Moratorium sought

April 12, 2007

By Mary Jane Farmer, Herald Democrat

Proponents and opponents alike of the proposed Trans Texas Corridor might be pleased with a bill amendment that, if it completes the legislative process, will put a two-year moratorium on private-public highway partnerships. Officials in Austin believe it will pass both the Texas House of Representatives and the Texas Senate but are unsure whether Gov. Rick Perry will sign it into law.

Senate Bill 1267 and House Bill 1892 impose a two-year moratorium on privately funded toll road projects by barring any new comprehensive development agreements or toll-project sales to a private entity, and requiring a study committee to examine the impact of such projects. Privately funded roads are accompanied by giving the funding entity the right to tolls collected during a specified period of time. In TTC’s case, that would be for 50 years.

Texas Department of Transportation Engineer Bobby Littlefield said that during that 50-year period, the funding entity must be and remain in compliance with Texas rules regarding amounts collected, maintenance and upkeep, and such.

Wednesday marked the third and final reading of the amendment to HB 1892, which corresponds almost verbatim with SB 1267. Texas State Rep. Larry Phillips of Sherman said that now it will be sent to the Senate and assigned to a committee there. The Senate committee must then approve the bill or it will die there. If the committee approves it, then the House and Senate memberships must vote, after which it will go to the governor’s desk for approval or veto.

Meanwhile, SB 1267 is only about a week behind. It has come out of committee but has not yet been scheduled for public hearings, said Jody Withers, communications director for Texas Sen. Craig Estes of Wichita Falls. When that’s done, it will be sent to the House.

The proposed bills create study committees and require public hearings, which Phillips said will consider all aspects of the private-public highway partnerships.

TxDOT officials held public hearings all across Texas in 2005 and 2006 on the Trans Texas Corridor. The general consensus at most of these hearings was that the public is against creating criss-cross massive transportation systems over Texas, but that many city and county entities believe the systems are becoming more and more essential with every year that passes. Some are even vying to have TTC pass by their areas in order to increase quality of life.

“I believe that I-35 needs relief and most people in the (legislative) districts agree, and it will have to happen,” Phillips said. He explained that TxDOT and the Texas Transportation Committee are, while considering the TTC as an option, also considering additional lanes on I-35 and the construction costs for that type of relief.

“Senator Estes also is in favor of this moratorium,” Withers said. “He compares the (funding method) to a ship on the ocean. If it’s traveling one or two degrees off course, the ship can end up a continent away from its destination. We must get on the right course.”

Littlefield said there are about 40 projects in the works statewide right now that could be affected by this bill. Two local projects, State Highway 289 in Grayson County and State Highway 121 in Collin and Denton counties, will not be affected, according to Withers.

When asked about the proposal, Grayson County Commissioner Gene Short, Precinct 4, said the county has a signed contract with TxDOT for the SH 289 project.

“I don’t think they are going to want to go back on that,” Short said. Construction on the extension is expected to begin this spring and contractors, attorneys and others have already been paid money for work performed.

Grayson County sold $63 million in bonds in January to pay for the project until the state starts paying the county $85 million in pass-through toll payments promised in the contract. The arrangement will allow the state to pay back the county for the costs of building the extension based on the number of cars using that portion of the road once it is built.

The SH 121 toll project is not expected to be affected, either, Withers said. Cintra-Zachry has been granted the bid. Withers explained, however, that his understanding is that the North Texas Toll Authority is now being given a chance to bid on the project, designed to turn SH 121 in Collin and Denton counties into a toll road and offer additional lanes and other amenities. If the Toll Authority wants to offer a bid against Cintra Zachry’s bid, it will be considered, Withers said. That could push back construction times but will not halt the overall project.

“Timing is critical (on this bill),” Phillips said. It must be completed by May 28, the end of the current, 80th legislative session. The crux of it will depend on Perry’s yea or nay. He has 30 days to put pen to it, whether to veto or approve it. If Perry doesn’t sign it during that 30-day period, it automatically becomes law. If he vetoes it, the legislature can go over his head with a two-thirds vote in both houses. But, whether or not it can be brought back up in any called special sessions is undetermined right now, Phillips said.

Phillips added that he has no feel on which direction the governor will go. Withers said he hasn’t heard a definitive answer, but added that he has been told Perry doesn’t believe it is necessary. Both Phillips and Estes voted for the moratorium.

“The Trans Texas Corridor may be happening faster than the public is ready for it,” Phillips said. “This (moratorium) could give citizens a time to step back, evaluate and learn more about it.”

Private financing of public roads is a new tool made available by the 79th Legislature.

Estes said he feels there needs to be a brake put on the public-private contracts used to finance new toll-road projects and the Trans Texas Corridor. “There are too many unanswered questions and recent revelations of poor accountability require the Legislature to step in. When you are talking about a contract (TTC) that could last one-half a century, two years wait and study time could not be harmful.”

“We have (traffic) congestion issues in the state and we are going to have to deal with those,” Phillips said. He explained that statistics show that the triangle from Sherman to San Antonio to Beaumont is expected to double its population within 25 years. “We have to be thinking long term, but everyone wants to make sure that what’s happening is best for Texas and there are proper protection and safeguards in place.”

Estes added that his concern is that private contracts lack the accountability and transparency voters demand in the operations of their government. “Until we fully understand both the public policy and the fiscal impact of these agreements, it is in the interest of the public to stop them before it is too late,” Estes said.