2007-05-12

TOLLROADSnews

Pro-toll, pro-concession elements in Texas were claiming Friday that they are close to persuading their leading anti-toll opponents in the state legislature (the 'leggie' is its charming nickname) to recall the sweeping anti-toll, anti-TXDOT HB1892 from the Governor's desk rather than have him veto it.

He has threatened to forcefully lay out the damage the leggie is wreaking if they override his veto and make it law. He would call a them into special session in the summer to consider how to fix it. (On their regular schedule the Texas leggie adjourns May 28 and doesn't reconvene until February 2009!)

Jose Maria Lopez de Fuentes, president of Cintra USA told us Friday he is optimistic that legislators and the state will work things out in a way which both satisfies public concerns and allows the state's much needed toll highway program to continue. He says Cintra believes it has proposals which are good for Texas and is going to be more vocal in arguing its case: "So long as we think what we have to offer is right, we'll fight for that. We are not going to walk away."

Cintra will be putting its case for SH121 in a paper to be released next week following NTTA's claim that it can do better.

Phillip (Phil) Russell, director of the turnpike division of TxDOT told us Thursday: "Give us a couple of weeks. We think we can work things out. I'm very hopeful."

From the podium speaking at a conference "Transportation PPP Projects" in Washington DC, Russell said consistent with departmental practice he wasn't going to comment directly on legislation but he referred to "pushback" against the TxDOT program and said the legislative framework has changed many times. What doesn't change he said was the "great need" for highway improvements and the lack of conventional funding. A recent move in the legislature to index the gas tax was "defeated overwhelmingly" he said.

"Ultimately I'm very confident the legislature and the governor will work out some compromise. Some people threw rocks at the $86 billion estimate (of a funding gap over 25 years). I couldn't tell you if it is $76, or $86, or $126 or $72 billion. I just know it's a bunch."

"We absolutely have to do a better job of telling the story, of educating people," he said.

On the matter of public tolling versus concessions, Russell said: "We are open to different models." He said TxDOT was willing to look at full toll financing, and public financing with some input of tax-based funds, but it was difficult to justify tolls if the needed tax money got too large.

The Turnpike division has done the first four segments of SH130 east of Dallas very successfully as as traditional public authority toll financing, he said, and wanted to complete the project south via segments 5 and 6 41 miles (65km) to Seguin on I-10.

"We just couldn't get the numbers to work (for public toll financing). We tried everything. It required too much tax funds (to subsidize the tolls). We couldn't make the case for that.

Cintra Zachry came in with a CDA (concession) proposal that funded the $1.3b cost completely. It would take decades to get the money otherwise. Also operations and maintenance is being carried by the private sector. That's a huge thing too."

Russell said that people's complaint about tolling is having to wait to pay (queueing) and so from now on all TxDOT toll projects will be by transponder and video toll, no cash collection. SH121 will be the first example of the modern Texan tollway.

Pressed by Ken Orski on how the current dispute on SH121 between NTTA and Cintra would be resolved, the TxDOT Turnpike chief said: "The MPO (North Central Texas Council of Governments and their Regional Transportation Council) will have to make that decision. They will have to determine if it (the NTTA bid) is best value. They will be looking at all those things. The FHWA has an interest in this (so they'll look at that.) It's a very good MPO."

In response to another question on SH121 Russell said: "Give them two or three weeks. I'm sure they (NCTCOG) will sort it out. I have a great deal of confidence in that MPO."

Compromise in works but what it contains no one knows

The word in Austin is that many legislators have lost their appetite for over-riding a veto by the governor. Gov Perry has been talking of the bill's dire consequences for the whole highway program of the state.

Legislators have been shaken by TxDOT's description of the consequences of HB1892 (Behrens to Fred Hill), concerned about the FHWA strong words about how devolution jeopardizes the federal aid program, and dismayed at the prospect of the Governor calling a special summer session of the legislature if HB1892 is passed into law over his veto. Perry threatened the summer legislative session Wednesday.

A figure of middling prominence in the concession freeze movement Sen Tommy Williams (Repub, Woodlands north of Houston) is said to leading the movement to drop HB1892 in favor of a softer bill. House transport committee chair Mike Krusee a lone vote against HB1892 is also deeply involved in the discussions, most of which are being undertaken telephone in conference calls.

One local observer told us: "What I am hearing is that they’re very close to an agreement, the agreement will include a moratorium but not much of the other garbage, and it would involve passing a new bill and recalling 1892. I think they’ve peered over the edge into the abyss and decided that maybe 1892 wasn’t such a hot idea. Grady Smithey, from the Dallas mobility group, described that bill as HCRTA’s Christmas tree that kept getting ornaments hooked on to it until it finally became so loaded down it and collapsed."

As the saying goes: it ain't over 'til it's over.

TOLLROADSnews 2007-05-12

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