”

“Because these tools are new, as well as complex, your report has provided significant content to help the reader understand these new tools,” Behrens wrote. “We value the audit process and appreciate the professionalism of your staff. Hopefully members of this audit team will be available for additional audits of these new tools and transportation projects.”

E-mail JoAnn at editor@waxahachiedailylight.com

© 2007 Waxahachie Daily Light: www.waxahachiedailylight.com

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"The governor’s mouthpieces should have saved their breath. Perry’s actions had spoken for them."

Editorial:

How does it look, Rick?

February 23, 2007

Waco Tribune-Herald
Copyright 2007

Rick Perry’s office felt it had some explaining to do Wednesday.

Too late.

The governor’s mouthpieces should have saved their breath. Perry’s actions had spoken for them.

The explaining was over the timing of a $5,000 donation from a pharmaceutical giant.

Timing is not the issue. Actions are.

Perry accepted $5,000 from the political action committee for Merck. The company produces Gardasil, which by Perry’s directive would be administered to all female sixth-graders in Texas unless parents opt out.

The target is a killer: a sexually transmitted virus that causes cervical cancer. Texas legislators nonetheless have lined up in numbers to block Perry’s move. They call it too presumptive, both toward families and toward the lawmaking process.

Perry had enough explaining to do relative to his proposal’s merits. He didn’t need to be explaining how Merck’s $5,000 contribution didn’t influence him.

That Perry got the contribution the very day his staff huddled on making the proposal is being called mere coincidence.

All we know is what this governor well should. Appearances matter.

Appearances should have mattered when Perry’s campaign accepted $5,000 from the political action group that represents TXU Corp. just a few weeks after Perry signed an executive order speeding up state permitting for coal-fired power plants.

They should have mattered when retired TXU chairman Erle Nye gave the Perry campaign $2,000 the very day the order was signed and another $25,000 a few months later.

But once again, timing is not as germane as the act itself. Someone who is making public policy that directly benefits a donor should be able to say, “I appreciate the gesture, but I don’t want people to think I’m being influenced by your graciousness.”

Do we really think Perry needed the stash?

Appearances should have mattered when the Perry campaign was accepting donations of roughly $25,000 a year from San Antonio construction mogul H.B. Zachry.

Zachry? That’s half of Cintra-Zachry, the state contractor for the Trans-Texas Corridor.

Perry’s office will assert that such mutual indulgence is a relationship merely of people who agree on what good government means. Taxpayers are not to infer favors bought and sold.

Sorry, governor, but it’s too late.

When it comes to conflicts of interest, appearance is all that matters. Oh, yes, and actions. Timing? Not so much.

© 2007 Waco Tribune-Herald: www.wacotrib.com

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To view the Trans-Texas Corridor Blog click HERE

Thursday, February 22, 2007

"Drivers would have to have EZ tags."

Toll road proposed for 288

February 22, 2007

KHOU-TV (Channel 11) Houston
By Wendell Edwards
Texas Cable News

The population explosion in Brazoria County has made rush hour traffic on highway 288 bumper to bumper.

There could be some relief in sight in the form of a toll road, but it’s going to cost you.

The plans that were introduced have crews building toll road lanes on a 26 mile stretch of Texas 288.

Two lanes in each direction will be build along the median from 59 to 610.

Three lanes will be build from 610 to the Beltway in each direction.

From the Beltway to County Road 60 near Rosharan will be back down to two lanes in each direction.

“TxDOT always planned for 288 to be a major corridor. We knew there would be a lot of expansion. There would be of course a lot of residential and a lot of coming from Brazoria county into Harris County,” said Norm Wigington With the Texas Department of Transportation.

The drivers would have to have EZ tags.

Pearland City Councilman, Kevin Cole supports the plan. “It’s a good thing. The 288 corridor is the last major corridor in Houston, with this close proximity to Houston to develop.”

TxDOT says if approved the currently lanes on 288 will remain free.

That’s good news for those who constantly use that highway.

“It’s gridlocked. It’s horrible. It’s horrible to be on the traffic on 288,” says Regina Coyle who lives in Pearland.

On average, TexDOT says, 140,000 drivers use 288 every day.

People have until March 9 to tell the state what think about the idea.


© 2007 Texas Cable News: www.txcn.com

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Macquarie hopes to add Texas State Highway 121 to its toll road portfolio

MIG turns US tollroads to gold

February 22, 2007

By Nick Lucchinelli
AAP
Copyright 2007

PROFITS were expected to keep rolling in for international tollroad operator Macquarie Infrastructure Group, as it capitalised on exposure to the growing US market.

The group today announced a half year net profit of $1.44 billion, up 76 per cent on the previous first half, while also predicting double digit earnings growth over the next twelve months.

This would be largely driven by the US tollroad sector, said chief executive Stephen Allen.

"We have been very clear that we see much of the growth in the tollroad sector coming from the United States,'' Mr Allen said.

"Private investment represents a practical response for US legislators to the significant issues generated by the combination of growing congestion and under-investment in road infrastructure, in an environment where there is increasing competition for the available public funding sources.''

MIG will look to co-invest in more US assets with fellow Macquarie Bank spin-off, Macquarie Infrastructure Partners.

One such project MIG has bid for is the SH 121, a new 22 kilometre tollroad to be built near Dallas, Texas.

MIG expected to learn whether its bid had been successful by the end of the month.

US assets were very solid performers for the company in the first half.

Earnings before interest, tax, depreciation and amortisation (EBITDA) on MIG's Indiana toll road increased 57.7 per cent during the period, while the Dulles Greenway tollroad in northern Virginia increased 45.7 per cent.

The Skyway in Chicago was less impressive, posting EBITDA growth of 2.3 per cent, which the company attributed to roadworks. Non-US assets generally performed less impressively.

EBITDA for the 407 ETR in Toronto was 9.7 per cent higher, while the M6 in England rose by 27.5 per cent.

MIG also spun off Australian assets including the Eastern Distributor, M4 and M5 during the period into the Sydney Roads Group, which is now the subject of a Transurban takeover bid.

Mr Allen said the move represented an important evolution of the business.

"The purpose of the demerger was to enhance value for MIG security holders and we believe this has been realised: MIG achieved a 27 per cent internal rate of return for the divested Sydney toll roads.''

The company was happy, too, with its on-market buy back, with $303 million of $1 billion acquired since October, representing 11.1 per cent by volume of the securities traded since the buy back began.

The company maintained previous distribution guidance of 20 cents per stapled security for 2006/07 and gave preliminary guidance of 20 cents for 2007/08.

© 2007 News Limited: www.news.com.au

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To view the Trans-Texas Corridor Blog click HERE

Australian company predicts strong earnings on U.S. Toll roads

US to underpin MIG earnings growth

February 22, 2007

The Age (Australia)
Copyright 2007

International tollroad operator Macquarie Infrastructure Group (MIG) is banking on the US market to underpin strong earnings growth and says Australian motorists need to be re-educated about toll rates.

The company on Thursday reported a 76 per cent surge in first half net profit to $1.44 billion, but conceded the result was influenced by gains from the demerger of three Sydney toll roads and the sale of a fifty per cent stake in its US operations.

Together, the deals swelled the profit by $644.8 million.

But MIG chief executive Stephen Allen said he expected the company to achieve double digit growth in earnings before interest, tax, depreciation and amortisation (EBITDA) in the next 12 months, largely on the back of its US investments.

"It continues to emerge as the most interesting market for private toll road operators and in the medium term, remains a place we will be able to generate returns for our security holders," Mr Allen said.

Traffic gridlock and chronic under investment in roads in the US was pushing demand for private investment, although public opposition to foreign ownership was a hurdle some US rivals would exploit.

"I fully expect those who are based in the US will continue to play to the foreign ownership card, it's effective in every market," Mr Allen said.

A major deal on the immediate horizon for MIG is the SH 121, a 22 kilometre tollroad to be built near Dallas, Texas.

MIG and partner Macquarie Infrastructure Partners will learn whether they're successful bidders by the end of the month.

The company's existing US assets performed well in the first half and all reported EBITDA growth.

MIG's Indiana toll road was the stand out with EBITDA increasing by 57.7 per cent during the period.

Non-US assets generally performed less impressively.

Earnings for the 407 ETR in Toronto rose 9.7 per cent due to lower costs while the M6 in England enjoyed EBITDA growth of 27.5 per cent, but was a beneficiary of roadworks.

Mr Allen said traffic growth for MIG's remaining Australian asset, the M7 Westlink tollroad, was below expectations and motorists may need to be educated about how the toll worked.

"Getting people aware that if they only travel five kilometres they only get charged for five kilometres," he added.

Mr Allen the spin-off of Sydney's Eastern Distributor, M4 and M5 assets into the recently listed Sydney Roads Group had been successful for security holders, delivering an internal rate of return of 27 per cent.

The company was happy, too, with its current on-market share buyback, with $303 million of $1 billion worth of shares acquired since October.

The company maintained its previous distribution guidance of 20 cents per stapled security for 2006/07 and gave preliminary guidance of 20 cents for 2007/08.

It will pay an interim distribution of 10 cents for the six months ended December 31, in line with last year.

MIG stapled securities closed two cents higher at $3.85 on Thursday.



© 2007 AAP: www.theage.com.au

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"I think we've created a monster. I think we're headed in a totally wrong direction. I'm not so sure we haven't already signed away the farm."

Senate committee grills two commission nominees over toll roads, other issues

Committee approves the two, now whole Senate must confirm

February 22, 2007

By Mike Ward
Austin American-Stateman
Copyright 2007

Two nominees to the Texas Transportation Commission got a jet-blast of criticism Wednesday from the Senate Nominations Committee, as lawmakers vented about road issues ranging from tolls to secrecy to big-ticket contracts.

The exchange in the nominations hearing marked the latest signal that many lawmakers are not happy with the transportation mega-agency, amid a continuing series of skirmishes between Senate transportation committee Chairman John Carona, R-Dallas, and Transportation Commission Chairman Ric Williamson.

During the nominations hearing, Ned Holmes of Houston and Fred Underwood of Lubbock at times looked like deer caught in headlights, as senators grilled them about their views on controversies that have been swirling for months around the agency's management and operations.

In the end, assured by the two men that they support more openness and will get answers to lingering questions about tolls and financing, the committee voted unanimously to approve their appointments. Both need to be confirmed by the full Senate.

"I think we've created a monster" in the Texas Department of Transportation, state Sen. Kevin Eltife, R-Tyler, citing the agency's rush to approve toll roads and private financing packages that stirred continuing controversy.

"I think we're headed in a totally wrong direction," Eltife said. "I'm not so sure we haven't already signed away the farm."

Holmes and Underwood said they could not predict how they will vote on issues because they have just started understanding the complexities of Texas transportation.

At one point, though, Underwood expressed frustration about being unable to get answers to some of his questions.

"I'm hoping the two of you will bring us a fresh approach to this," Eltife said, adding later, "Just because they started this five years ago and it's almost under contract is not the right answer" to questions.

The commission has five members, all appointed by the governor.

Eltife blamed the Legislature for much of the problem facing the transportation agency, saying that refusal to approve an increase in the state's gas tax to pay for road-building programs resulted in the agency having to resort to controversial alternatives.

"We're either going to provide transportation systems, or we're going to live with an incredibly impaired system," Holmes said.

Sen. Kirk Watson, D-Austin, quizzed the two nominees on whether they support more transparency in the operation of the regional boards that set tolls and make toll-road decisions.

Both indicated they do.

Watson also asked where they stand on a past agency practice of requiring local communities to make financial contributions if they wanted roads built immediately — "a hammer instead of an incentive," he called it.

Other senators criticized that practice as unfair to rural counties and those that cannot afford to pay, even if they desperately need new highways.

"I don't think it should be used that way," Underwood said.

mward@statesman.com


© 2007 Austin American-Statesman: www. statesman.com

To search TTC News Archives click HERE

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Wednesday, February 21, 2007

Austin mayor seeks windfall in selling airport

Austin ponders putting airport in private hands

Some council members say public should vote on leasing Austin-Bergstrom.

February 21, 2007

By Ben Wear , Kate Alexander
Austin American Statesman
Copyright 2007

City of Austin officials are considering leasing out the city's eight-year-old airport, a transaction that could bring a windfall of several hundred million dollars but would also put control of a key city service in private hands.

City Manager Toby Futrell has been sounding out council members in one-on-one meetings and has suggested that the council be briefed as a group in executive session in the coming weeks.

Such an arrangement, even if a council majority goes for it, would face myriad legal and political hurdles and would probably not occur anytime soon. And it's unclear how a private lease might affect ticket prices, parking fees, the future of the about 320 city airport employees or other airport services.

Mayor Will Wynn, at least, is convinced that the city should unload Austin-Bergstrom International Airport.

The airport's revenue was $9.6 million above its expenses last fiscal year, city Aviation Director Jim Smith said, and the city has averaged $8.9 million in net income annually since 2001. But federal law prohibits the city from using that money outside the airport site, instead requiring that it be plowed back into airport improvements.

Governments nationwide have been entertaining offers for toll roads, state-run lotteries and airports from foreign investors awash in cash. Futrell said the city has received no airport lease proposal, verbally or in writing.

Wynn said he has been lobbying his council peers for several months on the subject, picking up on a move by Chicago Mayor Richard Daley to lease that city's Midway Airport.

"There's no financial reason whatsoever for the city to own the airport, as by law we can make not one penny from its operations or even property rentals," Wynn said Tuesday. "So why not explore a sale or a long-term lease that could net us hundreds of millions of dollars upfront that we could put toward any number of community needs, such as transportation?"

A sale is not an option, however.

Chicago and a handful of other cities have pursued putting airports in private hands under a 1996 federal pilot program allowing up to five U.S. airports to be leased. Chicago, which began the process at least a year ago, has applied to the Federal Aviation Administration but has not been approved yet, said Robert Poole, transportation studies director for the Reason Foundation, a libertarian think tank. Under that program, a city can't lease its airport to a private company unless the FAA and 65 percent of airlines using the airport agree.

Airlines in the U.S. generally have been leery about privatization, fearing increased costs and less sway over airport expansion.

One airport, Stewart International Airport, north of New York, went private in 1999 under that program. But Poole said the British company that leased the airport decided last year to put its long-term lease on the market. Ironically, the latest buyer was a government entity, the Port Authority of New York & New Jersey.

Overseas, airport privatization has become the rule rather than the exception in recent years. According to an analysis by Poole, most large United Kingdom airports have gone private, along with airports in Hamburg and Frankfurt, Germany; Rome; Naples, Italy; Sydney, Australia; and Brussels, Belgium. Paris airport authorities have sold off a minority stake in the city's two major airports.

The Rome airport went for about 2.7 billion Euros, or about $3.5 billion at today's exchange rate.

Smith, the aviation director, said customers around the globe have given mixed reviews to privately run airports.

"Some of these privatizations have been a success, where the airport has become better from the community's perspective," Smith said. "And there's an equal number of examples where it's gotten worse."

He noted that the highest- rated international airports — in Seoul, South Korea; Hong Kong; and Singapore — remain in government hands.

Council Member Sheryl Cole said the potential revenue from a lease makes the concept worth exploring.

But other council members have reservations.

Brewster McCracken said that although it might not be legally required, he believes that the public ought to weigh in on a potential airport lease.

"My sense is that we have to take this to the voters, as a practical matter," McCracken said, adding that voters approved issuing $400 million in long-term debt to build the airport in the first place. Smith said the city owes $370 million in revenue bonds on the airport, money that would have to be repaid even if the city leases the airport.

"Frankly, I don't view this as very likely, because there are a lot of things that have to happen," McCracken said.

Lee Leffingwell said he is skeptical about the idea but is willing to listen to any proposals.

"It is only a conversation worth having in my view because of all the money involved," Leffingwell said.

No one involved at this point has any idea what a private contractor would offer. A multidecade lease of Midway Airport, according to various published estimates, could fetch $2 billion to $3 billion. That airport had almost 19 million passengers board and land there last year; Austin-Bergstrom had 8.2 million.

But the city would have to sacrifice some, if not all, control over the operation of the airport, and Leffingwell said he would be averse to losing that control. Leffingwell, Cole and Council Member Mike Martinez agreed that voters should have a say in letting go of the airport.

The ideas abound on how Austin might use that potential windfall.

Street and drainage infrastructure seem to top the list for several council members. State Rep. Mike Krusee, a Williamson County Republican who has been heavily involved in Austin issues as House Transportation Committee chairman, has been talking to Austin officials about leasing the airport and suggests that the money could be used to build a passenger rail line to the airport.

But Martinez cautioned against getting too giddy about the notional bankroll.

"This is a not a perpetual funding source," Martinez said.

Martinez said he was concerned that if the airport were handed over to a private entity, current policies to promote Central Texas businesses and give the airport a local vibe with Austin-based restaurants and live music would be lost.

"I doubt you would see such a commitment and investment from a private investor," Martinez said.

Not necessarily, Wynn said.

"Obviously we could write into any deed restriction or long-term lease things like environmental controls, worker protections, even design features," he said. "So we could essentially still control elements of the look, feel or taste of that airport."

Some considerations for Austin

•Austin could get a large infusion of money that could be used for other city purposes. Currently, all airport revenue has to be used for the airport.

•Austin would probably have to give up at least some control over airport operations. The more control Austin retained, the less money the city could get.

bwear@statesman.com; 445-3698

kalexander@statesman.com; 445-3618

© 2007 Austin American-Statesman: www. statesman.com

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"This governor should remember that he is a guest in the people's house. He doesn't have the right to come in and sell off all the furniture."


FOR SALE
Lotteries, roads, welfare work. Inquire at governor's office

As states outsource, debate about it grows

2/21/07

Associated Press
Copyright 2007

INDIANAPOLIS - Like the auto industry, the computer programming field and the customer-service business, the state of Indiana is outsourcing.

In the two years since Republican Gov. Mitch Daniels took office, the state has leased the 157-mile Indiana Toll Road to an outside company for the next 75 years for $3.8 billion, hired vendors for $1.16 billion over 10 years to process welfare applications, and brought in a company to serve food at a mental hospital. And now Daniels wants to lease the Indiana lottery for at least $1 billion over 10 years and put the money toward education.

Daniels is leading the way among cash-strapped governors who are contracting out services states historically have handled themselves. The primary goal of these deals: saving tax dollars, or generating quick cash that can be used to fix roads, reduce debt or provide college scholarships.

"All over America, leaders of both parties are now undertaking projects like Indiana did, to solve their crises and their own shortfalls without raising taxes," said Daniels, who was nicknamed "The Blade" for cutting taxes and spending as President Bush's first budget director.

But some legislators and government-watchers warn that some of these privatization deals have yielded shoddy service. And some fear that in leasing toll roads and lotteries, politicians are signing away a reliable, long-term stream of revenue for a big lump sum of money they might squander on some short-term ideas.

"There's a real danger you end up mortgaging your future," David Schulz, an infrastructure expert at Northwestern University. "You've got 50 or 60 years of lottery payments, but you've used it in the first couple of years."

Elsewhere around the country, Chicago in 2005 signed a 99-year lease of its 7.8-mile Skyway toll road for $1.83 billion, and Illinois Gov. Rod Blagojevich is one of several governors proposing to lease their state lotteries. New Jersey Gov. Jon S. Corzine, whose state has the highest property taxes in America, wants to outsource the New Jersey Turnpike. And several states have hired outsiders to run welfare operations.

"Doing nothing is not an option," said Pennsylvania Gov. Ed Rendell, who is considering leasing the Pennsylvania Turnpike to a private operator to help pay for $1.7 billion in transportation improvements.

Many of the deals have drawn criticism.

Retired University of Notre Dame economics professor Roger Skurski, testifying last year in a court case that failed to block the leasing of the Indiana Toll Road, calculated the state could have earned $1.5 billion to $8 billion more over the 75 years of the term than the $3.8 billion it collected in a single upfront payment.

"The state is forgoing the opportunity to make these numbers," he said.

The toll road lease was blamed for the November defeat of several GOP incumbents, and Daniels' lottery plan has met resistance from both parties.

"The rush to privatization is like driving too fast on a foggy morning. We risk collision if we go too fast," said Tom Tokarski, an Indiana highway activist.

Texas' welfare system fell into disarray during its first year of privatization. An audit there found more than 81,500 children over eight months lost health insurance because of problems with the new system.

Georgia and North Carolina complained about poor customer service, Medicaid claims being paid improperly or not at all and other problems after hiring a company to manage welfare operations.

"You have to be open to the possibility that things won't go as well as planned," said Celia Hagert of the Center for Public Policy Priorities, author of a report criticizing Texas' welfare changes. "You have to put client interests ahead of the desire to save money quickly."

Betty Bledsoe, 44, of Indianapolis, is watching Indiana's changes closely. The single mother of 12 children worries about a deal signed with an IBM Corp.-led partnership for $1.16 billion over 10 years to automate the processing of food stamps, Medicaid and other benefits.

Bledsoe's children — nine of whom are adopted — all receive Medicaid for disabilities that include autism, seizures and fetal alcohol syndrome. One received $77,000 in Medicaid-funded services last year.

"If one of my kids lost Medicaid, we would go under. I'd have to sell my home," Bledsoe said.

Mitch Roob, who leads Indiana's social services agency, said the state would have otherwise had to spend nearly $500 million upgrading its system for delivering benefits.

Some Indiana lawmakers are demanding more say over the signing of big outsourcing deals.

"This governor should remember that he is a guest in the people's house," said House Speaker Pat Bauer, a Democrat. "He doesn't have the right to come in and sell off all the furniture."

© 2007 The Associated Press: www.ap.org

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Such a Deal!

Static

They Get Us Coming and Going


2/21/07

Fort Worth Weekly
Copyright 2007

Exciting news, folks — Interstate 69, a proposed Texas-to-Michigan road that’s part of the Trans-Texas Corridor, may get built even quicker than expected!

Well, gosh, that’s a relief.

According to Keep Texas Moving, a newsletter from the Texas Department of Transportation, the TTC arm that would reach from Laredo to northeast Texas has been placed by federal transportation gurus on a short list for fast-track development.

Whew — Static was worried that Texas might forget itself and fund some regional or statewide public transit, but just in time, we’ve found a way to spend those dollars on more concrete.

And another fast-track!

When you combine it with the fast lane that our Guv put the TXU coal-fired plants in, it just makes you realize how modern and efficient our state is — we can get things done by government fiat regardless of how many actual citizens, air breathers, land owners, farmers, ranchers, mayors, business leaders, and environmentalists (like they matter) oppose it.

But what do you expect from a co-opted governor who bows at the altar of the energy industry and disputes the existence of global warming, even when his incessant use of hairspray is rumored to have burned away much of the ozone?

TxDOT, by the way, says all those alarmists are wrong when they claim that no-compete clauses in the contracts with foreign companies to build (and charge tolls on) the TTC would keep free roads in the same areas from being maintained or improved (“Detours on a Super-Highway,” Jan. 10, 2007).

The newsletter says “absolutely not!” If a road or an improvement is already in the 25-year plan, TxDOT says, it will be built — as will any improvement for safety. And the state can build whatever “competing” road projects it wants — as long as it compensates the foreign company for anything that cuts down on traffic on the privately run toll roads.

So, let’s see — that means we either pay the potentially outrageous tolls directly, or we go around on free roads and let the state pay tax dollars to compensate the poor mega-corporation.

Now that’s some contract.


© 2007 Fort Worth Weekly: www.fwweekly.com

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"A state entity that wants to listen to someone other than the pro-toll interests?"

'No-tag, no-toll' rally headed to Austin March 2

2/21/07

By Mary Lois Boatman
The Navasota Examiner
Copyright 2007

Important events are scheduled to happen in Austin in the next few weeks.

On March 1, there will be a public hearing held regarding the Trans-Texas Corridor. State Sen. John Carona is stepping up to the plate and asking for citizen input, without subjecting us all to another TxDOT dog and pony show.

The Senate Transportation and Homeland Security Committee will hold a public hearing in the Capitol Annex Auditorium.

Finally, a state entity that wants to listen to someone other than the pro-toll interests. It's predicted that this hearing will start early and go late.

Then, on Friday, March 2, farmers, ranchers, anti-toll, anti-corridor and anti-animal inspection groups will march up Congress Street in what is being called the "DON'T TAG TEXAS" rally.

It's very fitting that this will happen on Texas Independence Day!

Counties all around us are planning to attend. It's about time that the citizens of Grimes County stand up and voice their opinions. There will be a bus leaving from Brookshire Brothers in Navasota at 10:30 a.m. for anyone that wants to participate. I am the sign-up person for the Roans Prairie and Shiro area - 874-0101 or 936-718-8992. See page 1 for more information.

For those of you that saw the film "Truth be Tolled", the edited version is for sale for $13.95. Check the Web site, www:truthbetolled.com. or for more information. e-mail Mark Holmes at: mholmesies@aol.com


© 2007 The Navasota Examiner: www.navasotaexaminer.com

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Tuesday, February 20, 2007

"Other states have put stronger measures before their voters."

Property Rights Coalition Renews Call for Constitutional Amendment to Protect Texans

Property Rights Organization of Texas calls on legislators to pass lasting protections against the seizure of private property for economic development

2/20/07

PRNewswire-USNewswire
Copyright 2007

AUSTIN, Texas -- Texas lawmakers should revisit the issue of eminent domain reform to protect Texas property owners, announced the Property Rights Organization of Texas today.

Senate Bill 7, passed in the second called special session of the 79th Texas Legislature, sought to prevent eminent domain abuse through a statute rather than a constitutional amendment.

"While SB 7 provided a legislative fix to some of the problems created by the Kelo v. City of New London decision, these additional protections must now be made permanent by adding them to the Texas Constitution," said Nathan Rhea, executive director of the Property Rights Organization of Texas. "We are urging lawmakers to ensure the rights of hardworking Texas families and small business owners will not be left open to change in the future by a legislature unsympathetic to the rights of Texas property owners."

The Property Rights Organization of Texas (PROTexas), formed in 2005 following the U.S. Supreme Court's Kelo v. City of New London decision, is a coalition of groups and individuals dedicated to limiting the eminent domain powers of cities and counties to seize the property of one citizen for the benefit of another.

"Texas was the second state to address Kelo though by statue only and we have since fallen behind as ten other states have put stronger measures before their voters," said Rhea. "In the ten states that successfully passed constitutional amendments dealing with eminent domain reform last year, citizens overwhelmingly supported adding the protections to their state constitutions. Texans should be given the same opportunity."

This session, two constitutional amendments have been filed in the Texas State House, H.J.R 11 by Rep. Frank Corte (R-San Antonio) and H.J.R 12 by Rep. Burt Solomons (R-Carrollton). This Wednesday, the Texas House Land and Resource Management Committee will hold a hearing on these important reforms as well as other legislation dealing with reforming eminent domain.

More information about PROTexas, and eminent domain reform, can be found at http://www.protexas.org.

The Property Rights Organization of Texas (PROTexas) is a coalition of groups and individuals singularly dedicated to protecting the propertyrights jeopardized by the Supreme Court's Kelo v. New London decision.

SOURCE The Property Rights Organization of Texas

Related links: http://www.protexas.org

© 2007 PR Newswire Association LLC.: www.prnewswire.com

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Monday, February 19, 2007

Former URS executive is now regional transporation coordinator for Forth Worth

New coordinator will represent a slew of projects

Feb. 19, 2007

By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2007

Cinde Weatherby Gilliland is Fort Worth's new regional transportation coordinator.

She will represent the city's interests in a slew of high-dollar projects. Among them:

Expansion of the North Tarrant Express: Interstate 35W/Loop 820/Texas 183 corridor.

The Trans-Texas Corridor, the state's controversial plan to build long-distance toll roads and rail lines and possibly an outer loop around Dallas and Fort Worth.

The Metroplex regional rail initiative, including development of commuter rail from southwest Fort Worth to northeast Tarrant County and Dallas/Fort Worth Airport, and perhaps the Union Pacific line from Fort Worth to Arlington.

Relieving freight train gridlock at Tower 55, the rail intersection south of downtown Fort Worth. The long-term plan is to build a new rail line bypassing downtown and ask railroads to stop using the inner-city tracks for the bulk of their freight movement, including hazardous-materials shipments.

Her transportation experience in Dallas-Fort Worth dates back to 1975.

Most recently, she worked for several years at URS Corp., where she was a vice president. She was deputy project manager for the Denton County Transportation Authority's commuter rail study for a Denton-to-Carrollton line.

She also helped the Fort Worth Transportation Authority create a long-term strategic plan for the T bus and rail service.

She was deputy manager of a regional rail corridor study for the North Central Texas Council of Governments.

"Her experience with public and private transit organizations, along with her varied and broad background, is an advantage as Fort Worth continues to make the best possible use of its vast and varied transportation network ..." Fort Worth City Manager Charles Boswell said in a statement.

Prior to URS, Gilliland worked as a scientist at the Texas Transportation Institute.

She also was Fort Worth's coordinator for intergovernmental affairs from 1988-90.

Gordon Dickson, 817-685-3816 gdickson@star-telegram.com


© 2007 Fort Worth Star-Telegram: www.dfw.com

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Sunday, February 18, 2007

"Texas had a chance to get rid of Mr. Perry, but it's still sleeping or just stupid."

Your thoughts on Gov. Rick Perry

February 18, 2007

Letters
The Dallas Morning News
Copyright 2007

Here comes the flood

Re: "Water Can't Wait – Austin needs to designate reservoir sites now," Monday Editorials.

What Gov. Rick Perry meant to say: "I support legislation that establishes more than 20 reservoir sites in statute because securing viable water supplies is vital to [attracting more and more people to] the state."

What Mr. Perry needs to do is stop encouraging Los Angeles-like overpopulation in northeast Texas.

Billy Hallmon, Dallas


Hog-wild since election

Re: "I'm just not buying what Perry's selling," by Steve Blow, Feb. 11 Metro.

I agree with Mr. Blow. Gov. Rick Perry acts like the November election was a tremendous mandate that validated his judgment. In reality, he probably would not have won had the field not been so fragmented.

I strongly oppose his proposals. They are all suspect as to his motives and the impact on our state. I surely hope we have enough sane legislators in Austin to put the brakes on him.

L.A. West, Dallas


Coincidence or nepotism?

Re: "Perry's son hired by firm consulting on lottery – Exclusive: Correlation denied, but company stands to gain from sale," Tuesday news story.

Gosh, what a coincidence. Craig McDonald, director of Texas for Public Justice, was quoted in your article as saying, "It's not always easy to pick your way through opportunities when you're related to the governor."

While that may have some validity, I would suggest that it's apparently easier.

Jeff Supulski, Carrollton


Their astonishing arrogance

As an Alaskan visiting the great state of Texas, I was thrilled after reading about Gov. Rick Perry that we just threw our governor out, Frank Murkowski. He was a bum, not unlike Mr. Perry.

The arrogance these people show is unbelievable.

Good luck with Mr. Perry and his son.

Ralph J. Beaulieu, Anchorage, Alaska


He must think we're dolts

Clearly, Gov. Rick Perry thinks we are stupid. How else would the same man who campaigned vigorously for requiring high school students to take four years of math and science and for improving higher education now want to do away with the Texas Academy of Math and Science at UNT, robotics research at UT-Arlington and the Center for Applied Biology at UTD?

This same man doesn't think we will notice that his former chief of staff is paid by the company that will gain the most from his executive order that all school girls receive a new vaccine? And whose son is employed by the company being paid to review the possible sale of the Texas lottery?

Unbelievable.

Cindy Warner, Coppell


Corrupt, collapsing society

What is wrong with Texas government? Gov. Rick Perry wants to sell the lottery to a company that just hired his son. Sounds like nepotism to me. Why and how can Texas sell sovereign U.S. soil to Spain for the Trans-Texas Corridor?

The only person I see benefiting from any of this is Mr. Perry. Now he also has imposed mandatory shots for sixth-grade girls to prevent HPV.

Society is corrupt and collapsing. Chaos and crime seem to be the new world order. Texas had a chance to get rid of Mr. Perry, but it's still sleeping or just stupid.

Steven McNeely, Cedar Hill


Stealing from the poor

Gov. Rick Perry recently proposed an amendment to the Texas Constitution to set aside $3 million per year for 10 years to find a cure for cancer. This would create thousands of jobs in Texas and would be a wonderful thing for Texans and the rest of mankind.

What Mr. Perry did not tell us is that he has orchestrated the reduction of Medicaid coverage for about 60,000 Texas children and adults. These Texans desperately need this coverage for their illnesses, including cancer.

This is one source of the funding for Mr. Perry's proposal and puts these Texans in the position of not being able to be cured of cancer by the research they financed.

Mr. Perry is a hypocrite of the worst kind. We do not need to fund cancer research by taking a pound of flesh out of indigent, disabled Texans.

Rhett Butler, Denton


© 2007 The Dallas Morning News Co www.dallasnews.com

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"Public interest has been sacrificed for the almighty dollar."

Taking a toll on our highway system

Feb. 18, 2007

By BILL GRAVES
Fort Worth Star-Telegram
Copyright 2007

I have a photo, from 1956, of a truck making its way through a Kansas Turnpike toll plaza. The truck, emblazoned with the Graves Trucking logo, belonged to my father's company.

As it turns out, 1956 was the year that the Kansas Turnpike opened. The project predated the Federal-Aid Highway Act -- President Eisenhower's historic initiative. In those days, a toll road was one of very few options available to states to build a freeway. Fifty years later, toll roads are surging in popularity -- but as a quick fix for state financial woes.

With state budget shortfalls and a general unwillingness to raise taxes, state politicians are flocking to private investors for the highway equivalent of the payday loan.

In 2005, Chicago leased Interstate 90 to the Australian Macquarie Infrastructure Group and Spanish Cintra for $1.83 billion to pay off city debt and fund nontransportation projects. In 2006, Indiana leased the Indiana Toll Road to the same firms for $3.85 billion. Gov. Ed Rendell recently asked for expressions of interest to lease the Pennsylvania Turnpike for as much as $16 billion. Other deals are in the works.

(Cintra and Zachry Construction of San Antonio are proposing to use $6 billion in private investment to build a 316-mile, four-lane toll road -- the Trans-Texas Corridor-35 -- from Dallas-Fort Worth to San Antonio and pay a $1.2 billion concession to the state. Cintra-Zachry would collect tolls for 50 years.)

It is easy to see why this new scheme is tempting to politicians. The nation's highway system needs to grow and be maintained, but states are facing crushing debt loads. Funds to relieve these problems must come from somewhere.

But the United States cannot maintain a national highway network if key segments are leased to the highest bidder. More than money is at stake. Leasing roadways allows states only to postpone, not solve, their budget problems -- and without understanding the long-term implications.

Privatization is dismantling the nation's interstate highway network. It's happening with the support and encouragement of the U.S. Department of Transportation and, until recently, without congressional review.

Alternatives exist. Since the interstate system's inception, fuel taxes have footed the bill. Trucking pays nearly $15 billion in highway user fees annually to the $35 billion Federal Highway Trust Fund. Fuel taxes can be uniformly administered, are based on verifiable measures of highway and vehicle use, are relatively simple to collect and not readily evaded, and do not create impediments to interstate commerce.

Privatization, on the other hand, lets operators increase tolls rapidly, robs the public of a degree of control and does not guarantee service and safety levels. A year ago, highway privatization was a little-understood niche financing scheme. It is fast becoming the financing of choice, as public interest has been sacrificed for the almighty dollar.

We must consider the impact of privatization on toll rates. A private company is usually allowed annual increases of a minimum of 2 percent to a maximum of the average rate of change in gross domestic product per capita (the accepted standard). Based on historical figures, annual increases could hit 6.2 percent, and privatized highways could soon become "Lexus highways," unaffordable for those on limited incomes. Those who can't afford higher tolls may use smaller, local roads that are inherently less safe.

And will a private operator ultimately act in the public's best interest? Many targets of privatization are crucial links in our freight and military logistics chains. Congress has a constitutional obligation to protect interstate commerce and our national defense, which makes it a necessary partner in the decision-making process.

Private operators may be reluctant to expand highways if forecast increases in traffic levels could not produce sufficient revenue increases. Congestion may go untreated if contracts have noncompete clauses that prohibit or discourage construction that would reduce traffic on the private highways.

This is not to say that public-private partnerships have no place in helping to solve the problem of how to fund our nation's infrastructure needs. Private financing can play a role, especially where it creates new capacity.

Having served two terms as governor of Kansas, I understand the pressures that our leaders face to find immediate solutions to complex problems. But I also know that constituencies expect their leaders to have the political will to do what's right rather than what's easy.

I challenge our leaders to find that will on this issue.

Just last year, America celebrated the 50th anniversary of the Dwight D. Eisenhower System of Interstate and Defense Highways. It would be a shame to see this system, the best in the world, be transformed during the next several years into a patchwork quilt of privately operated toll roads.

Former Kansas Gov. Bill Graves is president and CEO of the American Trucking Association. www.trucking.org


© 2007 Fort Worth Star-Telegram: www.dfw.com

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Saturday, February 17, 2007

“We believe this corridor concept should be scrapped and future highway planning be given serious oversight by the legislature.”

Farm Bureau Testifies Against Trans-Texas Corridor Project

2/17/07

Livestock Weekly
Copyright 2007

AUSTIN — The Texas Farm Bureau opposes the Trans-Texas Corridor, and the organization is making its views known before the legislature.

Testifying recently before the state Senate Committee on Transportation and Homeland Security, Nacogdoches County cow-calf producer and timber owner Albert Thompson told the committee that Texas Farm Bureau county leaders across the state have studied the proposed massive transportation project over the last two years. In addition, he said agricultural producers have attended public meetings held throughout Texas to gain a better understanding of the issue.

“They concluded that Texas Farm Bureau should oppose the Trans-Texas Corridor because the corridor would limit landowner access to private property and it will have a major impact on taking of private property for both the corridor and mitigation requirements,” Thompson said.

Further, he added, “eminent domain would be used to condemn property for private business, and most rural communities will not benefit from its construction and, in fact, will likely be negatively impacted.”

Another reason for the Farm Bureau members’ opposition to the project is the loss of tax base to rural schools and counties. According to the proposed plan, rights-of-way will not be taxed and neither will the structures of any private businesses located on the right-of-way.

The Martinsville producer and member of the Texas Farm Bureau board of directors emphasized that the lack of access due to the division of family farms and ranches is a major reason for the organization’s opposition to the corridor.

“As proposed, the Trans-Texas Corridor provides for rights-of-way through rural Texas of up to 1200 feet. If considered as acreage, it amounts to 146 acres per road mile. Furthermore, the corridor will negatively affect wildlife and hunting in many areas of the state in which hunting has become a major part of farm and ranch income. We believe the impact will be devastating to the agricultural industry and to rural communities,” Thompson testified.

The Farm Bureau leader told the committee that the first option for new road and highway construction should be to use current rights-of-way instead of purchasing additional property. If new land is needed, at a minimum, landowners must have reasonable access to their property in situations where farms and ranches have been divided, he said.

“Imagine the challenge of moving cattle, tractors or combines 20 or 30 miles simply to reach property that may be just across the corridor. I cannot stress to you the loss of production time this would create, and the additional strain on county and state roads by moving this equipment.

“We believe this corridor concept should be scrapped and future highway planning be given serious oversight by the legislature,” Thompson concluded.


© 2007 Livestock Weekly: www.livestockweekly.com

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To view the Trans-Texas Corridor Blog click HERE


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Friday, February 16, 2007

"Toll roads in Texas are fueling quite a debate these days, with many drivers saying they hate them."

State Bill Would Halt New Toll Road Construction

Feb 16, 2007

Jay Gormley
CBS 11 News (Fort Worth)
Copyright 2007

NORTH TEXAS Toll roads in Texas are fueling quite a debate these days, with many drivers saying they hate them. Despite the Texas Department of Transportation's claims that money generated by toll roads are the only way to keep up with the demand for new highways, a bill in the state legislature could put a temporary stop to their construction.

CBS 11 News asked one North Texas driver, "What would you say if you never had to pay a toll again?" The response was – "Great. I would say excellent." Another driver said, "It should be free."

Texas State Representative Garnett Coleman feels the same way. He's asking lawmakers to pass his bill that halts the construction of all new TxDOT toll roads until September of 2009.

"Texans already pay for state highways through the gasoline tax and now they're being asked to pay twice with tolls. So clearly, the public is being nickeled and dimed," Coleman said.

A lot of questions are being asked about that gas tax. TxDOT argues that it hasn't been raised in 14 years. Meanwhile, the population of Texas has exploded and so has the demand for new roads.

TxDOT says the gas tax of 1993 cannot keep up with the demand of 2007.

Toll roads already up, or under construction, would not be affected.

TxDOT admits Coleman's bill will win over the public. But TxDOT official Angela Loston says the bill isn't very realistic. "It's not very feasible and the reason why is because we in the DFW area are facing a huge budget crisis. As unpopular as tolls are, they are necessary."

Coleman supports a hike in the gas tax to pay for new highways, but TxDOT says it would take a massive increase to cover all the road projects scheduled over the next five years.

© 2007 CBS Broadcasting Inc.: www.cbs11tv.com

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Court ruling renders some TxTag stickers illegal.

License plate law ensnares some TxTags

Toll-paying 'transponders' that mount on front bumper could fall under court ruling.


February 16, 2007

Austin American-Statesman
Copyright 2007

First came the distressing news that many Texas vehicles are operating illegally, with license plates partially obscured within frames that violate the law.

Now comes word that a state agency may be contributing to the delinquency of drivers.

Texas transportation officials are studying the impact of a Wednesday court ruling that apparently renders certain toll road tags illegal.

If a vehicle cannot adequately display the TxTag stickers on the inside of the windshield, then the tag must be mounted on the front license plate. At toll plazas, scanners read the tags and deduct toll payments so drivers don't have to stop.

Several hundred vehicles use the devices, which are attached to the front bumper through the license plate bolt holes and cover most of the word "Texas" on the plate.

However, state law prohibits obscuring any portion of the license plate, including the state name and decorative artwork such the space shuttle and a cowboy on a horse, according to Wednesday's decision by the state's highest criminal appeals court.

"What we'll do is immediately look at the ruling, visit with our general counsel and with our toll technology staff . . . to see what options we have and make sure everyone who has the toll tag is following the law," Gaby Garcia, spokeswoman for the Texas Department of Transportation, said Thursday.

It is unknown how long the review will take, Garcia said. Of the more than 200,000 TxTags issued statewide, 340 are the bumper-mounted variety, Garcia said.

Auto dealerships, which supply many of the offending license plate frames, also are struggling with the implications of the Court of Criminal Appeals' 8-1 ruling, which found that a strict reading of the law prohibits covering any portion of a license plate.

After the current law was adopted in 2003, auto dealerships changed their frames to models that were thinner on top — allowing the word "Texas" to be fully displayed — and thought the vehicles were in compliance, said David Elattrache, general manager for David McDavid Acura in far Northwest Austin.

Those frames now will be removed from cars in the sales lot, he said.

"I'm going to send out an e-mail to all my customers and make them aware of what the decision was and tell them that if they can't do it, or if it's inconvenient for them, we'll be happy to take them off for them," Elattrache said. "It looks like a bunch of us will be sitting with inventories (of frames) we can't use."

A concurring opinion signed by three judges called the law "uncommonly bad" because it allows police to pull over, ticket and possibly arrest the large number of drivers whose license plates are obscured.

Richard Woerndell's truck displays the bumper toll tag because mounting a TxTag below the rearview mirror would block his line of sight and sun shading on the windshield above the mirror would block the tag's signal.

The Austin man hopes police will recognize that the devices were provided by a state agency.

The problem, Woerndell said, is that many officers will be unfamiliar with the devices because most of Texas is without toll roads.

"I can just see myself trying to explain to a constable in Egypt, Texas, that this is something issued by TxDOT," he said.

Moving the bumper tag may not be an option, Woerndell said.

"I called yesterday to find out if can I relocate it, but they said you've got to have it right there" for toll road scanners to register the tag, he said.

Meantime, at least four bills are pending at the Legislature to amend the license law.

Companion bills filed by Sen. Tommy Williams, R-The Woodlands, (Senate Bill 369) and Rep. Bill Callegari, R-Katy, (House Bill 348) would make it illegal to obscure more than half of the state name and — more to the point for TxTags — allow toll-road "transponders" to be attached to the plate.

"The license plate has to be clear enough that you can distinctly read the license number and enough of the state name," Callegari said. "That's really all we need to have visible for law enforcement to do its duty."

The House Transportation Committee is scheduled to consider Callegari's bill Tuesday.

A bill by Rep. Harold Dutton Jr., D-Houston, (HB 743) would make it illegal to obscure only the license plate number, not the surrounding artwork.

And one by Sen. Dan Patrick, R-Houston, (SB 631) applies only to covered license numbers and state names, not cowboys and space shuttles.

Similar bills were filed last session, to no avail.

But Wednesday's court ruling should provide a sense of urgency this session, Callegari said.

clindell@statesman.com; 912-2569

© 2007 Austin American-Statesman: www. statesman.com

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"Hitler took the autobahn and took all the land. What are we going into? Imperialism?"

Citizens speak out against proposed TTC-69

2/16/07

Tracy Dang, Managing Editor
The Sealy news
Copyright 2007

While the Texas Department of Transportation continues to conduct studies for the proposed Trans-Texas Corridor (TCC), one group is saying there is hope that either the project will be stopped or changed from the current proposal.

Citizens for a Better Waller County representative Martha Estes and Corridor Watch cofounders David and Linda Stall led an anti-TTC public meeting in Wallis last Sunday, explaining what citizens can do to address their concerns.

"Is this a done deal? Absolutely not," said Linda Stall. "We have the opportunity to have laws passed that will affect this project. Our goal is to get legislation passed that would affect the project in its current form."

Although the state is further along with the proposed TTC-35, the proposed TTC-69 is a planned 1,600-mile national highway stretching through eight states connecting Mexico, the United States and Canada. The initial study area is approximately 650 miles long, extending from Texarkana and Shreveport to Mexico.

Citizens in rural communities are concerned the proposed corridor would take their property away from them.

"Eminent domain has to pay you for your land," Linda Stall said. "But you will get what the TxDOT appraiser says it's worth. It's not a question of if. It's a question of how much. If you see a TxDOT appraiser out on your land, get yourself an eminent domain attorney. An eminent domain attorney only gets the percentage of the increase he gets you."

David Stall explained once a TxDOT appraiser has surveyed the land, he would make the property owner an offer. If the property owner chooses to reject the offer, the TxDOT appraiser would reconsider and make the property owner a second offer. If the property owner chooses to reject the second offer, TxDOT can file a lawsuit. Once the return has been filed, the property is turned over to TxDOT.

"Hitler took the autobahn and took all the land," a concerned citizen said. "What are we going into? Imperialism?"

David Stall said President Dwight Eisenhower had proposed a similar concept when he came up with the interstate system for the purpose of transporting defense.

"Congress turned down the system three times," Stall said. "It passed on the third time. But it went from toll to what we would call 'freeways,' and it routed traffic through the cities."

Stall said the corridor would not go through the cities, and only interstates and 60 percent of state highways would intersect it.

"It seems to me that putting up these barriers would be a problem for hurricane evacuations and emergency vehicles," a concerned citizen said.

TxDOT is still working on its Tier 1 environmental study before conducting a series of public hearings scheduled for the spring. TxDOT would have to do a Tier 2 environmental study to narrow the 45-50-mile-wide study area to a four-mile-wide study area before conducting more public hearings.

"They have not revealed specific routes yet, but they do have proposed routes," Linda Stall said. "But the TCC route has moved a couple of times since this began in 2004."

However, citizens questioned how long they had before TxDOT would begin acquiring land.

"TxDOT cannot acquire any land until after it gets the record of decision," Linda Stall said. "But Cintra is not bounded by that, but Cintra can only go through willing sellers."

TxDOT signed a comprehensive development agreement with Cintra-Zachry last March, authorizing $3.5 million in planning efforts for TTC-35. If the project is given federal clearance, construction contracts may be considered in the future. To date, no contracts have been signed to develop or finance TTC-69.

But the Stalls said there is hope in the new legislative session.

Senator John Corona, who was recently named chairman of the transportation and homeland security committee, has filed SB 149, which puts an end to non-compete agreements, an important tool in making toll roads financial feasible.

Also, Rep. Gary Elkins has filed Joint Resolution 59, which puts on the ballot a constitution amendment that if any bill is vetoed by the governor at the end of a session, an automatic special session will be scheduled.

"There is hope to stop it," a concerned citizen said. "We don't have to get an eminent domain lawyer or anything like that if we can stop it."

Corona has scheduled a transportation hearing March 1, and citizens are encouraged to either attend the hearing or write to Corona at P.O. Box 12068 Capitol Station, Austin, TX 78711-2068.

A rally on Congress Avenue in Austin has been scheduled for March 2. Those wanting more information about the rally can visit wallercountycitizens. com/ann_detail.php?ID=11.

You may contact Tracy at editor@sealynews.com or (979) 885-3562.

© 2007 Sealy Publications, Inc: www.sealynews.com

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"There's a reason why we used to call him Nitro Williamson."

Transportation Funding Friction

2/16/07

Kimberly Reeves
Austin Chronicle
Copyright 2007

Tuesday should have been a gold star day at the House Transportation Committee, one that would finally put the Texas Department of Transportation and the Texas Transportation Institute in the same room at the same time to duel it out over the long-term scenarios for how to pay for the cost of highways in Texas.

Instead, a couple of lawmakers – first Rep. Linda Harper-Brown, R-Irving, and then Sen. John Carona, R-Dallas – turned Texas Transp-ortation Commission Chair Ric Williamson into a human piñata in their frustration over Texas toll roads. First, Harper-Brown, a longtime Irving City Council member, berated Williamson over a document – which Williamson unwisely called "foolish" – that indicated that Dallas received $4.5 billion less over the last five years for transportation funding than it would have under the past system of parceling out federal funds, often referred to as the "fair share" system.

As state Rep. Mike Krusee, R-Round Rock, and others explained it, federal funding has changed. Once, it was based on where the TTC chair lived and how he could earmark funds for his region. A Dallas chair would be named, and funds would shift to Dallas. A Houston chair would be named, and those funds would shift back to Houston.

Under the new funding formula – which is intended to localize transportation decision-making and decrease the "begging" of regional delegations before the TTC – the focus is not how to spend available money, but how to address the transportation plans of a particular region, Krusee said. According to the numbers, the biggest beneficiary of this approach has been the Austin region.

Later, Krusee gave Carona, the chair of the Senate Committee on Transportation & Homeland Security, a chance to address some comments to Williamson. Carona pressed Williamson for a meeting this week, saying Williamson's office said he was booked through March. Williamson, never one to be backed into a corner, attempted to brush off the request, saying simply that he'd call Carona's office to set up a time for a meeting. It was not a meeting, Williamson said, but simply a call to set up a meeting.

"It is this kind of lack of commitment and artful dodging for something as basic as an appointment to meet with you [that] causes the hostility and the friction that exists right now," said Carona, who has filed some distinctly anti-toll-road legislation this session. "The fact that you would sit there and be so arrogant that you would not even commit to a meeting date when I'm telling you that over the next several days I'll be available at any time that will work for you is very troubling."

To this, Williamson could only say, "Thank you." When pressed again for a commitment for a meeting, he replied, "Frankly, senator, I'm speechless."

The confrontation was the talk around the Capitol. Most long-term observers were nonplussed. "There's a reason why we used to call him Nitro Williamson," said one former colleague-turned-lobbyist.

As to the difference between the projections of need by TxDOT and the Texas Transportation Institute – TxDOT says the state would need a $1.40 gas tax to cover the gap; TTI says it would require a 10 cent gas tax increase plus ongoing increases indexed to highway costs – the numbers are closer than they might appear on first blush.

As both Williamson and TTI's Dennis Christiansen pointed out, the assumptions in the two reports are different. While both start with the same general level of need – an additional $86 billion in new roads by 2030 – TTI assumes that local jurisdictions will pick up a third of that cost, through toll roads, local-option gas tax, or simply general revenue expenditures backed by property taxes. The two reports also tinker with issues such as the fuel efficiency of fleet vehicles and other such numbers.

The bottom line on the TTI report projects that the gas tax on the $56 billion in identified needs – the initial 10 cents plus increases as needed – would be about 90 cents a gallon by 2030. The highest rate in the country right now is 33 cents.


© 2007 Austin Chronicle Corp.: www.austinchronicle.com

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Thursday, February 15, 2007

"When it started showing up on title searches last August, it was worse than anyone could have imagined."

Toll-road law hurting land value, citizens say

Bill would alter what passed in 2006


02/15/2007

By Joey Bunch
Denver Post
Copyright 2007

State Rep. Marsha Looper outlined a bill Thursday that would clear up "unintended consequences" of a toll-road law passed last year.

But the attorney for the 210-mile Prairie Falcon Parkway Express said opponents are just trying to bury the proposal in red tape.

"If the intent is just to do away with this private toll road, that's fine; let's just be honest about that," David Foster told the House Transportation and Energy Committee on Thursday.

Looper's bill is badly written, with undefined terms, conflicts and vague assertions that would only lead to legal gridlock, he told the panel.

"This is a field day for lawyers," he said.

A longtime opponent of the toll road, Looper, R-Calhan, said disclosures about the proposed road on property titles in the 3-mile corridor, as mandated by a new law, are depressing property values. Opponents fought for that requirement last year.

Dozens of residents who own property that could be in the road's path did not get a chance to address the committee Thursday, as time ran out on the hearing. Chairwoman Buffie McFadyen, D-Pueblo West, promised another hearing soon for them to voice their concerns.

"We didn't anticipate that this would be the effect on property values," said Bob Hoban, attorney for a group of toll-road opponents who worked on last year's legislation. "When it started showing up on title searches last August, it was worse than anyone could have imagined."

Bob Coan of Keenesburg dropped his $100,000 asking price for 14 acres by $20,000 in August. He said the price decrease was because of the road.

"That's reality," he said.

The effect has been felt by clients from Nunn to Wellington, as well, said Realtor Lou Kinzli.

"People say, 'Why would I want to buy property right next to a highway?"' he said.

The remedy, however, would put tough requirements on any private toll-road proposals.

Foremost, a toll-road company would have 120 days after its formation to submit a development plan, including financing, to the state Department of Transportation. If the plan is rejected, the project's backers cannot reapply for five years.

Developers also must have a purchase agreement on 85 percent of the land before they could ask the state to condemn any other property.

"There is no investor who is going to take that kind of risk on this kind of project," Foster told the panel.

Staff writer Joey Bunch can be reached at 303-954-1174 or jbunch@denverpost.com.


© 2007 The Denver Post: www.denverpost.com

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"Just about any financial adviser will tell you, selling off assets is the first sign of bankruptcy. "

Talk of toll road lease part of Trenton's shell game

02/15/07

By Leonard T Connors Jr., Christopher J. Connors and Brian E Rumpf
Asbury Park Press (New Jersey)
Copyright 2007

The state's sizable debt, an inability to manage its own finances and widespread discontent among taxpayers have created a circus-like atmosphere in Trenton.

Since it's an election year, the legislative leadership is willing to go to extreme measures to convince the general public that something is being done to fix the financial mess we find ourselves in. The most recent, and perhaps most outlandish example of this, is the recently unveiled proposal to lease the New Jersey Turnpike. Since it really doesn't address the root cause of the state's fiscal problems — runaway spending — our delegation opposes any attempt by the Legislature to lease or sell the Turnpike or the Garden State Parkway.

If you ever have been to the circus, you probably remember the huckster who runs the shell game in which unsuspecting contestants must guess what shell hides a pea. Those who've seen this act know that despite all the fancy hand movements and all the talk by the huckster, the game is nothing more than a sham. There is no pea under the shell, and the contestant never had a chance at winning.

This scenario could be used to describe the situation taxpayers have found themselves in with all the proposals to address the property tax crisis thrown at them over the past several months.

It is estimated that leasing the Turnpike to a private company for 75 years would generate between $10 billion and $15 billion. Proponents state they want the money used to pay off some of the state's debt. People should be deeply concerned this will release enough money for the spenders in Trenton to go on a spending free-for-all. You can bet that, if this happens, the special interests will be circling the Statehouse like vultures.

With the way this state spends, the money generated from leasing a state toll road would be gone before you know it, and we'll be right back where we started — deep in the hole. Only we would have leased one of the most vital transportation arteries in the state to a private company, which for all we know, could turn out to be owned and operated by a foreign country.

It is important to look at the proposal to sell the Turnpike for what it is: an admission by the state that it is incapable of operating the roadway, despite not being required to produce a profit. What do you think will happen to the cost of tolls if the state hands over the Turnpike to a company that reports to a board of directors?

In its present form, the bill that would allow for the leasing of the Turnpike stipulates that tolls could increase only with the rate of inflation. But as we have all witnessed over the past several weeks, bills can be gutted in the legislative process, like the comptroller proposal, to better serve the powers that be at the expense of the taxpayer.

Any company that takes over the Turnpike is going to make turning a profit its first priority. It is also possible that keeping the stockholders happy may adversely affect road maintenance or the completion of needed construction projects if these responsibilities end up hurting the bottom line. Other than toll increases, there aren't going to be many avenues to increase profit margins, which ultimately all businesses must do to survive. So can we realistically expect that tolls will not sharply increase on the Turnpike if it becomes a business entity of a major corporation?

Finally, as just about any financial adviser will tell you, selling off assets is the first sign of bankruptcy. Leasing the Turnpike, which is among the most significant assets in the state's possession, would be an unmistakable act of desperation. Even compared to the budget gimmicks conjured up by the McGreevey administration in past years, this would certainly take the prize. It also would be an addition to the state's consistent track record of fiscal mismanagement highlighted by deficit spending and higher taxation.

The "quick fix" offered under this plan will not provide the long-term structural changes needed to overhaul the state's deteriorating financial condition and, therefore, should be dismissed outright. Significant spending reductions and a more fiscally conservative approach to the use of taxpayer dollars are what is needed to put this state on a sound financial footing.

Leonard T. Connors Jr., is a Republican state senator from the 9th District, which includes parts of Ocean, Atlantic and Burlington counties. Christopher J. Connors and Brian E. Rumpf are Republican Assembly members from that district.

© 2007 Asbury Park Press: www.app.com

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"Friends don't let friends monetize."

Lawmakers blast turnpike sale idea

February 15, 2007

By JONATHAN TAMARI
Gannett State Bureau (New Jersey)
Courier Post Online
Copyright 2007

SECAUCUS Assembly lawmakers took turns today battering a proposal to lease or sell the state's toll roads. Democrats and Republicans on the Assembly Transportation Committee worried a private firm would put profits over maintenance, safety and smooth travel.

"Friends don't let friends monetize," said Assemblywoman Jennifer Beck, R-Monmouth, winning laughs and applause from the roughly 60 person audience at the first public hearing on a proposal to sell or lease the New Jersey Turnpike or Garden State Parkway.

Assemblyman John Wisniewski, D-Middlesex, the committee chairman, warned that any "monetization" plan would be similar to past borrowing schemes that have led to the state's crushing debts. Selling or leasing state assets is now being promoted as a way to ease those burdens.

Wisniewski said a long-term privatization plan would still leave the public on the hook for billions of dollars of debt through higher tolls.

Without legislative support, any plan to sell or lease the state's toll roads could be blocked, according to Wisniewski.

Sen. Raymond Lesniak, D-Union, has proposed privatizing toll roads as a way to reduce what he said is now $100 billion in state debt. Cutting debt payments would free up money for schools, higher education and open space, Lesniak said.

"If we do not reduce our debt and meet our obligations, our state will go backward, without any hope of recovery," Lesniak said.

Gov. Jon S. Corzine's administration is examining options for selling state assets, including roads or the state lottery. He has focused on reducing debt to pay for needed programs.

Labor union representatives said private investors might be less likely than a public agency to plow roads during storms like the one that struck Wednesday.

"In its simplest terms, toll roads are meant to be our roads," said Leonard Schiro, an attorney representing the International Federation of Professional and Technical Engineers Local 196.

Geoffrey Segal, of the Washington-based Reason Foundation, said privatization represents a "new paradigm" in road operations that can provide public bodies with a cash infusion.


© 2007 CourierPostOnline.com.: www.courierpostonline.com

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Sen. Watson uses smoke and mirrors to sell freeway toll roads again

Watson files bill aimed at accountability on toll roads

Proposal would give more authority to elected, instead of appointed, officials

February 15, 2007

By Mike Ward
Austin American-Statesman
Copyright 2007

The Capital Area Metropolitan Planning Organization and other such entities across Texas would get greater power in decisions about toll roads — from increased financial review to inclusion of more elected officials in decisions — under a bill filed today by state Sen. Kirk Watson, D-Austin.

Senate Bill 668 would "put more openness and transparency" in decisions on toll roads that are mostly made now by regional mobility authorities, which are made up of appointees, said Watson, who is chairman of CAMPO. "Many people's frustration and anger has been that there is not more openness in the process."

Metropolitan planning organizations and regional mobility authorities operate in Austin and other major cities across the state. The latter's toll road decisions have become increasingly controversial in Austin and several cities in recent years.

Other provisions of the proposal would allow local governments to be reimbursed for money they put into road projects that later become toll roads and would require the approval of metropolitan planning organizations on many decisions involving toll roads that the regional authorities now make by themselves.

In addition, the governing boards over local toll projects would have to include at least one elected official, and they would have to file an annual financial report detailing data about planned and existing toll roads.

Watson, vice chairman of the Senate Transportation and Homeland Security Committee, said the measure is intended to open the tolling process to more public view.

"We need to have people accountable to the voters" on the regional authorities, he said. "There's a need for people to feel like the decisions are made in the open. . . . This bill would do that."

© 2007 Austin American-Statesman: www. statesman.com

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“Freedom-loving Texans planned this protest"

Protesters plan to take NAIS issue to Austin

February 14, 2007

Christina Childs
The Weatherford Democrat
Copyright 2007

Bovine bombardment is part of the most recent plan to thwart Texas legislators’ plan to implement a federally mandated animal identification system.

Protesters plan to tell state government officials, “Don’t Tag Texas,” March 2.

Farmers and ranchers will turnout in numbers at the state capitol that Friday, livestock in tow, to declare their discontent concerning the newly proposed National Animal Identification System (NAIS), as well as the Trans-Texas Corridor (TTC).

A media release from the Farm and Ranch Freedom Alliance, said the protest is motivated by individual freedoms, which they fear could get trampled along the way.

“Freedom-loving Texans planned this protest because of two issues that threaten their way of life: The National Animal Identification System and the Trans-Texas Corridor,” the release stated.

“The NAIS and the TTC are national issues with their hearts in Texas,” said Judith McGeary, founder to the Farm and Ranch Freedom Alliance. “We hope that the sight of a veritable Noah’s Ark marching up Congress Avenue will reconnect Texas lawmakers to the people whose lives they are affecting and bring the attention of the entire country to bear.”

NAIS legislation was spurred as a result of heightened threats of foreign animal disease outbreak in the U.S.

The United States Department of Agriculture’s Web site describes NAIS as, “a modern, streamlined-information system that helps producers and animal health officials respond quickly and effectively to animal disease events in the United States.”

The proposed system, at this point, is a voluntary State-Federal-Industry partnership. However, the Farm and Ranch Freedom Alliance states there are some concerns when it comes to a possible mandate.

“NAIS is a corporate-agriculture plan being pushed by the federal government,” the release reads. “The Texas Animal Health Commission currently has the authority to make it mandatory at any time.

“If it does, then anyone who owns even one livestock animal — even just a chicken or a horse — will have to register their premises with the government, individually identify each animal and report movements to a database.”

Jon Green, Parker County extension agent-agriculture, said at this point, NAIS legislation is still up in the air, and his sentiments are mixed when it comes to the proposed system.

“Right now, that whole program has been put on hold,” Green said. “We’re kind of in the wait-and-see mode. I think it could have a positive impact just due to the fact that it allows animals to be traced back, and it would help in the case of a disease outbreak.

“But, it does put a little more on the part of livestock producers when it comes to tagging their animals and making sure everything is done before the animal leaves the premises.”

According to Mike Sweatt, county executive director for the Farm Service Agency, approximately 200 to 300 area producers stand to be affected if the new legislation becomes mandatory.

cchilds@weatherforddemocrat.com

© 2007 The Weatherford Democrat: weatherforddemocrat.com

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Familiar faces fill NTTA's top two jobs

Toll agency director steps down

NTTA hiring his predecessor to return as interim leader

February 15, 2007

By TONY HARTZEL
The Dallas Morning News
Copyright 2007

PLANO – The leader of the North Texas Tollway Authority announced his resignation Wednesday.

Allan Rutter, the agency's executive director since February 2005, will remain on the job through Wednesday.

"It's time for me to leave," he said, adding that he plans to pursue opportunities in the expanding world of public-private partnerships for transportation projects.

Mr. Rutter previously served as a transportation adviser to Gov. George W. Bush and later was appointed director of the Federal Railroad Administration.

"There are a bunch of things I can do, and a bunch of people I am talking to," he said.

His departure came after the authority's board of directors met for two hours behind closed doors, the third such meeting in recent weeks.

"This was Allan's decision," agency board chairman Paul Wageman said. "He made significant accomplishments at this agency. He got things in place for us. Now it's time for us to execute those plans he made."

Some of the discussions in the previous closed-door meetings involved the recent resignation of the tollway authority's deputy executive director, Matt Dominy, Mr. Wageman said.

Shortly after announcing Mr. Rutter's resignation, the agency unveiled some familiar faces to fill its top two jobs.

The board of directors voted unanimously to hire former executive director Jerry Hiebert as its interim director. Mr. Hiebert led the agency from 1998 until Mr. Rutter took over in 2005.

"The chairman called me, and he indicated he was committed to keeping the agency's projects moving forward," said Mr. Hiebert, who probably will serve for six months. "I care a lot about the region, and I want the NTTA to be a success."

The change in leadership comes at a crucial time for the tollway authority. After months of wrangling with the Texas Department of Transportation over the rights to build a host of toll roads in North Texas, the agency recently established a working agreement with the state that outlines which agency will build future toll roads.

"We have more projects today than we have ever had," Mr. Wageman said. "We need someone with dynamic leadership skills to help us continue to get things done."

And in one of his first acts upon returning, Mr. Hiebert announced his selection of former tollway authority executive Rick Herrington to become the agency's new deputy executive director. Mr. Herrington spent more than six years with the tollway authority and rose to the position of assistant executive director before he left to join the private sector.

© 2007 The Dallas Morning News Co www.dallasnews.com

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Wednesday, February 14, 2007

$36.6 million embezzlement scheme lasted nearly 12 years before it was detected in early 2005

INVESTIGATIONS

Auditors: PBS&J overcharged

PBS&J, where three former employees are accused of embezzlement, has overcharged clients, investigators said.

Feb. 14, 2007

Patrick Danner and Dan Christensen
The Miami Herald
Copyright 2007


Engineering firm PBS&J overcharged government clients for several years, auditors investigating embezzlement at the company have found.

PBS&J has attributed some of the millions in overbilling to three former employees who tried to cover up a $36.6 million embezzlement. But in filings with the Securities and Exchange Commission, the firm also admitted to its own overbilling, although it won't say by how much. One big client, the Florida Department of Transportation, estimated that more than half of the approximately $11 million it was overcharged had nothing to do with the embezzlement.

The discovery is part of the fallout from the investigation of a $36.6 million embezzlement scheme that lasted about a dozen years before it was detected in early 2005. The probe was conducted by a team of lawyers and forensic accountants hired by PBS&J, formerly headquartered in Miami but now in Tampa.

PBS&J will say only that refunds for overbilling, whether related to the embezzlement or otherwise, came to $37.1 million through the end of its 2005 fiscal year. The company said it was unaware it was overcharging government clients for years but notified them as soon as it learned of the overbilling.

''If we unknowingly overbilled our clients, we have sought to make restitution for all of our clients from day one,'' the company said in an e-mailed statement.

PBS&J said the three ex-employees -- who are set to be sentenced Friday -- overstated its overhead rates, which it uses to determine billings on contracts with clients. Overhead includes costs like management salaries, office rent and employee insurance and benefits.

However, former accounting manager Maria M. Garcia, who has pleaded guilty for her part in the embezzlement, said she and her co-defendants mostly used other methods to conceal their thefts. For example, checks from the healthcare-benefit account of PBS&J, a self-insured company, were deposited in a bank account in the name of a bogus PBS&J political action committee. The unauthorized checks were whited out in bank statements.

Attorneys for Garcia said in a court filing that PBS&J is using the embezzlement to hide its own overbilling. They object to PBS&J's attempt to force Garcia to pay $20 million in investigation costs, even though the company acknowledged in the recent SEC filing that its poor accounting controls contributed to overstated overhead rates on government contracts.

''Because of the hornet's nest of corporate criminality which exploded when Maria opened Pandora's Box, there is really no way of knowing whether the paybacks and settlement of claims by PBSJ were due to their frauds and corruption of the political process or the defendants,'' Garcia's attorneys wrote.

Separately, Garcia also has accused PBS&J of illegally reimbursing employees for campaign contributions. Authorities are investigating, but PBS&J has said it doesn't expect to be criminally charged.

Mark Schnapp, an attorney representing PBS&J, said in an e-mailed response: "We have not yet seen the document [filed by Garcia's attorneys]. However, we think it is high time that Maria accepts responsibility for her conduct.''

PBS&J was founded in Miami in 1960. The parent company is known as PBSJ Corp., and about 300 of its 3,900 employees are based in South Florida.

The FDOT has settled with the company. The overhead rates PBS&J set for FDOT were overstated for more than 10 years, the settlement agreement reveals. Two PBS&J divisions also charged double for ''general and administrative costs'' for at least five years.

Department auditors estimated about 60 percent, or $6.5 million, of the $11 million the agency was overcharged was not related to the embezzlement. PBS&J in November agreed to refund about $12.5 million, which includes about $1.4 million in interest.

But the refund amount likely will go up. PBS&J last week informed the department of overbillings of $411,458 for the current year. In addition, PBS&J found it needed to make $641,000 in adjustments in the agency's favor on other contracts for which the company has not yet been paid. Those figures are preliminary, however.

The transportation department examined figures provided by PBS&J's forensic accountants rather than looking at the company's books itself. Joseph K. Maleszewski, audit director for the inspector general's office at FDOT, said the $12.5 million settlement it negotiated with PBS&J was ''our best estimate of the damage done to the department.'' PBS&J had originally proposed paying about $7.9 million, according to the inspector general's office.

Two other government clients have settled with PBS&J.

The Justice Department accepted nearly $6.5 million on behalf of more than a dozen federal agencies that were ''submitted false and fraudulent claims'' by PBS&J, a Jan. 24 news release stated. A Justice Department spokesman wouldn't comment. The settlement indicates PBS&J failed to exclude unallowable costs from at least 1999.

In settling with the Florida Transportation Department, PBS&J's president vowed in a letter to implement ''a more robust ethics and compliance program.'' President Todd J. Kenner also promised PBS&J would have an independent auditor certify its overhead audit for 2007 and 2008.

pdanner@MiamiHerald.com


© 2007 The Miami Herald: www.miami.com

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"Critics say allowing foreign entities to operate U.S. highways unfairly siphons profits out of the country, and could pose security risks."

Highway retailers see road to future

February 14, 2007

By Sean Lengell
The Washington Times
Copyright 2007

Public highways across the U.S. will be auctioned to the highest bidder, if a growing trend of privatizing state roads gains traction.

Supporters of such deals told a House Transportation and Infrastructure subcommittee yesterday that states can earn millions of dollars without having to raise gasoline taxes by leasing toll roads to private entities.

"There is a series of interest [from states] across the country," Tyler Duvall, Transportation Department assistant secretary for transportation policy, said during a hearing of the House highways and transit subcommittee.

But opponents worry such deals are reckless and shortsighted, and might end up costing states, and taxpayers, more in the long run.

"I am not convinced that 50 states, each pursuing their separate transportation priorities with their respective private-sector partners, will, in the end, produce a coherent, integrated, national [highway] system," said Rep. James L. Oberstar, Minnesota Democrat and chairman of the Transportation and Infrastructure Committee.

Virginia in 1988 became the first state to enact legislation enabling private development of highways. Seven years later, the 14-mile Dulles Greenway opened -- one of the first private toll roads built in the U.S. in more than a century.

Other states and local governments followed suit.

The city of Chicago in 2004 agreed to lease the Chicago Skyway toll road to a joint Spanish-Australia venture for $1.8 billion for 99 years. The same group last year leased the Indiana East-West Toll Road for $3.85 billion for 75 years.

But Wisconsin Transportation Secretary Frank Busalacchi is no fan of privatizing roads.
"The private sector's legal responsibility to its shareholders is to make money -- profit is their purpose," Mr. Busalacchi testified.

Democrats say the Bush administration is pushing public-private highway deals as a way to avoid increasing the 18.5 cents-per-gallon federal gas tax.

Mr. Oberstar said it is disingenuous to promote privatization of toll roads as a way of keeping taxes down.

"I spell toll t-a-x," he said. "Don't sugarcoat it or say it's something else."

There is no federal legislation regarding highway privatization, but with the current federal highway spending law, known as the SAFETEA-LU Act, set to expire in 2009, members of Congress have been studying alternative funding sources.

Critics also say allowing foreign entities to operate U.S. highways unfairly siphons profits out of the country, and could pose security risks.

"People don't like the idea of their roads being owned by foreigners," Mr. Busalacchi said.
But privatizing roads, if done properly, shifts risks and liabilities, such as cost overruns, to the private sector, said Virginia State Sen. Ken Cuccinelli, a Centreville Republican and a longtime proponent of highway privatization.

"I think that getting the private sector in here building facilities available to all of us is just spectacular policy," Mr. Cuccinelli said. "Government doesn't compete -- private sector does."


© 2007 The Washington Times: www.washingtontimes.com

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TxDOT again attempts to put lipstick on a pig

TxDOT open house will educate travelers

February 14, 2007

Austin Business Journal
Copyright 2007

Confused by what the term "managed lanes" means? The Texas Department of Transportation is ready to explain.

TxDOT is holding an open-house meeting Tuesday Feb. 20, at the Thompson Conference Center at the University of Texas.

The meeting will be held from 6 p.m. to 8:30 p.m.

TxDOT will have presentations to teach attendees about managed lanes, and printed resources will be available. TxDOT personnel will be on hand to answer questions as will members from the Texas Transportation Institute.

"Managed lanes have been effective at offering travel choices on several urban highways around the country," says Ginger Goodin, research engineer at TTI. "Managed lanes hold promise for providing congestion relief on several Texas highways, including MoPac and I-35, but most Texans are unfamiliar with them because they are a relatively new concept."

Information on managed lanes in other cities, such as San Diego, Denver and Houston, will also be available at the open house.


© 2007 American City Business Journals: www.bizjournals.com

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The revolving door between North Texas Tollway Authority and HTNB continues

Tollway Authority exec director Allan Rutter resigns

Board names vet Jerry Hiebert as interim replacement

hntb revolving door

February 14, 2007

By Pegasus News wire
Copyright 2007

PLANO — Allan Rutter announced his resigation as Executive Director of the North Texas Tollway Authority (NTTA), effective February 21.

In response to Rutter's announcement, the NTTA Board of Directors named Jerry Hiebert as acting executive director until a permanent replacement is found. Hiebert previously served as executive director from August 1998 through January 2005.

One of Hiebert’s first actions was to appoint fellow authority veteran Rick Herrington to the deputy executive director position, vacated when Matt Dominy resigned February 9. (Dominy is currently interviewing for an executive director position with the Southwest Florida Expressway Authority).

Hiebert and Herrington are employed by HNTB Corporation, a major consultant to the NTTA. They will resign from HNTB to serve in these interim positions.

During his tenure, Rutter oversaw the ground-breaking on Phase III of the Dallas North Tollway (from SH 121 to US 380) and on the Lewisville Lake Toll Bridge; opened the Superconnector on the President George Bush Turnpike ahead of schedule; ushered in the right-of-way acquisition on the eastern extension of the President George Bush Turnpike to IH 30; and began the initial phase of work on the Southwest Parkway.

Rutter, who topped the authority for two years, will apply his national experience in transportation policy and practice in the rapidly expanding public and private toll road industry.

Posted by T.G.

© 2007 Pegasus News wire: www.pegasusnews.com

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NTTA Executive Director exits to the private sector

Tollway director resigns; Southwest Parkway project still on course

Feb. 14, 2007

By GORDON DICKSON
Fort Worth Star-Telegram
Copyright 2007

A leadership change is in the works at the Plano-based North Texas Tollway Authority, but officials don’t expect the matter to disrupt plans for the Southwest Parkway toll road in Fort Worth.

NTTA Executive Director Allan Rutter resigned Wednesday morning after NTTA board members held a closed-door session. He had been at the helm about two years.

Rutter will be temporarily replaced by Jerry Hiebert, who was NTTA director from 1998-2005 and spent the last two years with the consulting firm HNTB Corp.

Southwest Parkway is scheduled to be under construction by early next year from Interstate 30 to Altamesa Boulevard, and possibly open by 2010.

Rutter caused a Fort Worth firestorm in 2005 when he announced that the parkway would cost up to $820 million, up from $350 million. But officials later determined that the project was still feasible as a toll road, and that it could soon be extended as far south as Cleburne many years ahead of schedule.

Rutter is a former Federal Railroad Administrator and was then-Texas Gov. George W. Bush’s transportation adviser during the 1990s. He intends to “apply his experience in transportation policy and practice in the rapidly expanding public and private toll road industry,” according to an NTTA release.

“Allan has overseen the Authority during a critical time in our history,” said NTTA Chairman Paul Wageman. “The NTTA continues to build broad regional support, and has a leadership team focused on achieving its strategic objectives, as well as the financial strength to put its assets to work in enhancing mobility for North Texans.”

Hiebert said he will hire fellow HNTB alum Rick Herrington as his acting deputy director.

“I’m proud to have helped the NTTA Board adopt a five-year strategic plan to guide the Authority into the future,” Rutter said. “The Authority is strongly positioned to partner with the Texas Department of Transportation to bring turnpike projects to the region ... We are working diligently with TxDot and the North Central Texas Council of Governments to increase mobility and support economic growth through innovative transportation solutions long into the future."

Gordon Dickson, 817-685-3816
gdickson@star-telegram.com


© 2007 Fort Worth Star-Telegram: www.dfw.com

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Governor Perry goes viral: Texas needs a vaccination

Off the Top of His Head

Is the governor auditioning for a new part?

2/14/07

By DAVE McNEELY
Fort Worth Weekly
Copyright 2007

Who was that guy standing on the dais in the Texas House of Representatives on Feb. 6, addressing a joint session of the Texas Legislature? The one with the Big Hair, delivering what was billed as the governor’s biennial “State of the State” speech?

Many in the audience, including dozens of legislators of both major political parties, couldn’t help wondering whether someone had replaced Republican Gov. Rick Perry with a body double, complete with the correct helmet of well-coiffed hair, but with somebody else’s audiotape playing.

Money for cancer research? More money for education? A mandatory vaccination for sixth-grade girls for a sexually transmitted disease that can cause cervical cancer?

Austin American-Statesman columnist W. Gardner Selby a couple of days later wondered in print if Perry or a look-alike might have been channeling Chris Bell, the Democratic runner-up to Perry in November. Bell, after all, had pledged to work for the mandatory vaccination for human papilloma virus, or HPV, last September.

If others were confused, the heavy-set guy in the southwest corner of the House chamber wasn’t. Dave Carney may have been clapping the loudest. He’s the chief political consultant to Gov. GoodHair (as the late, great columnist Molly Ivins usually referred to Perry) and the guy suspected of putting dreams of the vice presidency in Perry’s head.

That’s the job that several legislators thought Perry seemed to be auditioning for last week.

Some Democrats said parts of Perry’s speech, like paying health insurance costs for two million uninsured Texans who earn less than 200 percent of the federal poverty level, and spending $80 million to expand the state’s pre-kindergarten program, sounded more like they were written for a Democrat than a Republican. Perhaps the governor was trying to appear a bit more moderate — though not too moderate.

For instance, he also bragged in the speech, indirectly, about helping cut the legs out from under plaintiffs’ attorneys who sue insurance companies, doctors, and businesses on behalf of injured consumers, by saying he’d helped make the climate better for doctors and other healthcare providers.

On the other side of the aisle, some Republican legislators were still reeling from Perry’s surprise executive order Feb. 2, four days before his speech, to require the HPV vaccinations. Although Perry repeated his support for the vaccinations in his speech, noting that parents of girls can choose to keep their daughters from being inoculated, it didn’t allay criticism from many in his own party. Republicans are steamed that Perry didn’t include them in discussions before taking the action unilaterally, especially since bills have been introduced in both houses of the legislature to do the same thing.

Several attorneys have questioned the constitutionality of his actions. And folks all over the political waterfront have pointed out that the HPV vaccine is manufactured by pharmaceutical giant Merck — whose lobbyists in Texas include Perry’s friend and former chief of staff Mike Toomey. Merck’s political action committee has donated $6,000 to Perry’s political treasury.

The Democrats whose jaws were already unhinged dropped their molars even farther when Perry said he wanted to spend more state money on health insurance, to leverage three federal dollars for each two state dollars spent. Same with his strong call to spend earmarked state tax and fee money for the purpose for which it was collected — like the sporting goods tax for state parks.

Was this the same governor whose insistence on tax cuts in 2003, when the state was already facing a budget shortfall, forced legislators to shift money from pocket to pocket, in order to make the money cover as many bases as possible? Was he now blaming them for bookkeeping sleight of hand?

And it’s Texas Democrats, not Republicans, in general, who have long advocated spending more state dollars on health insurance to bring more federal dollars to Texas and who have resisted the practice of spending money collected for one purpose for other things.

Then there was Perry’s call for more money for public and higher education. Most Democrats and some Republicans think the governor’s tightfistedness in 2003 was what put schools in a hole in the first place. It’s now as if the blocks he caused to be taken down four years ago, in areas like the Children’s Health Insurance Program (CHIP), parks, higher education, and other areas, he’s now calling to have put back.

How would he fund all these programs? In part, by yet another proposal — bold or hare-brained, depending on your point of view — to sell the state’s lottery to a private company for $14 billion to $20 billion and invest the money. Problem is, other state leaders, including House Speaker Tom Craddick, question whether that route would produce even as much money for the state treasury each year as the lottery itself does now.

In short, the governor in the past week has managed to start new brushfires that are turning up the heat he’s been taking for months now over everything from schools to the massive toll roads he has pushed to the coal-fired plants that he supports, even though business leaders, a mayors’ coalition, and environmentalists from around the planet have been cautioning that the plants could seriously affect global warming and air pollution.

Perry seems undaunted by all the opposition. Maybe it’s because, in addition to having visions of Air Force 2 dancing in his head, he wants, belatedly, to leave behind some legacy other than a tax cut four years ago that wounded many key state services. After all, if he finishes out what will probably be his last term, he will have been one of the longest-serving governors in Texas history.

If he plans on leaving before the end of the term for higher office, however, all the new ideas he’s been popping out might hurt rather than help him. A majority of the Texas Senate — including members from both parties — has gone on record opposing his vaccination fiat. One state senator from his own party is asking that he be investigated for overstepping his powers. Some legislators are working this session to back the state off from both the coal plant fast-track and the Trans-Texas Corridor. And, as one leading toll road opponent — a Republican — said recently, people concerned about that issue alone have been working since November “to make sure he is useless to the national party.”

Legislators were trying to track the new math of Perry’s proposals — sell the lottery, invest the proceeds, spend them on various proposals here, create a new fund there — and, by the way, cut property taxes again by another $2.5 billion. A lot of them didn’t like where it appeared to lead.

“Down here I’ve learned to follow the money,” said State Sen. Eliot Shapleigh, an El Paso Democrat. “If the priority is health, education, jobs, and children, then why is a tax cut in 2010-2011 the top priority? We can’t cover one million children with CHIP if state leaders want to give almost $3 billion in tax cuts to Texans who make over $100,000. What matters more — tax cuts for the wealthy or CHIP for children?”

What it adds up to, some suggested, is a roller-coaster that has kept the state’s budget in continuous upheaval for the last four years.

Take another Perry proposal from his speech, this one for $40 million for a Texas Technology Grant Program. It was Perry, after all, who decreed in 2003 that the Telecommunications Infrastructure Fund, fed by telephone surcharges passed on to customers, was no longer needed. That program was designed to help schools, libraries, and hospitals across the state with technology development.

In 2003, Perry did support keeping some of that money for technology for students. But legislators, in trying to balance the budget, redirected the fund’s $200 million-plus in annual income to other purposes — and have continued that habit since then.

Equally befuddling to some was the governor’s proposal that Texas follow two other states in investigating the sale of their lotteries. He proposed using the presumed $14 billion selling price — and later said the price might reach $20 billion — to set up permanent funds to provide help with health insurance for the uninsured, to provide a cancer research trust, and to increase the permanent endowment fund for public schools.

Perry predicted such funds would produce annual investment earnings of $750 million for education, $270 million for cancer research, and $243 million to help with insurance policies for the working poor.

But several legislators, including Craddick and Lt. Gov. David Dewhurst, the senate’s presiding officer, said that proposal in fact wouldn’t provide as much as the $1 billion-plus that the lottery brings in every year for public education.

“We’ll look at it, but the people voted to have the lottery used on public education,” Dewhurst told reporters.

Rep. Elliott Naishtat added that the state’s track record with privatization has been spotty, especially the bad results from farming out to privately run call centers the process of signing up Texans for social services programs.

“Many questions concerning another privatization remain to be answered,” the Austin Democrat said.

Some see Perry’s call to sell the lottery as a way for him to find easy funding now, without new taxes, for programs for which he can take credit — even though Texas would forgo profits from the lottery for the next 40 years.

That sounds similar to another program the governor’s been pushing that has property owners and others in an uproar all across the middle of Texas — the area where the massive Trans-Texas Corridor is planned.

Perry just waved at toll roads in his state-of-the-state speech. “Our state is building roads faster than any state in the nation,” was all he said, without mentioning how they are being financed or that they have tens of thousands of Texas thoroughly hacked. A whole list of grassroots groups opposed to the Trans-Texas Corridor have sprung up, opposing the taking of nearly a million acres of land for toll roads that would, in effect, be leased long-term to a foreign corporation that would build the roads and then get to keep all profits from them for decades. The project also includes charging tolls to drive on highways that are now free — and could prevent any projects to improve many other state roads in the same area as the TTC.

Some other state officials are working to slow down the relentless push by Rick and Ric, the Toll Road Warriors. The second Ric — no K for him — is Ric Williamson of Weatherford, the governor’s buddy from their days as freshmen House members from adjoining districts in 1985. Williamson currently chairs the Texas Department of Transportation Commission, considered the driving force behind the toll road effort, and has managed to anger enough legislators with what they say is his arrogance that they wish he was gone. Sen. John Carona, a Dallas Republican and chairman of the Senate Committee on Transportation and Home Security, recently called for Perry not to reappoint Williamson.

Critics of the TTC and other Perry initiatives say their math shows that, were it not for Perry’s anti-tax stance, Texas could have funded its highway needs — and other responsibilities — without resorting to extraordinary tactics like making free highways into toll roads and leasing new highways to foreign corporations. Those folks say the no-tax hype, pushed by people like Grover Norquist, the Jack Abramoff buddy whose group solicits pledges from politicians to vote against all tax increases, has crimped the state’s ability to raise funds to meet its needs.

One such area is the state gasoline tax, which hasn’t been raised for 16 years. In 2001, a nickel increase on the tax was proposed by Rep. Clyde Alexander, an Athens Democrat, who has since retired, and Republican Rep. Kip Averitt of Waco, who is now a state senator.

A nickel increase that year, they said, would have brought revenue in inflation-adjusted dollars up to not quite what the current 20 cents per gallon produced in 1991, the last time the gas tax was increased. The nickel hike in 2001 would have produced an additional $650 million a year: $487.5 million for transportation, and 60 percent of that for highways. Schools would have gotten $162.5 million.

But in 2001, the governor threatened to veto any new tax, which killed the idea from the start. So the state got toll roads instead. Since then, the Trans-Texas Corridor has brought together some unlikely and vehement allies, from conservative ranchers to those on either end of the political spectrum who oppose the hugely expanded use of eminent domain in recent years — a coalition, in fact, not unlike that opposed to Perry’s HPV initiative.

After six years in office, Perry is used to making Democrats mad. But when he surprised state lawmakers with his executive order that 11- and 12-year-old schoolgirls be inoculated against a disease transmitted solely by sexual conduct, the firestorm of criticism from his own party — and support from some outside his party — may have surprised even him.

State Sen. Jane Nelson of Lewisville, the Republican who chairs the Senate Health and Human Services Committee, said she was “absolutely stunned.” She and Republican State Rep. Jim Keffer of Eastland have asked Attorney General Greg Abbott for an opinion on whether Perry has the power to issue such an executive order.

“The public has a right to testify on this issue, and the legislature has a constitutional duty to be involved in this decision,” Nelson said. Other critics said the vaccine has not been tested enough and that it could make the state look like it’s endorsing young girls having sex.

Perry ordered that Gardasil, a vaccine produced by Merck, be administered to the young girls to help cut down on the incidence of cervical cancer associated with HPV. He reiterated his support for the order in his speech four days later, with his wife Anita, a nurse, beside him at the podium.

Democrats and some Republicans, including Cathie Adams, president of the conservative Texas Eagle Forum, are suspicious that Perry issued the order as much to benefit Toomey and Merck as for public health reasons. The huge pharmaceutical company, trying to recover from losses associated with Vioxx, reportedly has called on its lobbyists around the country to try to get the drug mandated in every state.

“I understand the concern some of my great and dear friends have about requiring this vaccine, which is why parents can opt out if they so choose,” Perry said in his speech. “But I refuse to look a young woman in the eye 10 years from now who suffers from this form of cancer and tell her we could have stopped it, but we didn’t. ... Others may focus on the cause of this cancer. I will stay focused on the cure.”

His words didn’t stop 26 of the 31 members of the Senate, including some supporters of the vaccinations, from signing a letter to Perry calling on him to rescind his action. And 31 House members, mostly Republicans, echoed that action.

Bills have been introduced by Republicans in both the House and Senate to overturn the order. And bills had been introduced before Perry’s executive order by two Democrats, Rep. Jessica Farrar of Houston and Sen. Leticia Van de Putte of San Antonio, calling for the same action Perry ordered — though only after legislative debate on the topic.

Both women applauded Perry’s action as “a bold step toward eradicating cervical cancer and saving lives.” State Rep. Donna Howard, an Austin Democrat and a nurse, also endorsed the move.

Van de Putte pointed out that those who have sex outside marriage aren’t the only women who would be helped by the vaccine. Married women could still get HPV from their husbands. “It’s not about having sex or not having sex,” she said. “It prevents cancer.”

In fact, about the only praise Perry got from legislators came from Democrats, some but not all healthcare groups — and the Democrat who challenged Perry last fall and lost, former U.S. Rep. Chris Bell of Houston.

“While I continue to be very disappointed in the overall direction he is taking our state, in this particular instance Rick Perry has done the right thing,” Bell said in a statement. “This is about protecting women’s health, not about politics.” He pointed out that the FDA has approved the vaccine and predicts it could have prevented about 70 percent of cervical cancers that killed almost 400 women in Texas last year. “This is why the Center for Disease Control and the American Cancer Society recommend that all young women age 11-12 get vaccinated, and it’s why I called for this same action during the campaign,” he said.

Much of the argument turns not on the question of whether the vaccine is beneficial, but whether, particularly with the legislature in session, the issue should have gone through the legislative process, including public hearings.

Two veteran attorneys — Buck Wood, who represented 250 poor school districts in the suit seeking more state money for schools, and Scott McCown, a former state district judge who now heads the Center for Public Policy Priorities — said Perry’s move defies the Texas Constitution.

“The governor has exceeded his authority for two different reasons,” McCown said. “One, the governor is asserting that if there is authority anywhere in the executive branch, he can order those executives to do anything he wants. For example, he could order the Texas A&M board of regents to make everyone join the corps, or to disband the corps. That’s what he’s arguing.”

However, he said, the current Texas Constitution specifically parcels out authority on various matters to other offices, “so the governor couldn’t tell those executives what to do.”

Second, McCown said, “he can’t order something to be done that violates the law. We have a process for making rules. It’s just as wrong for the governor to say ‘I’m not following the rule-making process; I’m just making a rule,’ as it would be for a judge to say, ‘I’m not holding a trial; I’m just finding you guilty.’ Because we have a whole process for making rules that includes public testimony, legislative input, and so on, and he’s just skipping all that.”

Rules, the former judge said, are intended to implement existing law, not expand it. That’s one reason, he said, that “the legislature requires a state agency to go through a careful process of evaluating its legal authority before adopting a rule.”

Republican Sen. Glenn Hegar of Katy has said he would withhold support for Perry’s re-appointment of Albert Hawkins as commissioner of health and human services until Hawkins explains how he would deal with the governor’s inoculation order.

Hegar also is concerned that the vaccine should not be used on pregnant women. “Does that mean the commissioner intends to require a pregnancy test for each of these young children before they receive the Gardasil HPV vaccine, or does he intend to put these children at undue risk instead?” he asked in a statement.

The battle over the HPV vaccine may be just beginning. But the fight against another Perry fiat has reached the courthouse as well as the legislature, and it’s being watched closely by folks all over the world.

Groups across the state are massing against the new coal-fired power plants that Perry has put on the fast track for approval. As with HPV, Perry last April issued an executive order that cut down on the time for public debate on the proposed plants — 19 in all. Critics in Texas and across the country believe that the plants will add dangerously to the state’s production of carbon dioxide, a key component in global warming. Texas already produces more carbon dioxide than any other state and most countries. TXU and other utilities have said the air-pollution effect of the plants will be neutral.

Perry said in his recent speech that “power outages are just a few years away” if Texas doesn’t act to build more power plants — and that the new plants will reduce emissions. Environmentalists disagree vehemently.

Whether for that reason or others, a bipartisan Clean Air Caucus has sprung up this year in the Legislature, with 39 of 150 House members, Republicans and Democrats, signed up thus far. Its purpose is to protect public health and the business climate, meet federal clean-air standards, encourage renewable resources, and closely analyze the permitting process for large emission generators — presumably, including the coal plants being pushed by TXU and other utilities. State Rep. Lon Burnam of Fort Worth has filed a bill to create a task force to study global warming in Texas.

Burnam is also one of a bipartisan group of co-sponsors of House Concurrent Resolution 34, authored by Rep. Charles “Doc” Anderson of Waco, that urges the Texas Commission on Environmental Quality to place a 180-day moratorium on the coal-fired plants.

Proposals like the coal-plant push and the HPV vaccine order have helped create Republican-Democrat coalitions that the governor probably wasn’t talking about when he made a plea for bipartisanship toward the end of his state-of-the-state speech. He asked that listeners put aside past disputes to “choose the high road of unity rather than the easy course of cynicism.”

That’s a tall order for the considerable number of Democrats who remember that in 2003, in addition to the stingy spending that threw hundreds of thousands of kids off CHIP and shorted the schools, it was Perry who called three special sessions on congressional redistricting, designed to punish well-seasoned Democratic members of Congress. They remember that it has been Perry, with lots of campaign contributions from multimillionaire school voucher supporter James Leininger of San Antonio, who has been advocating that state school money be spent on private school vouchers, despite the fact that most of the Democratic legislators and a sizable number of Republicans oppose vouchers for fear they’ll drain resources and good students from public schools. And it’s even tougher when many of them suspect that many of the current gargantuan controversies they and the rest of Texas are wrestling with — HPV, the toll roads, the coal plants, school funding, and the rest — are at least partly window dressing for a vice-presidential bid.

Despite the flurry of speculation, Perry spokesman Robert Black said the governor has no eyes on the VP prize. “He’s not interested,” Black said. “I don’t know how he can say that any better. He’s said he doesn’t like Washington. There’s a lot more talk about that outside the governor’s office than inside it.” As for all the governor’s recent initiatives, Black said they’re not unusual. “This state-of-the-state wasn’t any more or less ambitious than previous ones — just maybe different.”

In January 2006, Perry was asked, and declined to say, whether he would serve his full four-year term if re-elected. The following month, he made a trip to Washington, D.C., ostensibly to seek more federal aid to Texas, but also to see and be seen by national power brokers.

As if he didn’t have enough on his plate in Texas, Perry lately has started sounding interested in political problems around the globe. After all, one feather often needed for a national-ticket headdress is some familiarity with foreign affairs. In his inaugural speech in January, Perry mentioned Israel, Iraq, the Middle East, the Sudan, Asia, Africa, Europe, and Latin America — and, of course, Mexico. Then in the speech this month, the governor decided to join others in “protesting the ethnic genocide occurring in Darfur by calling on the state of Texas to divest of companies doing business in Sudan.”

Don’t be too surprised if Perry visits some or all of those places over the next several months. Just sightseeing, of course.

Even with Perry kissing issues like vaccines and tax cuts and power plants like so many babies held out to him on the campaign trail, ponder his chances in 2008:

He was re-elected in November with just 39 percent of the vote, in a state the Republicans think they’ll carry anyway, at a time when Americans seem to have had their fill of politicians from Texas.

And if Republicans thought they did need a Texan on the presidential ticket, might not U.S. Sen. Kay Bailey Hutchison, with 13 years experience in national issues, stand a better chance for a post-primary selection as a VP candidate?

Somewhere around June of 2008, if he’s still holding down the job, Perry will break the record for most consecutive years as Texas governor, which now stands at eight years. (Four of his predecessors have served six years — though the total service of the fourth, one George W. Bush, was short a month of that because he resigned in December 2000 to accept the presidency, leaving the governor’s mansion open for Perry.) In late December 2008, he’d set a new record for total years served.

Perry could get to follow Bush’s path to Washington. Or he may get to break those records and serve a full 10 years in the governor’s office — whether he wants to or not.

Dave McNeely covered Texas politics for the Austin American-Statesman for 26 years. He continues to write a weekly newspaper column and is co-writing a book on the late Lt. Gov. Bob Bullock with former Dallas Times-Herald writer Jim Henderson. You can contact him at dmcneely@austin.rr.com.

© 2007 Fort Worth Weekly: www.fwweekly.com

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"The fact you would sit there and be so arrogant that you would not even commit to a meeting date ... is very troubling."

Rebuff angers Dallas senator

Highway chairman finally agrees to meet on toll roads, other issues

2/14/07

By TERRENCE STUTZ
The Dallas Morning News
Copyright 2007

AUSTIN – The chairman of the state Transportation Commission on Tuesday angered a key senator from Dallas – and possibly the entire Senate – when he initially ignored a request by the senator for a meeting to discuss the growing number of toll roads in Texas and other volatile highway issues.

Senate Transportation Committee Chairman John Carona paid an unusual visit to a meeting of the House Transportation Committee, where highway commission Chairman Ric Williamson was testifying about road projects around the state.

Sitting with the House panel, Mr. Carona was asked if he had any questions for Mr. Williamson, and the Dallas Republican said he only wanted to know when he could personally confer with the commission chairman after trying unsuccessfully to arrange a meeting for the past week and a half.

"I just wanted to ask you, Chairman Williamson, if you and I might meet this week on important transportation issues," Mr. Carona said, noting that Mr. Williamson's office had said his calendar "was booked through March."

Mr. Williamson sounded receptive at first, telling the senator he looked forward to a meeting.

But when Mr. Carona pressed him on a date, Mr. Williamson responded, "I will call you. I will call you."

That triggered a sharp retort from the senator, who has been critical of major policy decisions by the Transportation Commission over the past several months.

"It is this kind of lack of commitment and artful dodging from something as basic as an appointment that causes the hostility and friction that exist right now," he told Mr. Williamson.

"It is tragic that we have come to this day in Texas politics ... that any disagreement with your views or the views of the commission would result in your unwillingness to even meet with the chairman.

"The fact you would sit there and be so arrogant that you would not even commit to a meeting date ... is very troubling."

Asked again about a possible meeting, Mr. Williamson said: "Frankly, senator, I am speechless at this point."

Mr. Carona then left the House meeting, but vowed later that his Senate committee would delve into "serious issues that need to be addressed regarding tolls" and other such politically charged matters as the Trans-Texas Corridor project.

Mr. Williamson later agreed to meet with the senator today after Mr. Carona complained to aides for Gov. Rick Perry, who appointed Mr. Williamson to the Transportation Commission.

"No one is trying to abolish or create a wholesale upheaval of those programs, but at the same time the public has voiced very loudly their concerns" about the Transportation Commission's policies, Mr. Carona explained, adding that some of those areas will require legislative action this year.

Mr. Williamson's term on the Transportation Commission expired Feb. 1, but he will keep serving until Mr. Perry either reappoints him or names a replacement.

The Senate would have to confirm whoever is appointed.

Several senators said they believe that Mr. Perry may hold off on reappointing Mr. Williamson until after the legislative session ends in late May, avoiding confirmation hearings before critical senators.

© 2007 The Dallas Morning News Co www.dallasnews.com

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Tuesday, February 13, 2007

"This is all about money. If anybody thinks it's about anything else they’re mistaken."

Washington Dispatch

Highway Privatization: This is all about money


House committee takes the road privatization juggernaut public.

February 13th, 2007

By: Daniel Schulman
Mother Jones
Copyright 2007

If today's hearing by the House Subcommittee on Highways and Transit is any indication, proponents of highway privatization could face a bumpy road ahead.

Chaired by Peter DeFazio, the Oregon Democrat, the committee heard testimony on the public policy implications of so-called public-private partnerships, an increasingly popular financing model in which cash-strapped state and local governments invite the private sector to both lease existing toll roads and build and operate new ones. DeFazio has long expressed skepticism about such deals, once describing the privatization of highways in Chicago and Indiana as a "scam" during an interview with Mother Jones.

Judging from the remarks of members of DeFazio's committee, it appears the privatization trend, which thus far has largely proceeded under the radar, is now a matter of bipartisan concern.

In his opening remarks, John J. Duncan, Jr., the Tennessee Republican who is the ranking member on the committee, suggested that while state governments may secure large upfront payments for privatizing their roads, they could leave future generations "holding the bag." "I'm also concerned about possible sweetheart deals for private companies," he said.

Indeed, the handful of companies that currently operate U.S. highways, including the foreign consortium that holds long-term leases on the Chicago Skyway and the Indiana Toll Road, have received deals that are highly favorable to their interests.

While technically renting the roads, the length of the leases, which can extend for up to 99 years, allow the companies to depreciate their value as if they own them. This, in turn, can translate to tens, even hundreds of millions of dollars in tax breaks.

Beyond tax incentives, there also remains some question about whether toll road concessions are actually in the best interests of taxpayers. In Indiana, where a 75-year lease on the state's 157-mile toll road sold for $3.8 billion, one Notre Dame economist estimated that the highway could have earned as much as $11.38 billion had it remained in state hands.

Despite such questions, the privatization model has been whole-heartedly endorsed by the Bush administration and warmly embraced by U.S. investments banks, which have scrambled to set up multi-billion dollar investment funds to buy public infrastructure.

Testifying today, Tyler Duvall, the Department of Transportation's assistant secretary for transportation policy, said his agency "has made the expansion of public-private partnerships a key component in our on-going initiatives to reduce the high and growing cost of congestion and improve transportation system performance."

The DOT, in fact, has placed such an emphasis on privatization that it has been pitching the concept to state governments around the country, going so far as to draft model legislation states can use to authorize public-private partnerships.

DeFazio, in his sometimes heated questioning of the witnesses, wondered whether privatization hasn't become the agency's sole focus, at one point asking a sullen Duvall whether DOT is "proposing anything at all to increase the investment" in the federal highway system beyond public-private partnerships. Duvall said, "they are not the answer, but they are a vital tool, I think, going forward."

Unlike Duvall, who is one of a growing number of privatization boosters within the transportation department, Frank Busalacchi, the secretary of Wisconsin's DOT, urged the committee to carefully consider whether ceding control of vital pieces of the transportation network is truly in the public interest. "The private sector's legal responsibility to its shareholders is to make money — profit is their purpose," he said. "The public sector's responsibility is to ensure that we make wise choices with our citizen’s resources." In this case, he said, the responsibilities of the public and private sectors are bound to conflict. "This is all about money. If anybody thinks it's about anything else they’re mistaken." Urging Congress to "engage in the P3 [public-private partnership] debate," Busalacchi added, "I fear that our P3 policies have evolved with little attention to their impacts."

Today's hearing was one step toward opening up that debate. But as DeFazio and his subcommittee take on privatization, they will find that many of the government officials charged with implementing the nation's transportation policy have already made up their minds, coming down on the side of the companies that have long been working behind the scenes to open this once-closed market to private investment. Among them is Mary Peters, the recently appointed transportation secretary, who has championed this cause since her days as the head of the Federal Highway Administration. During a panel discussion on public-private partnerships, Peters once announced, triumphantly, that "the time has come for us to unleash the power of the private sector and the free markets." The event was titled, aptly, "Let's Make a Deal."

Daniel Schulman is an investigative reporter with Mother Jones.


© 2007 Mother Jones: www.motherjones.com

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Playing the Odds

Perry's son hired by firm consulting on lottery

Exclusive: Correlation denied, but company stands to gain from sale

WE B.S.
© 2007 Houston Chronicle: www.chron.com

February 13, 2007

By CHRISTY HOPPE
The Dallas Morning News
Copyright 2007

AUSTIN – UBS, one of two large financial firms consulting with the governor's office over the possible sale of the Texas lottery, hired Gov. Rick Perry's son to work in its Dallas office about two weeks ago.

The governor's office said that there is no relationship between the two events and that Griffin Perry, 23, is a bright young economist who is pursuing a career on his own merits.

"He stands on his own two feet. And he got this job on his own," press secretary Robert Black said Monday.

The younger Mr. Perry graduated from Vanderbilt University with an economics degree in May. He spent the summer and fall working on his father's re-election campaign.

Karina Byrne, a UBS spokeswoman, said that Griffin Perry was hired for a specific program in which about a dozen entry-level employees rotate through various parts of the company. The company has 11 such programs nationwide.

Tell Us: Is Griffin Perry's employment a conflict of interest?

"We have a vigorous interview and application process. He would have been subjected to the same criteria that would have applied to any other young person applying for the associate program," Ms. Byrne said.

She said the fact that his father is governor would not have weighed into the calculation.

But the hiring comes amid concern that several of the governor's bold policy ideas stand to benefit his associates.

Critics of his decision to order vaccines for schoolgirls to help prevent cervical cancer noted that his former chief of staff, Mike Toomey, is registered to lobby for Merck, the only company that makes the vaccine.

Craig McDonald, director of the group Texans for Public Justice, which pushes for campaign finance changes, said that the Griffin Perry hiring and its timing should raise some concern.

"Hiring the governor's son seems to be a way to enamor yourself with the man at the top," Mr. McDonald said.

He said he recognized that it's not always easy to pick your way through opportunities when you're related to the governor.

"But he doesn't have to work for the firm that has a lot of potential business in front of his father," Mr. McDonald said.

Last week, Mr. Perry laid out his idea for selling the Texas lottery in his State of the State speech, saying that marketing a lottery concession to private interests could raise $14 billion. He proposed placing the proceeds in three separate trusts, with investment earnings funding public education, health insurance for low-income Texans and one of the largest cancer research projects in the nation.

The brokering of a $14 billion lottery concession could mean tens of millions to the chosen firm.

"Are some firms, if you take this to the next step, going to make some money off of this? Yes," Mr. Black said.

But he pointed out that every time the state lays a roadway, purchases a building or sells bonds to do it, a private firm makes money.

"We didn't just talk to UBS. We talked to others, and we'll continue to talk to others," Mr. Black said.

No fees or contracts have been paid as of yet, he said.

The staff of the governor's office called both Morgan Stanley and UBS for expert advice on the potential sale price of the lottery, Mr. Black said.

UBS is consulting with Illinois and New Jersey, which are also considering selling their lotteries.

Also involved in the UBS consulting team is former U.S. Sen. Phil Gramm, a longtime friend of the governor. He has met with one of the governor's top aides to discuss the idea but not with Mr. Perry, Mr. Black said last week.

Mr. Gramm, a UBS vice president of investment banking, works out of the company's New York office. Griffin Perry will be working in the separate area of personal wealth management, Mr. Black said.


© 2007 The Dallas Morning News Co www.dallasnews.com

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"Creating a new revenue stream."

Court Sets Wheels In Motion For $153.2 Million Mobility Bond Election

Feb 13, 2007

by Bob Dunn,
FortBendNow
Copyright 2007

Fort Bend County Commissioners Court members set the wheels in motion on Tuesday for a May election in which voters will be asked to vote for a $153.2 million referendum to build 47 road projects throughout the county.

Those projects, which appear on a list here, were approved by the county’s Mobility Planning Commission earlier this month.

The court also voted to issue the last $26 million in bonds authorized from a 2000 mobility bond referendum, to be used for already scheduled road projects.

Also on Tuesday court members approved a resolution aimed at sending a message to state legislators. One signaled that the county supports legislation that would amend the state Transportation Code to allow counties and regional toll road authorities the right of first refusal to finance, build and operate new toll-road projects located within those entities’ jurisdiction.

Precinct 3 Commissioner Andy Meyers said the Texas Department of Transportation “is desperate” for more money. County Judge Bob Hebert said he believes the state department is interested in creating a new revenue stream for itself by operating toll roads throughout the state, because “TxDOT is strapped for cash.”

If that happened, toll road projects would proceed more slowly than if counties and regional authorities were responsible for them. Also, if TxDOT were able to operate all the toll roads, money from residents of Fort Bend and other counties would flow out of those political subdivisions and into state coffers, creating what Hebert called a “toll tax.”

If the county can operate its own toll roads, after financing for such projects is paid off, the surplus would stay within the county.

Meyers said a number of counties have joined together seeking legislation that would give counties first right of refusal to operate their own toll roads, and “Fort Bend is leading the charge.” The legislation does not yet have a sponsor.

© 2007 FortBendNow Inc. : www.fortbendnow.com

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Monday, February 12, 2007

"The only way road pricing can work is to actually price people off the roads."

Minister: We'll scrap road toll plans if public says no

2/12/2007

Ian Morgan
24 Dash.com (United Kingdom)
Press Association
Copyright 2007

Plans to introduce road charging to cut congestion will be scrapped by Transport Secretary Douglas Alexander unless the country backs the scheme, it is reported today.

Mr Alexander told the Daily Mirror: "Unless motorists and families can see the benefits of bringing in a national road pricing system then it simply won't happen."

On Friday, an online petition opposing the project passed the million-signature mark - with signatures being added at a rate of around one every second that day.

But a Department for Transport spokesman played down Mr Alexander's comments, emphasising that no decision on a national road charging system could be made until the results of planned regional trials were known.

Mr Alexander told the paper: "I understand the public's concerns. Frankly, if we were proposing what the petition suggests, I would share their concerns."

He added: "Congestion is the enemy - and doing nothing is just not an option."

On Saturday, Mr Alexander insisted he would not allow the scale of the protest to deter him from pressing ahead with trials of charging schemes designed to cut congestion.

Mr Alexander said that the scale of the response showed the need for more debate on proposals to cut congestion by charging motorists to use the busiest roads at peak times.

Manchester and Birmingham are thought to be front-runners to host the regional trials, starting in around four to five years.

Sir Rod Eddington's recent report on the future of transport gave strong support to nationwide congestion charging, which the DfT calculates could result in tolls of up to £1.28 a mile on the busiest roads in peak periods.

RAC Foundation research has suggested that charging of some sort may be necessary on around 10% of the road network in order to deal with the large increase in traffic levels expected over the next 20 years.

A Department for Transport spokesman said today: "Taken out of context Mr Alexander's comments are probably slightly misleading.

"I think what he is trying to get across is that it is a time for more debate not less and it is a question of conveying to the people what road charging is all about and that it is not a question of doing nothing.

"Public acceptability of such schemes is one of the major milestones that has to be achieved as well as carrying out the pilot schemes.

"We have always said that we have to see the results of the pilot schemes before we make a decision on a national road charging scheme."

Paul Biggs, spokesman for the Association of British Drivers, told GMTV today that he was very pleased with the response to the petition.

He said: "The only way road pricing can work is to actually price people off the roads.

"That is one reason they will sign the petition. Another reason they will sign it is that they are going to be trapped and traced wherever they drive. It is Big Brother - and they don't want that."

© 2007 Press Association: www.24dash.com

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Senate Hearing: "The first time our state government has asked for input on the Trans-Texas Corridor with the express purpose of actually listening."

Austin sets Texas corridor public hearing

2/12/07

By ANDY HOGUE
Gainesville Daily Register
Copyright 2007

AUSTIN — A public hearing at the Texas Capitol is scheduled for March 1 regarding the Trans-Texas Corridor and other transportation issues.

Anti-toll road activists are calling the hearing “the next big step” in their fight to stop the corridor from being built.

According to a press release from CorridorWatch, an organization which opposes the proposed multi-lane, limited access toll road network, the hearing is set for 8:30 a.m. March 1 (a Thursday) at the Capitol Extension Auditorium in Austin.

The hearing is regarding public policy for toll toads, public-private partnerships and the Trans-Texas Corridor (TTC) according to the release.

An aide in the Senate Transportation Committee verified there was a transportation hearing set for March 1 but had no other information available this morning. A representative from Sen. John Carona’s office was unavailable for comment by press time.

Carona is the chairman of the scheduled hearing.

Sheila Cox, an opponent of the Trans-Texas Corridor and eastern Cooke County resident, said she would not be attending.

“It’s not the best week for us to be away but I think it’s a great effort being put forth,” Cox said. “I think there will be great turnout that day, though.”

“We have expended years of effort challenging the TTC and the hard work is starting to payoff,” said David Stall, of CorridorWatch in an e-mail message. “We are now getting the attention of those who can make a real change in the direction of the TTC. Now is not the time to let up.

“It is extremely important that anyone and everyone who has a concern or issue with toll roads, public private partnerships, and especially the Trans-Texas Corridor attend this public hearing and if possible offer personal testimony to the senate committee. This means you, your family, friends, neighbors and all fellow Texans.

“This hearing represents the very first time that our state government has asked for input on the Trans-Texas Corridor with the express purpose of actually listening. Please do not squander this opportunity and privilege. You can’t be heard if you don’t speak out. CorridorWatch.org calls on all members to attend this public hearing.”

Stall and his wife Linda Stall attended and spoke at many anti-TTC meetings across Texas earlier this year. Two of those meetings held in nearby Woodbine were among the largest in the state with attendance reaching the thousands. The Woodbine meeting, held at the school cafeteria, opposed TTC-35, the arm of the toll road which would be built from Laredo to Gainesville. Early “preferred routes” show the road going through southeastern Cooke County while other, later plans show two routes converging in north Valley View.

David Stall said CorridorWatch has active members in 199 Texas counties, including Cooke.

He requested those against the TTC to show up outside the Capitol Extension at 8 a.m. the day of the hearing and receive a “No TTC” lapel sticker and further instruction on how to proceed.

“We need your support,” Stall said. “Sen. Carona shares many of our concerns, but other members of his committee, like former Transportation Commissioner Sen. Robert Nichols, will need some strong convincing.”

Not everyone will be requested to speak at the hearing — David Stall said gathering a large crowd is equally important.

Stall will also help those interested to find their respective state senators and representatives.

He requests that those interested in opposing the TTC send fax messages to Carona’s office at 1(512)463-0097 expressing concerns. Letters may be mailed to: The Honorable John Carona, P.O. Box 12068, Capitol Station, Austin, TX 78711-2068.

Stall is requesting anti-TTC activists unable to attend the hearing call Carona’s office at 1(512)463-0116 on Feb. 26, 27 or 28 and briefly express their opinions.

Corridor Watch may be contacted at 1(512)585-3110 or by e-mail at heidi@corridorwatch.org.

On the Net:

A searchable directory of Texas senators and representatives may be viewed at www.fyi.legis.state.tx.us/mnuAddress.aspx

Reporter Andy Hogue may be contacted at andyhoguegdr@ntin.net

© 2007 Community Newspaper Holdings, Inc: www.gainesvilleregister.com

To search TTC News Archives click HERE

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“I’m not opposed to toll roads. They’ve got their place—in Oklahoma.”

Trans-Texas Corridor comes under fire

Bastrop-based activist terms political process in Austin 'corrupt'


2/12/07

By PHILLIP WILLIAMS
The Gilmer Mirror
Copyright 2007

The proposed Trans-Texas Corridor—a superhighway that would stretch from Mexico to Canada—came under fire here Tuesday night from a representative of “Independent Texans” and a longtime local Republican Party activist.

Linda Curtis of Bastrop, a coordinator for the Austin-based political reform group, and John Melvin Dodd, the unsuccessful GOP candidate for Upshur County judge last November, blasted the proposed project at a meeting attended by about 35-40 persons. The gathering was held at the First Assembly of God.

“Independent Texans,” which is not a political party, says in its literature that it is comprised of “swing voters” who want “statewide initiative and referendum”; “redistricting reform through a non-partisan independent citizen’s commission”; and “fair ballot access for independent candidates and parties.”

Ms. Curtis said the state legislature approved the project without reading the 300-page bill that authorized it, and urged the audience to contact state and federal legislators to try and stop the corridor. She said the legislature thought the bill was for allowing the Texas Department of Transportation (TxDOT) to do what it normally does, and that the corridor was approved by Texas voters passing a proposition which didn’t mention the project.

She distributed literature complaining that TTC is “an unbelievable land grabbing, monopoly building, autocratic scheme developed without public input and devoid of collaboration with regional or metropolitan transportation organizations.”

The literature said both Republicans and Democrats oppose the TCC, initiated by Texas Gov. Rick Perry, a Republican.

Dodd, who said Friday he plans to join the group, told the gathering that the Trans-Texas Corridor would eventually be 4,000 miles long, starting at Mexican seaports, bringing in Chinese goods, and running to Canada.

The project will be more than 300 yards wide with 10 lanes of traffic, rail lines, a pipeline, utilities and concessionaires, he said. Dodd said a Spanish corporation (Cintra) will have a lease to the project, operate its toll booths, maintain the road, and make money.

Dodd said the project would require more than a half million acres of land, obtained through eminent domain (condemnation), and that he suspects it would enable the entrance of Mexican drugs, illegal immigrants, and “maybe a few terrorists” to the United States.

The literature distributed by Ms. Curtis listed numerous complaints about the planned corridor, including that it would require an “excessive taking” of privately-owned land; and that it would take “economic assets away from Texas communities by rerouting the flow of commercial trucks and limiting traveler access to local services, lodging and attractions.”

The material also said state-owned land for the corridor would “be removed from county and school district tax rolls,” and that taxpayers in those areas “will shoulder the burden of making up the losses” of tax revenue from that.

Among other things, the literature also criticized the “high cost of” toll roads to the traveling public under the project. Dodd said toll roads are being built without the approval of people in the area where they are being located, and that many persons are “up in arms” over it.

He said he agreed with a man who said, “I’m not opposed to toll roads. They’ve got their place—in Oklahoma.”

Dodd also charged that an Australian firm affiliated with Cintra is buying 40 weekly newspapers along the corridor route to silence weekly papers’ opposition to the project.
He and Ms. Curtis noted the state is holding a March 1 hearing in Austin on the project, which Ms. Curtis said is already partly underway in the Austin area.

Although the project is planned over a 50-year period, she said, “We need to worry about this. It is starting soon.”

She said 14,000 persons attended hearings this summer on the proposed project, and officials “want to rush this thing as fast as possible because there’s been so much concern about this.”
Ms. Curtis said the public would have no input on toll rates, which would be set by persons appointed by county commissioners. (Three members of the Upshur County Commissioners Court—Commissioners James Crittenden, Buddy Ferguson and Glenn Campbell—attended Tuesday night’s meeting.)

She also described the corridor project as “already sort of this corrupt institution.” She called it an “unbelievable outrage” that Perry signed a contract whose details are secret to pay Cintra for a $200 billion project.

“A full contract has not been signed. Therefore, this is not a done deal,” she asserted.
She also said the project “is about money” and a push for a “North American Union” interested in trade deals.

“My problem is we don’t get to vote on it,” Ms. Curtis said.

“$200 billion out of the Texas economy. Can you imagine what that’s going to do to everybody’s taxes?” she asked. She also quoted one state legislator as saying all Texas highways will be toll roads.

Ms. Curtis said Perry, who was reelected in November, received millions of dollars in campaign contributions from companies involved in toll roads, and “a lot of contractor money and road building money came into his accounts.”

© 2007 The Gilmer Mirror: www.gilmermirror.com

To search TTC News Archives click HERE

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"Does the Governor have no respect for the Legislature, their responsibilities, or the people of Texas?"

The King of Texas

February 12, 2007

By Gina Parker-Special to The News
The Mexia Daily News
Copyright 2007

Have you heard that last November Texans elected a new King? That’s right; with less than 40% of the vote, Governor Rick Perry, or should I say “his majesty,” has taken the throne by storm.

In The Declaration of Independence, Thomas Jefferson denounced in the strongest possible terms the refusal of the king to give respectful consideration to the petitions of the people: “… our repeated petitions have been answered only by repeated injury. A prince, whose character is thus marked by every act which may define a tyrant, is unfit to be the ruler of a free people.” Evidently, the Governor is confused about his function as Governor and about a few other things.

Take for example Perry’s latest abuse of power – his executive order mandating that 6th grade girls be required to receive the controversial HPV vaccination series of three shots. The vaccine has not been fully tested and its future effects are unknown.

Yes, the vaccine is the first ever to prevent cervical cancer or any form of cancer, and yes, a growing number of women are contracting HPV, which can cause cervical cancer. HPV, however, is a sexually-transmitted disease, and unlike the Governor’s analogy of vaccinating for the polio virus, not a sexually-transmitted disease, the polio vaccine totally eradicates the disease. The HPV vaccine is a preventative measure only that may reduce the number of cervical cancer cases. According to WebMD (www.webmd.com), the vaccine “lasts at least four years” with “long-term results . . . not yet certain.” The vaccine, a preventative for only four strains of over 30 strains of HPD, does not protect against all cervical cancer; women will still need yearly PAP smears to check for cancer.

After the Governor’s wielding such power during the 80th Legislative Session, I must ask, what is the point of having a Texas House and Senate? Remember, legislation addressing this issue has already been filed. Why did Perry choose not to let it be debated? One can only speculate, but it is certainly at least questionable since the drug’s manufacturer Merck has invested millions of dollars into lobbying efforts, which includes hiring Perry’s former Chief of Staff, Mike Toomey, as Merck’s head lobbyist.

Talk about a slap in the face to our representative bodies in the Legislature! Does the Governor have no respect for them, their responsibilities, or the people of Texas?

Thankfully, however, true Republicans have come out ready to fight. From Senators Hegar (R-Katy) and Nelson (R-Denton), to Representatives Keffer (R-Eastland) and Flynn (R-Canton), there is an organized effort to find a solution, and they are not only challenging Governor Perry to rescind the order, but also they are requesting the Attorney General investigate whether Perry has in fact abused his power.

I strongly encourage everyone to call Governor Perry’s office today and let him know you are against usurping the power of the legislature, wiping out parental rights, and mandating a vaccine with unknown future consequences! Governor Rick Perry online:

http://www.governor.state.tx.us/contact

Gina Parker Ford, CEO of Dental Creations, Ltd., a dental manufacturing company, and a successful attorney, is the National Eagle Forum Chairman for Judicial Reform. Mrs. Ford also served as a Bush and Perry appointee to the Texas Department of Licensing and Regulation. She serves on the American Family Radio Advisory Board (Texas), and she was both the former Republican Party of Texas Treasurer and Associate General Counsel. For more information, please visit www.ginaparker.net.

© 2007 The Mexia Daily News: www.mexiadailynews.com

To search TTC News Archives click HERE


To view the Trans-Texas Corridor Blog click HERE


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Message to Austin commuters: Caveat Driver!

Toll roads: Paying a lot to drive a little

$1.50-per-mile spot near Lakeline Mall illustrates fee discrepancies.

February 12, 2007

By Ben Wear
Austin American-Statesman
Copyright 2007

So, what does it cost you to drive on Central Texas' emerging toll road system?

Well, about 12 cents a mile. Unless it's 18 cents, or 40 cents, or 64 cents. Or, in one notable spot near Lakeline Mall, a cool $1.50 a mile.

State and local toll officials chose to install a system that is based on paying every so often, rather than a more old-fashioned "closed road" system in which drivers pass toll plazas on the way in and out and pay a set per-mile amount for their exact mileage. Inevitably, the "open road" approach introduces sizable inconsistencies, with longer trips on the tollway typically more economical than a short jaunt.

Other decisions by toll authorities, particularly choosing to have almost all ramps cost 50 cents for cash customers, have only exacerbated the situation. For some drivers in an area unfamiliar with toll roads in any form, the system has been a source of puzzlement and consternation. Why are there some exits and entrances that are free, drivers wonder, while others nearby have booths and electronic gantries? How can it possibly be fair, they ask, to pay 45 cents to gain just 500 yards?

That will be the situation at the southern end of the 183-A tollway, just north of RM 620, after the road opens in early March and begins charging drivers in late spring.

Northbound motorists will be able to get off at Lakeline Mall Drive, ominously posted as the "last free exit." If they do, they'll have to get through a stoplight on the frontage road before proceeding north.

Or they can go to the next exit, Lakeline Boulevard. In that brief interval, however, they'll pass an electronic toll gantry and be hit with that 45-cent toll. To make it even more confusing, drivers without electronic toll tags are not even supposed to be on the road at that point and will get a violation notice in the mail if they are.

Total distance traveled between the two exits: about three-tenths of a mile. That equates to $1.50 a mile.

"It's just not right," said Cedar Park resident Tom Nehmzow, who would dearly love to exit for free at that second ramp because he takes Lakeline Boulevard home. The Lakeline Mall exit, he said, will be inundated with people looking to avoid paying.

"What they're going to create there is a tremendous traffic jam at Lakeline Mall Drive," he said. "You've got a stoplight at the very bottom of the ramp, so it's going to back up onto the tollway. It's got to."

The irony is that Nehmzow, a manufacturer's representative who drives a lot around the area, has a toll tag and supports toll roads in general.

"Overall, I would say the toll road system is pretty cool. I really enjoy it," he said. "I just think this particular situation is a rip-off."

Officials with the Central Texas Regional Mobility Authority, which is building and will operate 183-A, have been bracing for this sort of reaction.

They have an even broader problem, however.

The startup agency originally was going to build 11.6 miles of tollway, all the way from RM 620 to U.S. 183 north of Leander. But a traffic and revenue study done about three years ago indicated that, in the road's first decade, traffic north of RM 1431 would not justify the additional $100 million or so necessary to build express lanes all the way.

So the agency decided instead to build about 4.5 miles of tollway on the south end and then free two-lane frontage roads for the seven northernmost miles. But to pay back money borrowed to build all this, the agency will charge $1.80 for that 4.5-mile tollway trip. That's 40 cents a mile.

Of course, if you happen to live in Leander or points north, or have other business up that way, you'll be able to drive the whole 11.6 miles for that $1.80, stopping at a few stoplights in the free part. Cost: 15.5 cents a mile.

"Admittedly, it does get confusing," said Mike Heiligenstein, executive director of the mobility authority since shortly after it was created in 2002. He compared the situation to a water system, in which early users of the system might have to pay for more of the startup costs of water mains but people in more outlying areas developed later get lower costs.

"We tried to hit the middle ground and give everyone a little something," he said. "Not everything's always fair."

As for that Lakeline Boulevard anomaly, Heiligenstein points out that originally the Lakeline Mall Drive exit was going to carry a 50-cent charge (45 cents for people with toll tags). But that would have put the last free exit on northbound U.S. 183 well south of RM 620.

"We added that as a sort of convenience, as a courtesy," he said.

And Heiligenstein pointed out, as did others, that if people stay on 183-A for those extra 500 yards and pay that 45 cents, they're actually purchasing time rather than distance: the time saved by avoiding a stoplight.

That same logic applies on the Loop 1 tollway just north of Parmer Lane, one of three new toll roads built in Central Texas by the Texas Department of Transportation, where going through a toll point south of Wells Branch Parkway for 45 cents gains just seven-tenths of a mile. That equates to 64 cents a mile. But those drivers won't have to stop at the Scofield Ridge Parkway traffic light on the frontage road.

The state and mobility authority could reduce these disparities, of course, by lowering the toll rate at particular ramps. But to satisfy the bond holders looking to get paid back, they then would have to raise the toll rates somewhere else.

And then there's the matter of quarters, dimes and nickels.

When the state was designing the Loop 1, Texas 45 North and Texas 130 toll roads more than five years ago, electronic toll technology was a generation behind where it is now. The bond community, recognizing that a sizable portion of the customer base would never get an electronic toll tag, demanded that the three roads have facilities at every tolling point to collect cash.

Toll authorities increasingly have been setting rates in multiples of 25 cents, because automatic coin collection machines operate better with a single coin size and because it simplifies the coin scramble for drivers. That shortens time at booths and thus reduces toll plaza traffic congestion.

So, to diminish the per-mile disparities, couldn't the toll on some ramps have been just 25 cents? The state Transportation Department decided against that, said Bob Daigh, the Austin district engineer. Daigh was in the agency's turnpike division when the Austin roads were in the final planning stages.

"It's driver expectation," Daigh said. "They need to know, 'This is a ramp plaza, and it's 50 cents.' If you make that one 25 cents, you've introduced a question in the driver's mind as he goes to the next one. He has his quarter out, and it's really 50 cents, so you stack up traffic while he's searching for a second quarter."

Joseph Giglio, a professor of corporate strategy at Boston's Northeastern University and an expert on toll systems, said drivers will sort all this out soon enough.

"We're not talking about introducing the metric system," Giglio said. And if people don't want to pay for a few hundred yards and an avoided stoplight, they won't.

"That's a discretionary choice. There's a willing buyer and seller. Nobody is insisting you pay that 45 cents."

Inconsistent toll rates

The approach taken by the Austin area's two tollway operators means that the cost per mile varies widely, depending on the length and specifics of any given turnpike trip.

Trip Length Toll cost* Cost per mile

183-A

Lakeline Mall Drive to Lakeline Blvd. 0.3 $0.45 $1.50

RM 620 to RM 1431 4.5 $1.80 $0.40

RM 620 to South San Gabriel River 11.6 $1.80 $0.16

Loop 1

Wells Branch Pkwy. to Parmer Lane 0.7 $0.45 $0.64

Loop 1/45 North

Parmer to I-35 in Round Rock 4.5 $0.68 $0.15

Loop 1/45 North/130

Parmer to U.S. 79 15.5 $1.80 $0.12

130/45 North

I-35 to U.S. 79 9.8 $1.13 $0.12

130

I-35 in Georgetown to U.S. 290 25.6 $2.70 $0.11

I-35 in Georgetown to U.S. 183** 49 $5.40 $0.11

* Cost for passenger vehicle with 10 percent toll tag discount. Vehicles with more than two axles are charged an additional toll amount for each additional axle.

** Full length of Texas 130 when final two segments are completed later this year.

Source: Published toll rates, staff research

bwear@statesman.com; 445-3698

© 2007 Austin American-Statesman: www.statesman.com

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Sunday, February 11, 2007

Expressway Authority Chairman wants more oversight of the agency's lobbyists and more competition for the work.

SENTINEL SPECIAL REPORT

Lobbyists zip through X-way cash

Records show little oversight and no bidding on lucrative contracts.


February 11, 2007

Dan Tracy and Jay Hamburg
Orlando Sentinel
Copyright 2007

Consensus Communications has been paid $288,000 as a federal lobbyist for the area's toll-road agency during the past four years. Yet the Orlando company never has signed a contract or had to compete for the work.

Another lobbying firm employed by the Orlando-Orange County Expressway Authority -- Southern Strategy Group of Tallahassee -- is paid $174,000 a year to represent the authority to Florida politicians and bureaucrats. The firm's 2006 post-legislative report to the agency consisted of a 352-page document downloaded from a state Web site. The dearth of documentation and detailed reports makes it difficult to assess the effectiveness of the authority's team of lobbyists, collectively paid $318,000 a year.

A public-records request by the Orlando Sentinel for correspondence between the authority and its lobbyists since 2003 netted a couple of dozen e-mails, 50 one- to two-paragraph memos, two generic legislative reports, a bound presentation to the board in January 2003, some letters of support for a planned interchange and copies of federal-grant applications.

But expressway officials say the lobbyists are worth the money they've been paid and have helped land millions in grants for the authority.

Expressway Executive Director Mike Snyder said the lobbyists -- who report primarily to him -- have not generated much documentation of their work, but he said his agency is pleased with their efforts.

"I haven't felt the need for it [paperwork]," Snyder said. "I know they are working. I know they are doing things."

The lobbyists, Snyder said, act as the "eyes and ears" of the authority in Tallahassee and Washington They talk often with him, he said, keeping him abreast of bills that might affect the agency.

And Consensus Communications, he said, helped secure a $10.4 million federal grant to help pay for a proposed interchange at Boggy Creek Road with the authority's State Road 417 toll road.

But Orange County Mayor Rich Crotty, the new authority chairman, said he wants more oversight of the agency's lobbyists and more competition for the work. He promised changes, saying that all lobbying contracts will be put up for bid by summer. They had been routinely granted one-year extensions.

"Certainly there needs to be more visible communication between the lobbyists and the board," Crotty said.

Critic questions need

Ron Book, one of the best-known and most outspoken lobbyists in Tallahassee, said government clients often want detailed information about his activities on their behalf.

One of Book's many clients, Miami-Dade County, demands weekly reports during the session and monthly updates after the session.

"They want to know what we did for them," Book said.

He called Southern Strategy a solid, respected lobbying firm as well as a potential competitor for some clients. But he said he was surprised by the size of its fee from the expressway authority, given that the agency wasn't involved in any major legislative initiatives.

"That's a high-end battle fee," Book said. "That's for a war."

Southern Strategy lobbyist David Rancourt referred questions to Snyder, who credited the group with three major accomplishments: helping stave off attempts to make the authority part of an overarching statewide toll system; winning a state law in 2002 that allowed the agency to issues its own bonds, rather than going through the state; and pushing the Wekiva Parkway and Protection Act in 2004 that aims to balance the need to complete a beltway system around Orlando while shielding environmentally sensitive lands.

"They know the ropes," Snyder said about Southern Strategy. "They know the people."

But Lou Treadway, a former Orange County commissioner and a member of the bipartisan CountyWatch, which advocates for open government, questions why the Orlando agency even has lobbyists. The authority, he said, did not have them when he was a member in 1986-87. He also wondered why the expressway paid its lobbyists more than either Orlando or Orange County paid theirs.

"Orlando and Orange County have a lot more at stake in legislation than a little dinky organization called the expressway authority," he said.

Although the expressway authorities in Tampa and Miami also have lobbyists, the very legality of such agencies hiring lobbying firms is now in dispute.

The state auditor general reviewed the accounts of the Tampa-Hillsborough County Expressway Authority and announced late last year that the agency did not have the statutory power to hire contract lobbyists. It recommended the toll-road agency assign a staff member take over the duties.

The Tampa authority disagreed and continues to pay for outside lobbyists. The auditor general has no enforcement powers.

Orlando expressway attorney Scott Glass said the auditor general's opinion is flawed and does not pertain to the Orlando agency.

2 prime lobbyists

The authority has two prime lobbyists: Southern Strategy, led by John Thrasher, the former Republican speaker of the Florida House; and Dennis Foreman, a former federal Treasury Department attorney based in Washington.

Southern, which has worked for the authority since July 2002, is paid $12,500 a month. It also has a subconsultant, John Johnston of Tallahassee, who is paid an additional $2,000 a month.

Foreman, the federal lobbyist, was hired in February 2003 and gets $6,000 a month. He hired Consensus for $6,000 a month, making the contract worth a total of $12,000 per month.

Unlike Johnston, who is listed on Southern's contract with the authority, Consensus or the company's main contact -- Tre' Evers -- does not appear on any contract with the agency.

That situation prompted an e-mail exchange in August 2003 between two expressway authority employees -- one in contracts, the other in accounting -- who were puzzled about the agency's relationship with Consensus.

"I am not aware of any direct agreement with Consensus Communications, if you learn of anything different, please let me know," read one of the e-mails.

Evers said authority officials told him in 2003 that he did not need a contract because he was a subcontractor. He said he works hard for the agency and spent more than two years negotiating with politicians to get the Boggy Creek money.

"That's a pretty good return on investment," Evers said, comparing his fee with the $10.4 million grant.

The agency also was in line to get another $1 million federal grant late last year, but the appropriation died when the Republicans failed to pass a budget and the Democrats took over, Evers said.

Most spend less

The scarcity of records to support invoices such as those for the lobbyists has been an ongoing issue at the expressway authority. Two years ago, the Orange County Comptroller's Office reviewed agency books and recommended tighter oversight of contractors. Most recently, the authority was criticized for its lax management of a $1.7 million marketing consultant and is locked in a battle with the former contract holder over an alleged lack of billing records.

The authority is in the midst of another comptroller audit, this time because it was revealed in August that the agency had paid $107,500 to anti-toll activist Doug Guetzloe -- payments approved by former Chairman Allan Keen without the knowledge of other board members. Local governments, such as Orlando and Orange County, as well as other state transportation agencies, including the Greater Orlando Aviation Authority, MetroPlan and the Miami-Dade Expressway Authority, appear to seek considerably more documentation from lobbyists as a way to monitor the work and assess performance, a survey by the Sentinel found.

Orlando and Orange County, for instance, typically receive personalized reports before, during and after state legislative sessions. They also have at least one in-house staff member who travels and visits politicians with the contract lobbyist in Tallahassee and Washington.

"We're close-knit," said Kathy Russell, who manages the lobbying team for Orlando. She estimates the city lobbyists usually are involved with 100 bills each session in Tallahassee.

The Sentinel's survey also found that almost all of the other governments and agencies spend less on lobbying than the expressway authority. The only exception was the Greater Orlando Aviation Authority, which has an operating budget more than five times larger than the expressway authority's and which deals much more frequently with federal officials.

GOAA, which employs four lobbyists, including Consensus Communications, often goes after grant money from the federal government for everything from building runways to repairing hurricane damage.

Since 2002, the airport has won more than $148.7 million from the Federal Aviation Administration, including more than $13 million in 2004 for hurricane repairs.

Dan Tracy can be reached at 407-420-5444 or dtracy@orlandosentinel.com. Jay Hamburg can be reached at jhamburg@orlandosentinel.com or 407-420-5673.



© 2007 The Orlando Sentinel: www.orlandosentinel.com

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"Would you buy a used lottery from this man? "

I'm just not buying what Perry's selling

February 11, 2007

Steve Blow
The Dallas Morning News
Copyright 2007

In my estimation, Andrew Sullivan is one of the sharpest, most articulate commentators on the scene today.

And in a recent roundtable on one of the TV news channels, Mr. Sullivan summed up his feelings about Hillary Clinton in an especially erudite way.

"Cootie vibes," he said.

For him, Hillary just gives off "cootie vibes."

OK, maybe it wasn't his greatest rhetorical moment. But the comment drew attention because it does vividly express that visceral aversion we feel toward some people.

Heaven help me, Gov. Rick Perry is giving me big-time cootie vibes these days.

Or maybe I should use another highly technical term from the complex world of interpersonal relationships – "heebie-jeebies."

I'm sorry, but the man just gives me the heebie-jeebies, and never more so than in the last week or two.

You know that feeling when you first set foot on a new car lot? When a salesman instantly appears and begins striding toward you with dollar signs shining in his eyes?

That's the same sort of heebie-jeebie, skin-crawling, cooties vibe the governor has been giving me.

It's like I find myself bracing for the coming smarmy sales pitch about the importance of protective undercoating, stain-guard upholstery treatment, mandated HPV vaccines and trading in that old state lottery.

And did you catch that Gov. Car Guy says we need to act fast? He can't guarantee that the $14 billion price he quoted on our lottery trade-in will still be good tomorrow. Market changes all the time. Just sign here.

Oh, by the way, because he likes us, he's throwing in floor mats and a cure for cancer at no extra charge.

Who is this guy anyway?

Let's face it. Mr. Perry glided through the first six years of his governorship mostly on the strength of his hair. And he does have really, really good hair.

But suddenly he has turned into Mr. Maximum Leader – building a super-highway right up the gut of Texas, fast-tracking 11 coal-fired electric plants, and now jumping ahead of the rest of the nation in proposing to sell our lottery to a private company and ordering schoolgirls to be vaccinated against a sexually transmitted virus.

We can debate the merits of those things. But my first reaction is to bemoan my immediate mistrust.

I'm distressed that I can't accept any of these ideas at face value.

Yeah, yeah, the governor wants to cure cancer, provide health insurance to the poor and protect the health of Texas women. ... But what's he really up to?

It's the cootie thing. Who stands to get rich here? What big political donor is getting repaid? Or is it all simply about politics – positioning himself for a shot at vice president?

I don't like being this cynical. I know some people revel in thinking the worst of all politicians. I'm not like that. But for some reason, Mr. Perry really tests my inclination to first assume the best about people.

I wrestle with myself about this feeling toward our governor. Is it just follicular envy? (Did I mention that he has really, really nice hair?)

Is it the "himbo" factor – the male version of that age-old skepticism about beauty and brains gracing the same head?

I hope I'm not that shallow.

No, I think this is mostly about leopards remaining true to their spots. Until this recent spasm of executive orders, Rick Perry simply hasn't exhibited much leadership. His greatest skill has seemed to be keeping political supporters very happy.

So it's natural to wonder if these sudden bold moves aren't more of the same – back-scratching on a grander scale.

I hope I'm wrong. Maybe Rick Perry has decided to turn statesman en route to being Texas' longest-serving governor. Maybe the cootie vibe will subside.

But for now, I'm left wondering: Would you buy a used lottery from this man?

© 2007 The Dallas Morning News: www.dallasnews.com

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Saturday, February 10, 2007

"One of the chief complaints from critics is that lawmakers and taxpayers weren't really consulted on the project."

Trans Texas Corridor Special Series Part 2

Feb 10, 2007

KCEN-TV Channel 6 (Waco, Temple, Killeen)

With a major interstate running right through our area traffic is a common topic for Central Texans.

How do we solve the problem of more traffic on i-35? Is the Trans Texas Corridor a realistic solution and do we even need it?

In part two of our Trans Texas Corridor series we look at the project from a needs angle.

There are basically two sides to the Trans Texas Corridor project, those for it and those against.

One thing both sides gree on is that something needs to be done.

There are twenty one million Texas residents. 45 percent of those live within 50 miles of I-35.

That means on any given day you'll hit a traffic jam on I-35 in the greater Waco area.

TexDot Executive Director Michael Behrens knows the stats all too well.

Behrens said, "When you look at traffic in the Waco area its probably at 80 thousand vehicles a day."

Those rates are expected to double in the next 25 years. At most I-35 only extends to three lanes in some areas of Central Texas.

An accident can cause delays for hours. TexDot says the proposed TTC-35 project would help take away traffic on I-35 by providing another parrallel interstate.It would have six lanes each way.

But, those who oppose TTC-35 supporters are not impressed with the proposal and point to how long it would take to complete.

Linda Stall from Corridor Watch said, "This is a huge project. 184 billion dollars, it's a 50 year agreement, 50 years. That is a long time."

The 10,000 Corridor Watch members like Stall admit we need more pavement, but they don't like this project that they call uncreative. They don't like the way it was presented either.

One of the chief complaints from critics is that lawmakers and taxpayers weren't really consulted on the project. They feel like a vote should be taken.

But, like it or not, TexDot says the ball is already rolling. In fact the director of the agency says some existing toll roads in Austin like 130 may become part of TTC-35.

Behren said construction will continue on the existing I-35 for improvement but, they can only expand so far.

"We've run outtta room, we can't expand anymore because we have had a lot of things build up adjacent, said Behren."

So what will be the real impact of TTC-35 as far as economic boost and how do land owners feel? We'll talk about it next Saturday in part 3.


© 2007 Copyright KCEN-TV Channel 6, Inc.: www.kcentv.com

To search TTC News Archives click HERE

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"Highway users and the vast majority of citizens recognize that privatizing public highways is a bad idea."

Toll Road plan gets mixed D.C. reviews

Daniels' project draws attack from highway users, praise from Pennsylvania governor


February 10, 2007

By Maureen Groppe
The Indianapolis Star Washington Bureau
Copyright 2007

WASHINGTON -- Indiana Gov. Mitch Daniels either inspires other governors with innovative policies, or he rides roughshod over his constituents with a transportation plan bad for the public.

Both opinions of Daniels' performance were put forward Friday in Washington.

At a news conference, a coalition of groups representing truckers and other highway users raised a red flag about the trend of leasing or selling public roads and expressed concern the federal government is overzealously pushing that approach.

The group also released a poll it said shows most Hoosiers disapprove of the state's leasing of the Indiana Toll Road.

"Highway users and the vast majority of citizens recognize that privatizing public highways is a bad idea," said Todd Spencer, executive vice president of the Owner-Operators Independent Drivers Association. "Unfortunately, this administration is a lot like what Governor Mitch Daniels was . . . in kind of leading the parade for this."

Spencer said Daniels' attitude toward his constituents' objections was that they "weren't smart enough to recognize a good deal when they saw it."

A foreign consortium paid $3.8 billion to the state to operate the Indiana Toll Road for 75 years.

Pennsylvania Gov. Ed Rendell had a different view of that deal when he and Daniels spoke to reporters after participating in a transportation summit organized by the White House for state transportation leaders.

"We're all beneficiaries of Governor Daniels' courage and vision," Rendell said. Pennsylvania has sought to interest investors in leasing the Pennsylvania Turnpike.

Pennsylvania already has the eighth-highest gas tax in the nation and doesn't want to raise the tax by the amount needed to meet the state's infrastructure needs, he said.

The coalition of highway users -- which also includes AAA, the American Trucking Associations, the American Highway Users Alliance, the National Association of Truck Stop Operators and the Recreation Vehicle Industry Association -- said they wouldn't rule out all public-private projects. But the groups' representatives said they're worried that the leasing or selling of roads is being seen in Washington and the states as the main solution to funding the nation's growing transportation needs.

"Leasing our highways is essentially a dismantling of the nation's interstate highway network," said Bill Graves, president and chief executive officer of the American Trucking Associations.
A House transportation panel plans to hold a hearing next week on the topic.

"For the Bush administration, the rush to promote public-private partnerships is based in ideology, not a critical evaluation of how public-private partnerships might help meet the goal of an improved, integrated national transportation system and further the public interest," said Rep. Peter DeFazio, D-Ore., who heads the House Subcommittee on Highways and Transit.

DeFazio and Daniels clashed last year when Daniels testified before Congress about Major Moves. Daniels said Friday that DeFazio is a "left-wing extremist on this."

Contact Star Washington Bureau reporter Maureen Groppe at (202) 906-8118 or at mgroppe@gns.gannett.com.

© 2007 The Indianapolis Star: www.indystar.com

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Friday, February 09, 2007

"The rush to promote public-private partnerships is based in ideology, not a critical evaluation.. "

Highway Users Form Coalition to Oppose Toll-Road Privatization

2/9/2007

By Transport Topics
American Trucking Associations, Inc.
Copyright 2007

Several groups representing truckers and motorists said Friday they have banded together to combat a growing trend toward the privatization or leasing of existing toll facilities to private investors.

The groups include American Trucking Associations, the American Automobile Association, the American Highway Users Alliance, the National Association of Truck Stop Operators, the Recreation Vehicle Industry Association and the Owner-Operator Independent Drivers Association.

Americans for a Strong National Highway Network was formed “to advance the rights of American motorists to travel on safe, reliable public roads; maintain a robust national highway network for the efficient transport of goods and the military; and to hold government accountable for ensuring financing is transparent, motivated by public good, and dedicated to transportation purposes,” the alliance said in a statement.

Following last year’s deal to privatize the Indiana Toll Road for $3.8 billion, several Northeast states, including Pennsylvania, have also been considering privatizing their toll roads. (Click here for previous coverage.)

“The sale or lease of existing toll facilities generates revenue at great expense to taxpayers and the trucking industry and carries potential negative impacts on highway safety, security and the motoring public,” said ATA President Bill Graves.

“We must consider the long-term impact privatization will have on our nation’s transportation system and explore all available financing options to ensure that the government is motivated by public good and transportation purposes,” he said.

Rep. Peter DeFazio (D-Ore.), chairman of the House Subcommittee on Highways and Transit, said, “For the Bush administration, the rush to promote public-private partnerships is based in ideology, not a critical evaluation of how public-private partnerships might help meet the goal of an improved, integrated national transportation system and further the public interest.”

For more information click: www.truckline.com

© 2007 American Trucking Associations, Inc.: www.ttnews.com

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Thursday, February 08, 2007

"Fed-up commuters could take another route, but there aren’t any."

Editorial:

The roads not taken don’t exist

Feb 8, 2007

The Washington DC Examiner
Copyright 2007

WASHINGTON - There are two toll roads in Northern Virginia. The Dulles Toll Road is publicly owned and the Dulles Greenway is privately owned, but the differences end there. Tolls on both will soon increase significantly, and there’s not much trapped commuters can do about it.

The 57,000 drivers who use the 14.5-mile Greenway each day already pay $2.70 one way, no matter how far they drive. If Toll Road Investors Partnership II gets approval from the State Corporation Commission, tolls will go up to $4.80 by 2012, making the Greenway one of the most expensive toll roads in the nation. TRIP II was a consortium partially owned by Middleburg matron Magalen Ohrstrom Bryant. Her late brother, George Ohrstrom Jr., founded the Piedmont Environmental Council, which doesn’t like roads messing up its “viewshed.”

Two weeks after the Loudoun Board of Supervisors voted to oppose the Greenway toll hike, former Sterling Supervisor Roger Zurn reminded state commissioners that when the Greenway was approved in 1992, TRIP II promised it would be an affordable alternative to already clogged Route 7 — and the $1.75 toll would rise only to cover maintenance costs. The deal guaranteed Greenway investors a “reasonable” rate of return, but it’s certainly not reasonable to expect commuters to make up for the road’s first 10 years of operating losses in just five years.

Congressman Frank Wolf, R-Va., called the proposed Greenway toll hike “nothing more than highway robbery.” Not exactly. The Greenway is a private road. In theory, anyway, drivers who don’t want to pay 34 cents a mile (compared to 6 cents on the New Jersey Turnpike), can go another way. The reality is more complicated. The public road system was already inadequate when the Greenway was approved — and that was before 100,000 more people moved into Loudoun County. But the commonwealth has failed to add additional road capacity even in one of the nation’s fastest growing exurbs.

For real highway robbery, look to the 16-mile Dulles Toll Road. Taxpayers were told back in 1984 that the tolls would be eliminated once the bonds sold to finance the public project were paid off. Instead, the toll road was turned into a giant ATM, used to fund everything but transportation.

VDOT recently agreed to turn over the Dulles Toll Road to the Metropolitan Washington Airports Authority this spring. MWAA wants to use the toll road’s $28 million annual revenue to pay for a Metrorail extension to Dulles International Airport, and has already announced plans to raise tolls to pay for it. How high they will go is anybody’s guess. MWAA could make the proposed Greenway toll hike look like a bargain, and if the public doesn’t like it, too bad. MWAA is an unelected body and only five of its 13 members are from Virginia. Not only is MWAA not accountable to the public, it doesn’t even think it has to respond to Freedom of Information requests, as Examiner reporter William Flook recently discovered.

Fed-up commuters could take another route, but there aren’t any.

© 2007 The Washington DC Examiner: www.examiner.com

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Wednesday, February 07, 2007

"Any wonder why TxDOT has lost all credibility with the people?"

Toll foes show up in force at hearing

2/07/2007

Patrick Driscoll
San Antonio Express-News
Copyright 2007

Toll critics weren't allowed to set up a table to greet crowds coming into a public hearing Tuesday for a proposed U.S. 281 tollway, but once inside they made their point.

When Joe Krier, president of the Greater San Antonio Chamber of Commerce, got up to explain how tolls could fund twice as many miles of express lanes in half the time, letting motorists pay if they want to avoid worsening traffic congestion, boos laced the applause that followed.

When toll critic Terri Hall, leader of the San Antonio Toll Party, addressed the hearing to say that gas tax money can pay for what's needed on U.S. 281 and warned how foreign companies would suck million of dollars in profits from motorists, many in the crowd stood to cheer.

And there were a lot of people to make noise.

The Texas Department of Transportation, which held the hearing in the main ballroom of the Alzafar Shrine Temple to get input on its draft environmental assessment for the project, counted 652 people, far more than in attendance at most other local public hearings.

Almost one in 10 who showed signed up to speak.

Dave Ramos said it's amazing that TxDOT's environmental study of the 7.5-mile project, ranging from 10 to 20 lanes from Loop 1604 to Borgfeld Road, indicates there would be no significant impacts to people or the environment.

"Any wonder why TxDOT has lost all credibility with the people?" he said.

Steve Grau, speaking for the Greater Chamber of Commerce, said toll lanes also will take traffic off free access roads that would replace existing highway lanes, helping relieve gridlock and make travel safer for everyone.

"Most of all, toll lanes do not require state or local tax increases," he said.

Louis Raiborn said toll lanes are for well-off drivers.

"The thing is, you can't be a poor person and expect to get on a toll road," he said. "We don't need toll roads here. We don't need them anywhere in Texas."

The environmental study, which now heads to federal officials for a yea or nay later this year, suggests building six to eight toll lan