Texas Department of Transportation Commission Meeting

Dewitt Greer Building
125 East 11th Street
Austin, Texas

9:00 a.m. Thursday, January 27, 2000 Regular Meeting

COMMISSION MEMBERS:

DAVID M. LANEY, Chair
ROBERT L. NICHOLS
JOHN W. JOHNSON

DEPARTMENT STAFF:

CHARLES W. HEALD, Executive Director
HELEN HAVELKA, Executive Assistant, Engineering Operations

PROCEEDINGS

MR. LANEY: Good morning. It’s 9:07, and I’d like to call the meeting of the Texas Transportation Commission to order, and welcome all of you, and more to come later, I understand, to our January 27th meeting. It’s a pleasure to have you here and it’s an auspicious beginning to have rain in Austin as you arrive -- which is sort of a headache but a blessing for this area.

Public notice of this meeting, containing all items of the agenda, was filed with the Office of the Secretary of State at 10:56 a.m. on January 18, 2000.

Before we get started, as is usually the case, I would like to turn to our other two members and ask if they would like to make any comments before we begin business. Robert?

MR. NICHOLS: Me? Two things. First of all, for the people who came here today from out of town, we appreciate the fact that you have gone way out of your way to support projects in your area. Sometimes you wonder if it makes a difference and if it helps, and I can assure you we do appreciate your efforts in trying to inform us of the different projects. And I understand the difficulty in pulling away -- especially on a day like this -- and coming down here, so I want to thank you for the efforts that you’ve made.

Secondly, on a totally different issue, I think it’s probably important to bring focus and a little bit of public awareness on an update related to the Federal Transportation TEA-21 funding. When the U.S. Congress passed the TEA-21 a year or so ago, the expectations were that the state of Texas would receive about 90 cents a dollar versus a previous 76 or 77 cents on the dollar, and we had great expectations for that. And a portion of that is almost federally guaranteed by formula, but also a portion had to do with the assumption that we would receive a reasonable share of federal discretionary funds in a wide range of categories.

One typical example is the Border Corridor NAFTA discretionary funding for which I think there was $140 million, and Texas, by far, has a huge, largest volume of pretty much anyone -- I think like 70 percent, 80 percent flows through Texas. We put forward many projects we thought were very good and highly vested with state funds and leveraged and supported by the communities, but our share of that funding was in the 10 percent range. The state of Arkansas -- I’m not picking on Arkansas -- for instance, received almost as much as we did for corridor funding.

Other recent examples are on interstate funding for rehabilitation and such, there is no state in the Union that has more interstate miles of highway than the state of Texas. In the recent list of funding, we are not even in the top ten states to receive funding. So I think it’s going to be real important, as we move forward on transportation issues, to start developing an awareness, and we are informing our -- I guess you’d call it the Texas delegation to Washington, D.C., of that. But that’s probably what I wanted to bring up.

MR. LANEY: Thanks, Robert.

Johnny?

MR. JOHNSON: The thing I wanted to mention was a meeting that occurred between the last meeting of the Transportation Commission and today, and that was a joint session held by the commissions of the TNRCC and TxDOT, and this occurred last Thursday. And I wanted to point out three things that I find to be very important about that session.

One, it illustrates the importance of the challenges and the issues that we have relative to the environment and the Clean Air Act and the enforcement and meeting those challenges. Secondly, I think it points out the resolve of both the agencies to be successful in meeting those challenges and complying with the statutes. And thirdly, I just wanted to salute the governor, because he, in his own way, encourages agencies in this state to work together to accomplish things for the common good. And it probably went noticed by some and little noticed by others, but it was an historic occasion for those two commissions to meet together.

And as I mentioned, I do think it points out three things: the importance, and the resolve to be successful, and then the vision and leadership of the governor.

MR. LANEY: Thanks, Johnny. That was an historic meeting, and the first, I think, of many to come, and I think the next will probably be later in the spring.

We’ve got an enormous issue of air quality to tackle and we’re facing severe constraints on federal funding, as you know. And we’re working closely together with that agency, and I think there’s a lot of optimism on both parts.

I’d like to make a couple of comments, as well. The first is we wish well a handful of folks from the Department who were seriously injured in an accident on

I-35 between the last meeting and this meeting. Two of the four are still in pretty serious condition, and this was a series of accidents basically involving some 18-wheelers and failure to recognize some warning signs and speed limit issues.

I just want to encourage all of you to take to heart when you see those signs that say "Double Fines" in construction areas and you see speed limit signs, there is a lot more cars and trucks than there were even a few years ago, and the speed limits are there for a purpose, and it is very dangerous. So please take good care and pay attention to the signs.

Lastly, before we start business as usual, I would like to recognize someone in the audience who is probably responsible in part, and maybe for a considerable part, of the antics -- my antics over the last five years on the Commission here. It’s my father, who has never been down to see a Commission meeting, and I’d like to recognize him, Jim Laney, who is hidden in the back of the audience over there.

Dad, welcome. Finally, we get you down here.

(Applause.)

MR. LANEY: He was in law school here when the Greer Building was being built, and was never sure that it was finished, so he said he’d like to come down and see if it was finished.

(General laughter.)

MR. LANEY: He also was probably a little -- well, he never said this -- a little concerned that the prodigal son was hanging around in all the bars on 6th Street, so he made a quick sweep through 6th Street last night to make sure that I was working.

(General laughter.)

MR. LANEY: Anyway, glad to finally have him here after five years of his wondering what on earth I did in Austin. I’m not sure he knows yet.

We have one delegation who has not arrived and won’t until a little later in the morning. We expect them to come in and we’ll have notice that they’ve arrived, and we will, at that point, take a short recess and allow them to come in. But meanwhile, we’ll go ahead and proceed with the meeting, and I’m going to go ahead and take a few things out of order.

Let’s begin with the approval of the minutes of the Commission meetings in December, and we had more than usual. In addition to our regular meeting on December 16, we had two special meetings on December 15 and 16 regarding enhancements. Are there any comments or changes to the minutes? If not, may I have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: A motion and a second. All in favor, say aye.

(A chorus of ayes.)

MR. LANEY: Now we’re going to move on to Item 4 which is our awards and resolutions. The first relates to the fact that TxDOT has been and continues to be a national leader in anti-litter efforts, leader for the rest of the country in a big way. Last year was no exception. The Department was honored again for its outstanding efforts for public partnerships, exceptional programming for beautification, and original litter prevention programming and public outreach.

Keep America Beautiful and the Federal Highway Administration selected the Texas Department of Transportation as the nation’s best. The Department was recognized for its "Don’t Mess with Texas" public education campaign, which included a Partners Program. TxDOT’s exceptional beautification program featured aesthetic components along North Central Expressway in Dallas, which was just recently completed.

The award was presented to TxDOT at a conference in December, and at this time I’d like to ask, and very proudly ask, Doris Howdeshell, Director of the Department’s Travel Division, to join us.

Doris, welcome.

MS. HOWDESHELL: As Mr. Laney said, my name is Doris Howdeshell and I’m the Director of the Travel Division at TxDOT. Good morning, Commission members, Mr. Nichols, and Mr. Johnson. It’s a pleasure to be with you to present this first-place award. TxDOT has long been recognized as a forerunner in so many arenas, and I’m very proud to share this honor with the entire Department.

As you know, the first ever adopted highway was in the Tyler District. Today more than one million people volunteer for the Adopt a Highway programs across the nation. Our litter prevention program, "Don’t Mess With Texas," saves the Department money and it has changed Texans’ attitudes about putting trash where it belongs.

None of this would have been possible without the support of this Department and this Transportation Commission and the district public information officers and Adopt a Highway coordinators. They work hard, and the willingness of their district engineers to support these programs is what helps make Texas a more beautiful and cleaner place.

One of the things that we're very proud about this past year is the partnership program that we started with the private industry and with schools. HEB, Coca-Cola, McCoy's, Dairy Queen, and Toyota are what we call our charter partners. These companies are actually taking a proactive approach to litter prevention. Texas Disposal Systems and Sonic have also come on board as partners, and we have three universities -- UT, Baylor, and Texas Tech. We're working on Texas A&M, Wes. They've all pledged to work toward a litter-free campus, and these universities are our target audience for litter prevention.

We do have a lot to be proud of, but there's still a lot of work that remains to be done. As we drive our highways, we still see litter on our right of ways, and I know the Department remains committed to preventing litter through the Department's outstanding programs. So with this, I'd like to present you with the first place Keep America Beautiful/Federal Highway Administration award for outstanding litter prevention and beautification.

MR. LANEY: Thanks, Doris.

(Applause and pause for photographs.)

MR. LANEY: So you will know that this is not just the first, we also won this first-place award in '92 and '97, and Doris, we expect to win it in 2001, 2002 and 2003. Good luck.

I also have another special resolution that the Commission wants to present, and we present this one with some reticence and I think disappointment, although we're excited for the person who is receiving this recognition. I'd like John Aldridge, the Director of Construction Section of TxDOT's Construction Division to come on up here, if we can get you on up. You have to suffer through this for a second, and you might have to say something too.

(General laughter.)

MR. LANEY: John has been with the Department for 23 years and he serves as the presiding officer of each of the departments bid openings.

John, we -- and I know I can speak for me, and I think I can speak for everyone else here and throughout the Department -- we have come to depend on your ability to handle our monthly lettings and your knowledge of what amounts to an extremely critical function for the Department. And the integrity and consistency of that process has become, I think, so widely known that it is really a compliment to you and a real honor for the Department for what you've accomplished over the last 23 years.

You've briefed me on a number of different occasions, and most recently we were dealing with a fairly intractable enhancement problem -- and I hope that's not the reason you're leaving -- but I appreciate the way you handled that and everything else that you've handled that I've been involved in.

I know I speak for not just myself, but the entire Commission and the Department, to say I am very sorry you're leaving, but I wish you the very best, and thank you for all that you've done for the Department over the last 23 years.

I know the others have something to say, as well, and then I'd like to read the resolution that we're about to present to you, but let me give the others an opportunity to say something.

MR. JOHNSON: John, I'm going to echo some of what David said. I haven't known you long, but you've gone out of your way to indoctrinate me in a very complex part of this Department's operation, and I appreciate that greatly. Every time I turn a corner, there's something new to learn, but you went out of your way to help me learn the bid process and even had me there for bid day which is an eye-opening experience in its own. You're part of the fiber and fabric that have made this Department for all its existence what it is, and your contributions over the last 23 years are greatly appreciated by everyone in this state.

MR. ALDRIDGE: Thank you.

MR. NICHOLS: You may want to stay after we finish all our comments.

(General laughter.)

MR. NICHOLS: I want to also thank you for the work that you've done in keeping our bidding process -- it has an impeccable reputation, not only around the state with the people involved, but around the nation. I know you've been a part of it, a great part of it. We appreciate it, we wish you well, and thanks for everything that you've done.

MR. LANEY: Wes, do you want to add anything?

MR. HEALD: Well, what I'm going to miss about John is his positive attitude. He not only is a good administrator and does a great job for the Department, but he's always got such an upbeat attitude, I would assume when he leaves in the evening, he goes home and takes it out on somebody.

(General laughter.)

MR. HEALD: We appreciate, John, what you've done for the Department.

MR. LANEY: John, before we give you a chance to say anything, let me read this, please.

"Whereas, John W. Aldridge currently serves as the Director of the Construction Section in the Construction Division for the Texas Department of Transportation;

"And whereas, Mr. Aldridge has served the Department in various capacities throughout his career, working in the Odessa District for twelve years and in the Construction Division for eleven years;

"And whereas, Mr. Aldridge has coordinated all aspects of the highway construction lettings and has demonstrated professionalism, dedication and enthusiasm;

"And whereas, Mr. Aldridge has received the highest praises from industry for his consistency and fairness;

"And whereas, Mr. Aldridge will retire on the last of January 2000 after 23 years of service" --

Parenthetically, if we change that 2000 to 2003, you're staying. Right?

MR. ALDRIDGE: I don't think so.

MR. LANEY: -- "and has earned the respect and friendship of all his fellow employees;

"Now, therefore, be it resolved that the Texas Transportation Commission does hereby extend the sincerest best wishes to Mr. Aldridge for a happy and successful retirement."

Now you might want to leave.

MR. ALDRIDGE: Well, I thought about it when you called my name there a while ago. Thomas kept this under wraps, and I thought: Oh, no, I'm in trouble again with a letting.

(General laughter.)

MR. ALDRIDGE: But I really appreciate it. We were talking about it on the way down here, and the letting is the most important part that we do around here, and it's been a real challenge, as you stated, and I'm going to miss that. But as I've told everyone in my division down there, you don't really miss a job, but you miss the people, and I really appreciate y'all taking this opportunity to wish me well. And I'll be around; I'm not going very far. Thank you very much.

MR. LANEY: I'd like to begin the recognition.

(Applause and pause for photos.)

MR. LANEY: Now back to the third item on our agenda, and I think we have at least a couple of speakers signed up to speak. If you would like to speak on this particular issue and have not signed a card, please do so, and get it to us, and we'll be in a position to recognize you; otherwise, we won't be able to.

The third item on the agenda is the State Transportation Enhancement Program, and I'd like to invite Robert Wilson to present this item.

MR. WILSON: Good morning. I'm Robert Wilson. I'm Director of the Design Division.

Before I start this, though, I'd like to say one thing about John. He's one of the first people I saw when I went to work for the Department in Midland, and I can tell you some stories that you probably don't know if you'd like to hear them. Actually, I learned all the bad habits that I picked up over the years from John.

(General laughter.)

MR. WILSON: I'm going to miss him too.

Again, I am Robert Wilson. I'm Director of the Design Division. In Title 23 of the United States Code in the Transportation Equity Act for the 21st Century passed by Congress requires that 10 percent of certain funds apportioned under Title 23, Section 104(b)(3), be used for specific transportation enhancement activities. The Department established rules for this program in Title 43 of the Texas Administrative Code, Sections 11.200 through 11.205. This is known as the Statewide Transportation Enhancement Program and as Category 4B of the Unified Transportation Plan.

The 1999 program call for candidate projects was issued on April 16, 1999, and project sponsors sent in applications until August 9, and 278 candidate projects were deemed eligible for the program. The projects were evaluated by staff and by the Transportation Project Evaluation Committee, as outlined in Section 11.204 of the Texas Administrative Code. You also held public hearings, as you mentioned, on December 15 and 16 to receive comments on eligible candidate projects for this program.

The minute order I'm bringing to you this morning authorizes 126 projects for inclusion in this program, as shown in Exhibit A attached to the minute order, and authorizes the Department to enter into any necessary agreements to develop these projects, and staff recommends your approval of the minute order.

MR. LANEY: Any comments or questions? Thanks, Robert.

Okay. We have two speakers signed up. First, Representative Joe Pickett.

REP. PICKETT: Good morning, Chairman Laney, Commissioners. I'm glad to see your dad is here this morning, too. I can tell you, back in '91, when I was on City Council, my dad showed up to a council hearing and I was real proud to see my dad in the audience, and we had a long, contentious meeting. And we took a break at one point, and I went out and I said, Hi, Dad. Gosh, thanks for coming and supporting me like this; this is real nice. He said, I'm not here to support you, I'm here to talk about one of your agenda items and hope that they vote it down. So I'm glad to see your dad is here supporting you.

MR. LANEY: Sorry you gave him the idea.

(General laughter.)

REP. PICKETT: I really just came to say thank you, and I wanted the staff to actually see what I look like, because I know I've bugged the heck out of you guys and I think the staff deserves to see the person that's kind of caused them some grief over the last couple of weeks.

But I do appreciate the openness the first round. You let us know where some of our deficiencies were. We were able to go back and fix some things. We dropped some projects totally off of our wish list. We prioritized. We put some things together, and that was because of the help of your staff. So I do appreciate it

I know you worked late last night. I was going to brag and say I hope you got the pizzas I delivered, but I noticed the empty boxes are out here at the guard station, and you probably didn't get them. So with that, again, thank you for at least giving us the opportunity to fix some of the deficiencies that we had, and I hope we have good news. Thank you. We'll be glad to see you next month out in El Paso.

MR. LANEY: Looking forward to being in El Paso. Thanks.

Representative Robert Turner.

REP. TURNER: Good morning, Mr. Chairman and Commissioners, and Wes. How are you? I'm here in support of the Llano Historic Railroad Yard Project, and I'm sorry that I didn't get to be here the initial time when they made their presentation. I really thought I was running late; I have been an hour out there on your Interstate 35 parking lot, and it sort of delayed progress here, but apparently the whole show has been delayed.

I would like to -- like Joe, I would like to commend you on the new process that you have used in determining the enhancement project decisions and the categorization and prioritization of those projects. I think your new approach to doing that is far more effective and probably less painful than we had previously used with the old enhancement program.

I'd like to just say that I am here in support of the Llano project and thank you for all the effort that I know you put out on the distribution and decisions that you have to make on these projects. Thank you very much.

MR. LANEY: Thank you, Representative Turner.

Before you leave, the last go-round -- this has nothing to do with this go-round -- we awarded an enhancement in connection with the Llano Railroad. How is it going?

REP. TURNER: Oh, it's great. We just took the proposal and the engineering prospects to your people this last week, I guess, and we're in the process now of approving that for final actual beginning of the construction phase, and then it's really, really looking great.

MR. LANEY: I know you've been a big proponent of it.

REP. TURNER: And it reminds me that -- I guess, the congestion of the traffic reminds me of how important that railroad might be in the future, and I think all of you would concur.

MR. LANEY: You know, it's never a good idea to come here and criticize our highway system.

(General laughter.)

REP. TURNER: I think they're our highways, and if you recall, we probably gave you almost nearly twice as much money as we had previously for those projects -- just a subtle reminder.

(General laughter.)

MR. LANEY: As always, glad to have you here. Thank you.

Jose Movaida -- I may be mispronouncing your name; I'm sorry -- Moraida, Mayor of the City of Roma. Welcome.

MAYOR MORAIDA: Thank you. Good morning, Chairman Laney and Commissioner Johnson and Commissioner Nichols of the Texas Highway Commission. For the record, my name is Jose Fernando Moraida, Mayor for the City of Roma.

The citizens of Roma thank you and the Texas Department of Transportation staff and its local district engineer, Mr. Amadeo Saenz, Jr., for giving our project full consideration on Roma's Visitors Complex Center, Roma's suspension bridge, and the World Birding Center.

The investment of the State of Texas, the City of Roma, and its partners, the Conservation Fund and the Meadows Foundation, will greatly enhance the benefits to the traveling public. Again, thank you on behalf of the City of Roma. Thank you.

MR. LANEY: Thank you, Mayor. Appreciate you coming.

We don't have anyone else signed up to speak. Is anyone else intending to speak?

(No response.)

MR. LANEY: I know a lot of you are interested in the projects that we've selected. The list -- and I should say it is an incomplete list -- is available across the lobby in the Public Information Office, if any of you would like to put your hands on it.

UNIDENTIFIED SPEAKER: It's not.

MR. LANEY: Well, it will be. As soon as we vote, it will be available, so next round you'll have it. And I should say incomplete, and let me mention that for a second.

There are a number of projects we are still looking very hard at and trying to fit within fiscal and conceptual parameters, and so there will be not our full allocation once we vote this morning; there will be some reserved for some period of time, whether it's a month or two or three, I'm not certain, but there are some that we're holding out and trying to, in effect, wrestle into a position where we're more comfortable with them.

In any case, if there are no further comments or questions --

MR. JOHNSON: I have a comment. Robert Wilson made the presentation, and the job that the Design Division, Robert Wilson, and Doug Vollette did on this particular project was enormous. There were between 4- and 500, I believe, requests. It's a challenging, very difficult job. They were all, for the most part, excellent projects, and unfortunately, we had a limited amount of resources.

But I wanted to thank the Design Division, in particular Robert and Doug, for the job they did. It was some very difficult decisions, and it was a job well done. Robert, you and your people are to be congratulated. And I know it's a thankless task, reviewing all those projects, but you waded through them, and I think the list is a marvelous one. And as David mentioned, it's not quite complete, but we'll get there.

MR. WILSON: I certainly appreciate the comments, and our staff that works on this is at the back of the room. I'd like for them to stand up just so you can see their faces back there.

(Applause.)

MR. WILSON: They do put in a lot of time, as well as the district coordinators and the Transportation Evaluation Committee of other agencies, and your staff assistants, we work with them on the phone and in meetings over and over again, so we appreciate it. It takes a lot of effort and coordination on everybody's part. Thank you.

MR. NICHOLS: Yes. I thought I would try to add a little to what Johnny said, and also extend our thanks and appreciation to the communities who put so many of these project packages together. I know there was a lot of effort from volunteers and city staffs in the development of these and the dreams and anticipations over a number of years on some of these projects. A lot of very outstanding projects, but as Johnny said, there are not enough funds to do all of them. Those that didn't make it, I wish them luck. The next round will be in approximately 18 months, two years, something like that, and those that made the extra effort to come here today for those presentations, also thank you.

And with that, I'll move.

MR. JOHNSON: I'll second.

MR. LANEY: We have a second. All in favor?

(A chorus of ayes.)

MR. LANEY: Thank you, Robert.

Wes, at this point, I'm going to turn it over to you for Items 5 -- the delegation has arrived. The delegation that we expected to arrive has arrived, so at this point, we will recess for ten minutes until ten minutes to ten o'clock, and then we will reconvene. Thank you.

(Whereupon, a brief recess was taken.)

MR. LANEY: The Commission meeting is reconvened. I didn't expect anybody to settle down that fast. Thank you. I understand it's snowing and icing and everything else in Dallas, so those of you who made it, we're delighted to have you here. This is our one and only delegation this morning, Metroport Transportation Partnership. We had the good fortune of having visited with some of the leadership of the group yesterday, and I think we all are a little more educated than we were. I really regret to inform you, however, that we have sort of a threshold requirement for getting projects like this done, and it takes a slightly bigger delegation than this.

(General laughter.)

MR. LANEY: If those who couldn't get out of Dallas and Fort Worth, or wherever they were coming from, could have made it, you might have had a chance. We'll be glad to listen to you anyway.

In any case, I would like to recognize at this time a great supporter of the Department and someone we've all worked with very closely over the last several sessions, Senator Jane Nelson, to lead the delegation. Senator Nelson, welcome.

TARRANT AND DALLAS COUNTIES

(Sen. Jane Nelson, Mayor William D. Tate, Gary Fickes, Rep. Vicki Truitt, Jeff P. Fegan)

SENATOR NELSON: Thank you, Mr. Chairman. And you know, my chief of staff just ran out the door to scoop people in off the streets.

(General laughter.)

MR. LANEY: No ringers.

SENATOR NELSON: Yes. Thank you, Mr. Chairman and Commissioners. I am very happy to lead this delegation today and to discuss with you a very critical challenge to our region and our state, but before we begin, I would like to ask the members of the delegation to stand and be acknowledged so we can see just how many people made it through the rain, sleet, snow, and hail to come down here today. A large group, probably past that threshold; you just didn't see the ones that were in the back.

Most of them did travel in by bus early this morning from the Fort Worth area to be here today and show their support. I would also like to acknowledge my fellow member in the legislature who is here today as a part of this delegation and will be speaking with you later, and that is Representative Vicki Truitt, and she, too, is a strong advocate for this group and their transportation needs.

Mayor Tate of Grapevine will be speaking to you in a moment regarding the growth that we are experiencing in the Metroport corridor and the economic success that we've been fortunate enough to enjoy, including the positive impacts of DFW. Mayor Tate will introduce a short video presentation after which Gary Fickes, chairman of the Metroport Transportation Partnership, will present to you the delegation's program and request.

I think it was about four years ago that we came before you with the 35-to-35 Program asking for you to complete that missing piece -- or missing pieces of State Highway 114 freeway. The Commission responded very favorably, for which we are most appreciative, and we owe you a big thank you. It was desperately needed and is certainly appreciated. Those projects are now opening to traffic or they're under construction or will begin construction next year, I think, for all of them.

What we're here to talk to you about today is completing that last piece of the entire 35-to-35 corridor, State Highway 114 through Grapevine and DFW. And now I'd like to introduce Mayor Tate. I'll be speaking again with the grand finale, but I appreciate your interest. I think all of you have spent time up in our neck of the woods, and you fully realize. I was telling the commissioner that if I'm in my district office during rush hour, I get calls from people sitting in traffic on their cellular phones who want us to do something, and so it is a very important issue to the people in our region, as well as in the state.

So, Mayor Tate.

MAYOR TATE: Mr. Chairman, members of the Commission. I'd like to express my appreciation to Senator Nelson, to State Representative Truitt, to Congresswoman Granger and former Congressman Guerin, to Jeff Fagan, the executive director of DFW Airport, to public officials across North Texas, and to this delegation of citizens who are here in support of this project. I think that I can say that we're all in agreement on this project and this issue in our region, which is very unusual.

I would also like to express my appreciation to the members of the Commission for your commitment to better transportation and for your service to Texas and for allowing me to speak for a brief moment about this project that is so critical to our region and so important to this state.

That State Highway 114/121 corridor is a transportation lifeline for this Metroport corridor and for Dallas-Fort Worth International Airport. It's one of the economic engines of Texas. It's in the midst of a population and international trade explosion.

Dr. Bud Weinstein of the University of Texas Center of Economic Development and Research has done a study that's been handed out, that you should have this morning, about the growth of the Metroport corridor and the impact to DFW Airport.

In the last ten years, the Dallas Metroplex has been the fastest growing region in the United States, and our area of the Metroplex has been the fastest growing area of the Dallas-Fort Worth region. Our jobs and housing growth have also, in our area, outpaced the DFW Metroplex. Projections in this corridor for the next 20 years show that the Dallas-Fort Worth Metroplex will grow and increase jobs by 37 percent, but our region will increase jobs by over 82 percent. Over two-thirds of all new Metroport corridor jobs are created in and near DFW Airport.

The north entrance to the airport, the 114/121 funnel now has become the front door of DFW. DFW is already the world's third busiest airport for operations, and by the year 2003 will be the busiest. The airport generates $13 billion yearly in economic activity for Texas and with a $2-1/2 billion expansion underway, over $34 billion will be generated for Texas in the future.

The airport handled nearly a million tons of freight last year; that's half of all air cargo freight handled in Texas. It was valued a $12 billion, and this figure will more than double in the next 15 years. The international cargo volume handled at the airport is expected to increase also.

The successes of the Metroport corridor and DFW have been the mobility and accessibility, where offered, to our residents, employees, and businesses. New housing alone in this corridor have added about 90,000 vehicles on the roads in the past ten years; they will provide another 70,000 increase by the year 2020.

It's not just a question about economic growth and convenience to our people; it's also a question of safety. Almost daily we have accidents along this corridor that back up traffic for at least 20 miles. We didn't build an outer loop, like a 410 or 610 like some metropolitan areas did in the state, in the Dallas-Fort Worth area.

We have two great land barriers in this region: Dallas-Fort Worth Airport and Lake Grapevine, which we're not going to build any new highways across, and these two land barriers push the traffic between North Fort Worth and North Dallas and southern Denton counties through what we call the "The Funnel," which is where six major highways -- 114, 2499, 1709, 26, 121, 360, and 635 -- come together in a two-and-a-half mile strip; over 20 lanes of traffic that funnel down to three. So the impact, I think, is obvious.

The solutions seem simple. We have to expand The Funnel. But it's very expensive, it's very complicated, perhaps more complicated than Central Expressway in Dallas, perhaps more significant to our region.

We appreciate the creativity of TxDOT and the North Texas Council of Governments and our staff and the consultants who have come up with some real ingenious solutions to this problem: the HOV lanes, the possible tollway, on existing right of way with very few utilities to move. We believe that this alone can buy us some time to provide for the more complicated and costly investment of time and money to fix The Funnel.

We support you in this. The City of Grapevine and our region will do everything possible to support and to be involved in this project. We're willing to assist in the acquisition of additional right of way. We believe that a favorable decision on this issue to get us started -- we know it's going to take a series of phases, and it's going to take many years -- but to get started, we have that opportunity today, and it's vital to our future, and we appreciate your consideration.

We do have a video that can speak, I think, better than I about the impacts and the needs. I would like to introduce that at this time and invite you to view it. And after that, Gary Fickes, who is the chairman of the Metroport Transportation Partnership, who has worked so extremely hard and done such a wonderful job with us, will submit our proposal and to move you for a favorable consideration.

Thank you very much for allowing me to speak.

(Whereupon, a videotape was shown.)

MR. FICKES: We want to thank you again for having us here today. As Mayor Tate stated before the video, my name is Gary Fickes, and currently I'm the chairman of the Metroport Transportation Partnership. I've served as the mayor of the City of South Lake and I've had the opportunity to lead five delegations before you in the past ten years regarding improvements in the State Highway 114 corridor.

As you've seen today, we're here to ask for your help in filling in what has come to be the most vital access points in the Metroplex and the most congested area in the state. The Funnel is the front door to DFW Airport. It is also the front door to the state's ability to continue to successfully compete in the worldwide marketplace.

Your district staff and their consultants have been preparing the major investment study for The Funnel and have worked with the corridor cities and towns to find the best alternatives. The one we've selected is the one you've seen on the video: the express-managed facility. This facility will separate local and airport access traffic from through traffic, and it has unanimously been endorsed by all the cities and towns along the corridor. These corridor towns are willing to support the financing of the managed facility by endorsing the concept of tolling the express lanes, because this is the best solution for all the citizens and businesses.

We've been working with your Fort Worth District office to find a way to get from the ultimate express-managed facility design to a workable phased program that can be accelerated and happen before 2005. We have had our engineers break the project into eight segments. We are proposing that the first be accelerated as a demonstration project in which we would partner with TxDOT and work together on their implementation. By working together on innovative ways to finance and construct these three priority phases, we can have the first phase of an operational express-managed facility that segregates the local access and through traffic underway by 2003.

What's being handed out is a packet of letters and resolutions of support from the businesses representing companies all along the Metroport corridor for our delegation's request to you. The Metroport Transportation Partnership is committed to working with you and our elected leaders, who are also committed to make sure that The Funnel improvements move forward as quickly as possible. Thank you.

Senator Nelson.

SENATOR NELSON: Thank you. Well, this concludes our presentation.

I want to add that I've been a member of several, if not probably all five, of the 114 delegations that appeared before you over the last few years. The Commission has always been responsive to our proposals, because the projects that we've brought to you have been regional in scope, have unanimous support. There's been a lot of groundwork laid before this group has come before you today, and we've taken the time to prioritize our needs.

The Funnel project is no different. It benefits our region, residents, and commuters, our domestic and international business community, and it keeps Texas and the United States competitive.

We've worked with your district office, as was mentioned, to determine a workable construction sequence and schedule, and we have the support of our communities for the managed-lane facility. This truly is a win-win situation for the Metroport corridor of Texas and the United States.

And to close, I want to thank Congresswoman Kay Granger for her vision and support. And I have pledged to her, and pledge to you that I will work with her, we will all work together with the Department and the Metroport communities to realize this critical and significant project for the state of Texas.

I want to thank you all, and I certainly want to invite my colleague who is here today, Representative Truitt, representing these communities, to share her support for the proposal.

REP. TRUITT: Mr. Chairman, Commissioners. I want to thank you very much for the opportunity to appear before you today.

I want to tell you that all of the other members of the Tarrant County delegation and the Denton County delegation members of the House, as well as some members of the Dallas County delegation who are affected by this project, send their regrets for being unable to be here today. I noted a number of very legitimate excuses, including snow in Iowa, for being unable to be here. But they want me to convey their support to you for this project.

And I want to thank the Commission very much for your prior funding commitments in helping us complete other road projects in this region. We appreciate everything the Commission has done for our region. During the past 15 years, you've committed over a billion dollars to projects already completed, underway, or scheduled in our area.

Later on today you'll be hearing from Denton County regarding their creative plan to fund the next segment of State Highway 121. All of these roads with more lanes lead into The Funnel, where little or no improvements have been made since DFW International Airport opened. We have a crisis situation on our hands. If we started construction tomorrow, it's too late; it's too late for Grapevine, DFW and for our region. Waiting five more years to start construction will strangle our region and impact the economic viability of DFW and the State of Texas.

We have a huge problem, but we also have a great opportunity. And I'd like to say that it is very much a privilege to be able to work with people of the caliber of Wes Heald and Steve Simmons, our regional director. They are wonderful to work with, but Lord knows, we all know that TxDOT is faced with both manpower needs and financial constraints.

You know that the Metroport communities have a proven record of success when working with TxDOT. We've met our schedules, we've put the money up when we needed to, and we've taken the political heat for a number of the Department's projects, but it's worth it. It's worth it to us to be able to have the roads to move our people. And you know what? We want to do it again.

We're asking that you designate The Funnel project as a demonstration program where we can partner with TxDOT. Now, what does that actually mean? Well, it means that today we're offering to establish a project office, a storefront, if you will, in the corridor, to house a design team that we would like to hire for you as soon as possible. The storefront would be a place where the public can participate in the project, in the development of the project.

We want to hire a national public relations firm with experience working with citizens and businesses on major highway projects, and in fact, a search is currently underway for such a company.

We want to take the lead in acquiring the right of way for this project, using a TxDOT reimbursement system. We think that local people may help expedite the time-consuming, expensive, and challenging project of acquiring right of way.

We want to create a task force of representatives from the Metroport cities, from Dallas-Fort Worth International Airport, from local businesses, to work with TxDOT designers on the right of way and access issues. We want to create a local complaint center through the storefront, where we can take calls and work out complaints and concerns.

I'll support and I'll encourage support legislatively for using The Funnel project as a demonstration design-build project. Let's find out if design-build will save time and money. If there is a crisis to try something new, this project is it.

We want to assist in pursuing alternative funding. We'll work closely with you and Congresswoman Granger to seek additional federal funding, as appropriate, to work to secure approval of a TIFIA grant.

I can't say it enough: We have a crisis now; it's only going to get worse. All of the area roads leading to The Funnel currently under construction will be complete in two to three years. If there's ever a time or a project that requires all of us to pursue new and different ideas, The Funnel project is it.

I respectfully request, we respectfully request that you consider and offer and ask your staff to initiate discussions with Metroport cities on how to formalize this project. We're committed to the challenge, and if you have any questions about the specifics of our partnering proposal, there are plenty of representatives here from Metroport to answer your questions. Our folks got up awfully early this morning and fought icy weather conditions to be here to attend this hearing, to make a statement, and it's indicative of how vitally important this project is to our region. And I thank you very much for your attention.

MR. LANEY: Thank you, Representative Truitt; Senator Nelson, thanks very much. Mr. Fickes and Mayor Tate, appreciate it very much.

Let me make a couple of comments, and then I'd like to invite comments from the other two members. First of all, terrific presentation on a very challenging situation you have. And not to be discouraging, but just to give you a little bit of the context -- and I think you all know this -- as insurmountable as it seems, as intractable as the situation is, we see, because of the growth, particularly in the major metropolitan areas of Texas, comparable issues elsewhere in the state.

In some ways, maybe it feels good to know that you're not alone and there are a number of other issues like that around the state. On the other hand, it puts us in a very difficult situation from the standpoint of resources, and resources can be described in a lot of different ways, but let me leave it at funding for the moment.

I very much appreciate hearing Congresswoman Granger's commitments on that front, because they may be very, very important to move forward on something like this, and not just in your area of the state, but elsewhere, but certainly in your area of the state. And Representative Truitt, the list of partnering issues -- and let me allude to partnering. Partnering can house a lot of concepts. Most of all we hear partnering in ways that really don't add much, but what you have listed could be very valuable to moving this project forward on a much more expedited basis, and I appreciate your creative thinking and the group's creative thinking on that front.

Funding is going to be the biggest challenge, aside from one other issue, over which we have little or no ultimate control. And I just want to make everyone aware of the fact that -- and I know most of you are -- that under the Clean Air Act, the whole area which this project or series of projects is situated in is a nonattainment area, and very likely will be in a conformity lapse in connection with emissions budgets in mid-2000. And the impact of that is hard to anticipate with any real clarity, but it could suspend any further activity for an extended period of time on this and any similar projects, which we would consider added-capacity type projects.

So it is of great concern that this may move out of our hands, and that is a message I think we have delivered to Congresswoman Granger and the rest of the Texas delegation. They need to hear it in spades, and if they hear it from you all as well as from us, I think it would be very helpful.

But aside from that, there is no single silver bullet from a financing standpoint that's going to take care of this half-billion dollar project. It's likely to be a handful of different, disparate sources, some from state funds, some from federal funds, and the ordinary conventional, maybe TIFIA, maybe the concept of Garveys which lands very quickly into the laps of the leadership of this delegation: Senator Nelson and Representative Truitt. Because, as you know, we don't have authority to go down that road right now, and it died a very ugly death in the last session, and I think there's a lot of sentiment to revive it, but there's a lot of resistance to any debt in connection with highway financing.

But it's going to take that kind of innovative thinking and a range of authority on the part of the Department to even begin to address this. It is a very aggressive proposal to think that we can move this as aggressively or as quickly as you would like to do it, but I think it's doable. We cannot do it by ourselves. It's going to take the legislature, it's going to take Washington, and it's going to take a very close and integrated relationship between TxDOT, our district offices, both in, probably, Tarrant County and Dallas County, and local community leadership.

So I commend you for the presentation. I know it's a challenge, because I have seen that traffic, fortunately moving against it, and it's very visible when you see all the headlights aimed at you, and I'm glad I wasn't going with the principal flow of the traffic, because it is a mess, and by another year or two from now, it's going to be worse.

Now, let me clarify one thing that I think I have heard but I haven't paid that much attention to. I understand that DFW has recently approved or is on the verge of approving a new international terminal with a new runway, and maybe there was mention of that in the film. And I expect that to be done within, when? Three years, two years?

MR. FICKES: I believe they got approval to sell the bonds in December, and I think it's probably 24 to 36 months.

MR. LANEY: And there is some expectation that's going to increase the volume of traffic fairly dramatically, as well, I presume. Has anybody done any work on that?

MR. FICKES: I couldn't give you an exact number, but it certainly would.

MR. LANEY: In any case, I remain optimistic, but it's a very challenging project from our standpoint and yours, and we wouldn't be able to even begin to start on it in any significant way without the foundation work that you all have put in place, and I very much appreciate that.

Enough from me. Robert?

MR. FICKES: Commissioner?

MR. LANEY: Yes.

MR. FICKES: Jeff Fegan with the airport is here. I'd like for him to come up and he can probably give you -- I haven't seen him, but I was told he's here.

MR. LANEY: Great.

MR. FEGAN: As far as the DFW Airport expansion program goes, we are about ready to obtain financing, the first of several bond sales, for about a $2-1/2 billion program that will take about six years to complete. The international terminal will probably take about 48 months. It will be a 23-gate terminal. It will add more traffic to the area, there's no question about it, but fortunately, that's going to be spread out throughout the day, some of which will be during the peak hours, but will spread throughout the day as well.

It's a very aggressive program and really will transform the airport into a whole new look and feel and size.

MR. LANEY: Thanks, Jeff.

MR. FEGAN: Thank you.

MR. NICHOLS: In adding to some of the comments that Chairman Laney said, I'd like to thank all of y'all for taking the time to come down today. It's very difficult to take a day off from work and make a long travel like this. Your efforts to help support your community in a desperately needed project is to be commended.

I also wanted to thank Representative Truitt, who yesterday, along with the mayor and some other leaders, took the time to go over the detail of the projects, not just once but I think three different times, since the Commission does not meet in a group in nonposted meetings, so they actually took the time to go through the detail with each of us individually yesterday.

And I know Senator Nelson, who has been a very strong advocate of transportation in that area, she took , I know, me personally and our executive director, Wes Heald, through a combination driving-helicopter thing of the whole area sometime back, and has been a strong supporter in that.

The Commission has strongly supported the projects, as y'all had laid them out in the past, I think in stages. And as was mentioned earlier, we have worked to try to accommodate when there was a consensus and when it was of a regional nature, and y'all have done a great job in putting together a regional, broad consensus-of-support project.

We don't always see that type of consensus. We have areas of the state that are in desperate need of transportation where the community is not in consensus on how to do it or where to do it, and it is very refreshing to see that y'all have done such a great job of putting this together.

In the area of the nonconformity on the air that the chairman was talking about, not only could that hold up transportation funding from the federal level, or even a state level, on expansion projects like this, but we also are prohibited from doing design work or acquiring right of way for those type projects. And as we get into that area -- which will be clarified as the months move on -- the communities, in putting together a conformity plan for the air, to clean it up -- because I think that's the approach that's going to be taken toward correcting the problem -- there are a lot of hard decisions that will have to be made and that will be made on the local level. And the quicker the consensus of how that is done will be very dependent on working together. And I can tell y'all have got the leadership in the area to pull it together. So keep that in mind.

With that, I've probably talked too much, so I'll just turn it over back to the chairman. But thank you very much.

MR. JOHNSON: I think at the risk of echoing some of what David and Robert have said -- and I don't want to do too much of that -- but I want to congratulate the delegation and leadership for, one, the presentation, but also a very innovative approach. I think the only way to do massive projects like this is to divide them up into segments. If we took them as one project, it would obviously be a budget buster, and the pig would never get through the python. But by taking it on a segmental approach is a logical and the most expedient way to do this.

I think the concept of partnering and the many innovative approaches and ideas along that line that Representative Truitt mentioned is a plus-plus and can sort of set a beacon for other projects like this to partner with communities, delegations, or whatever, on very important projects to the localities.

I was curious, for one thing, in the video, how you were able to get all that traffic to head in just one direction. That wasn't trick photography, was it?

(General laughter.)

MR. JOHNSON: I'm being facetious, of course. I took a helicopter tour of the Metroplex, and I accused them of setting up some accidents on purpose and doing a few other things just to create congestion, but having lived in Houston all my life, I'm very familiar with the congestion that our large metropolitan areas have. And Representative Truitt described this in critical terms, and so it is. I'm optimistic that in spite of the obstacles that loom before us from many fronts, that we'll get this done. Whether we get it done as quickly as we would all like, that remains to be seen.

But I do want to, again, echo the congratulations for an excellent presentation and a very innovative approach.

MR. LANEY: I never heard one of these projects described before, Johnny, as a pig through a python. New approach.

MR. JOHNSON: That's an engineering term.

(General laughter.)

MR. LANEY: That, by the way, the accidents that you all saw from the helicopter when you were taken on tours of the area is the same one that Senator Nelson showed me: same cars, same time. It's a routine they have down pretty well.

(General laughter.)

MR. LANEY: As you all probably know, we don't take action -- or rarely take action on the same day in response to a presentation, so don't read no action on our part today as any reflection on either the project or the presentation; that's not the case. We do tend to give, either here or following this meeting, a sense of the Commission to our staff, and my conjecture is that the sense of the Commission to the staff will be very strong and very positive in terms of trying to move forward on the kind of creative footing that you all have presented. And it is that kind of creativity and pushing sort of the edge of the envelope in terms of how we do things that helps us do our job better.

So I compliment you, and the impact of the kind of thinking that you bring us today is very likely to be felt, not just in the metropolitan area and the Dallas Metroplex area, but throughout the state as we learn these new kind of partnering tricks. So thank you very much. The value and the resonance throughout the state may be much more valuable than just to your project, so I appreciate that.

MR. LANEY: Ordinarily, I would recess and allow you all to leave, but I'm going to hold you for one other item, because it really affects the North Dallas area, and we're going to take one particular item out of order, and that is Item 9(a) relating to State Highway 121 and the State Infrastructure Bank, after which we will recess and allow this delegation to move out and others to move in.

Wes, do you want to handle this one?

MR. HEALD: James, would you come on up. James Bass, the Director of our Finance Division will lay a minute order before you for your consideration.

MR. BASS: Good morning. I'm James Bass, the Director of TxDOT's Finance Division.

The minute order that I'm presenting for you right now seeks preliminary approval of a loan to Denton County in the amount of $10 million to fund a portion of the cost to reconstruct and widen State Highway 121 from the Dallas County line to the Collin County line. The county has requested a 4-1/2 percent interest rate with a seven-year payback, paying interest only in year one. The terms appear to be within the guidelines of the SIB, and staff recommends approval.

MR. LANEY: Thank you, James.

I think we have Sandy Jacobs from Denton County to make a presentation.

MS. JACOBS: Good morning, gentlemen. Thank you for taking us out of order. I realize that we are not on your agenda as a planned or set delegation, and I'll be very brief today. If we could put the screen on, I'll go ahead and go through this as quickly as I can.

The portion of 121 that we would like to talk about, and which the SIB loan is addressing, is actually the portion just north and could be considered the northern end of The Funnel in the presentation you just heard. The actual entire State Highway 121 Bypass project is 25 miles long, and it actually goes from McKinney all the way into DFW.

Back in 1983 when this project was first discussed, the idea was to have a freeway literally from McKinney to DFW. Since then, of course, some of that part of the project has been changed, but it has been divided into several segments. The 121 Bypass project is actually the heart of that 25-mile project, and of course, what we're looking for is enhancing mobility, improving the safety of the residents. It's one of the main connecting links from the north part of the region into DFW and it has been ranked by the Texas Economic Development Department as the top economic development engine in the state.

Now, this project has been supported by the 121 Task Force, literally for 15 years, and I initiated that partnership back when 121 really was more of a dream than a reality. At that time, it was a two-lane, undivided, farm-to-market type thoroughfare with no right of way donated, nothing in place. Since then, over $30 million worth of right of way has been donated in Denton County alone. All the participants up and down this quadrant and up and down this road project have been meeting every month at the Frito-Lay building, along with TxDOT representatives from Dallas District, for 15 years. And I can honestly tell you that most marriages don't last that long, so we're really pleased that we are still going and we're meeting regularly.

If you look at the screen, you'll see that we've also divided the bypass into segments. These segments are the segments that have been recommended by staff over the years. If you'll look, you'll see Section 13, which is the Grapevine section into The Funnel, at the very bottom left part of you screen, followed by 14A -- 14A is mostly Coppell; 14B which is the actual interchange; 14C which is the area through Carrollton and Lewisville; and then 15A all the way down to the Collin-Denton County line. This is the major bypass.

Prior to it being built, there was nothing on the ground; we went from cowpies to concrete in this particular area. And right now what we're looking at primarily is the service roads that you see, but there are a lot of problems still existing with the service roads, because, keep in mind, that to the far right near the Collin-Denton County line is the Legacy Park area. What's being built there is absolutely overwhelming. We're talking about major malls, we're talking about economic development, we're talking about international headquarters, but probably as important, we're talking about the potential for more tax base to come into the state.

Now, on the SIB loan request, the SIB loan is something that really just started about two years ago, and as you know, the State Infrastructure Bank has been around for a while and it's been a part of the original ISTEA Act from the federal government. But I noticed about two-and-a-half years ago that the state of Texas was not using the SIB loan the way a lot of other states were using the SIB loan. It was used primarily to fill in the holes; in other words, if there were small gaps around the area. And we noticed that other states were using it for major projects.

So in 1999, last March, Denton County put together a SIB team so that we could study and coordinate the efforts. The end result of that is that this team has met with TxDOT headquarters on several occasions. On all these occasions, we have met with representatives of the executive director's office, Transportation Planning and Programming, Financing and Legal Departments to establish today's proposal.

And what you're seeing today is truly a regional transportation project. It's not only regional because we've been doing it for some time, it's not only regional because we have all the entities here today to back this up, but it's also regional because we're bringing dollars to the table. Denton County realizes the importance of this local participation, and recently developed and passed a road bond election in which we've earmarked $8.5 million for the main lanes of the bypass project.

We've also taken a leadership role and coordinated the efforts of five local entities that abut this project adjacent to 121, and we've coordinated this with the RTC. I happen to be a member of RTC; I represent Denton County in the Regional Transportation Council, and I'm very aware of the problems associated with the Clean Air Act. And I can tell you that the North Texas Council of Governments has been very sensitive to the needs of the Clean Air Act and is been making a lot of headway in passing plans and programs which will address our needs so that we can reach all the requirements by the year 2007.

So today we come to you with this. We come to you with Denton County coming up with $8.25 million, our local entities are coming up with $10 million, and COG has provided for us $30 million for a total of $48,250,000.

Now, the first request for approval that we're looking for today is approval of the SIB loan. The amount, as has been mentioned, is $10 million. It's to fund the plans and specifications and estimates for the 121 main lane improvements for Denton County. The loan structure, as has been stated before, is a seven-year term at 4.5 percent, and it's all in compliance with the tax notes pursuant to the Government Code.

Keep in mind that this is a little bit of an innovative approach again. This is something that hasn't been done in Texas. We in Denton County realize that you only have one-third of the money that you need to fund all these roads. We're trying to find innovative ways that we can come up with so that we can address the shortfall that you have of resources.

If you'll look at the slide, you can see that we have had many cities that have been participating with us, but specifically I want to recognize very quickly from the City of Lewisville, we have here today Mayor Pro Tem Gene Carey -- if you'd stand; we also have Claude King, the Lewisville City Manager; from Coppell, Mayor Candy Sheehan and the City Manager Jim Witt; from Carrollton, Mayor Milburn Gravley and the City Manager Gary Jackson; from The Colony, Mayor Bill Manning and the City Manager Lanny Lambert; and from Grapevine, we're pleased to have Mayor Bill Tate, who was also very eloquent earlier on today, as well as the City Manager Roger Nelson, and then Council Members Darlene Freed, Clydene Johnson, and Shane Wilbanks.

These people are here today because they realize that we're talking about putting money where our mouth is. We're not coming to you just simply with resolutions. As a matter of fact, we're not even coming to you simply with promises. My staff will hand out to you the actual interlocal agreements that these cities have already made, have already passed, have already approved, and have already provided to Denton County for the SIB loan. The amounts which you can see above you are the $3.88 million from Lewisville, the 2.05 from Coppell, the 2.2 from Carrollton, 1.31 from The Colony, and about $750,000 from the Grapevine area.

Our second request has to do with elevations of certain sections. As you well know, as we proceed through this process over 15 years, this project has been going through the process of being prioritized and being weighed and going through the formula that your staff has provided. And so we've taken these same five segments, and we're ready to move them up in phases according to recommendations from your staff.

Request number two is the elevation of Sections 14A, B, and C from Long Range Planning to Priority 2. Request number three is the elevations of Sections 14B and 15A from Priority 2 to Priority 1 for funding in 2004. Request number four is elevations of Section 14A and 14C from Priority 2 to Priority 1 for funding in FY 2005. And request five is elevation of Section 13, which goes hand in hand with the 114/121 impact study so that it can be elevated from Long-Range Planning to Priority 2 as soon as the project is environmentally cleared.

The programming partnership is outlined for you. The sources are coming from county bonds which have already been voted on, the SIB loan which we're hoping you'll approve today, and those commitments are coming from the cities; the interlocal agreements are signed. The Region, as far as the RTC, is already coming up with the $30 million, and we're asking the remainder of that from the State, which is the $97.55 million.

The actions that we're looking for today is approval of the SIB loan and the request of the elevations to Section 14A, B, and C from Long-Range Planning to Priority 2. The other three requests had been mentioned to you before and that has to do with elevation of Sections 14B and A, the elevation of Sections 14A and C, and finally, five, so that the result is literally a complete project, one that will result in a bypass and one that will result with the completion of a major artery, not only helping the traffic that goes into The Funnel, but also helping the northeastern segment of the region in getting to where they're going.

I would also like to make note for the record that Burt Solomons, Ken Marchant and Dr. Ronny Crownover, who are state representatives, are also stuck in Iowa in the snow, and they have, however, sent their legislative aides. Burt Solomons has sent Tonya Tillman here; Ken Marchant has Jenny Fowler here; and Dr. Ronny Crownover also has his aide here. Letters are all to you supporting this, but I'd like to end with one letter that I think is very important.

When we come here, we talk about functions, and to me, the functions in transportation are purpose, planning, and partnership. Today this shows years of planning, and this shows partnership, not only in a commitment of just simply resolutions, but partnership in the commitment of money on the table.

I'm going to present to you a letter today from the North Texas Tollway Authority and the director of that authority, and I'm going to read just an excerpt on it on this request, and this is from Jerry Hiebert, the Executive Director:

"The NTTA is aware of the recent efforts of Denton County to accelerate the participation of TxDOT and the funding of main lane construction of State Highway 121 through Denton County. Consistent with our mission statement to improve mobility within the region, the NTTA is fully supportive of these efforts to expedite construction of needed transportation improvements within the NTTA service area. We look forward to assisting Denton County in this and any effort to enhance mobility within the corridor."

Gentlemen, I thank you for your patience and your time, and I'll be glad to answer any questions you may have.

MR. LANEY: Well, I take it by raising Hiebert's record, Sandy, that you're willing to convert this to a toll road.

MS. JACOBS: Well, what we're looking at is that the possibility of looking at funding -- and I think what Mr. Hiebert's comments are basically is that they're supporting our recommendation before we look to the tollway funding. And that's what we're doing; that's what we feel is best; that's what we're all in agreement on. We feel like that this practice may be one -- this innovative practice may be one that we could use in the state that would be very helpful.

I know Senator Nelson is here, and I'm hoping that she'll want to comment on this project, as well. And I can tell you that we feel like that as a region, and in discussing this with all of our counterparts, that the actual methodology that we're discussing today is one that we'd like to see approved by the state. If it's necessary to go to a toll road, of course all the entities would consider that, but I can tell you that each one of the entities that are here today would prefer the methodology that you see before you.

Senator, would you like to make a comment?

MR. LANEY: Senator, before you say anything, let me ask you a question. I take this to be a presentation of either The Funnel or this 121 project.

(General laughter.)

MR. LANEY: Which way do you want to go?

SENATOR NELSON: Before you announce that -- just move on; don't answer the question. Before you announced that you were going to change your agenda today a little bit so you could hear this presentation next, one of the members of the previous delegation came up and whispered to me that they were going to delay the reception that they're holding after this so that they could sit in, voluntarily, for this presentation to show their regional support, and I think that is so neat. I think it is commendable.

(Applause.)

SENATOR NELSON: And Commissioner Jacobs has worked long and hard on this project, and many other projects, as you all well know. I don't have too much to add to her presentation, other than I think it is a tremendous commitment on the part of the local entities, the county and the cities, all of whom are represented here today.

Our area is just booming. And I know you all hear from other parts of the state, but it is phenomenal, and this kind of joint effort to try to address the needs, we do. I mean, I know better than anybody the demands that are placed on us and I know how few projects, that we would like to fund, there's money there to fund. And this really does show a commitment on the part of the locals to try to make it happen, and I am most appreciative for that.

And I would add, that I don't know if any of them were commissioners when you completed that wonderful segment of 121, but when this is completed, Commissioner Jacobs brings in a brand new 18-wheeler and has a ribbon cutting upon completion, so we would invite you to that ahead of time.

So thank you, and thanks to the people who came here today for this presentation, too.

MS. JACOBS: Mr. Chairman, if I might very quickly also add to you that the entities in this case are coming up with over a third of the amount of money needed for this project. As you well know, that's a high percentage of construction costs and much higher than in some other instances that have been approved in the past.

I also have good news to add. I know I've heard a lot about TEA-21 and some of the negative information that has not been as positive as we had hoped. The good news is that I have been in contact with the office of Speaker Armey, and for one of the first times, he is interested in getting more involved in transportation. We're in the process, Denton County, of talking to him and his staff and we are in hopes that we might can be making some progress in that area. So hopefully in the near future we may have some better news for you, at least on the Congressional end of this.

MR. LANEY: Thank you, Sandy. I'm sure Congressman Armey appreciated the compliment when you called him Speaker Armey. That's a good way to get a lot out of him.

(General laughter.)

MS. JACOBS: Sorry about that. I'll stand corrected before I get into more trouble.

MR. LANEY: No. He likes that, I'm sure.

(General laughter.)

MR. LANEY: This began with a presentation from James Bass and I don't want to lose sight of the fact that we have before us a proposal from our staff with respect to the preliminary approval of a $10 million SIB loan, and we could go on and on, but I do think we probably need to focus on that and move forward.

Any comments or questions of Mr. Bass, Robert?

MR. NICHOLS: No. I'll make a quick comment, and then I'll move that we go forward on this thing, and that is on the vesting that you referred to -- extremely important, very helpful to the state. When we can leverage our funds, that makes things go further and faster. And when we're comparing projects, vested from the communities versus totally state funds, everything else being equal, it's very important to have that vesting in there, and compliment you for putting that together. And then using the SIB -- which is what this is for -- to help supplement that is very clever.

So with that comment, I'll just move that we accept the preliminary approval on the loan.

MR. LANEY: I have a motion.

MR. JOHNSON: I'll second.

MR. LANEY: Any comments, Johnny?

MR. JOHNSON: None.

MR. LANEY: Okay. We have a motion and a second for preliminary approval of a $10 million loan for the 121 project. All in favor?

(A chorus of ayes.)

MR. LANEY: It's approved; preliminary approval.

Now we will recess for about ten minutes and allow you all to head out.

(Whereupon, a brief recess was taken.)

MR. LANEY: The Commission meeting is reconvened.

Wes, let me turn it over to you at this point.

MR. HEALD: Agenda Item 5(a) and (b) -- Margot Massey, if you'll come to the front -- two minute orders for your consideration having to do with public transportation.

MR. LANEY: Margot, if you come anywhere as close to the length of the presentation of The Funnel, it will be your last act of office.

(General laughter.)

MS. MASSEY: I understand. My name is Margot Massey. I'm the director of the Public Transportation Division.

Item 5(a), we're requesting your approval of two projects to complete some terminal facilities using federal funding at your discretion, one in Denison and one in San Marcos. These are the last phases of both of these much-needed facilities. We recommend your approval.

MR. LANEY: Questions or comments? If not, may I have a motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: We have a motion and a second. All in favor?

(A chorus of ayes.)

MS. MASSEY: Item 5(b), we're requesting your approval to negotiate and execute an agreement with the Department of Health to do some pilots to test running the Medicaid Transportation Program through the public transportation infrastructure. We think this has a lot of potential for improved service. We recommend your approval to move forward on this.

MR. LANEY: This bears a minute of comment before that. We've had a presentation, as you know, and I think this is a very valuable and far-sighted and far-reaching program, and I commend your involvement in it and I look forward to seeing the results. I think it's going to be very positive for this agency and theirs, as well, so my compliments to you.

MS. MASSEY: I did mean to mention, too, that Commissioner Don Gilbert of the Health and Human Services Commission had hoped to be here today; he has a previous engagement with the House Appropriations Committee.

MR. LANEY: And he selected them over us?

MS. MASSEY: I'm not sure it worked quite that way.

(General laughter.)

MR. LANEY: Any comments?

MR. NICHOLS: I compliment both you and the Department of Health and Human Services for a very creative idea. I think it will be great for the citizens of Texas. With that, I so move.

MR. JOHNSON: And I'll second.

MR. LANEY: We have a motion and second. All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, Margot.

Item Number 6, Aviation, Dave Fulton.

MR. FULTON: Thank you, Wes, Commissioners. My name, for the record, is David Fulton, Director of the TxDOT Aviation Division.

This is a minute order containing a request for funding approval for six airport construction projects and one engineering/design project. Three of the projects are anticipated to be federal and local funding 90-10; three state and local 90-10; and one 50-50, a terminal building. The total estimated cost of all the projects, all seven projects, is a little over $6 million; approximately $3.5 federal and $2 million state, and 660,000 local.

A public hearing was held on January 10, no comments were received, and the Aviation Division would recommend approval of this minute order.

MR. LANEY: Any comments or questions?

MR. NICHOLS: So move.

MR. LANEY: I have a motion.

MR. JOHNSON: Second.

MR. LANEY: And a second. Let me first say, Dave, I got a compliment I needed to pass on to you. I was flying in a state plane last week, and as I got off, the two pilots said, Can we talk to you for a second? And I said, Sure. And they said, Is there any way you can move our agency, the State Pooling Board, to the Texas Department of Transportation? We'd much rather be working for Dave Fulton.

MR. FULTON: I appreciate that comment.

MR. LANEY: So whatever you've done, they like.

MR. FULTON: Well, I think the Department has such an excellent reputation, they'd like to be part of it. This is an old, old ongoing thing they've talked for years to me about. And if you'd permit me just a second, I did go over to the PIO office, and they did give me a list of enhancement projects, and I want to say that I'm real glad to see aviation well represented on that list. We appreciate that very much.

MR. LANEY: We have a motion and a second. All in favor?

(A chorus of ayes.)

MR. LANEY: Thank you, Dave.

MR. HEALD: Mr. Chairman, if we do move that agency, I hope we get the pilots to go with it.

MR. LANEY; We have Robert.

(General laughter.)

MR. HEALD: Agenda Item Number 7(a), and we have a couple of minute orders for your consideration, and these are rules for proposed adoption, Agenda Item 7(a)(1) being the first, James Bass.

MR. BASS: Again for the record, I'm James Bass, Director of the Finance Division.

This minute order proposes new Sections 5.41 through 5.44 to be codified under Title 43 of the Texas Administrative Code relating to the payment of fees for Department goods and services. These new sections will implement the authority granted by House Bill 2247 and Senate Bill 1677, as enacted by the 76th Legislature. These bills added Section 201.208 to the Transportation Code and authorized the Commission to adopt rules regarding the method of payment for a fee for any goods sold or services provided by the Department.

One of the highlights of these proposed rules is that it would allow for some payments to TxDOT to be made using a credit card with a $1 fee being charged for that transaction.

This minute order will allow for publication in the Texas Register for the purpose of receiving public comments, and it's submitted for your approval.

MR. LANEY: Comments? Can we have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: And second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: The next minute order is Agenda Item 7(a)(2), Robert Wilson.

MR. WILSON: Good morning. Again, for the record, my name is Robert Wilson. I'm Director of the Design Division.

This minute order I'm bringing to you this morning is to implement provisions of Senate Bill 537 of the 76th Legislature to allow the Department and a regional toll authority to enter into an agreement for improvements on the state highway system by a regional tollway authority.

These were originally proposed as amendments to Section 15.52 of the Texas Administrative Code at your October meeting. They were advertised for public comment, and we received one comment from the North Texas Tollway Authority questioning whether these rules were appropriately located in that section of the Administrative Code. On further review, we have agreed that these rules are more appropriately located in subchapter (d) of Chapter 27 relating to regional tollway authorities.

Therefore, this minute order proposes that the previously proposed amendments to Section 15.52 be withdrawn and re-proposing them as amendments to Section 27.40 and adding new section 27.44. If you approve this minute order, these rules will again be advertised for public comment and brought back to you later for final approval. Staff would recommend your approval of this minute order.

MR. LANEY: Any questions or comments?

MR. NICHOLS: So move.

MR. LANEY: We have a motion.

MR. JOHNSON: Second.

MR. LANEY: And a second. All in favor?

(A chorus of ayes.)

MR. HEALD: Agenda Item 7(a)(3) is being deferred, I believe until next month, to make some changes in the language in that minute order. That moves us into 7(b), several minute orders, these are rules for final adoption, starting with 7(b)(1), Diana Isabel.

MS. ISABEL: Good morning. I'm Diana Isabel, Director of Human Resources.

This minute order adopts amendments to Section 4.62 through 4.64 concerning employee training and education. The amendments are necessary to implement the legislative changes contained in Senate Bill 223 enacted by the 76th Legislature in 1999, as well as to encourage the professional development of more Department employees. The amendments will also serve the employee training and education programs and employee obligations resulting from participation in those programs and assure that they're properly maintained.

We recommend final adoption of this minute order.

MR. LANEY: Any questions of Diana?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Again, still rules for final adoption, 7(b)(2), Thomas Bohuslav.

MR. BOHUSLAV: Good morning, Commissioners. My name is Thomas Bohuslav. I'm the Director of the Construction Division.

Item 7(b)(2) is for the repeal of Sections 9.4, 13.3, and 15.11 through 15.12, and final adoption of new Section 9.4. New Section 9.4 incorporates the requirements of Title 6 of the Civil Rights Act of 1964. These rules are being revised to include consultants and universities in the Department policy for employment practices of contracting agencies to ensure compliance with Title 6 of the Civil Rights Act.

Section 13.3 are rules for product evaluation. The product evaluation rules are more explicit in Section 15.13; and, therefore, Section 13.3 is proposed for repeal.

Section 15.11 contains rules for the Department's research program. The education code contains provisions to conduct the Department's research program; and, therefore, Section 15.11 is proposed for repeal.

Section 15.12 includes provisions for the Department's research program to be in compliance with Title 6 of the Civil Rights Act. These provisions have been moved into Section 9.4, and Section 16.12 is therefore proposed for repeal.

Staff recommends adoption. Would you like for me to keep going to the next one?

MR. LANEY: Yes, you can go ahead.

MR. BOHUSLAV: I've got two more. Do you want me to go ahead?

MR. LANEY: Why don't you go ahead.

MR. BOHUSLAV: Okay. Item 7(b)(3)(a) is for the proposed final adoption of amendments to Section 9.5 of the Transportation Code. Section 9.5 prescribes the policy and procedures by which TxDOT will ascertain prevailing rate of wages and administer and enforce prevailing rate of wages as required by Government Code, Chapter 2258. Statutory references contained in Section 9.5 have been revised to refer to the current amended or new statutory citations, and other revisions have been made to reflect the current Department organizational structure and operational changes. Staff recommends adoption.

Item 7(b)(3)(b) is for the proposed adoption of amendments to Section 9.6 of the Transportation Code. Section 9.6 contains procedures for debarment of a contractor. In addition to updating the rules to reflect the Department's current organizational structure, a new subparagraph has been added which states that a contractor may be debarred for furnishing a nonnegotiable proposal guarantee. The change is needed to protect the integrity of the bidding process. Staff recommends adoption.

MR. LANEY: Let me stop you there. We covered a lot in this, and I think we probably ought to vote them separately. My fault, Thomas, not yours.

Any questions on either 7(b)(2) or (b)(3)(a) or (b)?

MR. NICHOLS: I move we adopt.

MR. JOHNSON: I'll second.

MR. LANEY: Okay. This is for 7(b)(2) repeal of Section 9.4, et cetera, for Title 6 compliance. All in favor?

(A chorus of ayes.)

MR. LANEY: We'll take (a) and (b) together. 7(b)(3)(a) and (b), amendments to Section 9.5 and 9.6 on debarment and labor provisions. May I have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: A motion and a second. All in favor?

(A chorus of ayes.)

MR. HEALD: That takes us to Item 7(b)(3)(c), Jennifer Soldano.

MS. SOLDANO: Good morning. For the record, my name is Jennifer Soldano. I am the Director of the Contract Services Office.

This minute order adopts amendments to Sections 9.80 through 9.88 concerning contracts for scientific, right of way acquisition, and landscape architectural services. The amendments set forth procedures for the selection of landscape architects and make minor revisions to the selection procedures for scientific technical experts. The amendments also set forth procedures for right of way acquisition providers when the acquisition requires the services of an appraiser.

The amendments were proposed at the November Commission meeting and were published in the Texas Register with a comment deadline of January 3. One written comment was submitted on the proposed amendments and is addressed in Exhibit B to your minute order. We recommend that the amendments be adopted without changes.

MR. LANEY: Any comments or questions? May I have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, Jennifer.

Agenda Item 7(b)(4)(a), still more rules for final adoption. I believe we've got two that Jerry Dike is going to handle and that would be (a) and (b).

MR. DIKE: My name is Jerry Dike, Director of Vehicle Titles and Registration Division.

You have before you two minute orders, both in Chapter 17. One is amendments to 17.21, .28 and .30; the other is 17.53 through .55. These enacted five legislative bills: House Bills 1227, 1176, House Bill 2461, and House Bill 2004 and 3014. We received one public comment. It's not in your background; it was omitted; but we were unable to make any changes because the statute was very specific. We recommend adoption of the rules.

MR. LANEY: Any questions on 7(b)(4)(a) or (b), the two minute orders?

MR. NICHOLS: No questions.

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: We have a motion and a second. All in favor?

(A chorus of ayes.)

MR. LANEY: Thank you, Jerry.

MR. HEALD: Agenda Item 7(b)(5) -- we've got so many numbers here, I'm having a hard time keeping up with it -- 7(b)(5)(a) under Chapter 25, Traffic Operations, we have two minute orders there for your consideration. Carlos Lopez.

MR. LOPEZ: Good morning, Commissioners. My name is Carlos Lopez, and I'm Director of the Traffic Operations Division.

The minute order before you proposes repeal of existing Section 25.12 and final adoption of new Sections 25.20 through 25.25. Section 25.12 incorporates the Department's procedures for establishing speed zones into the Texas Administrative Code by reference. The new sections will incorporate the complete text of the Speed Zone Procedures Manual into the Texas Administrative Code.

The proposed revisions will also incorporate the provisions of: House Bill 676, which allows a county commissioners court, by resolution, to request a lower speed limit on certain FM roadways; House Bill 434, which changes the population requirements for a private subdivision to be able to ask the commission to set speed limits on a private road within its boundaries; and Senate Bill 537, which requires toll authorities to set speed limits in accordance with TxDOT procedures.

We received no comments on this item and recommend approval of the minute order.

MR. LANEY: Any comments or questions?

MR. NICHOLS: So move.

MR. LANEY: We have a motion.

MR. JOHNSON: Second.

MR. LANEY: And a second. All in favor?

(A chorus of ayes.)

MR. LOPEZ: Item 7(b)(5)(b), this minute order revises the existing rules on the Logo Sign Program. The minute order incorporates the requirements of House Bill 1779 regarding eligibility of certain lodging establishments to obtain a logo sign. The rule revision also clarifies that a business requesting a variance must be located at or near grade separated intersections and specifically allow the restaurant to request a variance based on hours of operation.

We received no comments on this item and recommend this minute order for final adoption.

MR. LANEY: May I have a motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. LOPEZ: Thank you.

MR. HEALD: Commissioners, I want to assure you that minute order having to do with establishing speed zones on a county road was not a part of our legislative agenda. I hope that's the end of it.

Agenda Item 7(b)(6) Toll Projects, Al Luedecke.

MR. LUEDECKE: Good morning, Commissioners. I'm Al Luedecke, Director of Planning and Programming Division.

This minute order adopts revisions to Section 27.20 concerning the pooling of turnpike projects. The revised rules implement Senate Bill 926 enacted by the 76th Legislature in 1999. In addition to pooled projects being partially or wholly located in the territory of a metropolitan planning organization, they can now be in two adjacent districts of the Department. The Commission, by Minute Order 107938, dated September of 1999, authorized publication of the proposed rules for adoption in the Texas Register for the purpose of receiving public comments; no comments were received. We recommend your approval of this minute order.

MR. LANEY: May I have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: That completes our rules for final adoption. We have several rule reviews to go over with you, that being Agenda Item 7(c)(1), beginning with Thomas Bohuslav.

MR. BOHUSLAV: Good morning, Commissioners. My name is Thomas Bohuslav. I'm the Director of the Construction Division.

Item 7(c)(1) is for the rule review in accordance with Article 9 of the General Appropriations Bill for Fiscal Year 2000-2001 and the Government Code, Section 2001.039. Staff recommends approval.

MR. LANEY: May I have a motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: A motion and a second. All in favor?

(A chorus of ayes.)

MR. HEALD: 7(c)(2), Dianna Noble.

MS. NOBLE: Good morning, Commissioners. For the record, my name is Dianna Noble, Director of Environmental Affairs.

Agenda Item 7(c)(2) is regarding our review of our comprehensive policy on the environment, our memoranda of understanding with natural resource agencies, and our rules regarding environmental review and public involvement of transportation projects.

The purpose of the review was to determine whether reason for each rule continued to exist. Public comments were solicited in December regarding this rule review; no comments were received. The reasons for having these sections continue to exist. Staff recommends you re-adopt these rules.

MR. LANEY: Any comments? May I have a motion?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: 7(c)(3), Zane Webb.

MR. WEBB: For the record, my name is Zane Webb with the Maintenance Division.

The minute order before you readopts 43 TAC Section 25.3, Installation of Pay Telephones. The proposed rule review was published in the Texas Register on November 12, '99. No comments were received regarding the readoption of this section. The reasons for readoption continue to exist. The Maintenance Division recommends approval.

MR. LANEY: Questions? Can I have a motion, Johnny?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Agenda Item Number 8, under Programs, John Campbell, and I believe he's going to discuss relocation of an irrigation flume crossing, and I believe you've got some photographs or pictures in front of you there to try to understand this better. John.

MR. CAMPBELL: Good morning. I'm John Campbell, Director of the Right of Way Division, and I'd like to present for your consideration Item 8(a) which is a minute order to authorize funding for the relocation of an irrigation flume crossing over FM 563 in Liberty County.

The flume is owned and operated by the Devers Canal Rice Producers Association, and it's a component of a canal system which moves irrigation water from the Trinity River through Liberty, Chambers, and Jefferson Counties. Our Beaumont District, along with Liberty County, and the Canal Association, have identified a number of safety concerns associated with the facility and its intersection with FM 563 and propose to evaluate alternative feasibility, remove and replace the flume, and acquire any required right of way for an estimated amount of $1,250,000. The Right of Way Division concurs with the district's recommendation and recommend your approval.

MR. LANEY: Any questions?

MR. NICHOLS: So move.

MR. LANEY: Can I have a second?

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, John.

Item 8(b), (c), and (d), Al Luedecke will handle.

MR. LUEDECKE: Commissioners, for the record, I'm Al Luedecke, Director of the Transportation Planning and Programming Division.

This minute order authorizes the replacement of a bridge at Big Elkhart Creek on Oak Grove Road near the city of Grapeland. The bridge was replaced in 1989 under the Off-State System Federal Aid Bridge Replacement and Rehabilitation Program. Since that time, the bridge has been subjected to flooding in 1990 and 1994, as well as significant rainfall occurrences following 1994. The bridge is now partially closed and has been determined to be structurally deficient.

The bridge is currently authorized in Priority 2, Category 6B, Off-State System Bridge Rehabilitation Program of the 2000 Unified Transportation Program. The total estimated cost for the bridge is $55,000, which includes 20 percent state match. Due to the unusual circumstances that led to this structure's present condition and the need for the original design to be modified, staff recommends a waiver to the county's normal requirement of 10 percent participation.

With your approval of this minute order, we may proceed with the replacement of this bridge, using the Category 6B funding. We recommend your approval of this minute order.

MR. LANEY: I've got a quick question. I don't have any problem with this and don't want to spend a lot of time on it, but it's curious that this was not discovered during the period in which they could have asked for Federal Emergency Management funds, or whatever they're called. Do you know why?

MR. LUEDECKE: I'm not sure why they hadn't asked for it up to this point.

MR. LANEY: Anyway --

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Mr. Chairman, if I could, I'd like to make one point here. You know, we're really under scrutiny with counties to try to keep the cost of these bridges down, and to some extent, that means sacrificing the design. We're very concerned about, you know, if we have failures on these kind of structures, whether it's a flood or whatever the situation is, and then having to come back and ask the county for a share to repair the bridge. It's just a concern that we have, and we're trying to make sure that we protect our design.

MR. LANEY: I appreciate that. The thing that caused me concern -- even though it's such a small cost to us -- is it reads in our briefing: "Had the damage been realized during the periods when the county was declared a disaster area, the bridge would likely have been rehabilitated using Federal Emergency Relief funding," rather than ours. I'm just glad it's not a million-and-a-half dollar bridge.

MR. HEALD: Go ahead, Al.

MR. LUEDECKE: Item 8(c), this minute order authorizes the annual state and federal bank balance allocation programs. The minute order passed last December approved the project selection process and also approved the formulas to be used in the allocation programs you have before you today. The staff recommended program funding amounts that were then used to calculate the program amounts in each category for each district or program. Since fiscal year 2004 will be in the first year of the next surface transportation legislation, allocations are based on estimated future revenues.

This program also includes a supplementary allocation for distribution to the districts from the headquarters. This rehabilitation program, designed to further aid the districts in preservation of the state highway system, is funded at $50 million per year for each of the four years the allocation covers. We recommend your approval.

MR. LANEY: Any questions? Can I have a motion?

MR. NICHOLS: I got my questions answered earlier. I so move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. LUEDECKE: Item 8(d), the Transportation Equity Act for the 21st Century set aside discretionary funds under Section 1118 for the National Corridor Planning and Development Program. The Department has already received $4.23 million in NCPD funds for fiscal year 1999 and an additional $15 million in funds for fiscal year 2000 to be used in conducting studies for the Corridor 18 Interstate Highway 69 throughout Texas. Previous studies have found that the freeway-type facility within the designated I-69 corridor from Indianapolis, Indiana, to the Lower Rio Grande Valley would be feasible.

This minute order authorizes the expenditure of the $15 million in funds received under the Corridor Planning Program for fiscal year 2000 for route location and environmental studies along the designated corridor through Texas, in compliance with TEA-21. We recommend your approval of this minute order.

MR. NICHOLS: Are you still looking at hearings in the Houston area this summer? Is that still scheduled?

MR. LUEDECKE: We're going to put together the RFP to start that; it probably won't make it this summer by the time we get the consultants on board.

MR. NICHOLS: Any estimate on when those hearings will start?

MR. LUEDECKE: About fall we would have them all across the state.

MR. NICHOLS: I so move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, Al.

Item Number 9, you've already approved the Denton County SIB loan. That would bring us to Item 9(b), (c), and (d), James Bass.

MR. BASS: Again for the record, I'm James Bass, Director of the Finance Division. I have three agenda items, all proposed SIB loans for preliminary approval.

Item 9(b) seeks preliminary approval of a loan to the City of Stamford in the amount of $300,000 to pay for the relocation of utilities required for the rehabilitation of US 277 in the city and to pay for installation of replacement utility lines within the project limits. The city has requested a 4-1/2 percent interest rate with a ten-year payback period, and if approved, we will negotiate with the city for a more favorable payback period of five years. Staff recommends approval.

MR. LANEY: Any questions?

MR. NICHOLS: So move.

MR. JOHNSON: Second.

MR. LANEY: We have a motion and a second. All in favor?

(A chorus of ayes.)

MR. BASS: Item 9(c) is for preliminary approval of a loan to Lavaca County in the amount of $335,092 with a contingency for up to an additional 20 percent to fund a portion of the cost to purchase right of way for and to replace seven deficient off-system bridges throughout the county. The county has requested a 4 percent interest rate with an eight-year payback period. If approved, we will negotiate with the county for a more favorable payback period of five years. Staff recommends approval.

MR. LANEY: Motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: Two motions and one second. All in favor?

(A chorus of ayes.)

MR. BASS: Item 9(d) seeks preliminary approval of a loan to the City of Rockdale in the amount of $1 million to pay for the relocation of utilities required for the expansion of US 79 in the city and to pay for installation of a new utility line within the project limits. The city has requested a 4.75 percent interest rate with a 15-year payback period, and if approved, we will negotiate with the city for a more favorable payback period of five to eight years. Staff recommends approval.

MR. LANEY: If you don't get these more favorable terms, you'll come back to us. Right?

MR. BASS: Correct.

MR. LANEY: May I have a motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Item Number 10, under Contracts, that being 10(a)(1) and (2), Thomas Bohuslav.

MR. BOHUSLAV: My name is Thomas Bohuslav. I'm the Director of the Construction Division.

Item 10(a)(1) is for consideration of award or rejection of highway maintenance contracts let on January 4 and 5 of 2000. We have one project we recommend for rejection; it's a project in Bowie County on US 82. We had one bidder; the project was 20 percent over. And the district had discussed this with some of the other contractors in the area that did not bid on the job and found that they could make some changes in the plans to clarify some issues and do some redesign work to get more competition and save some money. Staff recommends award of all projects with the exception noted.

MR. LANEY: Any comments or questions? Can I have a motion? Do you have a question?

MR. NICHOLS: Well, I was going to make a comment, and it really refers to both this and the highway construction thing, and that is, I think it's noteworthy to point out that on the maintenance contracts, the percent underrun was 9-1/2 percent, and on the other construction contracts it was almost 3 percent under engineering estimates, which is kind of a reversal of the trend we saw earlier, last 12 months. With that, I so move we accept.

MR. LANEY: Motion. Can I have a second?

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. BOHUSLAV: Item 10(a)(2) is for consideration of award or rejection of highway construction contracts let on January 4 and 5 of 2000. Staff recommends award of all projects in the exhibit. Any questions?

MR. LANEY: Any questions?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. LANEY: Thomas, that's a great number of bids per project, five bids per project.

MR. BOHUSLAV: It's come up, and I can't explain that. We had our heavy lettings, and it was down to three or so this last summer. But it's come up, and the previous months we had a lot of competition. Now, I think that one impact at this time of year is we have a lot of our seal coat projects let, and we have a lot of competition in that area, and that drives it up somewhat. But right now I can't explain it.

MR. HEALD: It has gone up, Commissioners, from about 3-1/2 to 5, and we're very pleased with that. Now we're more concerned about performance. I see Tom Johnson sitting out there.

MR. LANEY: Say that last thing you said.

MR. HEALD: About performance?

(General laughter.)

MR. HEALD: 10(b), Zane.

MR. WEBB: For the record, my name is Zane Webb with the Maintenance Division.

Commissioners, this minute order proposes an award of the contract to the second lowest bidder. The low bidder on mowing Contract Number 12991910 in Bowie County failed to execute the contract. The executive director has determined that the second lowest bidder is willing to perform the work at the unit bid prices of the lowest bid and that the unit bid prices are reasonable. Section 221.0041 of the Transportation Code allows a maintenance contract to be awarded to the second lowest bidder under these circumstances. Maintenance recommends approval.

MR. LANEY: Is this the first time we've done this under that new statute?

MR. WEBB: Yes, sir.

MR. LANEY: Terrific.

MR. JOHNSON: Out of curiosity, how many bidders were there?

MR. WEBB: Thomas, can you tell me how many bidders were there on this contract where the first low one was rejected? He probably wouldn't know, but we can find out for you.

MR. JOHNSON: I hope the answer is more than two.

(General laughter.)

MR. LANEY: Can I have a motion?

MR. NICHOLS: I so move.

MR. JOHNSON: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, Zane.

Item 10(c), we have one contract claim, Mike Behrens.

MR. BEHRENS: Mike Behrens, Engineering Operations.

This minute order, Commissioners, seeks approval for a claim settlement for a contract claim filed by Sunmount Corporation for Project CSR 1181-2-26 in Johnson County in the Fort Worth District. The contractor filed a claim in the amount of $162,626.68 for additional compensation. The Contract Claim Committee met on December 1, and after listening to both parties, offered a settlement to the contractor of $50,000. By letter dated December 6, '99, the contractor accepted the settlement offer, and we recommend approval of this minute order.

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: A motion and a second. All in favor?

(A chorus of ayes.)

MR. HEALD: Thank you, Mike.

Item Number 11 under Routine Minute Orders, I will go over these in order and without stopping, unless you stop me, the first one being 11(a), Speed Zones, establish or alter regulatory and construction speed zones on various sections of highways in the state.

11(b), redesignation of a highway in Denton County. Redesignate a segment of FM 2164 to US 77, and add Locust Street to the state highway system as US 77.

11(c) Right of Way Disposition, Purchase and Lease. In Collin County, consider the quitclaim of a tract of surplus right of way to the original donor. That was 11(c)(1).

11(c)(2), in Comal County, designation of a portion of a tract of land as an uneconomic remainder.

Item 11(c)(3), in Harris County, consider the sale of a tract of surplus right of way to the abutting landowner adjacent to IH 45.

Item 11(c)(4), in Williamson County, on the east side of FM 1660, consider the exchange of a tract of surplus right of way for two parcels of needed right of way. I understand on FM 973 on the east side of 1660.

11(d) Eminent Domain Proceedings - Request for eminent domain proceedings on noncontrolled and controlled access highways, and you have a list of those.

And, Mr. Chairman, that completes the routine minute orders.

MR. LANEY: Okay, 11(a) through (d), can I have a motion?

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. HEALD: And we're not requesting an executive session.

MR. LANEY: If there's no need for an executive session and no further business before the Commission, I'll entertain a motion to adjourn.

MR. JOHNSON: So move.

MR. NICHOLS: Second.

MR. LANEY: All in favor?

(A chorus of ayes.)

MR. LANEY: The time is now 11:44, and the Commission meeting is adjourned.

(Whereupon, at 11:44 a.m., the meeting was concluded.)

C E R T I F I C A T E

 MEETING OF: Texas Transportation Commission
LOCATION: Austin, Texas
DATE: January 27, 2000

I do hereby certify that the foregoing pages, numbers 1 through 103, inclusive, are the true, accurate, and complete transcript prepared from the verbal recording made by electronic recording by Penny Bynum before the Texas Department of Transportation.

_____________02/07/2000
(Transcriber) (Date)

On the Record Reporting, Inc.
3307 Northland, Suite 315
Austin, Texas 78731