Travis County Commissioners Court
March 18, 2008
Item 19
We do have representations here from the ctrma, and it is time for an annual report from them.
and number 19 is to receive presentation of central Texas regional mobility authorities annual report for fiscal year 2007.
director, Commissioner, all around good guy mike hilgenstein is here.
>> thank you.
I appreciate the opportunity.
as you are aware, we submitted the annual report to the judge's office, and as per statute we -- actually, the statute is that we presented, and if you want a presentation, you get a presentation with no extra charges.
we don't charge extra for that.
>> which we appreciate.
>> but if there's any questions -- what did you have in front of you is our last fiscal year, which does show the -- I believe the full capitalization of the first project, so you're going to see some different numbers this year.
as you look over those and have questions in the next couple of weeks, feel free to call.
and then what we did this year -- last year we focused on the region, different areas of the region and sort of what types of proposals had been on the table.
and we talked about downtown Austin and so forth.
this year we kind of focused on different areas of strategic plan, that being the accumulation of staff and putting together of a group of people that could carry us into the future.
so we sort of focus odd that.
it wasn't self serving.
we had a lot of photos in there of our staff, but today we have here with me our cfo, bill chapman, mario espinoza, he is our community outreach.
and west burrford, a new staff member as of September in the engineering area.
I don't have a lot to present.
we also have -- I do have one other thing, the strategic plan update.
we talked a lot about that.
I think that was probably the last time I was here.
we had some discussions about how to improve that and we took those back and made those corrections and improvements from all of you, had some ideas and thoughts and we made those, published that and this year we have an update on the major areas of the strategic plan.
that's also included in your packet.
having said that, I'm open to questions and comments or anything I can answer.
>> is there anything here that indicates -- I know it's just a report, but some of the things that we've been hearing publicly is the money that's owed to the (indiscernible) as far as some of the tolls that haven't been paid and having a chance to try to acquire a certain amount of dollars.
is any of that part of what we're looking at here?
has that issue been resolved as far as persons that for whatever reason have not paid their share as far as some of the tolls?
can you address that maybe?
>> yes, I can, Commissioner.
>> I think it was a certain amount of money.
I can't recall what it was all about.
>> first of all, let me make sure.
that particular report that you saw was on the txdot projects, not ours.
>> it was txdot.
>> but it's a concern.
>> it was not ours.
>> okay.
>> I won't go into a whole lot of detail just because it was theirs, but that occurred because they went to videotology.
and I don't want to get too complicated on the video part, but ours we did not go to video tolling.
we're going to let txdot make the mistakes first and then we were letting them do the pilot.
so we didn't have that problem.
what violations we do have, we have actually -- we're going out to the private sector, a group called msb has won the bid on us going to -- I say plieft sector.
we bid a procurement just like do you on a contract.
we felt like we needed to set up our own standards for enforcement of tolling.
and that firm is actually locate odd airport boulevard.
they do d.p.s.
and others.
and we find them to be a very reputable firm and looking forward to them doing our violations processing.
>> what lists of the toll road that's within your particular authority.
>> we have 11.7 miles on the first project.
and and we are continually adding even to that one.
>> but from this standpoint as far as where you're operating, there has not been any significant violations of persons coming through that have not been able to address the toll?
>> we had an early phase -- again, we're open just a year now.
we had an early phase where people got used to it and we let them go free.
and as they understood the system, our violation right has plummeted.
so we have about eight% violation rate now, which is national standard actually.
>> you said the length was 11 miles.
>> the main lanes start at 6:20 at lakeline boulevard area from the northwest Austin to just north of 1431.
the frontage roads continue to Leander.
which in fact they come in close to where the capital metro line will start its first runs of that light rail.
>> thank you.
>> you're welcome.
>> so the toll booths are not staffed.
>> are not what?
>> staffed.
>> you would say manned, mike.
>> I thought you said stacked.
I was trying to think of what that meant.
it was a term I hadn't run across yet.
we do have one cash in each collection and a cash basket still.
we're going to probably phase out of those this year.
they're very expensive.
and we have 80% of our people are using the tag.
which is unheard of actually in the country.
that's very high percentage.
and the per unit cost of that is very, very low compared to manned.
>> how much is it?
how much does the tag cost?
20 bucks?
>> the tags can still be charged for 20 bucks.
>> and d.p.s.
is where you get it?
>> you can get them online -- we do contract with txdot for our tags, so tta, Texas turnpike authority, tta, you can go online and get them.
they actually get them through the toll booth now too, so you can stop then and there and get one.
>> once the baskets are phased out and the manned toll booths, cash booths, then you will no longer have access unless you have a tag?
>> a tag or then we're going to follow up right behind that with video.
we are going to go to video so that if you just drive through without a tag, they can bill you off your license plate.
the problem with that -- I say problem.
the honest issue is that is that a video costs more too.
and we want to get people as many on the tags because that is a real savings to them and we don't need to be having an override of 30% for videotology if we can avoid it.
so we will still aggressively push the tag because it's the cheapest alternative for everybody.
>> is the video less expensive than manning or cash booths?
>> yes.
manning is absolutely the most expensive.
and you're subject to vandalism.
we've had milk shakes and thing.
it's a difficult process.
>> has enforcement costs or collection costs been figured into the cost of video?
>> yes.
yeah.
>> and it's still cheaper than manning.
>> do you have any numbers off the top of your head on the cost of manning?
it's about 1.2 or 3 million a year.
>> we're actually breaking even to staff the toll booths.
we're doing about 115 to $120,000 in cash tolls per month and it's costing us about that.
>> it would be -- I would like to see the break down of the enforcement costs -- the anticipated enforcement costs on the video, seeing what's happened with txdot.
I am a little concerned that there are some hidden costs in going to video, assuming that there will be a higher -- those who would like to comply, but then realize that there's no one to pay, and then you get the video aspect.
I am concerned that there might be some unquantified costs that may not be put down directly to the ctrma.
it may actually be costs to the county in future collections at the jp level.
>> we're analyzing that now.
one of the things that we do is do revenue studies to find out what are the costs of doing a particular method of collecting tolls, and they look at the cost versus the benefits of doing that because our toll -- our bond covenants require that.
so that's something that's being studied right now.
>> that's great.
I would like to be more educated on the numbers that you're looking at.
>> we have corrected the signage problem at avery ranch boulevard so that people won't think that there's a -- we had that meeting today again.
>> judge?
mike, I'd like to see that break down too.
again, $120,000 a month that you collect at a stand, if you're operating 24 hours a day and you're paying $10 an hour, that's 240 -- that's less than eight thousand dollars a month.
now, I realize you've got some benefit load in that, but there's -- I mean, there is obviously a real easy explanation for there, but I had any idea that you would collect 1,000 something dollars a month out of a cash booth.
I do understand what you're talking about when it comes to dealing with cash.
cash is famous for sprouting legs.
and given the fact that you've got 10-dollar an hour people, it's real easy to justify there's too much money going through here, I need aig bit of it.
but I'd like to see that, being in the cash business at one time spoint I'm making.
>> and you have benefits and relief.
for us to cover 24 hours a day requires five people, not three, plus you have benefits for each one of them.
>> I mean, there's obviously going to be a real easy mathematical, here's what it is, Gerald.
so sarah has asked for it.
I would like a copy of that too.
but if I could, I would like to go to page f-8 and just walk me through, bill, from '06 to '07 your salaries have gobble from 1.2 to 1.7 million.
that's 50 percent or right at it.
and then contractual services from 108-705.
and general and administrative from 284 to 1.2 million.
is that just getting staffed?
are y'all staffed up?
>> yeah.
>> so this is the last bite of what quarter going to have to take on administratively.
>> in 2006 the staff level I think was only about five of us at that time.
and we didn't have any contractual arrangements.
we started actually gearing up to operate the roads as they opened in March of '07.
so that was in this fiscal year.
so you can't just tbhawk and open it.
we had to gear up for that.
so all the staff was added, the contractual arrangements were done.
what you're seeing is about the level we're at now.
so you won't see much more increase in the cost of operations of this as far as staff is concerned.
we'll have a full year's worth of operations with the washington group.
txdot is doing the maintenance.
so on the contractual side, you're going to see more cost.
but for this year that's mostly just gearing up and getting the road in shape to open in March of last year.
>> because you can really see it was a snapshot there that your expenses, trying to offset that with revenues -- granted '07 is just from March --
>> and we cannot charge anything.
there was 60 days of free access to the roads.
then it was half -- we only charged 50% for the cash lanes.
we didn't go to full tolling until July of -- which is the next fiscal year.
well, actually projecting about 15 to $15.5 million this year in revenue.
>> so you really will blow past your administrative -- your operating expenses by a pretty good amount then.
>> well, you will also see an increase -- because we will be open for a full year.
this was only gearing up and then three months' words of operation.
so you're going to see some heavier contractual costs, maintenance.
you will see some large -- we did not have in here non-cash expenses like for depreciation or amortizization because now that the road is capitalized, we're begin to go depreciate the roadway also.
we can give you a quarterly report if you like of where we're at.
>> how many employees do we have now, mike?
>> 13.
six that about what we'll staff up to?
>> yeah.
one of the things I did sort of strategically was not hire until we knew we were going to have the project up and running.
and issued the bonds and so forth.
so we delayed several positions.
we had positions that the board authorized for this year that we didn't fill.
>> would you also mind getting to me a list of the 13 and the salaries that are paid by you guys?
I'd like to have an idea of that.
>> it might also be helpful to know what other slots have been authorized that asht filled and what the salary ranges would be in those, if that would be useful to know where the plateau is.
>> we can actually if you would like, we have a report to our board coming up for this week of our financials and we'd be glad to e-mail that.
>> thank you.
>> that would be good.
thanks.
>> if we recommend pay increases, you don't have to follow a recommendation.
>> anything else?
>> tell me one more time real quickly how many toll tags do we think, mike, that we've sold for 183 a?
>> well, for central Texas, 300,000, right at 300,000.
>> so the 300,000, when we say central Texas --
>> well, two counties, but then some bleedover to burnet and bastrop, but primarily Williamson and travis.
>> do those -- does that count -- is that just 183 or those are toll tags?
>> that would be all.
>> so 300,000 toll tags.
and do we have a breakdown of Travis County versus -- because I think that the most would be in Williamson county and Travis County.
>> pretty close.
I think last time I saw it was pretty even.
I think 120 of those was travis and about that many in Williamson and the rest were from around the region.
I think there's another 1,000 or so around the -- 100,000 or so around the state.
we have quite a bit of traffic, it's interesting, from dallas and houston on our particular facility.
we get about 20,000 from ntta.
>> about 18.
>> 18,000 from dallas and we get about 30, you said, from houston.
it's interesting that there's that much traffic.
that's their tags, houston tags, which aren't the same tag, but we have reciprocity so that we don't lose --
>> our tags, if I go to houston, I can use our tag and they can do the same.
>> that's one of our missions to make sure that everybody is incident evacuated.
>> an tell me real quickly the difference in if you have a tag going through versus if you get videoed.
>> the video is about 30% surcharge to cover the cost of the video, which is to the point of it being more expensive.
because there's more administrative and more mailings and everything it takes to mail that out.
and that's txdot, tta number.
>> you know, we've talked about this.
one of the things that I'm finally getting some traction on.
we're all looking for traction when we get out here and start talking about toll roads, but there actually are folks that will come up to you and talk to you about what 183-a has done for that staunch, you couldn't get me on the toll road with a ba zook ca, just not going to do it.
but it's opened up my free road.
it really -- and I can't sing that loud enough to people.
as a matter of fact, I'm telling the guy who didn't want to get on there, then go out and sell the tag because for everybody that buys a tag, they're not on your free road.
and you really do have folks that will come up and tell you that.
and another story, and the reason incidented to say this because the few people that will watch this, a county employee that came up to me after everything kind of opened up north, 45 and 130 and everything, said Commissioner, I've got to tell you, I have really been very unhappy with you in your stance with the toll road plan, but my husband and i, we live and our daughter, we live in Pflugerville.
we work in Austin, but our child goes to day care in georgetown.
figure that out.
I guess maybe they live there sometime and thented to keep their child at day care in georgetown.
but she said, you could not take my toll tag off of my vehicle.
she said, my husband and I have had to find 70 bucks a month, but we will gladly, given what we have witnessed and what it has afforded us in our life just from the anxiety level, she said, more people need to know that.
unfortunately, I mean, those stories are slow to come around, but they are real.
that was a county employee that told me that.
I said I'd like to be able to film this thing and play it.
anyway, just I know you like to hear those things because all of us that are associated with this particular subject matter, it's not always that we're getting many atta boy kind of deals.
>> we like the good story.
and if we get the bad ones, we try to figure out a way to help correct it.
these are customer.
these are people you need to pay attention to.
>> I have a policy related question.
the documents that you provided to us, the status update with the missions and the strategic plan goals, it was really helpful.
I really appreciate that.
that was different from last year.
and my question goes to goal 3 regarding economic development.
and I wanted to know -- well, I suppose the threshold question is to what extent is economic development part of the statutory mission of the ctrma?
>> I don't know how it is addressed in the statute offhand.
I'd have to look at that.
I know that it's like one of those things where if you do a good job on the other four alternatives, that's going to happen.
and that's primarily the way we look at it.
we think it will flow with a good job on the others.
we don't spend a lot of money on recruiting.
we don't do any of that.
what we do is work with the communities.
if they say we need an access road or a ramp opened quicker, faster, better, can we strike an agreement.
and we'll say do you know what, we'll pull it out of order if we have to to make it work, that type of thing.
>> so it's more a collaborative --
>> absolutely that.
>> a collaborative capacity with the economic development of the governmental entities?
>> yes.
>> in that regard just looking at both sides of the economic development coin, I noticed under the progress paragraph, proposed developments and acreage available for development along 183 a is listed information about Cedar Park and Leander's population and employment trends.
is that -- who is tracking the population and employment trends?
is it the ctrma or Leander and Cedar Park?
the reason I'm asking is because quopt anyone to think this is an attempt at some sort of dodge game.
what I'm looking at is the flip side of economic development, which is economic opportunity, and since it's my opinion, but I think statistically it will bear out to some degree that economic opportunity is heavily tied in to transportation opportunities where the jobs are versus where the houses are.
and is the rma looking into tracking that?
and if not, which would be completely understandable given y'all's statutory mandate, to what extent would you all be cooperating in providing raw data to those who are?
ierks I'm going to answer that in two parts.
one is the reason we do get involved is every customer we bring to the facility helps the other customers.
and so when the rooch tops show up -- when the rooftops show up, an industrial or whatever, that make the whole corridor stronger than whatever surplus is available because of that strength can be used to extend it or to provide other benefits in the region for that corridor.
so that's one of the reasons we think it's part of our mission.
the second part, what we do is we have a staff person that does track that and be has produced sort of a corridor piece that we produced and that we have the road on it, we have the exit ramps, entrance ramps, sort of what's going on in the corridor with different -- from development aspects, hospital.
we've had a hospital.
and we give that to people in that corridor to community presentations, to the chambers, to economic development groups or whatever, as a piece that they can then use.
and they didn't have to invest in it.
it's important for us and it's important for them.
and then we talk to the economic development coordinators knows communities and we ask them what's going on even down to platting as opposed to something coming out of the ground.
what does that look like now?
we want to stay on top of the development work that's occurring.
we're just about ready to update that economic development piece, and it's more historical than like, well, we're not in the sales, we're not into pushing a person land, nothing like that.
it's just what's happening along that corridor is very positive and here's a story to tell.
and so we give that to them.
oh yeah, as bill points out, our traffic and revenue studies also require that.
and they actually do pretty deep down inside the numbers study of the economics, the demographics, the growth perspectives on those corridors.
peaf one of the things with 183 a is a lot of that was green field.
that was a green field project as oppose odd to many others that have been added to the tif.
this was not green field.
it was a more risky type project because it was going across burr scwonning country for the most part.
there was nothing north of lakeline mall at one time.
>> it could possibly be that this isn't within y'all's purview and I would not beat you up about that.
it will make all sense in the world.
but that other component regarding the affordability of transit.
and one thing that is attractive to me about an rma being in control of the toll roads is that the profit motive is dedeflated.
that at some point y'all could make the cost of driving far more expensive, but you do not have the same incentive as a private operator would.
and I'm wondering to what extent we're tracking that kind of information, that sort of -- the economic opportunity aspect.
not the economic development aspect so much as the opportunity costs of transit in a corridor that has a toll road.
now, it may be that you're not at the point of looking at it because we're still in a werd where one really has a rational choice to use 183 and not 183 a, but there will come a day, I predict, when it will be a less rational choice.
>> well --
>> from an individual economic perspective.
>> from an individual perspective, and I'm going to forget the name.
speaker, but we recently had a presentation.
and the premise was once you get outside 30 minutes of travel time, people's choices narrow.
they really -- they start narrowing what they do.
it can be relationships, it can be jobs, it can be anything.
stuff changes.
your world change.
and in our case we know that we've cut travel times from 32 or 33 minutes down to 19 on the non-toll road and down to 16 on the tolls.
so you've give thean person back 15 or 16 minutes on one way travel.
so that changes their perspective a little bit.
and we get those stories that you just told a lot, that man disrks it make a difference to me getting to work on time now or just the job I can take.
>> and it's worth the $70 a month to that particular family.
>> yes.
>> this is all fascinating.
I declare your fy '07 annual report officially received.
>> thank you.
>> thank you very much for presenting it to us.
>> we will get you the answers to those questions, judge.
>> okay.
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Last Modified:
Wednesday, March 19, 2008 2:51 PM