Travis County Commssioners Court
April 13, 2004
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Item 32
We can call up the 10:00 item. That is item 32,to receive the 2003 annual report for the central Texas regional mobility authority. We have chairman and other board members with us today.
>> good morning.
>> good morning.
>> this he is cruel and -- this is consume and unusual punishment to bring kathryn to a meeting like this.
>> good morning, kathryn how are you.
>> I understand that. Is that woe need to bring it down.
>>
>> [one moment please for change in captioners]
>>
>> we're here today to report to you what we've done in our first year of formation as spelled out in the report that you have a copy of. Basically you created us, we're keenly aware that you created us, you and Williamson county, for the purpose of enhancing the quality of life to improve mobility in the region. We've adhered to that in our mission statement, and we have spent this past year basically building an agency, building a team and putting together a capability to perform on your intent as you formed this. And specifically we enjoyed wonderful support throughout the community from elected officials, from community leaders and organizations, and certainly from this body and the Williamson county Commissioners, both of whom contributed hard cash in the form of about $450,000 each as our seed money for which we would not have been able to have the progress that we had the first year without it. I believe we've used your funds wisely and as a result will be able to produce that enhanced quality of life in the future that we all seek. Specifically in building this agency as we spell out in the report created bylaws and and we've reput a team together, we have general counsel, general engineering consulting firm, financial advisors, bond council, an accountant, lead underwriter, civic and investment bankers and simultaneously we've moved forward with we've moved forward with the planning process for 183-a, our first project. And because that have work, 183-a will begin construction late this year or certainly no later than early next year. During that time we worked on the creation of our parent legislation, house bill 3588. We were involved in that process. And essentially we're writing the book on rma's if you will. We're sensitive to the fact that being the state's first regional mobility authority, we have no guidebook as to how to do what we've been asked to do. We've been created because we have a serious problem, a serious mobility problem, a serious funding crisis, a serious congestion problem, and we're expected to take on that problem and make a major contribution to its solution. There are no easy solutions, as we all know, and we've been given the tools, some very special tools, to attack that problem with. I think we've used what we've been given so far in the first year wisely. I believe that as a result we've now established an organization that can plan, develop, finance and operate transportation infrastructure improvements and that we'll have credibility with our -- and acceptance among our eventual wall street partners. So we've presented all of this to you in our written 2003 report, and we would welcome any questions that you have about our performance during our first year.
>> questions?
>> let me ask you a couple of questions on the financials. Out of your operating expenses, $650,000, tell me the professional fees of 158. Who exactly would that be to? Who has gotten the lion's share of $158,000?
>> the general engineering consulting firm certainly would take a large part of that. Our legal counsel during our formation, lock liddell and sapp, would have taken a substantial part of that. And early on prime strategies, who played an important part in our formation, would have received a significant portion of that as well. Those are the three that come to mind. I did not bring our accountant with us, but I believe we can --
>> I know you've mentioned lock liddell. That would be my next question, legal. Do you think that we will see a firm rate of $400,000 of legal? I mean, that really jumped out at me, $400,000 out of your 582. Did anybody anticipate that the legal bill on the setup of this thing would be that kind of dough?
>> I知 going to pass that to mr. Hilgenstein, if you would.
>> Commissioner, a big portion of that is associated with 183-a and the agreements that we're signing with txdot. Those funds would not come out of the county contributions, they would come out of the txdot 12.7-million-dollar equity grant. And a significant part of that 12.7 was anticipated by both txdot and the rma to be necessary for legal fees. And it also includes right-of-way acquisition, which would -- some of that would be legal, a significant part of that.
>> would we anticipate that that would -- that that number would go down considerably after this 2003 year?
>> there's kind of two parts to that answer. One thing that we didn't mention was that part of the legal costs involved what I call one-time costs as far as associated with setting up our agency. We had to adopt bylaws and environmental policies and a dbe policy and our legal team also played a key role as far as doing all of our rfq's for the stunt's hiring. All of those are essentially one-time costs. As far as the 183-a project, I anticipate that they're probably going to ramp up a little bit in connection with the cda. If you've ever seen a comprehensive development agreement, and that's what we're in the process of doing, it's a very complicated document. I mean, I was given a draft of one from another state that had been used before and literally it was three or four inches thick, and that didn't include the exhibits. So I think there's going to be a fair legal cost associated with the cda, but most, if not all of that, I think will be picked up by our 12.7 million toll equity grant from txdot.
>> well, I can certainly buy off on the fact that start-up is always more expensive. It's just startling whenever you see some of these numbers, and you wonder if that is -- if that is ongoing. And of course, the biggest concerns I have for you is that as I have always felt, the rma, as great a project as it is, is kind of front end loaded, and in getting to the point where people are buying toll tags and throwing quarters in bass baskets, the challenge is going to be how do you really keep this engine, you know, going, because there's really not monies out there for you, I mean, other than the 12.7 that's specific to 183-a, and not being able to use that for all of your administrative and bringing, mike, you on as ed, is also going to be -- because I don't think out out you weren't brought on until after this, so that line item, you know, will ratchet up as well. So i've always been a little cautious about, okay, well, -- which is the reason I generally ask you, so when do we get asked for another 250 or 2 give or whatever -- 275 or whatever it is.
>> I think those are all very good points, and there's absolutely no question that it is the front end load especially on professional fees, when you stop and think what it takes to build an agency, it's virtually all professional fees, whether it's legal or accounting, engineering, planning, financial advice and what have you. It's extremely expensive. We quickly adopted a philosophy of every dollar counts and everyday counts. Our board is made up of business people, and we have been and we'll continue to run this agency like a business. We don't have tax revenues, all we have is the seed money that you've given us and the toll equity fund that txdot has given us so far, which is allocated specifically to that one project. And so we've had to tow the line. Early on in our process we created a procedure to review our spen r. Expenses and so forth, and I think internally that we've been very, very responsible in handling of every dollar that we've handled, all being private sector folks and sensitive to trying to get as much out of the dollar as we can. I think the real payoff is going to come down the road. I think you've all seen the graph of how the benefits of creating an economic engine like a toll authority produces benefits back to the community. And as we get projects on the line, pay our operating expenses, pay the debt service, and as the cash flow increases, ultimately down the road the debt service falls off and is fully paid, but the revenue continues. And that's where our children and our grandchildren and the long range benefit of what we're doing will be realized. In quality of life, I think.
>> Commissioner, I know you want to ask a question, but let me finish. This is my last statement.
>> go ahead.
>> I don't know -- I mean, i've never asked our county attorney. I mean, for example, are there any things that we can do from a legal standpoint -- and I知 sure that Williamson county also say are there things that we can do to assist because you're right, whenever you see these documents that it is kind of by design. It's like okay, we need to help you with this because you really are not going to be able to take this thing on. And henry, you're an attorney, so you know, but I really want to -- before we are asked again to put money in to the project, because I fear -- before we get there that there may be another asking of that. And I surely want to find a way to help that we can help rather than just signing off on a check. I know the county attorney is up there saying great. There may be nothing. But I think you can come to us as Commissioners and ask us in some instances for more than just a check. If there's some areas that we may be able to help in. It's just an idea, a thought.
>> we have made some suggestions to legal counsel as far as appropriate staffing and the levels of attorneys and legal help that ought to be working on particular products, in other words, to push it down to a lower hourly rate where possible. With respect to receiving help from either county legal departments, I think that would be great, it's just that some of the stuff is pretty fast moving. And you probably want to have one person or a specific person that is assigned to kind of keep up because it is moving fairly fast and they are pretty complex issues. And so that's just my thought on that.
>> I appreciate the work you've done because I do know one thing. You guys took on -- I don't think anybody realized what kind of -- [overlapping speakers]
>> and I tell you, I realize because i've seen it in your eyes and I applaud you for taking the time to do it because without people that's wanting to belly-up to the bar and do what you've done, this has been a much greater demand of time than I think anybody would have realized. And it's so important for the rma to really be successful in this, but I really wanted you to know that I appreciate it.
>> I certainly think that if my wife is watching today, she'll appreciate that comment. [ laughter ]
>> Commissioner, you finished?
>> yes, thank you.
>> I have a few questions. Again, i'd like to also express my appreciation for what you have done. It just seemed like it wasn't that long ago that it was just an idea, we kicked it around. And as a result, I知 sure at this time the eyes of Texas are upon this particular rma to see what we do and how we can address a transportation crisis, which is still a big, big issue in this community, and I知 quite sure across the nation, crisis as far as transportation and moving folks and trying to get folks to a location in a much more expeditious manner. You have to go through a lot of hurdles and we haven't got there yet, but I really believe that we are on the right track. I noticed that there was a lot of comments -- conversation on the media waves about the particular proposed tolls, where they would be located throughout the community. And, of course, within a three-year period addressing a lot of these traffic congestion areas of using the toll concept of bringing about a better way of getting from point a to point b. Of course, this is all over Travis County. My question is at this time -- I知 supportive of your input as far as the public is concerned, I知 really sensitive to that. And being that it may, each particular portion of your toll grid as far as Travis County is concerned, how will that be dealt with when it comes to the public? Let's say, for example, there's a priority that we have, i'd like to do this first, second, third, all down the line as we're moving toward an end here. My question, though, is how would you orchestrate that to let the public know if they would like to have participation in this process? How would I as a Commissioner say this is where this is going to be made? And it may not even be in my precinct, but of course we all belong to all of Travis County. How do we do that?
>> Commissioner Davis. Our -- a big part of our work program over the next several months in the action plan that we rolled out last night, a significant part of what you told me one on one is going down to the neighborhoods, the churches, the schools, the groups that really matter and consist of citizens that will be feeling the impact of these proposals and these -- that construction for years to come. We have retain will specialists in the community that will assist us in meeting the needs of the neighborhood groups and the community groups, I should say. It's not just neighborhood associations. I think that comment was made last night at the campo meeting with representative dukes is that we need to reach past neighborhood groups to the churches, to schools, to the pta's, whoever will listen to our proposals and our plan of action. And I would propose that we would give you that plan -- provide you that plan up front. There is a very detailed plan of action for engaging the different community groups, and I will make sure that you're given that so that you can have your input on that also. As all of the Commissioners here should have. Because as you can tell, the next 10 projects or nine projects are Travis County. It's going to be a big impact.
>> and again, i'd like to applaud you. And I guess there will be additional follow-up information. I know that i'll need to have that as we go forward. One last question. I don't know what the latest and the greatest is as far as what happened in the campo meeting except that you made a presentation to campo. I don't know if any action was taken last night or not. I don't know since I wasn't there. But if campo, being the organization that has to approve a lot of things, you have to go through that planning organization, I do know that, and since that's the case, will there be additional federal dollars released if the campo organization accept everything you have put before them and then go from there? Would there be additional monies after the plan is accepted and you say well, this mpo has done what it was supposed to do and since it's done there may be additional mobility transportation dollars awarded because of that?
>> I think the answer would be that there would be no federal dollars approved at all without campo approval. I don't know if the word additional would be -- were in there, but we would just get none without the campo approval, which of course every project we have contemplates federal dollars. So we would be working subject to campo's approval and every project that we do.
>> and lastly, since we are, of course, comprised of two governmental entities, that being Williamson county, of course, on the one hand as far as dealing with the ctrma and Travis County on the other end, the particular projects that we have before us that are earmarked for Travis County to relieve us of our traffic congestion and traffic situation, has that also been acceptable and appreciated, either supported by the Williamson county Commissioners court at this time or has there been any opposition?
>> the members of the ctrma board that are from Williamson county fully endorsed this program and recommended it on to the campo board last night as well as the chair, who is also residing in Williamson, but has a regional outlook. So the answer is yes, we have accepted it, and fully endorsed it. And I think any concerns that there was about having two counties involved or on equal footing have been done by this vote taken yesterday, not only have they taken the vote, but they endorse it with every strength that they have. They want to see this plan succeed in Travis County for the region.
>> if I might add, I think it's a good -- excuse me.
>> you're asking me to respond to the --
>> yes.
>> yeah. I think all along the Williamson county Commissioners have known that the bulk of projects are going to be in Travis County because that's where the most congestion is. It's just been -- it's taken some planning time to figure out where we think we could be most effective. And it turns out that by far a majority of projects are going to be in Travis County, but we are approaching this as a region, and in fact the Travis County projects are going to benefit citizens of Williamson county as well and vice versa. And we've got a lot of commuters coming back and forth between the two counties, so we think as a region, the region will benefit. But yes, to answer your question, Williamson county is in support of the action plan as we propose.
>> last question. And that is that I have -- well, i've had sources to reveal to me that there need to be sufficient participation from hub vendors, minority participation in these projects. And I know we maybe operating as an eda, design build, where we can move along and do things faster. The concern, though, is that when these things come to pass as far as contracts being let, how will the minority business communities be afforded to participate at a level that supports the acceptance?
>> Commissioner, the comprehensive development agreement capabilities that we have do not relieve us of responsibilities under our dbe and hub policies, so they will have to be a part of the whole --
>> I wanted to make sure that was publicly said. That's why I posed the question, because it had been brought to my attention that there may be persons left out because of the process.
>> our policy is clear on that, Commissioner. I think our policies are clear on that. We have very clear policies that we spent a lot of time developing to make sure that that is not the case. And i'd also add that that's an area that I知 taking a special interest in, and if there's somebody that feels like they've been left out, i'd appreciate knowing.
>> okay.
>> I might also say that because we're going to be getting federal money on the project as well, there are federal dbe requirements as well. So it's not just our policy, but it's also the federal requirements that have to be complied with.
>> well,, if you for those comments and out out thank you for those comments and thank you for doing a great job. I appreciate what you're doing.
>> one question, couple of points. The question is, mr. Chairman, it seems like a couple of meetings ago -- I missed the last meeting, but you all were trying to seek approval from the state about whether some of the general overhead was going to be able to be charged back to the state, which was not the original premise that we were all working on, which made the two counties' contribution all that much more important. Have we gotten any clarity as to whether any of that general overhead, a small piece of your director's salary, a small piece of this and that, can indeed be legally charged back?
>> Commissioner Sonleitner, we have presented the last round of the administrative billings to txdot and they did approve them on a 50/50 basis. 50% of admin and overhead, which also goes back to Commissioner Daugherty's question, has been approved by txdot, and that is our very significant change in their philosophy.
>> I think that's one of those things in terms of lessons learned, there is no play book in terms of how to do an rma and I think the state is discovering through our asking some of these questions, that they left a few things out and they didn't think through a few things because they're discovering that it does take a lot of up front money. And if you limit yourself to getting a toll equity grant, it doesn't help you with some of your start-up costs. And ij their learning from our experience, which will help the san antonios of this world that are trying to go through this process, in terms of how do we be helpful, but not throw it all back on the local government. I think that personally with the hiring of an executive director they might actually be able to better manage some of the personnel costs because you are actually -- we were actually paying for a combined services of mr. Cassidy helping to do some of the ed role, along with mr. Weaver on an hourly basis, where there is a capped salaried amount for the ed. So that actually is going to be a way for them to predict and account I think better related to the ed costs. And just a couple of points. I think the nice thing about us being where we are right now as opposed to five years ago is that this rma is going to take advantage of things that have happened in the toll world that will make our investment that much easier. There's now electronic tolling. It used to be that everything was very intensive, that you had to go through a toll booth, and people -- harris county is fixing to open up the west park toll way in a matter of weeks, and I知 hoping to see it this weekend for a conference that I知 going to there, so we would able to take advantage of the new technology that has come along which will lower the right-of-way costs and can have a significant impact on personnel costs. And the other thij that's happened since then is the idea of what's called inner operateability. And that is that it can be used up in the north Texas toll authority. And the same thing. We come on barred and say sign us up so we would have the ability to have folks who are travelling through our toll system from houston and dallas that are already on the system, they will easily be able to take advantage of our roads. And finally, I appreciate the faith that everybody's had on this. I understand now where judge lindsey, now senator lindsey from harris county, was when he first proposed the hardy toll road. And that was something that took awhile to get going, but when it did, now the harris county toll authority, hctra, is now investing hundreds of millions of dollars as a partner with txdot to move along some of their projects. So you start the flow, but the rewards can be there if we all have the faith and continue to work together for this effort.
>> Commissioner, their economic engine is up and running, and those are good examples. Hctra and nmtra, north Texas toll road authority, have tremendous amounts now to help with their development. I think it was interesting at our meeting yesterday that a comment came out of houston recently -- I can't remember where it came from, but it was like, we don't want our traffic problem to be like Austin's. Remember back when we used to say we don't want to be like houston? Well, they've done something about it and we're following suit there. So we'll get there.
>> I have a few quick questions. The txdot money is not -- has not been delivered yet, but there is a firm commitment?
>> are you speaking of the 12.7-million-dollar toll equity grant money?
>> yes, sir.
>> the way that works is we approve work authorizations. As that money is spent and then these work authorizations and all the documentation has to fit txdot standards, so they approve it monthly as we submit invoices.
>> but the commitment is firm?
>> absolutely.
>> subject to the submission of valid invoices?
>> yes. They hold the money and they pay the invoices.
>> so you anticipate a budget request to travis and Williamson county for next year?
>> no, we don't.
>> okay. Because our budget process has already started, and you've got from now until the end of June, so I would stay on top of that if there is one.
>> I have actually worked with your tnr folks already and they did ask me whether or not we would be requesting it. At this point we don't request requesting any more money. We've been given a pretty clear indication from several of you that the 550 was the limit.
>> what campo voted on last night was to have a public hearing on the projects proposed on may 10th of this year. And they are receiving written comments now. So those with ideas should contact campo. My recommendation would be, of the presentation we saw last night and that we have seen previously, that we try to reduce that to two or three pages. I don't know why Travis County wouldn't help you abbreviate that and I don't know why we wouldn't reproduce it and make it available to residents. It's a pretty big deal. I don't see mike, super man though he may be, making as many meetings as we think somebody ought to. But if we've got two or three pages, we can really distribute that to areas and small pockets and at least let them know what's going on. Is this available on your website?
>> not at this point. We can do that, but we have not made -- posted that yet.
>> but you have additional copies that you could make available to those?
>> yes, sir, we do.
>> if we contact the Commissioners court, we have the address here and we can put them in touch with up with the right folks?
>> we'll have 50 to 100 delivered this week if you would like to have those available?
>> that would be good. I'd like to have that.
>> we can have that done.
>> the two or three pages of information in a proposal with txdot that we've asked campo to approve, I think that the average resident needs to know about. That's why in my view we ought to be able to work with you and maybe even bring the city of Austin on into the loop also and sort of mass produce the two or three critical pieces of information that we would help get out to people. That occurred to me haft night.
>> and it occurs to me, judge, if I might, that this is obviously televised. And I want to make sure that sometimes when you hit the print in the air wave media that it's not fully explained because of space limitations, but we are only tolling new capacity. I mentioned that last night and I can't say that enough. We'retology new capacity, new construction, not existing roadways. And sometimes when you read things, it gets a little confusing. It goes back to your point, the more word we can get out, the better.
>> there's still misinformation about that. It's hard to conceptual lies it, but clearly it can be done and if our commitment is such that we can reduce it to writing and indicate our clear intention to stand by it, then I think it may set a lot of resident at ease who now really are sort of worked up about it. That's an important point, though.
>> thank you for that, judge. I think you're right.
>> we appreciate your hard work and dedication. I know y'all didn't know it would be this much work. We thought it might be, which is why we selected you. [ laughter ] keep on keeping on for us, though.
>> thank you.
>> move that we receive the annual report.
>> second.
>> and encourage the board and the new executive director to keep on keeping on.
>> thank you.
>> all in favor? That passes unanimously. Thank you again.
Last Modified: Tuesday, April 13, 2004 5:54 PM