Texas Department of Transportation Commission Meeting

Commission Room
Dewitt Greer Building
125 East 11th Street
Austin, Texas 78701-2483

9:00 a.m. Thursday, August 30, 2001

COMMISSION MEMBERS:

JOHN W. JOHNSON, Chair
ROBERT L. NICHOLS
RIC WILLIAMSON

STAFF:

CHARLES W. HEALD, Executive Director
RICHARD MONROE, Legal Counsel
HELEN HAVELKA, Executive Assistant, Engineering Operations
 

PROCEEDINGS

MR. JOHNSON: Good morning. It is 9:09 a.m. and I would like to call this meeting of the Texas Transportation Commission to order. I would like to welcome you to our August meeting; it is a pleasure to have you here today.

Please note for the record that 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 August 22, 2001.

I think it should come as no surprise to anyone in the room that this is Wes Heald's last meeting as executive director, and we will honor Wes at an appropriate time during the meeting.

But Wes, your contributions to this department and this state have been very special and significant and we're very grateful. Forty years of service to the department and state and the last three, almost four, years as executive director, I think that everyone owes you a deep debt of gratitude.

Also, it should come as no surprise that Mike Behrens has been elected by the commission to commence service as executive director effective September 1, and we have a great deal of confidence in Mike's ability to lead this department forward.

Before we get started, I'd like to ask my colleagues, Commissioners Nichols and Williamson, if they have any observations or comments. Robert?

MR. NICHOLS: I'm going to echo the chairman on Wes. I think we were talking last night that it seems like we ought to have a change of the guard or flags or something on executive directors, but there's not. I know we're going to have your dinner tonight so I'll certainly have a lot of comments then, but in front of this group I want everyone to know how much I really appreciate what you have done. We've been doing this together now for what, 3-1/2 years?

MR. HEALD: Yes, sir.

MR. NICHOLS: And you've done a great job, you've directed in a very strong direction toward basics, getting projects done. I think the results are evident statewide; I think there are orange cones scattered everywhere all over the state -- that's a testimony to what you've done -- and a lot of them have been taken off as a project is completed. But anyway, thanks an awful lot, and I'll say more tonight. Thank you.

MR. WILLIAMSON: Mr. Chair, I'll also say more tonight, but let me just reinforce what you and colleague Nichols had to offer to the public. As a former member of the legislature, I can say quite candidly, to paraphrase scripture, the department was once lost and it became found because Wes Heald took us back to the basics of perfection of building highways and running the transportation system, and as a taxpayer, I'm grateful.

MR. JOHNSON: The first item on the agenda is the approval of the minutes of our meeting on July 26 and the August 14 and 15 special meetings of the Texas Transportation Commission. Is there a motion to that effect?

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

As we mentioned that Wes will be retiring, likewise we have some other retirements of note: Gene Adams, Al Luedecke, and Robert Wilson. If you add the years of service of those individuals plus Wes's, I came up with a number of 135 years, plus or minus a month or two, and when you consider four individuals retiring at the same time with that amount of service, one, you're very grateful for the contributions that they have made because this department's lifeline has been long and devoted and loyal service and they have set a shining example of just that, and as Ric said, sometimes we are lost but now we're found, and we're going to miss each of these gentlemen in their own special way, and the capacities that they served this department and this state have been numerous, and we have a resolution for each of them.

We're going to do all four resolutions at the same time rather than having people get up and sit down and get up and sit down, and then after we do the resolutions, we'd like for Gene and Al and Robert and Wes to come forward and we'll group everybody have a brief photo shoot, and then we'll get back to the regular part of the agenda.

The first resolution -- which I'm going to read -- is for Robert Wilson, and then Ric is going to read Al Luedecke, and then the East Texas brethren, Mr. Nichols, will honor Gene Adams, who the other night -- I've got to put this dig in -- there's mention of archaeological pursuits, and Robert, at a dinner for Gene's retirement, made the observation that perhaps Gene was here before the archaeologists, what they were finding was even there. So anyway, to each of you gentlemen, and of course to you, Wes, our heartfelt gratitude for all you have contributed.

"Whereas, the Texas Transportation Commission takes great pride in recognizing Robert Wilson, who has served with the Texas Department of Transportation for more than three decades and most recently as the director of the department's Design Division;

"And whereas, in 1972 Mr. Wilson earned a bachelor's degree from Texas Tech University in civil engineering and began his TxDOT career as an engineering assistant in the Odessa District;

"And whereas, Mr. Wilson in 1977 achieved his license as a professional engineer;

"And whereas, Mr. Wilson has served the department in a variety of roles including: engineering assistant, design engineer, district traffic engineering, district field operations engineer, assistant director of the Highway Design Division, and as design director, Mr. Wilson in 1999 was honored by the Civil Engineering Academy of Texas Tech University which bestowed upon him membership in the academy and the academy's Civil Engineering Excellence Award;

"And whereas, Mr. Wilson has supervised projects, helping to expand the state's infrastructure and to develop the state's economic prosperity;

"And whereas, Mr. Wilson possesses a loyal heart dedicated to serving the people of Texas;

"Be it, therefore, resolved that the Texas Transportation Commission does hereby extend its sincerest best wishes to Mr. Robert Wilson for the professional career achievements and loyal service to and on behalf of the State of Texas and its citizens."

Robert, would you come forward, please, sir?

(Applause.)

MR. WILLIAMSON: Chairman, it's my great privilege to read into the record the resolution for Mr. Luedecke. It's particularly a privilege for me because I'm interested in simplicity and Mr. Luedecke exemplifies the professionalism of the department. Things have been done a certain way for a long time; the three of us asked for some changes to be made; here's a man at the end of his department career, starting to begin his civil career, and he never blinked, he sat down and said, Okay, what do you want, we'll do it. And that's sort of the spirit of TxDOT: Tell us what you want and we'll build it.

The resolution, Al, reads:

"The Texas Transportation Commission takes great pride in recognizing Alvin R. Luedecke, Jr., who has served with the Texas Department of Transportation for nearly three decades, most recently as the Director of Transportation Planning and Programming.

"Mr. Luedecke earned his civil engineering degree in 1970 and his master's degree in engineering in 1971."

What school is this? Oh, Texas A&M. Excuse me. Texas A&M University in College Station.

(General laughter.)

MR. WILLIAMSON: "Whereas, Mr. Luedecke, in 1975 achieved his license as a professional engineer;

"And whereas, Mr. Luedecke has devoted his life to public service in the field of transportation as director of Traffic Safety, as signal operations engineer in the Maintenance and Operations Division, as district traffic engineer in the Lufkin District, and as engineering assistant in the El Paso District;

"And whereas, Mr. Luedecke has been charged and has delivered on planning for statewide urban and rural multimodal transportation programs, for long-range programming for the Statewide Transportation Improvement Plan, for analysis and projection of traffic data, for collection, maintenance and reporting of roadway data;

"And whereas, in 1991 he received the Dr. L.I. Hughes Award from the Western Association of State Highway and Transportation Officials;

"And whereas, he is an exemplary and distinguished gentleman, regarded by his wife Pat and their daughters as the perfect father and husband -- daughters being Hope and Joy -- has been a committed husband and father for all these years, Mr. Luedecke will now retire from public service to pursue a life of private endeavors;

"Be it resolved that the Texas Transportation Commission hereby recognizes and sincerely thanks Alvin R. Luedecke, Jr., for his professional career achievements and his loyal and dedicated service on behalf of the state and its citizens."

Al, are you out there?

(Applause.)

MR. NICHOLS: Are you ready for me to go? All right.

This is for Gene Adams, and Gene, I read this thing in its entirety at Gene's retirement dinner the other night, so I'm going to go through and really present some of the highlights, and that is that the Texas Transportation Commission wants to take great pride in recognizing you for the almost four decades of work that you've done, starting with a degree from A&M.

I want to read off some of these different jobs that Gene has done because it's amazing. His roles include: engineering assistant, assistant resident engineer, public affairs officer, environmental coordinator, archaeologist -- as was mentioned before -- automation engineer, urban planning engineer, maintenance engineer, design engineer, district operations engineer, deputy district engineer, district engineer in the Atlanta District, and especially for the last year or so, special assistant to the executive director where he had an opportunity to go all over the state and be Wes's kind of right arm in communication and contact.

In the years that you have worked -- and I think I first met you, really, in the early '80s -- you have been a gentleman, you have dedicated yourself not only to this state but to the other employees who worked with you and for you and mentored them, and we are all better for it.

And for all these things, the commission hereby extends its sincerest and best wishes to you, Gene, for the professional career achievements and loyal service on behalf of the State of Texas, and it is signed by all the commission.

(Applause.)

MR. JOHNSON: Wes, we have a resolution for you. It says that you attended the University of Texas. Is that correct?

(General laughter.)

MR. JOHNSON: Whereas, Mr. Heald in 1960 earned a bachelor's degree from Texas A&M University in civil engineering and in 1961 began his career with the department as a senior engineering assistant in the Houston District. In 1965 he achieved his license as a professional engineer, and in 1970 was designated Young Engineer of the Year by the Abilene Chapter of the Texas Society of Professional Engineers.

In the year 2001 Wes received the Distinguished Graduate Award from the Department of Civil Engineering at Texas A&M University. He has witnessed and played a part in many of the most monumental changes in highway systems serving Texas and Texans. He has served as district engineer in the Brownwood District, the Fort Worth District, supervising projects helping to expand the state's infrastructure and the state's economy.

He has worked every day to make transportation in Texas safe for travelers and he works every day to help develop the state's economic prosperity. He possesses a loyal heart dedicated to serving the people of Texas, and I must add, with great passion.

He is an exemplary and distinguished gentleman, regarded by his wife Dorothy and their children, Debra Lynn and Darrell Wesley, as a committed and devoted husband and father.

"Therefore, be it resolved that the Texas Transportation Commission does hereby extend the sincerest best wishes to Mr. Wes Heald, Professional Engineer, for his career, achievements and loyal service on behalf of the State of Texas and its citizens."

Wes, as a sidebar to all of this, in our interviews over the last two weeks for your successor, we asked each of them what were the strengths of the department, and in one form or another, the answer was "its people". Now, as I mentioned to you last night, it's difficult to lay at your feet the responsibility that you selected all 14,000 employees and nurtured them to the greatness that they have achieved, but what I think we can lay at your feet, with great thanks, is the attitude that those 14,000 employees have and the product which they deliver on a daily basis.

I thank you so very much for all that you have done in the last 40 years and certainly in the last 3-1/2 or 4 years as executive director. It gives me a great deal of honor and it's a high privilege to present this award to you.

(Applause, and pause for photographs.)

MR. JOHNSON: Wes, the last thing is the commission has a small gift for you. This is part of it, and it takes a highway engineer to figure out; it might be a lamp.

MR. HEALD: I think it's a hard hat, isn't it?

(General laughter.)

MR. WILLIAMSON: It's a nice lamp.

MR. HEALD: Dorothy said that she asked for it, that's what happened.

MR. JOHNSON: You needed something for your office, so please enjoy.

MR. WILLIAMSON: Although, it's not going to do you any good out in the pasture shooting doves.

MR. JOHNSON: Do they even have electricity in Brownwood?

MR. HEALD: I don't much care, to be honest with you.

MR. WILLIAMSON: He said no, but they've got a hell of a highway system.

(General laughter.)

MR. JOHNSON: The next item on the agenda is a report by Transportation Excellence for the 21st Century Coalition, or what we commonly refer to as TEX-21. I would like to call on Linda Harper-Brown to get us started.

Linda, welcome; the floor is yours.

MS. HARPER-BROWN: Thank you, Mr. Chairman.

MR. JOHNSON: I understand you have a distinguished group of participants.

MS. HARPER-BROWN: A group of participants, very distinguished.

Good morning. My name is Linda Harper-Brown; I'm a council member for the City of Irving and I am chair of TEX-21.

Let me also introduce my colleagues that are with me today: Bob Barnes is a private businessman and chairman of the MOTRAN-NAFTA Corridor Coalition; Wayne Defebaugh is the president of Blacklands Railroad; Sandy Greyson is a Dallas City Council member; Layman Harang is with the View Cast Systems; Ken Lambert is a Plano City Council member; Ken Mayfield is a Dallas County commissioner and is treasurer of TEX-21; Rick Menchaca is city manager for the City of Midland; former Denton Mayor Jack Miller is the vice-chair of TEX-21; Houston City Council member Carroll Robinson is co-chair of TEX-21 Texas Mobility Fund Task Force; Charles Scoma is mayor of North Richland Hills; and Grady Smithey is mayor pro-tem for the city of Duncanville.

It's an honor for us to be here this morning. We thank you for seeing us. All of the growth and jobs in Texas and all of the new products developed by new technologies are useless unless people can get to work and products can get to markets. Texas needs a better transportation system to get these people to work and these products to their market, and those transportation systems need funding.

It is TEX-21's intent to raise the tide of funding for transportation systems in Texas with the expectation that the rising tide will provide more access to funds for all of the projects needed in all of the regions of the state. Several of our representatives are now going to be presenting different aspects of the work of TEX-21. Let me turn the podium over to Midland City Manager Rick Menchaca.

MR. MENCHACA: Thank you, Linda.

My name is Rick Menchaca, city manager of the City of Midland. Usually Menchaca is referred in Austin as "Manchak"; there's a Manchaca Road over here.

But again, thank you and good morning. I have two points to make to the commission this morning, and the first, through TEX-21, cities and counties are beginning to come together in a major way and accepting their responsibility to play an even larger role in transportation planning. I am a representative of a large, growing number of city managers from throughout Texas who are stepping up to this arena and becoming active in TEX-21 to do our part.

Secondly, Midland and Odessa are key parts to the MOTRAN-NAFTA Corridor of which Bob Barnes is chairman. This slide here shows the location of MOTRAN and the next slide will show the location of other major trade corridors throughout the state of Texas.

The counties in gray are the ones that are not bordering the county as a major traffic corridor and you can see that there are not many such counties. All of those in the many colorful counties are the ones affected by NAFTA traffic and they almost cover the entire state. It is a recognition of this statewide impact of insufficient transportation funding that has brought urban and rural, east and west, north and south together to form TEX-21.

Each of us can compete vigorously and parochially once money gets allocated to Texas, but we must first work collectively to get the funds to Texas. TEX-21 is a vehicle to do just that.

Now I'd like to introduce Commissioner Ken Mayfield who will give you the county's perspective.

MR. MAYFIELD: Thank you, Rick, and good morning, gentlemen. Besides being treasurer of TEX-21, I am also president-elect of the National Association of Counties. In that capacity I will be mobilizing support for increasing awareness nationally for the need for greater transportation funding. Hopefully that action will help increase the size of the national transportation funding pie from which TEX-21 will work to increase the slice that Texas gets.

TEX-21 is also organizing a TEX-21 Congressional caucus to help maintain focus on this critical issue. Together with my good friend TEX-21 secretary and Harris County Judge Robert Eckels, we represent a significant and growing group of counties who are making TEX-21 membership and participation a priority. TEX-21's ability to develop creative and organized approaches and to maintain focus in the pursuit of its objectives has been a significant factor in continuing membership growth.

I want to turn the podium over now to North Richland Hills Mayor Charles Scoma who will give you a little history regarding TEX-21's effectiveness in Texas.

MAYOR SCOMA: Thank you, Ken; good morning, gentlemen. It's a pleasure to be here.

The last two years TEX-21 has conducted some 24 regional meetings; many of those and some of those are committee meetings. We passed 22 resolutions during that time of which ten became legislative packets, and from that ten we were able to get nine that passed the Senate, six that passed both the Senate and the House and were signed by the governor. The six that were passed were: toll road equity, the graduated driver's license, as well as rail abandonment, open container prohibition, truck safety, and the Texas Mobility Fund.

Now, while we were pleased with those efforts, we still have work to do. We have now two major tasks that are in front of us: The first one is that of Proposition 15 and the second is the reauthorization of TEA-21. To that end, we recently had the Texas Transportation Summit in Irving. At that time, we had a call to arms of fighting for these two propositions.

At this time I'm going to introduce City Councilman Ken Lambert from the City of Plano, and he's going to give you a brief summary of the summit that we just recently had.

MR. WILLIAMSON: Thank you, Mayor.

MR. LAMBERT: Thank you, Charles; thank you, ladies and gentlemen.

The fourth annual Transportation Summit was a resounding success. One problem with transportation is that over time citizens get the attitude that they either have to just live with congestion or move because it appears budget constraints will not allow the problems to be solved in a timely fashion. What became clear at the summit was that there are a lot of leaders who truly recognize the problems and have brainstormed to develop very innovative methods to start putting these problems behind us now.

In addition, the summit got key decision makers in the tent, including Secretary of State Cuellar, Senator Shapiro, Governor Perry, Transportation Secretary Mineta, Senator Hutchison, five or six other congressmen, scores of other state, county and local officials, and you, Commissioner Nichols, at the meeting. We thank you and them for listening and participating.

The summit was an enabling event. Anyone who attends knows solutions to transportation problems are available and we attendees were also motivated to start enacting these solutions. My first reaction was to return to the city of Plano and ask the city council to allow us to join TEX-21 as a permanent member and the council agreed unanimously.

It is now time to move enthusiastically to motivate the voters to approve the Texas Mobility Fund and Toll Equity Proposition 15 on November 6. Houston City Councilman Carroll Robinson will briefly highlight how TEX-21 will help get the ball over the goal line. Thank you.

MR. ROBINSON: Good morning. I was trying to think of what I was going to say and the record came to my mind: Wherever you are, I'll be there. Wherever there's a voter in the state of Texas, TEX-21 will be there. The bottom line, we'll be at press conferences, we'll be at Rotary Clubs, we'll be me and you, your grandma, your uncle, your cousin, your child in school up there 17-1/2 because we want everybody to vote.

I thank Ken for the kind words and participating this morning. The president of Blacklands Railroad, Wayne Defebaugh, is going to follow me to talk a little bit about TEA-21 reauthorization, but I just want to say this: Our efforts will be coordinated with the Keep Texas Moving organization and we plan to tour the state in October to visit with editorial boards, we'll have people writing letters to the editors, and we'll try to make sure our efforts are coordinated to match early voting.

And we'll be focused on a couple of things: We'll make the point to Texas voters that this is a mobility effort and it's going to be about reducing congestion and we can bring projects forward faster. And I know TxDOT has done an analysis that can show us the various projects around the state that if this effort is successful in passage and funding, we can take care of folks a lot faster.

In a parochial vein, the governor was in Houston and he talked about the fact that along with the chairman that this project could move I-10 up five to six years earlier and several other projects around the state -- and you can look in your individual regions. Most importantly, we're going to convey the message to the voters that the Mobility Fund will not require any increase in the state gasoline tax, and I think in these times that's something that we have to make completely and compellingly clear.

And also, the faster we bring projects on line, not only do we reduce congestion, but we also have the positive economic impact of creating more jobs in the state, and that's also got to be conveyed to the voters. So I think if we stay focused on those messages and we continue to work in partnership -- I saw on the agenda today under item 10 that the Transportation Partnership report will be coming forward, and I want to highlight the fact that that report embodies the effort that we've tried to put together as TEX-21, and we want to thank you for allowing us to come back time and time again to continue working on that partnership.

And we won't carry this issue by 50 plus one, we intend to carry it by a lot more closer to the 100 mark to send a resounding message to the members of the legislature that the Texas voters, the Texas users of our highway system care, and we want this funded so we can get our projects done.

Wes, we'll miss you, but keep the electricity on and keep the roads moving.

MR. DEFEBAUGH: Thank you, Carroll.

Good morning, everyone. I'd first like to congratulate all the retirees. Although I don't know them, I definitely would aspire to do at least half of what they've done; it sounds like they've done an excellent job.

Back on July 23 and 24 during the TEX-21 delegation's trip to our nation's capital, we completed 32 appointments with elected and appointed federal officials to inform them of TEX-21's membership and goals, Texas transportation needs, and how congestion in the Texas transportation system affects freight mobility for the entire country.

We received an excellent reception. We found out unanimously from everybody that we were told by getting the state to act as a unit was the most effective way to enhance state funding, and that our timing regarding the reauthorization of TEA-21 was right on target.

As a representative of the private sector -- and from the private sector, Blacklands runs NETEX which is Northeast Texas Rural Rail District in Alpine, Sulphur Springs and Greenville which is a rail district here in Texas -- as a representative of the private sector, it's my privilege to play an active role in TEX-21 and I predict that this group in the coming years will be a vital part of the increased focus the state's multimodal transportation and its infrastructure needs.

I'd now like to introduce Duncanville Mayor Pro-tem Grady Smithey who will now address some of TEX-21's preparations for the next delegation trip to Washington. Thank you.

MR. SMITHEY: Thank you, Wayne, and good morning, gentlemen.

One of the underlying strengths of TEX-21's arguments is we try to act in concert with TxDOT. We're working hard to ensure that nothing we say is contradictory to what TxDOT says or may say. This has been made possible due to the time that Wes Heald has been able to make available for us.

And we really appreciate that, Wes.

We think we can stay in step with what the commission wants and we think that Mike Behrens will continue this tradition. He's also agreed to meet with us and we're going to start briefing him in October as we fine tune for our meetings in November in Washington.

To explain a bit about what we're going to try to do in Washington, I want to introduce to you the chairman of the Dallas City Council's Transportation Committee, Councilwoman Sandy Greyson.

MS. GREYSON: Thank you, Grady. Good morning.

Our goal on this upcoming trip to Washington will be to spread the word regarding the congestion in Texas, especially to non-Texas members of Congress whose constituents are most directly affected by the congestion of the NAFTA trade corridors in Texas. We'll work to secure guaranteed transportation funding and preservation of fire walls in TEA-3.

I will be a catalyst in the National League of Cities, just as Ken Mayfield will be in the National Association of Counties. I chair the National League of Cities Transportation Task Force on the TEA-21 reauthorization, and through TEA-21 and NLC, I'll work to raise overall transportation funding so that the opportunities are there for increased funding for Texas.

Now let me call TEX-21 Vice-Chair Jack Miller to the podium; he'll close our presentation this morning.

MR. MILLER: Thank you, Sandy.

Commissioners and Wes, thank you for listening to us today. TEX-21 is a new organization, but as you can tell, we're here to stay. Last month we filed for IRS 501(c) nonprofit corporation status.

We really appreciate the work you do and we want to make sure you know that TEX-21 will be and continues to be a powerful ally to help you help Texas.

We now have a brief video clip for your viewing, put together by View Cast Systems and taken from a statewide editorial board that was held over the internet by Governor Perry at the recent Transportation Summit.

(Whereupon, the video was shown.)

MR. MILLER: Thank you.

Proposition 15 is our call to arms. Obviously we have much to do. Together with the commission and TxDOT, we have the ability, the strength, the numbers, the drive to do what must be done. We in TEX-21 look forward to meeting the challenges and continuing to work with you.

Thank you very much for the time and attention you've shown us. We look forward to a solid success on Prop 15 in November, a successful reauthorization of TEA-21 by the U.S. Congress, and similar successes with the 78th session of the Texas Legislature.

Now we're here to answer any questions you may have of the TEX-21 group.

MR. JOHNSON: Any questions?

MR. NICHOLS: I don't have any questions, I have some comments.

It's been a real pleasure in the last few years watching you develop into what I think is a very strong statewide organization, and we want you to know how much we appreciate the work that you have done, all of you, and those who are not here we know also have put a lot of time in it.

It's been interesting watching the process. I mean, you've listened to what we said, you took account of what we said and I think mostly supported what we said, but through hearings all over the state, with a good cross-section of different size communities, different geographic areas, regions of the state, tried to arrive at consensus of different transportation issues and prioritizing them and things like that. That was a very interesting process for me to watch. It wasn't something that we did, it's something that you did, you did it totally independent, and it's just a great process to watch. I think it's wonderful.

Your help on this Proposition 15 is going to be very important to get the word out all over the state, and I will tell you that, in my opinion and in a lot of other people's opinions, it is probably the most significant piece of transportation legislation in 20 or 30 years. It's going to have impact for many, many years, and I can tell you, pretty sure, having watched, I think, three sessions -- now, Ric is way ahead of me on sessions -- watching the last three sessions, the opportunity to vote on this constitutional amendment will not come again for a long time. We had good support but there were a lot of tricky pieces, and I don't think you would be able to put it back together for quite a number of sessions if it's not passed.

So the work of spreading the gospel or the arms, or whatever you call it, is going to be real important and significant, and I thank you very much.

MR. JOHNSON: Ric, did you have anything?

MR. WILLIAMSON: Vote, yes, if you're so inclined.

MR. JOHNSON: Linda and Jack and all the presenters, I'd like to echo a little bit of what Robert said. The work that you do and the group that you have assembled to move transportation issues into the limelight and then to move them from the limelight to where they advance requires a special effort, and you're a unique assemblage of talent and interests around the state, representing cities, counties, and all political subdivisions and the business world, and I think it goes a long way.

Carroll mentioned the work group's efforts and the emphasis on partnerships and how important they are to be successful because TxDOT can't do the job alone and the cities can't do the job alone, the counties can't do the job alone, but together we can be successful, and I think your being able to do what you do is a great first step. And bringing those interested parties together with a common issue rather than attack them on an individual basis, we can do much better as a group.

I thank you on behalf of the commission for the work that you do and we will support you in every way that we can to advance the issues that are important to this state.

Anything else on this agenda item? Thank you, each and every one of you, for making the trip here. I know many of you probably haven't experienced rain in a while, so be careful on your way home.

Ric, I don't know if the rain got to Midland but I know West Texas sure needs it badly.

Wes, I believe the next part of the agenda is regular agenda items, and I will turn it over to you.

MR. HEALD: Okay, Mr. Chairman, thank you very much, and thank you for your comments about both myself and staff that's retiring.

Moving along, and we've got a fairly long agenda and a number of speakers, and I would ask staff to be ready to move to the front just as soon as your item comes up. And Dave, if you'd come on up to the front. Dave Fulton has two agenda items under 4. Aviation.

MR. FULTON: Thank you, Wes, commissioners. For the record, my name is David Fulton; I'm the director of the TxDOT Aviation Division.

Item 4(a) is a minute order that contains a request for grant funding approval for 29 airport improvement projects and an increase in funding for a previously approved project. The total estimated costs of all requests, as shown in Exhibit A, is approximately $4.8 million, approximately $1.4 million federal, $2.2 million state, and $1.1 million local.

A public hearing was held on August 6 and no comments were received, and we would recommend approval of this minute order.

MR. JOHNSON: Any questions?

MR. NICHOLS: So moved.

MR. JOHNSON: Second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. David, thank you.

MR. FULTON: Thank you. Item 4(b) is a minute order for the purpose of reappointing two members of the Texas Aviation Advisory Committee, Mr. Bill Knowles of Palestine and Mr. Blair Bisbey of Jasper, to serve additional three-year terms to expire on August 31, 2004. We would recommend approval of this minute order, and I will point out that Mr. Bisbey is here and would like to briefly address the commission.

MR. JOHNSON: Mr. Bisbey? Is Mr. Knowles here?

MR. FULTON: I mean Knowles.

MR. KNOWLES: Thank you very much, gentlemen.

MR. JOHNSON: Mr. Bisbey filled out a card with Mr. Knowles' name on it.

(General laughter.)

MR. KNOWLES: Thank you very much for letting Bill Knowles speak this morning. Blair Bisbey, unfortunately, has got to be in federal court -- he's an attorney in Jasper -- after lunch, so he was not able to make it.

I just wanted to say, on behalf of our Aviation Advisory board, we certainly appreciate the efforts the highway area has given us. It's been an interesting challenge. I've been involved with the Texas aviation effort since the early '90s in various capacities, and I can say sincerely that we have the best staff we've had during that entire time, far and away.

So our thanks to Dave Fulton and his staff and a big thanks to all of you for the support that we've received over the years. Thank you.

MR. JOHNSON: Thank you, Mr. Knowles.

MR. NICHOLS: Bill, I'd like to thank you from the commission for all the work that you've done on that. I mean, you've gone to meetings and worked on this for quite a number of years now and have volunteered to do it some more, and you've done a great job.

MR. KNOWLES: Thank you very much.

MR. NICHOLS: I enjoyed going to at least one of your meetings, so hat's off to you. Thanks.

MR. KNOWLES: Thank you.

MR. FULTON: Bill, I apologize; I guess I did have Blair on my mind. He is equally committed and had every intention of being here but he did have to appear in federal court and he had no choice, and he asked me to communicate to the commission his appreciation for their confidence. So I would recommend approval of this minute order.

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. David, thank you.

MR. HEALD: Agenda item number 5, public transportation, again two minute orders, and Margot Massey will handle those.

MS. MASSEY: I'm Margot Massey, director of Public Transportation Division.

The first item 5(a) is approval of state funding to buy vehicles for two rural transit systems. Each vehicle will be alternatively fueled with LPG, and we recommend approval.

MR. JOHNSON: Any questions?

MR. NICHOLS: So moved.

MR. WILLIAMSON: I want to compliment the speaker, Mr. Chairman, for working with the agency to move us towards clean-fuel vehicles. I know it's not been easy for you to start communicating that message, but the commission, I think, appreciates that, and while we understand there may be exceptions in the future that just have to be made, we want to send a clear message that where we invest state funds, we want to invest them in the most environmentally sensitive way possible.

I second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MS. MASSEY: I would just like to comment on your remarks. I appreciate them, of course, and we enjoy a challenge. The transit industry is also to be commended; they have taken a positive approach to this.

Item 5(b), we're recommending your consideration of the award of $30,000 in federal funds to assist the Texas Transit Association in presenting the 2002 Public Transportation Conference in Lubbock next spring. We recommend your approval.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Margot, thank you.

MR. HEALD: Under agenda item number 6 we have a number of minute orders, administrative rules, and I just ask the speakers or presenters to come forward and give your number and proceed in order. Diana Isabel will begin.

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

This minute order proposes adoption of amendments to Section 4.25 concerning the Conditional Grant Program and the proposed amendments to continue our effort by the department to improve the program and make it more attractive to better serve those college students in need of financial aid for the purposes of furthering their education.

The proposed amendments will allow grant funds to be applied to the cost of room and board, will increase the maximum grant amount from $2,500 to $3,000 per student per semester, and requires students to begin grant repayment in four months instead of six from the date of default, and it will also allow freshman students to be in the program but not have to repay the department if for some reason they cannot continue in the program.

We would like to propose that these amendments be adopted to further strengthen our Conditional Grant Program.

MR. WILLIAMSON: Chair, may I ask? For the record, in your professional opinion, will this result in a more aggressive recruiting effort on the part of the department to bring minorities and females into the engineering profession?

MS. ISABEL: Yes, sir, we believe so.

MR. WILLIAMSON: And the governor wrote us in January and asked us to strengthen this program. In your opinion, will this directly address his request?

MS. ISABEL: I think it will help strengthen that program and will meet that need.

MR. WILLIAMSON: Thank you very much.

MR. JOHNSON: Any questions?

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Diana.

MR. DOEBNER: My name is Thomas Doebner with the Finance Division.

Item 6(a)(2) is a minute order proposing rules to allow the department to charge a $25 fee to process returned checks. We currently do not charge a fee and we've calculated that it costs us more than $25 to do this. The Business and Commerce Code authorizes an agency to charge up to $25 to offset our costs and we recommend adoption of this minute order.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MS. SOLDANO: Jennifer Soldano, director of the Contract Services Office.

Is Representative Pickett still here? I saw him earlier and he sponsored the bill, so I wanted to recognize him. I guess he's since left.

MR. WILLIAMSON: He's probably holding a press conference outside.

(General laughter.)

MS. SOLDANO: House Bill 1831 was passed last session and this added new Section 201.209 to the Transportation Code which is effective September 1. It authorizes the department to enter into interlocal contracts with one or more local governments. The bill required the department to adopt rules.

Until the passage of this new section in the code, the department only had the authority to enter into agreements for nonhighway improvement projects if two or more local governments also agreed to the contract. This limited the department's ability to efficiently and effectively accomplish transportation projects that were not directly connected to a highway. The types of contracts that were limited to agreements with two governments include contracts such as sharing equipment, treating water, testing materials, controlling traffic, and expanding intelligent transportation systems.

The new section sets out the procedures for entering into these new contracts. We recommend approval of the minute order.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MS. RALLS: Good morning. I'm Mary Lou Ralls, director of the Bridge Division.

The criteria contained in Title 43 Texas Administration Code, Section 15.55(d) requires local governments to typically provide 10 percent funding to participate in the Off-System Bridge Rehabilitation and Replacement Program. The local participation funding requirement is allowed to be waived if the local government commits to using an equivalent amount of funding on other bridges or main-lane cross-drainage structures within its jurisdiction.

The minute order I am presenting to you this morning proposes to expand the current requirement that work performed increase the structural load-carrying capacity of the bridge. This expansion will allow that other work which increases the safety condition of the bridge be included in this program. Such work as providing improved hydraulic capacity, increased roadway width, adequate bridge rail, and adequate approach guardrail will now be allowed.

We are also proposing that a change to the definition of the type of structure eligible for this equivalent match work include work on low water crossings. In addition, other proposed changes clarify portions of the existing rule that have been confusing to the districts and local governments over the past year. Staff recommends your approval.

MR. WILLIAMSON: I have a question.

MS. RALLS: Okay.

MR. WILLIAMSON: Do you have anything to do with specification numbers for attenuators, or is that someone else in the department?

MS. RALLS: For attenuators? I believe that's Robert Wilson, yes.

MR. HEALD: That's another division.

MR. WILLIAMSON: That's another division? Thank you. I have no questions.

MR. NICHOLS: I had a question. Since we went to this new program on the bridges, as I understand it, the number of off-system bridges that are being improved or replaced is increasing. Have you got any measurement or performance measurement as to how many more or what new rate of replacements we're doing now as opposed to before we did it?

MS. RALLS: Our numbers currently aren't showing a significant increase in the number that have gone to letting to date because it takes time for the program to get going. We have had several hundred EMP, equivalent match projects, that we have executed agreements for to date.

We are preparing an annual report, our first annual report for you, to give numbers as to what we've executed, the agreements we've executed to date, and we'll be going out to the districts this next month to get a number of equivalent match projects that actually have been completed in the past year.

MR. NICHOLS: I think what you have done is great, and honestly, this is a clarification that's needed to clean up some of those others. I'm going to be real interested in watching and I guess -- I don't know if I direct this to Wes or Mike, but I would like to see some type of quarterly --

I don't mean a big, thick report but some kind of simplified report where we can see the rate of progress of off-system bridge improvements or those scheduled to be improved, or something of that nature, because I know when we looked at this a year or so ago, the bridge problem, off-system bridge problem, as well as the state bridge problem, was so large, at the rate we were going it was going to take 100 years to fix it.

MS. RALLS: That's correct.

MR. NICHOLS: It's going to be real important to make sure we are making progress, and then if we're not making progress, what do we need to do next type of thing.

Anyway, you've done a great job; hat's off to you. With that, I'll also move.

MR. WILLIAMSON: Second.

MR. JOHNSON: Mary Lou, one question. Is it your impression that this has had a positive impact thus far? Obviously we can't put an objective figure on it, but do you feel as though the new program has had a positive impact?

MS. RALLS: It's had an absolutely positive impact. In addition to the EMP work -- which not all the equivalent match project work is on our national bridge inventory so we don't have numbers that will show that except for that report we'll be giving to you as far as the number of equivalent match projects on or off the NBI, National Bridge Inventory; however, what this does help, in addition to that, is that county and city governments that could not participate in the program previously because they lacked the money can now waive projects and they're doing additional work with their own forces, so it allows us to get additional programmed bridges done which we couldn't, so there's an advantage there also.

So it's absolutely -- we have several hundred already that have executed agreements, so yes, it's looking good.

MR. JOHNSON: That's excellent.

There's a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. LINZEY: Good morning, commissioners. My name is David Linzey; I'm director of Headquarter Operations for the Vehicle Titles and Registration Division.

Item (5) is a minute order that proposes amendments to Section 17.24 and 17.28. Primarily, we're implementing legislation from the last legislative session. We had a law passed that allows disabled personal license plates to be issued to vehicles with carrying capacities of up to two tons. Before this law changed, we were able to issue to vehicles with carrying capacity up to one ton.

We also had a law change that allows podiatrists to sign applications for disabled persons license plates and disabled persons parking placards if the mobility problem is caused by a foot disorder.

We also had another change that sets the fee for the YMCA special plate at $30. Previously you set the fee at $24 so we've eliminated the language that gives you the authority to set that fee; it's now in statute.

And lastly, we have eliminated language that refers to the March expiration of the disabled veteran license plates. We have staggered those expirations over the year to spread out our workload and help us to provide better customer service to the customer.

We recommend approval of this minute order.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MR. HEALD: Item number 6(a)(6) Traffic Operations, load limits. Mary Lou, you're still up.

MS. RALLS: Yes. The passage of Senate Bill 200, Section 5 during the 77th Legislature amended the Transportation Code Section 621.301 to provide that a county may establish load limits for a county road or bridge only with the concurrence of the department. The minute order I am presenting to you this morning prescribes the policies and procedures governing department concurrence for the proposed county load limit.

Department concurrence will be contingent upon the county's submittal of documentation and calculations which are based on accepted engineering principles and are sealed by an engineer. The department concurrence will ensure uniform load limits for public roads and bridges.

In addition, the department is allowed 30 calendar days to concur with a proposed county load posting. This will facilitate prompt load postings to ensure safety for the traveling public. Staff recommends your approval.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

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

The minute order before you is the first step in establishing the Safe Routes to School Program as required by House Bill 2204. The goal of this program is to improve bicycle and pedestrian safety around school areas. House Bill 2204 also makes Safe Routes projects eligible for Federal Hazard Elimination Program construction funds, although the bill does not dedicate any specific funding amount for these projects.

The department is developing rules in two steps for the implementation of this bill. The first step, as contained in this minute order, describes eligible project types and the application submittal process. The second round of rulemaking -- which will be proposed later this year -- will focus on the factors the department will consider in evaluating Safe Routes to School project applications. The department is using this two-step approach in order to initiate the Safe Routes to School Program as soon as possible. We recommend approval of this minute order.

MR. JOHNSON: We have three people who would like to make comment on this proposed rule. Gayle Cummins, the executive director of the Texas Bicycle Coalition. Welcome, Gayle.

MS. CUMMINS: Good morning, commissioners. Thank you. My name is Gayle Cummins; I'm the executive director of the Texas Bicycle Coalition. Our organization has served as the moderate voice for mainstream bicyclists for the past ten years, and we were very pleased when House Bill 2204 was signed by Governor Perry because we looked at that as a way to continue the very good relationship we have already established with the Department of Transportation.

So I want to thank you first for the past efforts you've done on educating motorists and bicyclists on the importance of safety. We are very proud of the fact that we are a subgrantee of 402 funds, and with the funding from TxDOT, we are bringing bike safety education to every public school district in Texas. We'll be hitting a landmark here in the next month, having trained over 2,000 physical education teachers on bringing safe choices to children on how to be a safer motorist, pedestrian, and bicyclist.

I'd also like to thank Carlos Lopez and his staff. We met with them yesterday; we were very encouraged by the preliminary rules; we look forward to working with them during the public comment timeline and developing a formula for the hazard elimination projects.

And lastly, we look forward to sharing information that we're receiving from all over the country. Right now the State of California and Florida are also doing Safe Routes to School projects. We just received some initial findings from a pilot project that was funded by NHTSA, and in that nine-school pilot project, what they saw after one year was a 29 percent reduction in traffic congestion around those schools that adopted a safe routes school program.

So this is a wonderful program for getting children on bikes and walking and giving soccer moms some time off from having to pick kids up, but it's also about the other words I heard earlier this morning, about mobility and congestion, and this is a wonderful way to help whether you live in Houston, Jacksonville, or Weatherford. Thank you very much.

MR. JOHNSON: Thank you.

Also from the Texas Bicycle Coalition, Preston Tyree.

MR. TYREE: Commissioners and Director Heald. It's been interesting this morning listening to TEX-21 talk about the highway system. It just brings to mind how big TxDOT is and how important your job is because you go from the highway system that's going to move trucks through Texas to the local communities and making it safer around schools for all of our children in the future.

This may be a single line item in your agenda today, but we are going to change the fabric of communities in Texas with this law, and it's very important that we expand it and move forward. Safe Routes to School has a nice ring to it, doesn't it? How can you be against safe routes to schools?

The thing that we're talking about here today is the engineering part of it. There's four pieces to it. One is encouragement: We need to encourage our citizens to get out and move on foot and on bicycle. One is enforcement: We have to make sure that our enforcement agencies work so that the people on bikes, on foot and the people in cars recognize what's going on.

We've already started on the education side through funding from TxDOT and our 402 grant, as Gayle Cummins mentioned. That's been an exciting two years to get 2,000 teachers trained and certified to teach the state bicycle curriculum. Now we're talking about the engineering side, and this is one of the most important pieces. Without the safe facilities for kids to ride, it won't happen.

Twenty-five years from now my great grandchildren will be ready to go to school, and we're hoping that they'll move on foot and on bicycles because, you know, the impacts are huge. What does it impact? It impacts congestion; it impacts pollution -- this is the ultimate in clean-fuel vehicles; it impacts childhood obesity -- the whole issue of adult-onset diabetes that's now attacking our 12- and 13-year-olds will be impacted by this bill.

So we want to tell you that working with your Traffic Operations Division, they've been fantastic. We look forward to the future of working with TxDOT, and we're so pleased that this is moving forward. Thank you.

MR. JOHNSON: Robin Stallings, coordinator for the Texas Bicycle Industry.

MR. STALLINGS: My name is Robin Stallings. I represent the 246 Texas bicycle dealers across the state; we're a $200 million a year industry and we are in most of the communities around the state, or at least in almost every county. We're the front lines: We hear about the kids that get hurt; we're the first ones that see or hear about the fatalities from not wearing helmets; and we're also the ones that don't get the sales from those parents that are concerned about the safety of their children; we see the obesity problems and we realize that we have a piece of that solution.

And we are very pleased with the work that TxDOT employees and Mr. Lopez's staff has done preparing this stuff. We look forward to giving any kind of help we can throughout the state in implementing this, and we just wanted to give our hearty support and thank you very much.

MR. JOHNSON: Thank you.

Do we have a motion?

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Carlos.

MR. SMITH: Good morning, commissioners.

And Wes, just for the record, you will be missed.

For the record, also, my name is Lawrance Smith; I’m director of the Motor Carrier Division for TxDOT.

The minute order before you proposes the adoption of amendments to Title 43 of the Texas Administrative Code, subchapters (b) and (c). The proposed amendments are the result of bills passed by the 77th session of the Texas Legislature, specifically House Bill 468 relating to permit requirements for manufactured housing, and Senate Bill 220 relating to weight tolerance or commonly called 2260 permits.

Additionally, the proposed amendments include changes to more effectively utilize personnel within the division and clarify existing rules and practices. At this time staff is submitting the minute order for your consideration and recommends its approval.

MR. JOHNSON: Questions?

MR. NICHOLS: So moved.

MR. WILLIAMSON: Can I ask a question real quick?

MR. JOHNSON: Yes, sir.

MR. WILLIAMSON: For the record, you represent the division that people who need permits to move overweight vehicles over the road?

MR. SMITH: Correct, commissioner.

MR. WILLIAMSON: And for the record, I want to compliment you for the way that you process those permits. In my private sector life, I've recently had an opportunity to deal with your division, and my partner and my wife tells me that it was one of the better experiences she's had in state government. So however you are doing things down there, they must be doing well, and I want to compliment you for it.

MR. SMITH: Thank you very much, commissioner, and I'll pass that on.

MR. WILLIAMSON: And I second Mr. Nichols move.

MR. JOHNSON: There's a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Lawrance.

MR. HEALD: Commissioners, I might make a comment, too, about Lawrance and his division. This work used to be done in the districts, all 25 districts, and it was consolidated -- and I don't recall the year -- in one operation and I can't think of any part of our business that has critical deadlines and more potential complaints than that, and they do a marvelous job.

MR. WILLIAMSON: Absolutely.

MR. HEALD: Although, once in a while the computer system breaks down or we get involved in something. But it brings a lot of credit to the department and they do a wonderful job.

And as I introduce Robert, you took great pride in talking about the three Aggies that graduated, but Robert graduated from Texas Tech, and one of the things that I wanted to do, instead of getting those grain elevators on that East-West Loop up there, I wanted to get rid of that pesky football stadium up there, Robert, but I was unable to get that done.

(General laughter.)

MR. WILSON: In fact, I think we're going to get a new exit ramp right there too.

MR. JOHNSON: You need to get the traffic counts up or the right of way needs to be expanded.

MR. HEALD: Well, Robert said they bought so much right of way up there, they didn't need the road anymore, that it eliminated all the businesses.

(General laughter.)

MR. WILSON: That's true, it did away with that shopping center right there.

I don't know how I managed to get lined up with three Aggies retiring; I didn't realize that or I might have delayed it a month. It's not too late, is it?

MR. WILLIAMSON: No, it's not too late.

(General laughter.)

MR. WILSON: Good morning. I am Robert Wilson, I'm director of the Design Division.

The minute order I'm bringing to you this morning proposes adoption of rules for amendments to Title 43 Texas Administration Code, Section 15.52 as final adoption. These amendments were presented to you as proposed at your June 28 meeting and you passed Minute Order 108540 authorizing publication of these amendments for public comment.

The proposed amendments would allow the department to permit local governments to finance and construct improvement projects on the state highway system with their own forces, or if a local government was paying more than half the cost of the project, the local government would be allowed to let and manage a construction contract for the improvement. This would also apply to off-system bridges and any improvements on the state highway system other than on freeway main lanes.

These rules were published for comment and two comments were received: one from the Consulting Engineers Council of Texas, and one from the Associated General Contractors of Texas. Those comments and the staff responses are contained in Exhibit B to the minute order. Of those comments, we agreed to add some clarifying language to Paragraph 8-B(i)2, and we did not agree with any of the other comments that were proposed, and we furnished responses to those.

Staff would recommend your approval of the minute order adopting these rules, as shown in Exhibit A, as final.

MR. WILLIAMSON: What's the effect of the one that you did agree to?

MR. WILSON: That we didn't agree with?

MR. WILLIAMSON: That you did agree to.

MR. WILSON: That we did agree with? It really just clarified the language on the functions that we intended to allow local entities to do. We had stated it up in one paragraph earlier in the rules but it wasn't clear down in that particular paragraph, so we reworded it a little bit and added a few things to make sure that it was clear.

MR. WILLIAMSON: So was it an expansive clarification?

MR. WILSON: An expansion, yes.

MR. WILLIAMSON: And why didn't you agree with the other comments?

MR. WILSON: The other comments, they wanted us to really expand it and just not have any regulation, really, or input into reviewing the plans or anything for projects on the state highway system, and we felt since they're on the state highway system that we needed to keep a little more close control. We're going to wind up being the ones that are responsible for what happens out there and the operation of it after it's finished.

MR. WILLIAMSON: So our position was not by way of limiting of local government but it was by way of if we're going to be responsible for the quality, we felt like we needed some quality control.

MR. WILSON: Yes, sir. We need to keep close contact and input with that. We don't want to try to limit them but we want to stay in contact with what's happening on our system.

MR. WILLIAMSON: That's all I have.

MR. HEALD: Well, I might make one comment that adds some value to this conversation, I guess. You know, we're responsible for the administration of the federal funds and there's always that danger that they would pull the rug out from under us as far as the federal money, so we need that oversight.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. WILLIAMSON: Mr. Chairman, is this the fellow I ask about attenuators?

MR. WILSON: I thought I was going to get to sit down.

(General laughter.)

MR. WILLIAMSON: Do we have a procedure for allowing competing -- companies with competing goods and services to get a specification number that's affixed to all the documents we send out allowing competitive bidding on our goods and services?

MR. WILSON: Yes, sir. I'm familiar with the attenuator situation that you're talking about. In our current standards spec, we assign one specification number and it's good for use from now on, and we usually don't do that until we're real sure of the design and how it's going to operate in the field before we put it out for general use forever. And we do have only one supplier that meets that standard spec at the present time that meets federal crash test criteria.

MR. WILLIAMSON: What did you just say?

MR. WILSON: Federal crash test criteria.

MR. WILLIAMSON: There's only one attenuator company?

MR. WILSON: Manufacturer that meets this.

MR. WILLIAMSON: Federal test criteria.

MR. WILSON: There was, but there is another one now that has passed the federal crash test, and we do have a special specification that we have written for that manufacturer as well, and we can include both of those in the same projects for competition. And our intent is once we get enough experience with how this system is installed and how it is maintained and if it operates like we think it will, we get that input back from the districts, we'll probably tweak that a little bit and then include it in our standard specifications.

MR. WILLIAMSON: Well, then my question for you, Robert, and for the whole department is: If the criteria is enough data to give it a specification number, how did the sole provider of attenuators get a specification number?

MR. WILSON: We did the same thing with them, if I recall. It's been several years ago now, but we did a special specification that we used on a one-project basis until we kind of got it refined. Once we first write a spec, there's usually some things that we may not have said just exactly the way we need to say them in a specification, so we wait to find out what those are and we'll tweak those languages, and then we'll assign a blanket number that's good from then on.

And we're doing the same thing with this one too, we've got a special spec, and like I say, once we find out what the little things we need to address in the specification maybe are, we'll probably put it in our standard spec.

MR. WILLIAMSON: Well, I appreciate your answer, and I appreciate, Mr. Chairman, your letting me have a few minutes to talk about this. I'm really not so much focused on attenuators as I am focused on the concept of there ought to be -- within safety there ought to be competitive choices for everything we do, whether it's a product or a service, just like there ought to be penalties and rewards for finishing projects on time or not on time. Competition is good, choices are good, monopolies and cartels are bad, and I feel very strongly about that. I can't say that strongly enough.

MR. WILSON: I think that's the philosophy we've always had and we want competition everywhere we can have it.

MR. WILLIAMSON: Well, thank you. Now, are you sure you want to leave?

MR. WILSON: Well, you said I could still bring back my paperwork, so maybe I'll think about that. That way I won't be in there with the same lump of three Aggies.

(General laughter.)

MR. WILLIAMSON: I so move.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

Item 7 is pursuant to the General Appropriations Act of the 77th Legislature 2001 to approve the compensation adjustment for the executive director of the Texas Department of Transportation for fiscal years 2002 and 2003.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. HEALD: Item number 8 under Operating Budget, Thomas.

MR. DOEBNER: Again for the record, my name is Thomas Doebner with the Finance Division.

Item number 8 is a minute order approving the Fiscal Year 2002 operating budget for the department. These are the amounts that were appropriated by the 77th Legislature for TxDOT for Fiscal Year 2002, and we recommend adoption of this minute order.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. HEALD: And number 9.

MR. DOEBNER: I'm going to stay and do number 9. This is a minute order for the final approval of a State Infrastructure Bank loan for the City of Kennedale which is in the Fort Worth District for utility relocation on a project on Business 287. The amount of the loan would be $1 million to be repaid over eight years at 4 percent interest, and we recommend adoption of this minute order.

MR. WILLIAMSON: So moved.

MR. NICHOLS: I'll second it, but I had a comment or a question, and I had forwarded that question or comment to you. And I think I sound kind of like a broken record because I bring this up about every three or four months ever since we put in SIBs, passage of the rules to set it up. I think you do an excellent job on managing that.

My concern on the interest rates that we charge, has to do with, we want the program to be beneficial to the state as a whole and help these communities, counties, cities, and stuff get these projects done, that's number one, but in doing that we don't want our rates on our bonds, our notes to be so cheap that in effect we're competing with the private industry on the municipal bond industry that goes out and does this thing for cities.

And when a city, if our rates are low in comparison to what they get on the outside -- I put my old municipal hat on -- we're going to immediately look, or they will, at the private industry to see what they charge, look at us, and if we're charging less, then they would not be fiscally responsible if they didn't come to us, and I keep thinking that we charge rates below the industry.

MR. DOEBNER: Yes, we do.

MR. NICHOLS: I think you had set it more at what the state municipal bond rate is as opposed to necessarily what some of these smaller packages from communities may be. I don't want to charge more, I just want to make sure it's at least in comparison so that we're not being shopped because we're cheaper.

MR. DOEBNER: I think we'll start giving you better information in the future of how an applicant's actual rate would compare to what we're recommending and you'll be able to see that a little bit better, and I think our recommendations will go up a little bit on the interest rates that we charge.

MR. NICHOLS: Okay. I've already seconded it.

MR. JOHNSON: There is a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MR. HEALD: Item number 10, and Mr. Chairman, would you care to make an introduction into that item?

MR. JOHNSON: I'd be delighted to. Amadeo Saenz is here to present the result of the work group that I commissioned back in January to study the appropriate goals, meaningful and measurable goals that are important to the users of the transportation system within the state of Texas. Amadeo was one of four TxDOT employees on a 16-person commission, or work group, and I had the great pleasure and actual opportunity to work very closely with the members.

Katie Nees, who is with the North Texas Tollway Authority, is here; she served on the work group. Mary Owen, our Tyler District engineer, is here; she served on the work group, as did Councilman Carroll Robinson from Houston, and hopefully I have not missed anyone else who is in attendance. It was a cross-section of people involved in transportation from the state and I think the final product is one that Amadeo is here to present.

Amadeo, welcome and thank you.

MR. SAENZ: Good morning. I'm Amadeo Saenz; I'm district engineer from the Pharr District. Good morning, Chairman Johnson, Commissioner Nichols, Commissioner Williamson, Mr. Heald. We're going to miss you, Boss. I've really enjoyed working with you these few years, but I wish you a long and prosperous retirement.

I'm here today as a member of the Transportation Working Group to formally submit our report "Texas Transportation Partnerships: Connecting You to the World" -- and I believe that report is in your packet -- and also to request your acceptance of the report.

As Chairman Johnson mentioned, in January of this year he selected a group of elected officials, business leaders, transportation professionals from across the state and charged us with developing goals and priorities to address future mobility challenges. Some of the members are here, and Chairman Johnson has introduced them, so I won't introduce anybody else. And also Councilman Carroll Robinson had made a report earlier, a few months ago, and he had introduced the entire group.

As part of our work we surveyed MPOs, county judges, legislative officials, and along with a lot of input from the group itself, we identified five goals that were most common: reliable mobility, safety, system preservation, streamlined project development, and economic vitality.

As I mentioned, our report identifies a vision for the Texas transportation future, goals critical to attaining this vision, recommended actions to meet these goals, and most importantly, ways to measure our progress. Our vision is working together, we will create a transportation system that does more than connect people to places, it will connect Texans to the world of opportunities.

Working together we can provide regional mobility, and our goal in the regional mobility is to enhance Texas urban and metropolitan area mobility and ensure that congestion is less than comparable peer cities in the United States. For improved safety our goal is to reduce the fatality rate on Texas roadways by 5 percent within ten years.

Responsible system preservation: Our goal is to ensure that 90 percent of Texas roads and 80 percent of bridges will be in good or better condition within ten years. For streamlined project delivery our goal is to improve the delivery process from project inception to ribbon cutting on the average by 15 percent within five years. And for economic vitality our goal is to attract and retain businesses and industry with adequate transportation systems and services.

As you can see, our goals are very aggressive and to that end we would recommend the importance, and our report emphasizes the importance of forming partnerships among the federal, local governments, businesses, and citizens because it is essential that we all work together to achieve these goals. TxDOT by ourselves cannot.

It should also serve that basically this is an ongoing process. Our report sets forth a series of comprehensive goals, but we need to have an ongoing process since these goals are measurable to be able to measure what we've done and determine where we're at at any one time. This can then be reported to the legislature; it can be reported to the citizens of Texas so that we can have some kind of report card so that people will know and understand where we're at, where we're going, and what it will take to get there.

Finally, Chairman Johnson, I would like to thank the rest of the group that was part of our working group. We had a lot of input from all the members and it was certainly a pleasure to be with them. I also want to thank some of our external resources, TTI and CTR, who facilitated and provided a lot of input for us all. And of course, especially I want to thank some of the TxDOT staff, Joanne Walsh and Vic Holubec, who were part of the team and their team, the people that worked under them that were basically the nuts and bolts. These are the people that put the report together and worked with them, so it was really a pleasure to work with every single one of them.

I also want to thank you, and I know the group wants to thank you for giving us an opportunity to work on this project and to be part of addressing the future of Texas' transportation. With this, I would recommend that the commission accept our report.

MR. JOHNSON: Any questions, Ric?

MR. WILLIAMSON: The report is good and it's simple and it's direct and it's to the point, and that's what government needs, and you're to be commended, Chair, for starting the process and for recruiting various viewpoints to contribute. I personally appreciate it.

Two things that came out of the report really caught my attention. One was the concept of regional mobility. The presenters from TEX-21 didn't focus on that aspect of Proposition 15 much, but the reality is Proposition 15, if it passes, will allow the beginning, I think, of some formal regional transportation structures. And a lot of why that's in Proposition 15 is a direct result of the report your group was putting together at the time, and we were aware the regional concepts were going to be suggested and we asked legislators to include that in Proposition 15. So already the possibility that the report is going to have real-world impact is in front of us.

The other thing that jumped out to me about the report that I want to especially commend the group about is the notion of partnership with local government, which I think that is critical to solving the mobility challenges for the state. We have to understand that cities and counties and, someday, regions are not our competitors or our enemies, they're our partners, and we should build on that.

Excellent report and I appreciate the contributions of all.

I've got a question for you about your district.

MR. SAENZ: Yes, sir.

MR. WILLIAMSON: Am I led to believe that your lettings exceeded or came close to $200 million this year?

MR. SAENZ: $215 million.

MR. WILLIAMSON: In the Pharr District?

MR. SAENZ: Oh, yes. We were number three in the state behind Dallas and Houston.

MR. WILLIAMSON: How did you do that?

MR. SAENZ: A lot of hard work. We have some real good people in the district and we've been able to utilize resources, both internal and the consultant industry, to get some projects. The whole key is basically the funding that we were able to get through the Border Task Force that provided us a lot of our funding for our border projects, and that's where the bulk of it is. Between the border projects and the hurricane evacuation projects, we've been able to really address some of our needs.

MR. WILLIAMSON: To your knowledge, Amadeo, is that the largest year ever?

MR. SAENZ: Yes, sir.

MR. WILLIAMSON: So --

MR. SAENZ: Until next year.

(General laughter.)

MR. WILLIAMSON: Until next year. Well, I guess we and you and the community and the legislature and all of government is to be commended because I think that's remarkable. That's the kind of investment in the border that we need to make in order to achieve the lifestyle for that area that we desire and the economic power for our state that we desire. Hat's off.

MR. SAENZ: Like I say, the credit belongs to the people who work for me.

MR. JOHNSON: Robert, did you have anything?

MR. NICHOLS: Well, thank you for the report, and it's a great report. And thank you for putting it together it and chairing it and having the vision and foresight to assemble the group and set up reasonable goals and let it go where it went, and it went in a good direction.

I just want to thank you for the work you do, Amadeo. I hear so much good stuff about you down there, and you were able to put together a good consensus with the local officials in some very difficult situations and your city and county officials and your state elected officials in the area always speak very highly of you, and so just keep up the good work.

MR. SAENZ: Thank you.

MR. NICHOLS: With that, I'll move that we accept the report.

MR. WILLIAMSON: And Ill second, subject to remarks, Chairman.

MR. JOHNSON: Well, thank you. I think some gratitude or thanks have been extended towards the chair and I can honestly say in this case the pleasure was all mine to work with an extraordinary group of people who represented the interests of the state. Their experience and resolve to deal with the transportation challenges that we face I think was unique, and to corral that much resource in one setting over a period of months, I think the product speaks for that, both internal resources and external resources and of course the members of the group.

Amadeo, we salute you and the work that you've done in your district. TxDOT is indeed fortunate to have a network of very, very capable district engineers -- and I mentioned Mary Owen who is here from Tyler; I see Carl Utley from Lubbock and Steve Simmons from Fort Worth, and I probably have missed one or two others who are out there -- and you're the strength and the backbone, I think, that Wes calls you the first line of defense and also the first line of offense. You're the heart and soul of what makes this organization tick and you do exemplary work.

But back to the report, I think it's a stepping stone and I can't overemphasize how influential the members of this group were and how honored I was to associate with them, and indeed, the pleasure was all mine.

There's a motion and a second before the commission to accept the report. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you very much.

MR. HEALD: Mr. Chairman, Amadeo has a special reason for doing a good job. He needs a job; he owns a ranch.

(General laughter.)

MR. HEALD: Okay, Al has a number of minute orders under Transportation Planning, starting with 10(b).

MR. LUEDECKE: I couldn't let Amadeo sit down without saying one thing about him, and it's good. We have some district engineers who are extremely resourceful in the programming arena and Amadeo is so resourceful, we usually lock everybody up when he comes around because money seems to follow him out the door when he goes -- and that's good. Amadeo does a good job and we work well with him and his staff.

I'm Al Luedecke, director of Transportation Planning and Programming for a little while longer. I'll start off with item 10(b). Recent amendments to Section 15.52 of the Texas Administrative Code authorizes certain local governments, including counties, to contract for the design and construction of an improvement to the state highway system or other project to improve freeway main lanes on the state highway system.

Pursuant to that authority, a locally performed and managed state highway improvement project must be authorized by the commission in the current Unified Transportation Program or by a specific minute order. Harris County, acting through the Harris County Toll Road Authority, plans to construct the Westpark Tollway from Interstate 610 West to the Fort Bend county line, a distance of approximately 15 miles. The planned turnpike project will cross state highway systems at US 59, Beltway 8, and State Highway 6. The county has requested approval to design and construct interchanges on the state highway system at these locations.

The minute order presented for your consideration authorizes, in accordance with 43 TAC, Section 15.52, the projects to construct interchanges at Westpark Tollway and US 59, Beltway 8, and State Highway 6. With approval of this minute order, the department will review the schematic drawings and the plans, specifications and estimates for the direct connector, grade separations and ramps at these three locations, and the projects will be designed and constructed in accordance with all department standards and policies. We recommend your approval of this minute order.

MR. JOHNSON: Any questions?

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. HEALD: Speaker.

MR. WILLIAMSON: We didn't want to hear the speaker -- we really did.

(General laughter.)

MR. JOHNSON: Pardon me. I apologize. Matt Welch who is the administrative legislative aide to State Representative Talmadge Heflin.

MR. WILLIAMSON: We really did want to hear the speaker -- I take that back.

MR. WELCH: If you don't want to hear a speaker, I'm about as far from one as there is.

(General laughter.)

MR. JOHNSON: I beg your pardon. I let that sneak by the goalie there.

MR. WELCH: That's all right. I almost got out of having to come up here.

MR. JOHNSON: Please don't think that we've already voted on this.

(General laughter.)

MR. WELCH: Well, heck, I don't want to say anything that will mess that up.

MR. JOHNSON: You can go back and report to your boss that it was your inspiration that passed this minute order.

MR. WELCH: Well, good. That keeps me here for another month or so. I just want to thank you for letting me get up here for a minute. I really don't have any testimony, I just wanted to get entered on the record Mr. Heflin's interest and support for this project and also for the next item on the agenda -- I don't think I marked that on the card. Mr. Heflin was planning on being here himself today to visit with you, but we're in the process of moving our district office this week and he judged himself a better furniture mover than I am.

MR. JOHNSON: I'd be flattered.

(General laughter.)

MR. WELCH: I appreciate your taking the time to let me come up here.

MR. WILLIAMSON: Did his district lines change, or is he just moving offices?

MR. WELCH: He's just moving offices; we had a bad landlord; moving across the street -- in the rain. So I appreciate your letting us have this opportunity, and if there's anything we can do, we always look forward to working with you.

MR. JOHNSON: Would you like to make an observation on the I-10 innovative finance which is the next agenda item? I marked it on your card for your support.

MR. WELCH: Just go, go, go.

MR. JOHNSON: Okay. Thank you.

MR. WELCH: Thank you.

MR. JOHNSON: I believe we voted on item 10(b). Correct?

MR. HEALD: Yes, sir.

MR. LUEDECKE: Item 10(c). Interstate 10 from the Fort Bend county line to Interstate 610 in Houston is one of the most heavily traveled corridors in the state. Known locally as the Katy Freeway, current average daily traffic along this 21-mile corridor ranges from 72,000 vehicles per day at the Fort Bend county line to 209,000 between Beltway 8 and Interstate 610.

Eleven projects were originally developed along the Katy Freeway to improve the mobility within the corridor. Five of these projects, totaling $380.7 million, are currently funded in Priority 1 of the various Bank Balance programs and/or Strategic Priority programs of the Unified Transportation Program. The remaining six projects identified in Exhibit A have a total estimated construction cost of $571.9 million. These projects are partially funded in the Bank Balance programs for $80 million with $491.9 million currently programmed in Priority 2 of Category 3A NHS Mobility in the 2001 UTP.

Innovative financing techniques are available to fund a limited number of additional projects beyond current funding limits. These six projects are vital to the development of the Katy Freeway corridor and staff believes that it's necessary to advance these projects to Priority 1. Priority 1 authorization will allow the districts to let the projects in the most economical and efficient manner, and expanding this corridor capacity will enhance mobility by alleviating congestion and improve traffic flow and thus the safety.

The minute order presented for your consideration authorizes the department to proceed with the project development of these projects identified in Exhibit A, advancing $491.9 million to Priority 1, Category 3A NHS Mobility for the 2001 UTP using innovative financing techniques. We recommend your approval of this minute order.

MR. WILLIAMSON: I have a question, Mr. Chairman.

MR. JOHNSON: Yes, sir.

MR. WILLIAMSON: How many total dollars will this be advancing to this project?

MR. LUEDECKE: For this project?

MR. WILLIAMSON: All these projects.

MR. LUEDECKE: $491 million.

MR. WILLIAMSON: $491 million?

MR. LUEDECKE: Yes.

MR. WILLIAMSON: And as a result of the commission's action to use innovative financing, how much sooner is that $491 million going to the Houston area?

MR. LUEDECKE: I would estimate we're moving it up seven to ten years from start to finish.

MR. WILLIAMSON: Now, Mr. Chairman, I don't know if you're familiar with the mayor of Houston, or not. I'm not taking this opportunity to criticize him, but I noticed in the newspapers the other day the mayor had some concern about supporting Proposition 15 unless the department moved more revenue to the Houston District. And I just want to say for the record to anyone who might be listening in the audience or perhaps through the media that the mayor gets what he wants. $491 million five to seven years faster ought to be enough to show the commitment of the department to the Houston area.

And I so move, gladly and happily move that we pass this.

MR. NICHOLS: This in no way will affect some of the plans, I know we've discussed, on the special use lanes?

MR. LUEDECKE: No, sir. The original proposition was to build this. The consideration that the district is going through now to use some lanes for special use lanes and with some leveraging of funds is in the negotiation stage right now.

MR. NICHOLS: That will continue?

MR. LUEDECKE: Yes, sir, certainly will.

MR. NICHOLS: And this does not supersede that.

MR. LUEDECKE: No. This would supplement it.

MR. NICHOLS: Supplement it.

MR. LUEDECKE: Yes, sir.

MR. NICHOLS: Based on that, I'll second.

MR. JOHNSON: There's a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Al.

MR. LUEDECKE: Item 10(d). This minute order will accelerate $100 million for projects in the Corpus Christi, Laredo, Pharr districts to Priority 1, Category 3A NHS Mobility in the 2001 Unified Transportation Program. Due to the expected increase in NAFTA traffic, it's necessary to advance these projects to Priority 1. Identified in Exhibit A, these projects are associated with border trade transportation corridors and these projects are beyond the conventional funding limits but may be moved to Priority 1 for funding using the innovative financing techniques previously discussed.

Priority 1 authorization will allow the districts to let the projects again in the most economical and efficient manner and will enhance the traffic flow and safety in the areas. With approval of this minute order, the executive director is authorized to proceed with the project development of the projects identified in Exhibit A, advancing $100 million to Priority 1, Category 3A NHS Mobility of the 2001 UTP using the innovative financing techniques. We recommend your approval of this minute order also.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. LUEDECKE: Item 10(e). On February 27, 1979, the commission tendered a minute order to the City of Terrell in Kaufman County for the construction of a 3.4 mile segment of State Highway 34 on a new location. The local entities agreed to the provisions of the minute order which included securing the necessary right of way in accordance with department policies and regulations and providing the construction of continuous curb and gutter and storm sewers. This responsibility also included the construction of driveways and sidewalks where none existed.

The project was tentatively scheduled for construction in 1983 but was delayed. At that time the city provided its 10 percent of the cost to secure the necessary right of way for the county's portion, and that is still pending. Currently this project has three elements: One segment is authorized in Priority 1 and the other two segments are programmed in Priority 2 of the UTP.

The majority of the right of way for this project has been acquired and the department's policy on local participation requirements have changed since 1979. The city has requested that its obligation for providing the curb and gutter, driveways and sidewalks, and storm sewers be relieved. The minute order presented for your consideration waives these requirements for the city and county as set out in the original minute order.

Due to the delay in project development and construction, the department deems it fair and equitable to revise this portion of the city and county participation requirements, and in view of the time delay in this project, we recommend your approval of this minute order.

MR. JOHNSON: We have four cards on this particular agenda item. Charles Whitaker, who is the chief of staff for Senator David Cain, asked to be noted on the record as being for the minute order but does not wish to speak.

Speaking on behalf of the minute order, Betty Brown.

Representative Brown, welcome. District 4. We're glad that you're here.

MS. BROWN: Thank you very much, and good morning, commissioners. I appreciate the opportunity to appear before you.

I won't take up much of your time except to tell you that I strongly support your releasing the City of Terrell from this commitment made so long ago, and would appreciate that very much. And I would like to add, as an Aggie mom of two and an Aggie mom-in-law of two more, I would really appreciate it. Thank you.

(General laughter.)

MR. JOHNSON: You said all the right things.

MR. WILLIAMSON: Well, now wait a second. Those retiring guys were primarily Aggies, but I think we have a plurality of multiple schools represented up here.

MS. BROWN: Well, I just wanted to tell you about my family which just happens to have a lot of maroon blood.

Thank you very much. And Mr. Director, I would like to add my hopes that you will have a very enjoyable retirement and my personal thank you for the way you've served our state. Thank you.

MR. JOHNSON: Also speaking, Henry C. Madgwick. Did I butcher that sufficiently, Mr. Mayor?

MAYOR MADGWICK: It will get you there about as near as you can get it. It's Welsh and it is also Madgwick. It has a little Irish and a little Scotch and a little English thrown in it, so you've got it all together.

Regardless of your decision, I would like, on behalf of the city, to thank the commission and the transport department as a whole for its assistance to us over the years, and that includes David Fulton of your Aviation Division that is now renovating our airport, and we thank you for all of your assistance and hope that you will see fit to approve this revision.

And to you, Director Heald, congratulations. Come join us and get into politics. Thank you.

MR. JOHNSON: Thank you, Mr. Mayor.

Gordon Pierce, who is the city manager from Terrell.

MR. PIERCE: Mr. Chairman, members of the commission, just some very brief comments. I will say that I think that your mispronunciation of the mayor's name sometimes is correct; he can be Madewick depending on the agenda item that occurs.

(General laughter.)

MR. PIERCE: But the mayor does a great job.

I want to thank the commission, I want to thank the Dallas District office, Jan Heady our regional director, certainly Mr. Heald, for assisting us in this project. It has been since 1978 when we put our nickel on the line and then the decision changed, and we'd now like to come under the current rules and begin a project that's very important to the City of Terrell to bypass truck traffic around our downtown area, and we appreciate it.

MR. JOHNSON: Did you ever live in Jacksonville?

MR. PIERCE: Yes, sir, I did, as a matter of fact. And you know, I worked for a wonderful gentleman, who was mayor for several years there, named Harry Tilley, and my most favorite mayor named Robert Lee Nichols who I also worked for.

(General laughter.)

MR. WILLIAMSON: Where is Jacksonville?

MR. PIERCE: Its due east of Terrell.

(General laughter.)

MR. JOHNSON: Well, thank you for being here. That must have been quite an experience working for Mayor R.L. Nichols.

MR. PIERCE: Well, I should talk to the retiring executive director; I'm sure we could compare some notes and reach some agreements on some issues.

MR. WILLIAMSON: Do they allow firearms in Terrell?

MR. PIERCE: Yes, sir, and Jacksonville also.

MR. WILLIAMSON: Oh, we knew about Jacksonville.

MR. PIERCE: In fact, in Jacksonville they issue you one when you come into the city limits.

(General laughter.)

MR. PIERCE: Thank you for your consideration.

MR. NICHOLS: Good to see you, Gordon.

MR. JOHNSON: Any questions of Al or any of our distinguished speakers?

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. LUEDECKE: Item 10(f). As a condition of securing federal funds for transportation projects under either Title 23 United States Code or the Federal Transit Act, each designated metropolitan planning organization, or MPO, and the state are required to develop a transportation improvement program, or TIP. According to the federal requirements, the MPO develops its TIP in cooperation with the state and the affected transit operators and must be updated at least once every two years and approved by the MPO and ultimately the governor.

The individual TIPs are also incorporated in the State Transportation Improvement Program, or the STIP. Federal regulations also require that the governor approve the STIP which is developed for all areas of the state in cooperation with the designated MPOs.

Over the last six months, public meetings have been conducted throughout the state to receive comments on the various metropolitan and urban TIPs. In each of the department's 25 district offices and the headquarters office in Austin, the rural TIPs were made available for review and comment by interested parties. In addition, on August 17, 2001, a public hearing was held on the STIP here in Austin. No oral or written comments were received at the hearing or from the district offices.

The rural and MPO TIPs are consistent with the proposed 2002 Unified Transportation Program and meet all of the requirements of Title 23 Texas Administrative Code, Sections 15.7 and 15.8, and the corresponding federal rules and regulations, Sections 134 and 135 of Title 23.

With your approval of this minute order, the executive director is authorized to submit the STIP to the government requesting his approval and to sign all necessary certifications after the governor's approval of the STIP, and we recommend your approval of this minute order.

MR. JOHNSON: Questions?

MR. WILLIAMSON: So moved.

MR. JOHNSON: Second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. LUEDECKE: 10(g), we bring you the fourth-quarter program for disadvantaged counties to adjust matching fund requirements. In your books Exhibit A lists the projects and staff recommendation adjustments for each of them. The adjustments are based on the equations approved in earlier proposals. There are 12 projects in eight counties and the reduction in participation for these projects is $247,812. We recommend your approval.

MR. WILLIAMSON: So moved.

MR. JOHNSON: Second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. LUEDECKE: 10(h) -- it's the last one, I hope. Rider 47 in the appropriations to the department for Fiscal Years 2002 and 2003 directs TxDOT to expand the Green Ribbon Project to other areas of the state. Originating in the Houston District, the Green Ribbon Project is a public-private partnership initiative to enhance the appearance of public highways by incorporating the design and improvement of public highways, the planting of trees and shrubs, emphasizing natural beauty and green space, integrating public art and highlighting the cultural uniqueness of neighborhoods.

In accordance with the provisions of Rider 47, the department will develop this program which is designed to enhance the appearance of public highways through landscape improvements. These improvements include the planting of indigenous trees and shrubs, preparing the soil and installing irrigation systems for the growth of the trees and plants. In nonattainment areas or near nonattainment areas, the district or districts shall, to the extent possible, use trees and plants to mitigate the effects of air pollution.

As specified in the rider, this program will apply only to nonattainment and near nonattainment counties as they conform to air quality standards. The department's ten districts with these designated counties will receive an allocation equal to one-half of 1 percent of the total amount of highway improvement contracts scheduled within the subject counties from September 1, 2001, through August 31, 2002. The allocation of funds to the department's affected districts is shown in Exhibit A attached to the minute order.

Rules outlining the procedures for this program are currently being developed and will be presented to the commission in October. This program needs to be authorized and the projects developed toward the beginning of the Fiscal Year 2002.

The minute order presented for your consideration authorizes the program development and project coordination that is necessary to implement the 2002 Green Ribbon Landscape Improvement Program to be funded in Category 16, Miscellaneous of the Unified Transportation Program in the amount of $7,250,000. We recommend your approval of this minute order.

MR. JOHNSON: Any questions?

MR. NICHOLS: I'll move, but I had a comment, really, it's not much of a question, and that is I think everybody obviously supports landscaping, but I've kind of gotten in some of these landscaping programs. We have landscaping here; we have landscaping in Transportation Enhancement; we have a landscaping portion of our construction budgets. We were asking for a list, Sally and I, and I was thinking that there might even be five but I think we added up seven, six or seven.

MR. LUEDECKE: There are at least five.

MR. NICHOLS: At least five. Okay. And we've got all these different kind of landscaping programs. I think we might want to go and take a look -- I guess this may be directed to either Wes or Mike -- at a consolidated program, not necessarily separate them but making sure they all blend and fit together and that we're not sending different directions in different areas of the state. Anyway, I think a consolidation of some of these or a look at making sure they're all compatible with each other might be well worth it.

MR. HEALD: Sure.

MR. JOHNSON: There's a motion and I'll second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you.

MR. LUEDECKE: Thank you.

MR. HEALD: Item number 11, approve the environmental review of US 183A, Phillip Russell.

MR. RUSSELL: Good morning, commissioners, and Wes and Helen. I am Phillip Russell, the director of the Texas Turnpike Authority Division.

The minute order I bring to you today deals with the environmental review of US 183A in Williamson County. 183A is a proposed controlled access highway from RM 620 to approximately three miles north of Leander, a distance of approximately 12 miles. It essentially provides a parallel reliever route to existing US 183.

In May of '98 the Transportation Commission requested the TTA to study and plan for the development of US 183 as a potential turnpike project. As part of the study and planning for US 183, the authority continued the environmental review process according to the National Environmental Policy Act, the Transportation Code, and the rules of the authority.

A public hearing was held on August 15, 2000, to receive input on the draft environmental impact statement, and after considering public input and other relevant information, the authority prepared a final environmental impact statement which the FHWA subsequently approved on July 19, 2001.

Under the Transportation Code, Section 361.103, the commission is required to approve each environmental review for a potential turnpike project prior to commencement of construction. This minute order would approve the environmental review for US 183A as undertaken by the authority, and the staff recommends approval.

MR. JOHNSON: Questions?

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries. Thank you, Phillip.

MR. HEALD: Agenda item number 12, under Maintenance Operations, Zane.

MR. WEBB: Good morning, commissioners. My name is Zane Webb, director of the Maintenance Division.

Mr. Heald, I want to tell you it's been an honor and a privilege to serve under you. Thank you.

The minute order you have before you is to approve funding for construction, reconstruction, and renovation of safety rest areas across Texas. This is an excellent program; it allows TxDOT to better serve the traveling public. We're getting quite a few comments across the state about it. It also improves traffic safety on our highways. Staff recommends approval.

MR. JOHNSON: Any questions? Zane, I have a question.

MR. WEBB: Yes, sir.

MR. JOHNSON: The future investment by the commission and the department to get our safety rest area program to where we feel it should be after this year, in your estimation, is going to require how much money?

MR. WEBB: $150 million.

MR. JOHNSON: In addition to?

MR. WEBB: That's an estimate. Yes, sir.

MR. JOHNSON: So we have a long way to go.

MR. WEBB: Yes, sir.

MR. JOHNSON: I mean, this is a marvelous program, I think all portions of the state benefit from this program, and for a long while, unfortunately, a lot of our rest areas deteriorated, and I think this is a step in the right direction. It seems like a small step when you look at the magnitude of the challenge.

Robert or Ric, did you have any observations?

MR. WILLIAMSON: I was going to quiz him a little bit about some off-the-wall thinking about how to build these things, but I think I'll pass. So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Thank you, Zane. Motion carries.

MR. JOHNSON: Thomas, go ahead.

MR. BOHUSLAV: Good morning, commissioners. My name is Thomas Bohuslav; I'm director of the Construction Division.

Item 13(a) is a minute order that establishes department Historically Underutilized Business, the HUB goals for Fiscal Year 2002. HUB goals proposed are: 26 percent for building construction contracts, 57.2 percent for special trade contracts, 20 percent for professional service contracts, 33 percent for service contracts, and 12.6 percent for commodity purchasing. Staff recommends approval.

MR. WILLIAMSON: So moved.

MR. JOHNSON: Are these goals basically similar or the same as the goals for the current year?

MR. BOHUSLAV: Yes, they are, these are the same goals.

MR. JOHNSON: And how have we done towards achieving our goals in the current year? Are we on track, ahead, behind some?

MR. BOHUSLAV: Typically what happens is because of the way our program runs, we don't catch up with all the numbers until later on at the end of the year. In our previous years, statewide of the amount spent for HUBs, we do about half the amount that the entire state does, the total amount that all the other state agencies do, so we do very well. Normally we do about 13-14 percent, 12 percent. This year I do have some different numbers in different areas overall; I can report on those.

MR. JOHNSON: Well, you know, I'm looking big picture here, basically how are we doing towards achieving our goals, and the simpler the answer, the better I'll understand it, I guess.

MR. BOHUSLAV: We are achieving our goals in the heavy construction area; we're having some difficulty in the building area and the special trade areas to meet the 57.2 percent, having some difficulty there; professional services, we meet our goal there generally; in other services and commodities and so on, we have difficulty meeting those goals.

MR. JOHNSON: Thank you.

MR. HEALD: Mr. Chairman, let me say that the department really is doing a good job here, and a lot of it is due to the fact that we've set some realistic goals for our contracting industry and working with them so they would do accurate reporting, and as a result of that, not trying to raise the goals beyond some reasonable limit, then we've got their buy in as far as doing good reporting. So this is a part of our program that I think is alive and well.

Thomas is right in that building trades, I think we still have some problems there.

MR. JOHNSON: Mr. Williamson, did you make a motion?

MR. WILLIAMSON: I did, I so moved.

MR. NICHOLS: And I made a second -- well, I was interrupting you.

MR. JOHNSON: I'm sorry. Go ahead.

MR. NICHOLS: On the small business enterprise, when the contractor reaches $5 million a year or some other magical number, they're no longer considered a small business enterprise. What's that number?

MR. BOHUSLAV: There are different categories depending on which type of area you're in. If you're talking about highway construction, right now the value is $27 million a year.

MR. NICHOLS: I think a few years ago we made a list -- we had a number of people -- I call them the Successful Graduates -- that had expanded past that and no longer were considered, and I think we did a side reporting at the legislature.

MR. BOHUSLAV: We do maintain that information on those that have graduated, yes.

MR. NICHOLS: Anyway, I had seconded.

MR. JOHNSON: There is a motion and a second. All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. BOHUSLAV: Item 13(b) is a minute order that establishes Small Business Enterprise goals for Fiscal Year 2002. A goal of 23 percent is proposed for the department's highway construction and maintenance projects funded wholly with state and local funds. Staff recommends approval. Do you have any questions?

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. BOHUSLAV: Item 13(c)(1) is for the consideration of award or rejection of highway maintenance contracts let on August 7 and 8 of 2001, whose engineer's estimated costs are $300,000 or more. We had 16 projects; staff recommends award of all projects listed in the exhibit.

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. BOHUSLAV: Item 13(c)(2) is for the consideration of award or rejection of highway construction and building contracts let on August 7 and 8, 2001. We had 109 projects and we have recommendations for rejection of four projects.

The first project is in Harrison County, Project Number 3235. It's on IH-20, replace existing flexible base with concrete pavement. We had two bidders; the district feels they can get better prices by increasing quantities by combining this project with two other projects that they have proposed for future lettings.

The second project recommended for rejection is in Lubbock County, Project Number 3258. This is for construction of some ADA curb ramps. We had one bidder on this project who was 150 percent over. We'd like to go back and combine this with some other projects to again get economy of scale to reduce the cost on the project.

An additional project recommended for rejection is in Mitchell County, Project Number 3256. This is new structure work. We had one bidder on this project who was 120 percent over. We'd like to combine this again with some other projects to get economy of scale to help on overhead costs and move-in costs on the project.

The last project recommended for rejection is in Upshur County, Project Number 3010, reconstruction of a four-lane urban facility there. Two bidders on this project, 28 percent over. We'd like to combine this with another project that's going to be let adjacent to it so they can combine some traffic control and some phasing and they think that can help reduce the cost on the project as well by combining with the other project.

Staff recommends award of all with the exceptions noted. Any questions?

MR. JOHNSON: Are there any questions?

MR. NICHOLS: So moved.

MR. WILLIAMSON: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motion carries.

MR. HEALD: Commissioners, under Routine Minute Orders, I know you're a little bit pressed for time and I'm told that I can just package these all together and you can pass them without going through each one of them individually. I'll be glad to do that or I'll be glad to answer any questions that you have on any particular one.

MR. NICHOLS: Yes, I guess 14(d)(3).

MR. JOHNSON: I think we requested that 14(d)(3) be tabled so we can get some more information on what commitments have or have not been made.

MR. WILLIAMSON: 14(d)(3), Chair, addresses certain frontage or access road issues in the Dallas District. Is that correct?

MR. JOHNSON: Yes, sir.

MR. WILLIAMSON: And I guess this is a good opportunity to follow up on what I know all three of us have been saying privately and publicly at every meeting that we could to interested private sector people and to our own employees, and that is, to repeat and reiterate over and over again, we are dead serious about ending the practice of open marketing our frontage and access roads, not because we want to stifle economic development anywhere but because we understand that at some point somebody has got to draw the line on additional congestion for the same width roads.

Perhaps this is one more opportunity to speak to the record that the three are united and serious. We're business people, we don't intend to break our word, we don't intend to harm anyone who -- I don't think we intend to harm anyone who has made significant investments, but we know that there's got to be a line drawn someplace and stop and we want our DEs and the free world to understand that. Does that frame it?

MR. NICHOLS: I would say that sums it up very well.

MR. HEALD: And this is no secret to anybody, but what staff will have a difficult time with, is sorting through what is considered a commitment, but I think Mike is trying to put that report together now.

MR. WILLIAMSON: Well, he told us you were going to have it before five o'clock tomorrow.

(General laughter.)

MR. HEALD: Where's Mike?

Then I present these minute orders then for your consideration with the exception of 14(d)(3) that you asked to be deferred.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: All in favor, signify by saying aye.

(A chorus of ayes.)

MR. JOHNSON: Motions carry.

MR. HEALD: Under open comment we have one speaker that signed up, and I don't think we're asking for any executive session today.

MR. JOHNSON: Sparky Anderson has asked to address the commission, representing the Texas Community Project, the Texas program director.

Mr. Anderson, welcome.

MR. ANDERSON: Thank you, Mr. Chairman and commissioners. My name is Sparky Anderson -- I'm not the baseball manager, I just was blessed with his same name -- and I am the state program director and senior policy analyst for the Texas Community Project, a grass roots citizens organization with about 35,000 members in Texas.

Mr. Chairman and commissioners, as you know -- well, unfortunately I wasn't able to be here during the consideration of the issues related to the Matthew Brown Act and the Safe Routes to School, but I did want to join our colleagues in the Texas Bicycle Coalition and other organizations and also express to you the concerns of our members over expenditures and the needed expenditures for safer routes to school and protections, and in particular we're wanting to play a role in helping to decide the formulas used determining how the agency will use, for instance, the hazardous elimination fund, but also other funds.

I don't know if you know this fact, but last year about 17 percent of the overall traffic-related fatalities that were recorded, at least, in the state of Texas were pedestrian related. Yet, under our last analysis only about 4 to 5 percent of the agency expends money on pedestrian safety projects, and we're wanting to see some balance put into play in the state's budget in this agency.

I also want to help play a role in the long-range planning, the determination of routine accommodation and making sure that appropriate expenditures are taking place during construction projects for all roads and highways in the state.

I did have one other item I wanted to bring up and I didn't put it on the card for the secretary, but this is in regard to public access areas such as the rest areas and other facilities where the public may have come into access to operations of this agency.

We've been working with Texas Parks and Wildlife and other local agencies with regard to construction projects that use pressure-treated lumber. The current technology used for the outdoor lumber, also known as CCA, copper chromated arsenic, is a product that, as you know, is a wood preservative that helps fight -- it's basically a pesticide that's injected into the wood.

Unfortunately, we're finding an alarming amount of contamination problems occurring, both to the public coming in contact, mainly children. This stuff is routinely used for park benches, for playground equipment and handrails and all kind of activities where the public may have access. It's also a cause for contamination to water quality if enough of the material is located in a single spot.

We hope that the agency will consider the alternatives that are available from the non-wood products that can last longer for your maintenance and construction projects, and also help the industry, the pressure-treated lumber industry make a transition that's being considered by the Consumer Products Safety Board to turn to the alternatives that are already on the market and available, and we hope that you will consider use of these alternatives and help us get away from copper chromated arsenic pressure-treated lumber.

Thank you.

MR. JOHNSON: Mr. Anderson, thank you for taking the time to be here and share your thoughts.

There is no executive session matters and if there's no further business to come before the commission, I will entertain a motion to adjourn.

MR. WILLIAMSON: So moved.

MR. NICHOLS: Second.

MR. JOHNSON: For the record, it is 11:20 a.m. and this meeting stands adjourned as the motion carries.

(Whereupon, at 11:20 a.m., the meeting was concluded.)

C E R T I F I C A T E

MEETING OF: Texas Department of Transportation

LOCATION: Austin, Texas

DATE: August 30, 2001

I do hereby certify that the foregoing pages, numbers 1 through 110 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.

09/04/01

(Transcriber) (Date)

On the Record Reporting, Inc.

3307 Northland, Suite 315

Austin, Texas 78731