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CarGuru > Driving > Texas Transportation Commission wish list 10 March 2005 02:11:16

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Texas Transportation Commission wish list

HoustonFreeways 9 March 2005 09:45:56
 At a recent meeting the Texas Transportation Commission approved a report to
Congress, spelling out what the Commission wants. For those not familiar,
the Texas Transportation is toll-crazed and taking orders from toll fanatic
Governor Perry.

Here are some items from list. Some don't really have meaning to me. Maybe
some of the experts out there can clarify.

* "Allow state law to be utilized over federal law when tolling existing
portions of the federal system and allow a state to buy back parts of the
federal system for this purpose."
HF observation: That's just great. Now TxDOT wants to take over the
interstate system on its own terms and surely charge steep tolls.

* "Allow a single contractor to handle the environmental, design, and
construction work and let the environmental work be conducted while
construction is underway."
HF: Wouldn't this defeat the purpose of an EIS? Start construction, find
environmental issues.Oops, too late, it's already being built!

* "Allow the state law to be the process for acquiring design-build
projects, rather than the cumbersome federal law."
HF: I don't know enough about this, but I suspect they want to expedite
Trans-Texas Corridors.

* "Allow unused contract authority to be sold on a state Department of
Transportation market to other state DOTs."
HF: What the hell is this? I suspect TxDOT wants to buy other states'
contract authority. But isn't contract authority an artificial construct,
anyways?

* "Streamline environmental review."
HF: OK I can understand this one.

* "Toll credit calculation should be based on a pro rata share of the
non-federal contribution."
HF: not sure what this means, but I suspect it would empower TxDOT to build
more toll roads.

* "Allow Texas to participate in the Surface Transportation System
Performance Pilot Program to allow Texas to have authority similar to
Federal Highway Administration."
HF: not sure what this is, but TxDOT wants more power

* "Allow roadways to be financed with private activity bonds."
HF: I don't know what a private activity bond is, but I'm sure it involves
tolling

* "Make adjustments to the Transportation Infrastructure Finance &
Innovation Act and State Infrastructure Bank programs to enhance their
usefulness."
HF: no details provided, but I suspect TxDOT wants to make it easier to toll

* "Allow traditional highway funds to be used for rail relocation
purposes."
HF: OK, go ahead and siphon off more highway funds. You can make up for it
with more tolling.

* "Move the Borders and Corridors Program to a formula fund instead of a
discretionary program."
HF: Sounds reasonable, since those Canadian border crossings seem to be
getting all the money.

* "Increase the rate of return to 95 percent for all states."
HF: Finally, something we can all agree on. But the extra money will
probably go to toll projects.


Report at
http://www.nctcog.o­rg/trans/local_motio­n/RTC/progress_repor­ts_mar05.pdf



Add comment
John Lansford 9 March 2005 14:38:15 permanent link ]
 "HoustonFreeways" <eslotboom@NOcomcas­tSPAM.com> wrote:
At a recent meeting the Texas Transportation Commission approved a report to >Congress, spelling out what the Commission wants. For those not familiar, >the Texas Transportation is toll-crazed and taking orders from toll fanatic >Governor Perry.>
Here are some items from list. Some don't really have meaning to me. Maybe >some of the experts out there can clarify.>
* "Allow state law to be utilized over federal law when tolling existing >portions of the federal system and allow a state to buy back parts of the >federal system for this purpose.">HF observation: That's just great. Now TxDOT wants to take over the >interstate system on its own terms and surely charge steep tolls.>
* "Allow a single contractor to handle the environmental, design, and >construction work and let the environmental work be conducted while >construction is underway.">HF: Wouldn't this defeat the purpose of an EIS? Start construction, find >environmental issues.Oops, too late, it's already being built!

It certainly runs the risk of forcing redesigns or reconstruction if
something is found that must be avoided. One of their 'requests'
below, however, would probably eliminate that problem, though, meaning
the use of an EIS would be gutted.
* "Allow the state law to be the process for acquiring design-build >projects, rather than the cumbersome federal law.">HF: I don't know enough about this, but I suspect they want to expedite >Trans-Texas Corridors.

Federal design/build rules require the state to prepare a preliminary
design and then let design/build teams bid on it. They may be asking
to allow the design/build team to start from scratch with no
preliminary design at all.
* "Allow unused contract authority to be sold on a state Department of >Transportation market to other state DOTs.">HF: What the hell is this? I suspect TxDOT wants to buy other states' >contract authority. But isn't contract authority an artificial construct, >anyways?>
* "Streamline environmental review.">HF: OK I can understand this one.

Usually "streamlining" means "tell the agencies to shut up and keep
out of our way", and if the Federal rules for an EIS are set aside in
favor of state law, has the potential to mean NOTHING will stop the
construction once it begins. IOW, they are asking for a return to
pre-NEPA times, when the first time anyone knew what was going on, the
state was showing up on your front porch with a check for your
property and a bulldozer right behind them.
* "Increase the rate of return to 95 percent for all states.">HF: Finally, something we can all agree on. But the extra money will >probably go to toll projects.>
That's going to be hard to do. Right now there are donor states and
recipient states. The extra money to bring everyone up to 95% returns
has to come from somewhere, and that means a raise in gas taxes or
money diverted from other sources.

John Lansford, PE
--
The unofficial I-26 Construction Webpage:
http://users.vnet.n­et/lansford/a10/
Add comment
Argatlam Roads 9 March 2005 18:58:37 permanent link ]
 [Mr. Slotboom:]
* "Allow unused contract authority to be sold on a state Department
Transportation market to other state DOTs.">
HF: What the hell is this? I suspect TxDOT wants to buy other states'
contract authority. But isn't contract authority an artificial
construct,> anyways?

I think what Tx.D.O.T. is trying to do is to stabilize its letting
schedule by leveraging its ability to prepare P.S.&E. rapidly. Texas,
unlike some other states such as California and North Carolina, has
little history of projects being held up due to permitting issues when
the final design is essentially complete.

This means that Texas quite often advertises a project (i.e., has final
P.S.&E. for it) and then has to yank it at the last minute because
there is not enough money (= contract authority) to commit to paying
the contractor if the contract is let and awarded; this is contrary to
the situation in North Carolina, where a project (e.g., the Clayton
Bypass) is often ready to advertise but sits on the shelf (and has its
contract authority going begging) while permitting issues are worked
out.

A few years ago, the Texas state auditor noted that Tx.D.O.T. had a
pattern of letting one-fifth to one-quarter of its total annual
contract value in the August letting, and in its response to the
auditor's draft report (cited in the final report), Tx.D.O.T. said that
this was because F.H.W.A. redistributed unused contract authority among
the states in the last month of the federal fiscal year. Tx.D.O.T.'s
August "bulge" is certainly larger and more persistent from year to
year than most other states' I know of. (Nebraska and North Carolina
have had very large midsummer lettings too, but not year after year
after year like Texas.)

However, this audit report was silent on a possible 'quid pro quo' for
this reallocation of contract authority, such as Tx.D.O.T. possibly
having to "pay" for it with thinner lettings in other months in order
to stay within a federally mandated funding ratio. It is also not
clear to me whether the funding ratio applies to money actually spent
on highway construction or simply to the first allocation of contract
authority.

If Texas has a project ready to go, for instance, and North Carolina
finds it can't use its contract authority for the current fiscal year
on a certain project and F.H.W.A. then gives North Carolina's contract
authority for that project to Texas for that state to use on its own
project, is that "free money" to Texas, or does Texas have to pay for
it at some point in the future by postponing projects while North
Carolina gets back the contract authority it had for its own previously
postponed project?

Allowing purchase and sale of unused contract authority in a sort of
futures market--never mind that contract authority IS an artificial
construct--may be viewed by Tx.D.O.T. as a way of having an August
letting every month, and escaping federal funding constraints without
necessarily having to build every new freeway as a toll facility. But
the key issue, which I have not found clearly explained in any
federal-aid program funding guidance I have seen, is whether Texas
would have to forgo contract authority in the future in order to stay
within a funding allocation. This is important because it affects not
only the "when" and "how much" of money going to highway construction
in Texas, but also the types of financial instruments that could be
used to transfer contract authority and the premiums that would be paid
for them.

I am frankly not sure that Congress would agree readily to a system
that allowed Texas to expand its share of federal-aid highway funding
well beyond a proportional allocation based on some logical measure
such as human population, motor vehicle population, V.M.T., etc., even
if it could be argued that this is necessary to allow Texas to develop
infrastructure to handle inward migration--which is actually one of the
biggest arguments cited in favor of the T.T.C. and toll-road boom.

Therefore, I think that even if Congress agrees to a market in contract
authority, there will likely be caps to prevent Tx.D.O.T. from getting
its hands on too much of it. I have a feeling that the > 95% rate of
return demand is probably what Tx.D.O.T. invests its hopes in, because
that at least allows it to fund new capital construction out of rising
gas tax receipts from all the new folks moving in.

Add comment
John Lansford 10 March 2005 02:11:16 permanent link ]
 argatlam_roads@yahoo­.com.mx wrote:
[Mr. Slotboom:]>
* "Allow unused contract authority to be sold on a state Department>of>> Transportation market to other state DOTs.">>
HF: What the hell is this? I suspect TxDOT wants to buy other states'>
contract authority. But isn't contract authority an artificial>construc­t,>> anyways?>
I think what Tx.D.O.T. is trying to do is to stabilize its letting>schedule by leveraging its ability to prepare P.S.&E. rapidly. Texas,>unlike some other states such as California and North Carolina, has>little history of projects being held up due to permitting issues when>the final design is essentially complete.>
This means that Texas quite often advertises a project (i.e., has final>P.S.&E. for it) and then has to yank it at the last minute because>there is not enough money (= contract authority) to commit to paying>the contractor if the contract is let and awarded; this is contrary to>the situation in North Carolina, where a project (e.g., the Clayton>Bypass) is often ready to advertise but sits on the shelf (and has its>contract authority going begging) while permitting issues are worked>out.

Well, the money hardly sits there. If a project is delayed, its
funding for that year often gets shifted to another project. If it is
delayed for just a few months, though, the funding just shifts with
it.
A few years ago, the Texas state auditor noted that Tx.D.O.T. had a>pattern of letting one-fifth to one-quarter of its total annual>contract value in the August letting, and in its response to the>auditor's draft report (cited in the final report), Tx.D.O.T. said that>this was because F.H.W.A. redistributed unused contract authority among>the states in the last month of the federal fiscal year. Tx.D.O.T.'s>August "bulge" is certainly larger and more persistent from year to>year than most other states' I know of. (Nebraska and North Carolina>have had very large midsummer lettings too, but not year after year>after year like Texas.)

August is also the 'end' of the Federal fiscal year, and often we're
told "don't let a project move out of the August letting". However,
that doesn't stop projects from being delayed so they move INTO the
August letting, meaning that month's let tends to be bigger than the
ones around it.
If Texas has a project ready to go, for instance, and North Carolina>finds it can't use its contract authority for the current fiscal year>on a certain project and F.H.W.A. then gives North Carolina's contract>authority for that project to Texas for that state to use on its own>project, is that "free money" to Texas, or does Texas have to pay for>it at some point in the future by postponing projects while North>Carolina gets back the contract authority it had for its own previously>postpone­d project?

I don't think that takes place, though. Money allocated to a state
isn't withdrawn by FHWA because the project the state wants to use it
on is delayed. The money is just shifted to another project within
that state. Maybe at the end of the Federal fiscal year that may
happen, but since NCDOT has so many projects waiting for money I doubt
much Federal funding ever gets unspent.

John Lansford, PE
--
The unofficial I-26 Construction Webpage:
http://users.vnet.n­et/lansford/a10/
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CarGuru > Driving > Texas Transportation Commission wish list 10 March 2005 02:11:16

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