State may defy local
leaders on 121 toll
plan
Money, politics
could push panel to
override choice of NTTA
June 27,
2007
By JAKE BATSELL /
The Dallas Morning
News
The Texas
Transportation
Commission has made
a habit of honoring
local leaders'
decisions.
But when
commissioners meet
Thursday to consider
North Texas leaders'
plans for the
politically charged
State Highway 121
toll road, nobody
expects a rubber
stamp.
The Regional
Transportation
Council voted 27-10
last week to endorse
the North Texas
Tollway Authority
for the
multibillion-dollar
project. If ratified
by the commission,
the local vote would
torpedo an earlier
deal the state
reached with the
Spanish company
Cintra.
Commissioners
have never overruled
a decision by the
regional council,
but with so much
money and politics
at stake, Highway
121 could set a
precedent.
"As far as
saying, 'Thank you
all very much for
your comments, and
now we're going to
vote the other way,'
they haven't done
that in the past,"
said RTC chairman
Oscar Trevino. "But
all we are is a
recommending body. I
can see them not
agreeing with us."
Gov. Rick Perry
has appointed all
five commission
members. They have
the ultimate say on
state road
contracts.
Transportation
officials in Austin,
El Paso, Houston and
San Antonio say the
panel has yet to
contradict a local
recommendation on a
specific road
project.
"This commission,
more than any prior
one, has acted to
strengthen decision
making at the
regional and local
level," said Alan
Clark, director of
transportation
planning for the
Houston-Galveston
Area Council.
Still, Highway
121 is a special
case. The state
originally picked
Cintra for the
project four months
ago. When that deal
prompted a backlash
from state
lawmakers, regional
leaders invited the
NTTA to re-enter the
bidding process.
Members of the
RTC – mostly local
elected officials –
spent more than
eight hours combing
through the dueling
bids before siding
with the tollway
authority.
Members said they
chose the
NTTA for
several reasons,
including the idea
of keeping profits
in North Texas
rather than sending
money to Spain.
The tollway
authority's cash
offer of $3.3
billion was higher
than Cintra's. And
RTC members said
they believe
better-than-expected
traffic on Highway
121 could generate
more revenue for the
NTTA to build other
roads in North
Texas.
The Texas
Department of
Transportation,
which is governed by
the state
transportation
commission, has
consistently favored
Cintra's proposal.
Since Mr. Perry
appoints the five
commissioners, the
department is under
pressure to carry
out his initiative
to privatize
highways. A winning
bid for Cintra would
signal that Texas'
roads are open for
business.
Local power
Reversing the
RTC's endorsement of
the
NTTA for Highway
121 would be a
hairpin turn from
the commission's
philosophy of local
control, a mantra it
has repeated over
the past four years.
Regional planning
councils used to
present the state
with a wish list of
road projects, then
wait for
commissioners to
pick which ones to
fund. Now, the state
gives each council a
pot of money and
asks regional
leaders to select
projects and
prioritize them.
Inflation is
chipping away at the
state gas tax, the
chief funding source
to build and
maintain roads.
Commissioners have
encouraged regional
councils to generate
more public money by
seeking toll-road
contracts with
upfront payments.
Highway 121 is
Texas' richest such
deal yet, with the
NTTA and Cintra both
offering around $3
billion in cash in
return for the right
to collect tolls for
the next 50 years.
The commission's
chairman, Ric
Williamson, declined
to comment last week
on the upcoming vote
on Highway 121. But
in late March, days
after the RTC
invited the tollway
authority back into
the bidding process
for Highway 121, Mr.
Williamson all but
guaranteed that
commissioners would
defer to regional
leaders.
"We want to
administer the award
of that construction
contract according
to the regional
leadership," he
said. "We just
believe that if you
have a strategy that
says empower local
and regional
government, that's
what that means and
you stay out of it,
other than making
sure the law is
followed and making
sure good
engineering
practices are used.
If you're going to
let go and let
people assume a
regional
perspective, that's
what you have to
do."
Other
commissioners,
however, have raised
concerns that the
volatile and
unorthodox bidding
process for Highway
121 may prompt
Cintra to sue the
state.
And
Transportation
Department officials
have circulated
letters suggesting
that yanking the
project from Cintra
could cost the state
federal funds. A
state engineer even
wrote a memo
suggesting that the
NTTA could go
bankrupt if it's
awarded the project.
James Bass, the
department's chief
financial officer,
has since called the
memo "moot."
The department's
two representatives
on the regional
council voted for
Cintra's proposal.
And Mr. Bass said
earlier this month
that if
commissioners ask
for a staff
recommendation on
Thursday, the
department's review
team will recommend
Cintra.
How much weight
the commission would
give a staff
assessment is
unclear. While
commissioners
emphasize local
control, they also
have embraced
private companies –
Cintra, for example
– as a key solution
to the state's
transportation
problems.
"You had a
monopoly called
TxDOT. We're trying
desperately to
dismantle that
monopoly," Mr.
Williamson said
during a meeting
with reporters last
month.
"We try to move
wherever we can to
insert competition
and competitive
pressure into the
decision-making
process, in the
broader context of
letting regional
leaders judge who
has the best
proposal in that
competitive
process," he said.
New territory
Should
commissioners reject
the
NTTA proposal,
local officials say,
it will be the first
time the panel has
reversed an RTC
decision.
Mr. Trevino, the
mayor of North
Richland Hills and
the RTC's new
chairman, said
members of the
regional council
tangled with
commissioners last
year about a
proposed Trans-Texas
Corridor route that
local leaders felt
ran too far east of
Dallas to benefit
the region
economically.
Commissioners
ultimately agreed to
study another route
that would include
the future Loop 9
project near the
Ellis-Dallas county
line, bringing the
corridor closer to
North Texas' urban
areas.
Still, Mr.
Trevino said, it's
possible the
commission will
overturn the RTC
vote on Highway 121.
"I don't think
it'd be the best
thing for them to
do," he said. "But
then again, they
march to a different
drummer than we do."
State lawmakers
warn that rejecting
the RTC vote would
snub the
Legislature, which
passed a law
requiring that
NTTA
be awarded Highway
121 if its proposal
were financially
superior.
Transportation
officials across
Texas will be
watching Thursday's
meeting for clues on
how the commission
will handle local
recommendations on
future toll deals.
"It'll set the
tone," said Sid
Martinez, director
of San Antonio's
transportation
planning agency. "If
they go with the
RTC's
recommendation, then
we know in the
future that more
than likely they
will honor the vote
of the local and
regional players. If
they don't, then we
know that it might
be a tougher
landscape."
The commission
overruled El Paso's
regional council
last year during a
debate over whether
the city could
establish its own
transportation
authority. But none
of the state's five
largest planning
organizations could
recall being
reversed on a
specific road
project.
Michael Aulick,
executive director
of the Capital Area
Metropolitan
Planning
Organization in
Austin, said he
couldn't think of
any similar battles
between his group
and the commission.
But Mr. Aulick
said the Highway 121
debate is different
because of the
billions at stake
and the
unprecedented choice
between hefty public
and private toll
bids.
"We're not in
y'all's league," he
said. "Dallas-Fort
Worth plays a much
bigger game. They
play the NFL
compared to what we
do down here."
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