TURF - Austin, TX, June 26, 2008
After the overwhelming public feedback preferred the “no build” option and after the Legislature made it clear it wanted time to slow down this train of privatizing our public infrastructure, TxDOT’s selection, today, of a private partner to develop TTC-69 is a total slap in the face to the people of Texas.
This proposal awarded to ZAI/ACS (Zachry American Infrastructure and ACS, based in Spain) is chalk full of egregious taxpayer exploitation. For instance, it tolls loops around Riviera, Driscoll, Corpus Christi and other cities (7 loops total) to fund non-toll improvements to Hwy 77 in yet another Robin Hood scheme. The deal gives ZAI/ACS a guaranteed 12% rate of return on their investment, and it relies heavily on public funds, like federal taxpayer backed private activity bonds (PABs) and TIFIA loans to front the vast majority of the construction costs and then gives all the profit to Zachry & ACS!
They also plan to use taxable zero coupon fixed rate bonds issued by the Corpus Christi Regional Mobility Authority and controversial Transportation Reinvestment Zone (TMZ) funds, which will essentially heist property taxes. The deal also gives ZAI/ACS cherry-picking rights (or right of first refusal) on multiple segments for the TTC-69 without being subjected to a competitive bidding process. The sham of an announcement pandering to landowners promising to use existing highways for TTC-69 wasn’t a concession at all. The private “partners” informed them the new corridor route wasn’t toll viable so they reverted back to using existing freeways (which would have been the tollway’s biggest revenue “competitor”) so as to capture more toll revenue. It was Cintra and Zachry who determined the re-route, not TxDOT being responsive to an outraged public!
“If this isn’t a wake-up call to the Legislature that it’s business as usual at TxDOT until they forcibly restrain them via state law, we don’t know what is. This removes any requirement for competitive bidding, which on its face is an absolute failure of the State's fiduciary duty to protect the taxpayers from monopolistic sweetheart deals and what's certain to be inflated costs. We must make Legislators pay at the ballot box for their malfeasance in granting the authority for such no-bid contracts and for failing to rein-in TxDOT with a GENUINE moratorium last year BEFORE this next private sweetheart deal got signed. If they don’t completely clean house at TxDOT and end this public fleecing, there won’t be enough political cover for the consequences at the ballot box. Enough is enough. End this now!” notes Terri Hall, TURF Founder.
“At today’s Transportation Commission meeting, it was a lovefest between David Zachry and the South Texas politicos pushing this nonsense. TxDOT and their buddies at Zachry/ACS found a way to follow the bare minimum of the law to sign this CDA and continue to steamroll a plan the majority of Texans don’t want. It was also evident the Transportation Commission is desperate to come up with their own alternative reforms since they’re facing an angry public demanding TxDOT be scrapped, a discontented Legislature, and scathing Sunset Commission recommendations,” observed Hank Gilbert, TURF Board member and acting President of the Piney Woods Subregional Planning Commission who attended and testified at today's meeting.
For more detailed analysis of how TxDOT can legally award a Comprehensive Development Agreement (CDA) outside the moratorium (SB 792), go to TURF’s web site here.
Showing posts with label SB 792. Show all posts
Showing posts with label SB 792. Show all posts
Friday, June 27, 2008
Friday, June 22, 2007
NTTA Takes $5 Billion Tollway From Cintra - NCTCOG regret at not mentioning that Price Waterhouse Cooper worked for Cintra on TTC Bid
"Eastland said that he regretted that he had not mentioned that Price Waterhouse Cooper had worked for Cintra on the Trans-Texas Corridor."
by Richard Williamson - The Bond Buyer - June 19, 2007 Copyright 2007
DALLAS — In a dramatic reversal, the North Texas Regional Transportation Council yesterday handed a $5 billion toll project to the North Texas Tollway Authority less than four months after it originally selected private development team Cintra/ JPMorgan.
The vote must be seconded by the Texas Transportation Commission, which had already approved Cintra’s bid in February — before the competition with the NTTA.
Despite the NTTA’s late-entry to the bidding, top officials said the authority could quickly catch up to Cintra’s plans for completion of the road by 2010.
“We’ve already commenced work to ensure on-time delivery,” said NTTA executive director Jerry Hiebert. “We’re certain NTTA will be on time for the financial close.”
The battle between the NTTA and Cintra was set up in March, just days after the 23-mile tollway in Denton and Collin counties north of Dallas was awarded to Cintra. Cintra emerged as the favored bidder after three years of developing its proposal.
By contrast, the NTTA developed its 800-page proposal in less than a month after state Sen. John Carona, R-Dallas, persuaded the RTC and Texas Department of Transportation to reopen the bidding to the toll authority, a division of the state.
While the NTTA proposal appeared to trump Cintra’s bid by about $100 million, analysis by TxDOT and the auditing firm of Price Waterhouse Coopers showed that Cintra’s proposal netted out as the better value due to a variety of factors.
In its presentation to the RTC board Thursday, NTTA board chairman Paul Wageman and Hiebert sweetened their original offer of $2.5 billion in an up-front payment and $833 million over the life of the project. At the board’s request, the NTTA would make the entire $3.3 billion payment for the project up-front, they said.
The authority, which operates 64 miles of toll roads in the Dallas-Fort Worth area, has complained of unfair treatment of its proposal and of conflicts of interest involving Price Waterhouse Coopers. After PWC issued its report favoring Cintra, it was revealed that the firm was working as auditor for Cintra, the Spanish developer whose full name is Cintra, Concessiones Infraestructuras de Transporte.
PWC and Cintra claimed that there was no conflict because the PWC auditors in Spain were a separate team from those who conducted the analysis for the RTC.
But Wageman disagreed, pointing to the fact that PWC also worked with Cintra and its partner Zachary Construction of San Antonio on development of the Trans-Texas Corridor, a proposed network of tollways in Central Texas whose final cost could reach $150 billion.
“How can Price Waterhouse Coopers possibly be unbiased and fair in evaluating its partner’s proposal against a competitor’s?” Wageman asked.
The NTTA originally passed up the SH 121 project when the 23-mile toll project was under discussion for financing in 2004, according to TxDOT. Cintra was one of the private developers that responded to financing proposals.
The NTTA has acknowledged comments from the three rating agencies that its credit rating will likely fall as it more than doubles its debt to build SH 121. But officials say they can stay within an A-range.
“We’re going to see a decrease in our credit rating,” Hiebert said. “But the inverse of that would be to just take our money and sit on it.”
Under a protocol agreement with TxDOT and Cintra last year, the NTTA was designated the toll collector and operator for the SH 121 project while Cintra was in charge of construction and financing.
Asked at Thursday’s RTC meeting why the authority earlier had ceded the project to Cintra, Wageman pointed to legislation favoring comprehensive development agreements with private developers in order to preserve bonding authority for government entities. That position was reversed last week with Gov. Rick Perry’s signing of SB 792, which gives toll authorities first shot at projects in their regions.
“We thought the better part of valor was to step back and accept a process that SB 792 has now extinguished,” Wageman said. “This has been an imperfect process.”
Mike Eastland, executive director of the RTC, said at yesterday’s meeting that PWC was the only viable contender to accomplish the analysis of the bidders in a short period time.
Eastland said that he regretted that he had not mentioned that PWC had worked for Cintra on the Trans-Texas Corridor. “We made a mistake,” he said. “We admit the mistake, but I do not think it is material.
© 2007 The Bond Buyer:
by Richard Williamson - The Bond Buyer - June 19, 2007 Copyright 2007
DALLAS — In a dramatic reversal, the North Texas Regional Transportation Council yesterday handed a $5 billion toll project to the North Texas Tollway Authority less than four months after it originally selected private development team Cintra/ JPMorgan.
The vote must be seconded by the Texas Transportation Commission, which had already approved Cintra’s bid in February — before the competition with the NTTA.
Despite the NTTA’s late-entry to the bidding, top officials said the authority could quickly catch up to Cintra’s plans for completion of the road by 2010.
“We’ve already commenced work to ensure on-time delivery,” said NTTA executive director Jerry Hiebert. “We’re certain NTTA will be on time for the financial close.”
The battle between the NTTA and Cintra was set up in March, just days after the 23-mile tollway in Denton and Collin counties north of Dallas was awarded to Cintra. Cintra emerged as the favored bidder after three years of developing its proposal.
By contrast, the NTTA developed its 800-page proposal in less than a month after state Sen. John Carona, R-Dallas, persuaded the RTC and Texas Department of Transportation to reopen the bidding to the toll authority, a division of the state.
While the NTTA proposal appeared to trump Cintra’s bid by about $100 million, analysis by TxDOT and the auditing firm of Price Waterhouse Coopers showed that Cintra’s proposal netted out as the better value due to a variety of factors.
In its presentation to the RTC board Thursday, NTTA board chairman Paul Wageman and Hiebert sweetened their original offer of $2.5 billion in an up-front payment and $833 million over the life of the project. At the board’s request, the NTTA would make the entire $3.3 billion payment for the project up-front, they said.
The authority, which operates 64 miles of toll roads in the Dallas-Fort Worth area, has complained of unfair treatment of its proposal and of conflicts of interest involving Price Waterhouse Coopers. After PWC issued its report favoring Cintra, it was revealed that the firm was working as auditor for Cintra, the Spanish developer whose full name is Cintra, Concessiones Infraestructuras de Transporte.
PWC and Cintra claimed that there was no conflict because the PWC auditors in Spain were a separate team from those who conducted the analysis for the RTC.
But Wageman disagreed, pointing to the fact that PWC also worked with Cintra and its partner Zachary Construction of San Antonio on development of the Trans-Texas Corridor, a proposed network of tollways in Central Texas whose final cost could reach $150 billion.
“How can Price Waterhouse Coopers possibly be unbiased and fair in evaluating its partner’s proposal against a competitor’s?” Wageman asked.
The NTTA originally passed up the SH 121 project when the 23-mile toll project was under discussion for financing in 2004, according to TxDOT. Cintra was one of the private developers that responded to financing proposals.
The NTTA has acknowledged comments from the three rating agencies that its credit rating will likely fall as it more than doubles its debt to build SH 121. But officials say they can stay within an A-range.
“We’re going to see a decrease in our credit rating,” Hiebert said. “But the inverse of that would be to just take our money and sit on it.”
Under a protocol agreement with TxDOT and Cintra last year, the NTTA was designated the toll collector and operator for the SH 121 project while Cintra was in charge of construction and financing.
Asked at Thursday’s RTC meeting why the authority earlier had ceded the project to Cintra, Wageman pointed to legislation favoring comprehensive development agreements with private developers in order to preserve bonding authority for government entities. That position was reversed last week with Gov. Rick Perry’s signing of SB 792, which gives toll authorities first shot at projects in their regions.
“We thought the better part of valor was to step back and accept a process that SB 792 has now extinguished,” Wageman said. “This has been an imperfect process.”
Mike Eastland, executive director of the RTC, said at yesterday’s meeting that PWC was the only viable contender to accomplish the analysis of the bidders in a short period time.
Eastland said that he regretted that he had not mentioned that PWC had worked for Cintra on the Trans-Texas Corridor. “We made a mistake,” he said. “We admit the mistake, but I do not think it is material.
© 2007 The Bond Buyer:
Wednesday, June 20, 2007
State Works to Accelerate Transportation Projects
TxDOT - June 14, 2007
AUSTIN - Moving quickly to implement recent transportation legislation, state transportation officials today initiated a new process to work with local officials – including local toll road authorities – to accelerate projects to reduce congestion and improve safety.
“The Legislature has given us clear direction to solve transportation problems by working with local officials,” said Ric Williamson, chair of the Texas Transportation Commission. “That is exactly what we are doing.”
At a special meeting in Austin, the commission authorized the Texas Department of Transportation to work with local toll entities such as regional tollway authorities, regional mobility authorities and counties to begin moving forward on 87 projects that are currently years away from being fully funded. (View Commission Minute Order and list of projects.)
“These are projects that local officials have said are needed to reduce congestion but are waiting in line for funding. We want to help our local partners build the projects as quickly and efficiently as possible,” Williamson said. (View map of candidate toll projects.)
To accelerate improvements, the projects are being proposed by TxDOT for development, construction and operation as toll projects.
New legislation signed this week by Governor Perry, Senate Bill 792, gives local toll entities the first option to develop, construct and operate toll projects in their jurisdiction.
Before initiating a toll project on the state highway system, SB 792 requires the local toll authority and TxDOT to agree on terms and conditions for the project, including the initial toll rate and the methodology for changing the rate. The law also requires a market valuation of the project be developed to determine what the project is worth.
“It’s important to understand that in the absence of substantial new revenue, we will soon have no choice other than to shift tax resources from congestion relief to maintenance of the system, especially in major metropolitan areas and along the state’s busiest corridors,” said Williamson. “Evaluating the tolling potential of these projects will help us better understand the choices we all face.”
NEWS RELEASE
AUSTIN - Moving quickly to implement recent transportation legislation, state transportation officials today initiated a new process to work with local officials – including local toll road authorities – to accelerate projects to reduce congestion and improve safety.
“The Legislature has given us clear direction to solve transportation problems by working with local officials,” said Ric Williamson, chair of the Texas Transportation Commission. “That is exactly what we are doing.”
At a special meeting in Austin, the commission authorized the Texas Department of Transportation to work with local toll entities such as regional tollway authorities, regional mobility authorities and counties to begin moving forward on 87 projects that are currently years away from being fully funded. (View Commission Minute Order and list of projects.)
“These are projects that local officials have said are needed to reduce congestion but are waiting in line for funding. We want to help our local partners build the projects as quickly and efficiently as possible,” Williamson said. (View map of candidate toll projects.)
To accelerate improvements, the projects are being proposed by TxDOT for development, construction and operation as toll projects.
New legislation signed this week by Governor Perry, Senate Bill 792, gives local toll entities the first option to develop, construct and operate toll projects in their jurisdiction.
Before initiating a toll project on the state highway system, SB 792 requires the local toll authority and TxDOT to agree on terms and conditions for the project, including the initial toll rate and the methodology for changing the rate. The law also requires a market valuation of the project be developed to determine what the project is worth.
“It’s important to understand that in the absence of substantial new revenue, we will soon have no choice other than to shift tax resources from congestion relief to maintenance of the system, especially in major metropolitan areas and along the state’s busiest corridors,” said Williamson. “Evaluating the tolling potential of these projects will help us better understand the choices we all face.”
NEWS RELEASE
Tuesday, June 12, 2007
Perry signs legislation to halt private toll roads
But the moratorium excludes virtually all North Texas projects
By CHRISTY HOPPE and JAKE BATSELL - The Dallas Morning News - Monday, June 11, 2007
By CHRISTY HOPPE and JAKE BATSELL - The Dallas Morning News - Monday, June 11, 2007
AUSTIN – Gov. Rick Perry signed a new transportation law (SB792) Monday thatRead more
eases some of the fears over runaway toll roads and gives local
authorities more control over road projects.
The bill was a compromise hammered out in the final days of the
legislative session between the governor, who has championed private
toll roads as a way to quickly build highways without raising taxes, and
lawmakers, who have felt the wrath of rural landowners and skeptical
urban commuters.
Legislators revisited a 2003 law that many felt had hidden consequences,
such as allowing private firms to take over large swaths of the state
highway system, stripping property owners of their land and discouraging
public entities from competing for toll projects."Texas was becoming the test tube for private equity plans," said Rep.
Lois Kolkhorst, R-Brenham, who pushed for a two-year moratorium on
private toll deals.
Lawmakers initially – and overwhelmingly – passed a bill that would have
placed more restrictions on the governor's efforts to privatize roads.
Mr. Perry vetoed that bill.
The bill he signed Monday has a partial moratorium in place. But the
two-year freeze was dubbed the "Swiss cheese moratorium" because it's
riddled with exemptions, including virtually all North Texas toll roads
already in the works.
"I am proud to sign this legislation because it will help Texas build
the roads we need to manage our state's tremendous population growth,"
Mr. Perry said.
The bill halts at least one project in San Antonio. And Texas
Transportation Commission members have said the moratorium, despite all
its exemptions, still sends a chilling effect to private investors.
"A seemingly innocuous moratorium is, in effect, a freezing of the
entire program," said Ric Williamson, the commission's chairman, in an
earlier interview.
Mr. Williamson acknowledged that the past five months were humbling for
the Transportation Department.
Lawmakers repeatedly criticized what they described as the agency's (TxDOT)
rogue and arrogant tactics in awarding toll road deals."The whole process has been inalterably changed," he said. "We know
clearly what [lawmakers'] concerns are, what they want us to do, what
they don't want us to do. And we will change our behavior accordingly."
The bill gives local entities such as the North Texas Tollway Authority
the first option to build toll projects, limits private toll contracts
to 50 years and establishes a new process to determine a road's market
value.
On Thursday, transportation commissioners will consider a list of
possible projects to develop under the new legislation, which takes
effect immediately.
...
As lawmakers sought to curb private toll roads, they also thwarted bids
to raise the state gas tax to keep up with inflation and to expand
transit systems through voter-approved sales-tax hikes. They even toyed
with suspending the gas tax for the summer.
...
"What people seem to forget in this whole debate about roads is that the
citizens always pay for the roads," said Sen. Robert Nichols,
R-Jacksonville, a former transportation commissioner and a leading
backer of the moratorium. "The question is, how do you want to collect
the money?"
Saturday, June 9, 2007
Lobbyist describes status of toll roads
by LAUREN THOMPSON - Longview News-Journal - Friday, June 08, 2007
Read more
Hank Gilbert was not impressed with the 80th meeting of the Texas Legislature.
Gilbert, a former candidate for agriculture commissioner and Democratic anti-toll road lobbyist, offered his opinions and reported on his efforts, specifically on bills concerning the toll roads, at the Texas Democratic Women of Gregg County's monthly meeting Thursday.
"The 80th session probably had some high points," he said of the Democrats' progress. "But I didn't see them; except the raising of the minimum wage to $7.25, which won't go into effect for another two years."
Gilbert spoke in detail about Texas House Bill 1892, a piece of toll-road legislation putting a two-year moratorium on all toll-road projects.
"They said, 'Hey, let's stop where we are, study the vitality of these roads and make a decision from there,'" he said.
The bill was approved by the House and the Senate with a combined vote of 166-5. Gov. Rick Perry promised to veto the bill, prompting the Senate to compromise with Senate Bill 792. This new edition added amendments protecting certain roads and businesses from the two-year moratorium, including the development of Interstate 69, as it would hinder the economic development of the Rio Grande Valley. Interstate 69 is expected to extend from Northeast Texas to Mexico.
He said he saw this compromise as big business deliberately infringing upon smaller towns' rights, which will be affected if the Trans-Texas Corridor continues adding highways through small towns.
The Trans-Texas Corridor is a 4,000 mile plan of tollways, according to texastollparty.com.
"We have to work together to campaign against the legislators down in Austin who aren't there to represent their people regardless of their political party," he said.
Read more
Sunday, May 27, 2007
Who held the line in the Texas House against Perry's demands
Who held the line in the House and didn't cave to Perry
By Faith Chatham
These are the House Members who refused to accept a butchered moratorium bill. Without Amendment 13 guaranteeing that the TTC stayed in the moratorium, there was no point in passing the bill. With Perry's demands that MARKET VALUATION be applied to Texas Transportation projects, SB 792 had more disadvantages to the public than advantages. These Representatives stood firm against Perry and refused to vote to pass SB 792.
14 Democrats and 5 Republicans held the line.
From the NCTCOG - DFW area 6 voted against Perry's Market Valuation Scheme
DFW NT Region - 2 Dems + 3 Republican
Democrats:
Burnham (DFW REGION - Fort Worth)
Veasey (DW REGION - Fort Worth
Republicans:
Miller (DFW REGION - Stephenville)
Paxton (DFW REGION - McKinney)
Laubenbert (DFW REGION - Rockwall)
In the ALAMO COG Region 8 voted against Perry's market valuation scheme:
San Antonio Alamo Region - 7 Dems plus 1 Republican
DEMOCRATS:
Castro (San Antonio)
Puente (San Antonio)
Villarreal (San Antonio)
Martinez-Fischer (San Antonio)
McClendon (San Antonio)
Leibowitz (San Antonio)
REPUBLICANS:
Straus (San Antonio)
Macias (Bulvedere - Comal - Kendall Counties)
In the CAPITOL COG - AUSTIN REGION 1 voted against Perry's Market Valuation scheme.
1 Democrat - No Republicans
DEMOCRATS:
Farias (Austin)
In the HOUSTON-GALVESTON COG Area 4 voted against Perry's Market Valuation scheme
Houston - 4 Dems no Republicans
DEMOCRATS:
Coleman (Houston)
Farrar (Houston)
Hernandez (Houston)
Thompson (Houston)
In the East Texas COG Area 1 voted against Perry's Market Valuation scheme.
1 Democrat No Repubicans
DEMOCRATS:
Frost (ET - New Boston) - a Democrat in a highly Republican district
The above analysis is based on UNCERTIFIED VOTE of the House on approval of the Senate/House conference committee version of SB 792. Senate final vote has not been posted. When certified returns are posted this will be revised to reflect any changes.
By Faith Chatham
These are the House Members who refused to accept a butchered moratorium bill. Without Amendment 13 guaranteeing that the TTC stayed in the moratorium, there was no point in passing the bill. With Perry's demands that MARKET VALUATION be applied to Texas Transportation projects, SB 792 had more disadvantages to the public than advantages. These Representatives stood firm against Perry and refused to vote to pass SB 792.
14 Democrats and 5 Republicans held the line.
From the NCTCOG - DFW area 6 voted against Perry's Market Valuation Scheme
DFW NT Region - 2 Dems + 3 Republican
Burnham (DFW REGION - Fort Worth)
Veasey (DW REGION - Fort Worth
Miller (DFW REGION - Stephenville)
Paxton (DFW REGION - McKinney)
Laubenbert (DFW REGION - Rockwall)
In the ALAMO COG Region 8 voted against Perry's market valuation scheme:
San Antonio Alamo Region - 7 Dems plus 1 Republican
Castro (San Antonio)
Puente (San Antonio)
Villarreal (San Antonio)
Martinez-Fischer (San Antonio)
McClendon (San Antonio)
Leibowitz (San Antonio)
Straus (San Antonio)
Macias (Bulvedere - Comal - Kendall Counties)
In the CAPITOL COG - AUSTIN REGION 1 voted against Perry's Market Valuation scheme.
1 Democrat - No Republicans
Farias (Austin)
In the HOUSTON-GALVESTON COG Area 4 voted against Perry's Market Valuation scheme
Houston - 4 Dems no Republicans
Coleman (Houston)
Farrar (Houston)
Hernandez (Houston)
Thompson (Houston)
In the East Texas COG Area 1 voted against Perry's Market Valuation scheme.
1 Democrat No Repubicans
Frost (ET - New Boston) - a Democrat in a highly Republican district
The above analysis is based on UNCERTIFIED VOTE of the House on approval of the Senate/House conference committee version of SB 792. Senate final vote has not been posted. When certified returns are posted this will be revised to reflect any changes.
Thursday, May 24, 2007
UPDATED: White smoke emerges on transportation bill
By Ben Wear - Austin-American Statesman -Wednesday, May 23, 2007
Read more
There’s a deal afoot on SB 792, and it doesn’t include Amendment 13.
State Sen. John Carona, R-Dallas, one of the Senate conferees on the bill, said agreement was reached earlier this afternoon and final drafting touches are underway. Carona said all five Senate conferees are on board. However one of them, state Sen. Robert Nichols, R-Jacksonville, said later that he is not in on the deal at this point.
On the House side, Carona said that four of the five House representatives are on board. That doesn’t include state Rep. Lois Kolkhorst, R-Brenham, who according to one House member was in the governor’s office during the 4 o’clock hour discussing the issue.
Carona said the governor, wielding a veto pen for a bill for which no override is possible, has the upper hand, especially because Rick Perry pretty much is happy with the law as it stands now.
“We have far more to lose on this than the governor,” Carona said. “And he’s given in to the will of the Legislature on a great many points.”
Those points, however, do not include Kolkhorst’s Amendment 13, which would have included so-called “facilities agreements” in the ban on private toll road contracts. The Texas Department of Transportation has already signed what is called a comprehensive development agreement for TTC-35, which would be a tollway parallel to Interstate 35. Individual segments would be built under those facility agreements.
Carona said that no such agreements will be ready to go during the next two years, at least for highways, because of the time it takes to get final environmental approval from the federal government. The department, however, might be ready to go with a new freight railroad from Dallas to Laredo, and would like to preserve the ability to do that before the Legislature comes back in 2009.
“The rail project has never been an issue,” Carona said.
Both houses will now have to consider the conference committee report in up-or-down majority votes. A Senate vote could come as early as Thursday. The House, with its 24-hour layout rule, the ongoing fracas over Speaker Tom Craddick and a likely oppositional push by Kolkhorst, might take longer.
Read more
Tuesday, May 22, 2007
Action Alert on SB 792 by David Van Os
The Trans-Texas Corridor moratorium bill needs YOU
David Van Os - Texas Kaos
A few days ago it looked like the people of Texas were going to get a two-year moratorium on the TTC monstrosity. It looked like overwhelming numbers of legislators in both the House and the Senate had heard the voices of the people. It looked like our House members and Senators were going to get us breathing room in which to continue to spread information and education to our fellow Texans about the intolerable scar Dictator Perry and his campaign contributors want to rip across the face of our state. Read more
David Van Os - Texas Kaos
A few days ago it looked like the people of Texas were going to get a two-year moratorium on the TTC monstrosity. It looked like overwhelming numbers of legislators in both the House and the Senate had heard the voices of the people. It looked like our House members and Senators were going to get us breathing room in which to continue to spread information and education to our fellow Texans about the intolerable scar Dictator Perry and his campaign contributors want to rip across the face of our state. Read more
T.U.R.F. warns that Market Valuation in SB 792 allows backdoor CDAs
By Terri Hall - Executive Director Texans Uniting for Reform and Freedom
YOU’VE BEEN HAD! TXDOT’S GOTCHA IN SB 792
MARKET VALUATION(IE - CONCESSION FEES) WILL BE MANDATORY ON ALL TOLL PROJECTS IF SB 792 PASSES AS WRITTEN! TRADITIONAL TURNPIKES NO LONGER AN OPTION!
In seeking clarification on the implications of “market valuation” on toll projects (Sec. 228.0111), TURF has learned that if SB 792 passes as written, ALL toll projects around the state MUST USE market valuation to establish toll rates and to set toll rate escalation. Traditional turnpikes, where an entity simply sells bonds for the actual cost of building the road and the tolls pay back that debt, WILL BE OFF THE TABLE!
Read more
YOU’VE BEEN HAD! TXDOT’S GOTCHA IN SB 792
MARKET VALUATION(IE - CONCESSION FEES) WILL BE MANDATORY ON ALL TOLL PROJECTS IF SB 792 PASSES AS WRITTEN! TRADITIONAL TURNPIKES NO LONGER AN OPTION!
In seeking clarification on the implications of “market valuation” on toll projects (Sec. 228.0111), TURF has learned that if SB 792 passes as written, ALL toll projects around the state MUST USE market valuation to establish toll rates and to set toll rate escalation. Traditional turnpikes, where an entity simply sells bonds for the actual cost of building the road and the tolls pay back that debt, WILL BE OFF THE TABLE!
Read more
Monday, May 21, 2007
TX Dome - What is so bad about applying market valuation? (+)
Crossposted on DAILY KOS - TEXAS KOS and GRASSROOTS NEWS YOU CAN USE
What is so bad about the "apply market valuation" clause in SB 792?
Q. Does this clause give landowners a better price for land confiscated by eminent domain?A. No, in this bill, they are referring to market valuation for the ENTIRE INFRASTRUCTURE PROJECT rather than for getting an appraisal on the real estate before they pay the land owner. There are rules that apply to acquisition of land by eminent domain which will not be changed by this phrase in this bill.
Q. What is Market Valuation as used in HB 792?A. What they are referring to is HOW THEY VALUE the land years after it is acquired, how they VALUE the entire infrastructure throughout the life of the contract.
Q. Is it a common practice?
A. Applying Market Valuation to state highway projects is a new concept. Market Valuation is a private sector practice where an owner of an asset values that asset over time as the value of the real estate escalates. As demand for adjacent property rises, rental and usage fees rise to reflect what the private company would have to pay for that house or business or real estate on the day they lease it to a user. For example, a friend of mine rents a house she purchased for $20, 000.00 but which appraises on today's market for $45,000.00. Years ago she charged $150.00 a month for rent but today she charges $750.00 a month for a tenant to rent the house.
This is a common practice in the public sector because she used her personal funds or credit to acquire the property. She is not a public housing authority which uses public funds.
Q. Why is it a such "big deal" in this particular bill?
A. Until a few years ago, only public toll authorities were legally allowed to build toll roads in Texas. With changes in the law, we now allow private companies to partner with the state to build toll roads. We also have public toll authorities which build toll roads in Texas. Public and private toll companies are in competition for bids on lucrative projects. Public toll companies (like NTTA) have an advantage in the bidding process because they operate on different rules than private companies like Cintra. A private company is supposed to invest private investor capital into the project and the private investors, wherever they live in the world, get a return on their investment and they can spend or invest that money anywhere in the world in any kind of project they choose. A public authority uses taxpayers money as an agent of the people and the return or user fees goes back into the public coffers, not to private investors. The return must remain in the region for use on public works projects for the public good. READ MORE
What is so bad about the "apply market valuation" clause in SB 792?
Q. Does this clause give landowners a better price for land confiscated by eminent domain?A. No, in this bill, they are referring to market valuation for the ENTIRE INFRASTRUCTURE PROJECT rather than for getting an appraisal on the real estate before they pay the land owner. There are rules that apply to acquisition of land by eminent domain which will not be changed by this phrase in this bill.
Q. What is Market Valuation as used in HB 792?A. What they are referring to is HOW THEY VALUE the land years after it is acquired, how they VALUE the entire infrastructure throughout the life of the contract.
Q. Is it a common practice?
A. Applying Market Valuation to state highway projects is a new concept. Market Valuation is a private sector practice where an owner of an asset values that asset over time as the value of the real estate escalates. As demand for adjacent property rises, rental and usage fees rise to reflect what the private company would have to pay for that house or business or real estate on the day they lease it to a user. For example, a friend of mine rents a house she purchased for $20, 000.00 but which appraises on today's market for $45,000.00. Years ago she charged $150.00 a month for rent but today she charges $750.00 a month for a tenant to rent the house.
This is a common practice in the public sector because she used her personal funds or credit to acquire the property. She is not a public housing authority which uses public funds.
Q. Why is it a such "big deal" in this particular bill?
A. Until a few years ago, only public toll authorities were legally allowed to build toll roads in Texas. With changes in the law, we now allow private companies to partner with the state to build toll roads. We also have public toll authorities which build toll roads in Texas. Public and private toll companies are in competition for bids on lucrative projects. Public toll companies (like NTTA) have an advantage in the bidding process because they operate on different rules than private companies like Cintra. A private company is supposed to invest private investor capital into the project and the private investors, wherever they live in the world, get a return on their investment and they can spend or invest that money anywhere in the world in any kind of project they choose. A public authority uses taxpayers money as an agent of the people and the return or user fees goes back into the public coffers, not to private investors. The return must remain in the region for use on public works projects for the public good. READ MORE
Sunday, May 20, 2007
Suggested letter - email to North Texas Legislators
SUBJECT LINE: RE SB 792 - HB 2268 Market Valuation requirements for public toll authorities projects in DFW region is last straw
SUGGESTED TEXT FOR EMAIL:
ADDING "MARKET VALUATION" Requirements to public toll authority's public transportation projects and elimination of Amendment 13 from SB 792 are DEAL BREAKERS for the voters. We'll remember those who allow this to happen when the PEOPLE VOTE next time.
"Please INSIST that the Trans Texas Corridor unquestionably be INCLUDED in the moratorium by RETAINING Amendment 13 in SB 792! We're counting on you TO MAKE THIS HAPPEN!"
The NCTCOG's RTC and many local elected officials serving on the RTC descended on Austin arguing for the DFW region (NCTCOG area) to be exempted from the 2 year moratorium. Legislators in other districts fought to keep their citizens protected. In our region we have to trust TxDOT and the RTC.
I am writing to tell you that citizens in the DFW area are upset. Allowing MARKET VALUATION to be applied to public toll authorities projects in this region is the LAST STRAW. We've are taking note and rembering the names of elected officials who sold the public out by fighting to protection citizens in the North Central Texas Region from bad CDA contracts.
Members of the RTC and local elected officials only get one vote when you run again for re-election. The people get thousands of votes. Most of the voters in this region differ with the RTC on use of surplus toll revenue to fund highway projects. Most of the voters in this region differ with TxDOT on raising toll rates higher than necessary to retire the debt and maintain the roads in order to generate billions of dollars of surplus toll revenue to use on other projects.
Citizens are outraged that the Texas Legislator has refused to seriously address Public Transportation funding problems.
We are angry that you refuse to stop diversions from transportation funds to non-transportation uses.
We are angry that instead of indexing the gas tax to keep up with inflation, you avoid addressing gas gouging and propose a temporary 20cent suspension of the gas tax. That is pandering rather than problem solving. Twenty cents a gallon for three months does not address air quality in non attainment areas. It does not help us if we are forced to pay high tolls for 675 miles of stragetic highways in the DFW area.
Applying Market Valuation to public toll authorities is the last straw. Fight for us or be prepared to face our opinions and fury when you come back to your district and ask the voters to re-elect you.
[YOUR NAME]
[YOUR ADDRESS]
[YOUR TELEPHONE NO.]
SUGGESTED TEXT FOR EMAIL:
ADDING "MARKET VALUATION" Requirements to public toll authority's public transportation projects and elimination of Amendment 13 from SB 792 are DEAL BREAKERS for the voters. We'll remember those who allow this to happen when the PEOPLE VOTE next time.
"Please INSIST that the Trans Texas Corridor unquestionably be INCLUDED in the moratorium by RETAINING Amendment 13 in SB 792! We're counting on you TO MAKE THIS HAPPEN!"
The NCTCOG's RTC and many local elected officials serving on the RTC descended on Austin arguing for the DFW region (NCTCOG area) to be exempted from the 2 year moratorium. Legislators in other districts fought to keep their citizens protected. In our region we have to trust TxDOT and the RTC.
I am writing to tell you that citizens in the DFW area are upset. Allowing MARKET VALUATION to be applied to public toll authorities projects in this region is the LAST STRAW. We've are taking note and rembering the names of elected officials who sold the public out by fighting to protection citizens in the North Central Texas Region from bad CDA contracts.
Members of the RTC and local elected officials only get one vote when you run again for re-election. The people get thousands of votes. Most of the voters in this region differ with the RTC on use of surplus toll revenue to fund highway projects. Most of the voters in this region differ with TxDOT on raising toll rates higher than necessary to retire the debt and maintain the roads in order to generate billions of dollars of surplus toll revenue to use on other projects.
Citizens are outraged that the Texas Legislator has refused to seriously address Public Transportation funding problems.
We are angry that you refuse to stop diversions from transportation funds to non-transportation uses.
We are angry that instead of indexing the gas tax to keep up with inflation, you avoid addressing gas gouging and propose a temporary 20cent suspension of the gas tax. That is pandering rather than problem solving. Twenty cents a gallon for three months does not address air quality in non attainment areas. It does not help us if we are forced to pay high tolls for 675 miles of stragetic highways in the DFW area.
Applying Market Valuation to public toll authorities is the last straw. Fight for us or be prepared to face our opinions and fury when you come back to your district and ask the voters to re-elect you.
[YOUR NAME]
[YOUR ADDRESS]
[YOUR TELEPHONE NO.]
Friday, May 18, 2007
David Stall of Corridor Watch reports on SB 792
SB792 is Now The New and Improved TTC CDA Moratorium Bill.
Thursday House vote: 145 to 2
Representative Lois Kolkhorst came through on Thursday with a couple great amendments that will ensure the moratorium really stops the Trans Texas Corridor for two years.
SB792 is a virtual bullet-bill, but not bullet-proof.
The vote to pass SB792 on second reading, as amended, was an incredible 145 to 2. Then, only minutes later the House did something rarely seen, they suspended the Constitutional Rules and moved to take a third and final vote immediately without waiting until Friday.
Now the bill will be shot over to the Senate where they had hoped to get it on the Governor's desk by Friday morning. The big question is will they accept it as amended by the House, or complicate the process by going to a conference committee.
Almost three hours of TTC bashing.
The vast majority of discussion and debate that took place on the House floor today displayed open contempt for the Trans Texas Corridor. Most other toll and highway projects where left alone, except SH281 and Loop 1604 in San Antonio. That wasn't the case with the Trans Texas Corridor.
Representative after Representative told the assembled body how much their constituents dislike the TTC. Representative Harvey Hilderbran said that in his district there was, "zero support for the TTC." That caused someone on the floor to reply, "less than zero."
It was very clear that the members of the House have been hearing us and our concerns about the Trans Texas Corridor. It was especially gratifying to hear Representatives say that the TTC comes nowhere near their district.
Read more
SB 792 about summer break, not passing a good bill
May 18th, 2007 by Terri Hall (Executive Director of T.U.R.F. and San Antonio Toll Party)
READ MORE about MARKET VALUATION language in SB 792
The REAL truth behind today is that Governor Perry called the Legislature’s bluff. He successfully did what he did to win re-election…he got North Texas and Harris County to drink his poison pill last weekend (remember that three extra days he bought himself for arm-twisting by refusing to accept HB 1892), which was evidenced by the unanimous vote of the Senate Monday.
This is why veto overrides are so rare. The whole thing was a ruse. The Senate used HB 1892’s vote margins as leverage to get Perry to the table. They never intended to override him. Harvey Kronberg was right! The rest of this was a foregone conclusion ever since. Our San Antonio guys were ready to vote against this disastrous “compromise,” but voted for it since HB 1892 had a loophole for the corridor. So SB 792 with all it’s horrific flaws was the only means to get a moratorium that also included TTC 35. San Antonio roads were already in both (even stronger language made it into SB 792).
However, there are so many exceptions to this moratorium, that of all the CDAs currently being negotiated, only TTC 35, San Antonio, and El Paso are in it. The moratorium does stop TxDOT from signing more. So here we are again in yet another session where a last minute omnibus transportation bill where the good stuff gets watered down and the bad stuff gets rushed through with people voting on things WITH NO DEBATE. They had a shell of a debate with foregone conclusions at the outset. It ended up being like what happened to Senator Robert Nichols who was sandbagged and brought in and asked for his opinion on the bill AFTER they had the votes to outnumber him.
Word in the “back room” today was follow Wayne Smith. The leadership said if he votes for something, follow. If he votes against, follow. That’s what the Governor wants. So it went something like this: thumbs up, thumbs down, that’s our ticket out of town. They had a special room off to the side of the House floor with TxDOT arm twisters…they defeated Macias’ amendment to restore open government and allow PUBLIC access to toll feasibility studies….they shut down EVERYTHING. In fact, Smith said he would testify in favor of Macias’ amendment to keep toll studies OPEN to the PUBLIC, then he turned on him at the last minute. Smith couldn’t look Macias in the eye afterwards…what a TRAITOR! That’s what they were being told would avoid a special session.
I love how these sorry excuses for human beings sleep at night when they worry more about missing summer vacation than passing a good bill (stripping this “market valuation” language) or doing what the citizens ask. Don’t get mad at our San Antonio reps who heard you loud and clear; they asked us how to vote…we did the best we could given the circumstances. At least we could get the TTC 35 fixed. It’s the North Texas and Harris County reps that sold the rest of the state out.
If you want to take out your venom on someone, it’s the Senate. John Carona’s office assured us “no compromises” on the key provisions like the buy-back clauses. They said they were pushing to get the equivalent of HB 1892 or better. I beg to differ, it’s worse, far worse! This bill kicks the teeth out of the killer clause that would have chased off private operators for good. Instead, they’re just crippled. We could have knocked it out of the ballpark, but our representatives acted more like politicians than public servants. The Senate set the example of caving into the pressure so the House followed suit. They didn’t have the guts to take this Governor down and override his veto. They wanted summer break more than fighting FOR the citizens of Texas. That market valuation language will bury this state under oppressive tolls if we don’t beat that door down next session.
Guess Senator Carona’s concerns about high tolls only applies when they’re going to Cintra instead of his tolling authority. Both fleece the taxpayer, except under the PUBLIC toll road fleecing they justify it this way: “at least those high tolls go to build more roads.” Goodie! Are these Republicans we’re talking about here? Because this sounds like tax and spend if I’ve ever heard it.
We did get an amendment that PUT 281/1604 UNDER the moratorium (stronger than previous intent language)…but our REAL problem now is Perry’s NEW language that allows the same “market value” poison to be inflicted on us through PUBLIC tolling entities…we only stopped CDAs, not the toll train. They get you coming and going…
Market valuation just opened a new can of worms. TTC 69 is still on the table though support for it as a CDA is already starting to crack. The best medicine? VOTE the rascals out.
Perry is poison for this State and no one will go up against him even though we handed them the golden opportunity for a showdown with this Governor. Even Rep. Joe Pickett voted with KRUSEE!!!
All we truly got today was TTC 35 in the moratorium…everything else just got worse. The Governor beat them with his billy club and they said Uncle inside of 30 seconds without a whimper. Like Lee Iacocca says in his new book, Where have all the Leaders Gone?
Look, at this Ben Wear story (below)…today was all about making it acceptable to the Governor, and turf battles over the pot of money they can extract from “market-based” highways rather than about the PEOPLE of TX that have to pay for these horrific decisions for generations (with interest!)!
READ MORE about MARKET VALUATION language in SB 792
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