TxDOT and the North Texas Toll Authority (NTTA) the regional toll agency in the Dallas-Fort Worth area seem to have resolved a long running turf battle over who will control new tollroads. A so-called "TxDOT/NTTA Regional Protocol" was endorsed this morning in Plano by the NTTA board of directors. It is almost certain to be endorsed at the state level by the Texas Transportation Commission at its next meeting 24 Aug.

The protocol allows TxDOT to proceed with its CDAs (Comprehensive Development Agreements, which involve either investor toll concessions, design-build or adhoc agreements with local governments) for:

• TX161 Collin, Denton cos

• TX161 Dallas Co

• I-635/I-35E toll lanes Dallas Co

• TX121/TX114/I-635 Funnel project toll lanes Tarrant, Dallas, Denton cos

• TX183/I-820/I-35W toll lanes in Tarrant Co

In return for NTTA withdrawing from these projects NTTA is recognized by TxDOT as the primary backoffice toll collection provider for the CDA tollroads in the region for their first five years.

In addition TxDOT recognizes NTTA's control over the Eastern Extension of the Pres Geo Bush Turnpike Dallas Co, Lewisville Lake Bridge Denton Co and the Southwest Parkway Tarrant Co - subject to regional toll revenue sharing.

Remaining to be negotiated after environmental permitting are division of power over the Trinity Parkway in the city of Dallas and TX121 Johnson Co.

The two agencies commit to meet regularly and to work with the Regional Transportation Commission (RTC) of the area council of governments to shape future projects collaboratively.

Peace process defined

The peace process to which both TxDOT and NTTA are committed provides for:

• both agencies to apply TxDOT sketch level project evaluation models to develop early estimates of feasibility

• both apply TxDOT models to estimate CDA returns

• both agree to attempt to form a jointly agreed position on new projects to present to their governing boards

• both will attempt to agree on when to move to more detailed project evaluation

• criteria are agreed for attempting to make joint recommendations

• project allocation between the two agencies will be based on maximum financial benefits for the region (not the state)

NTTA accepts revenue sharing for future projects

For future projects NTTA will support revenue sharing. This will be based on the contributions of various project sponsors including right-of-way, infrastructure and equity contributions.

TxDOT recognizes NTTA's continued role as TR developer

TxDOT disclaims any intention to limit NTTA to mere toll operations in the future while agreeing to NTTA being the backoffice toll collection provider for at least the first five years of new TxDOT CDA tollroads in the region. (We don't see any specification of the geographic limits of the region - a possible future source of tension?)

After five years the TxDOT CDA tollroad concessionaire may renegotiate the terms of toll collection services from NTTA or choose an alternative to replace NTTA. Toll collection services include backoffice processing, clearinghouse arrangements and customer services (including issue of transponders apparently).

NTTA will produce a price list for toll collection services applicable to all CDAs.

Protocol expires in five years

The Protocol's application to new projects will expire five years from date of execution unless both parties agree to extend it.

A press release from NTTA says the protocol "will result in seamless planning, funding, construction and operation of toll and managed (toll lane) facilities in the region."

The most immediate benefit of the protocol appears to be the withdrawal of NTTA from the bidding for the TX121 concession, which had created major contention and legal difficulties. That should allow the new northeast to DFW airport TR to go ahead.

COMMENT: The Plano Protocol lacks the geographical elegance of the last turf agreement of comparable importance down that way, the Treaty of Tordesillas in 1494 in which Spain and Portugal agreed to a demarcation line along a circle 100 leagues west of the Cape Verde Islands and passing through the two poles, but we guess it's the best negotiators could do. There was no papal bull to guide the diplomacy this time. NTTA's first up proposal confining TXDOT CDA tollroads to north of the Red River and south of the Rio Grande proved to be an over-reach.

APOLOGIES: Apologies for the oversimplifying headline, but the rhyme was irresistible.

TOLLROADSnews 2008-08-10