TEXAS DEPARTMENT OF TRANSPORTATION

COMMISSION MEETING

State Capitol

Capitol Extension Auditorium, E1.004

Austin, Texas 78701-2483

Thursday,

June 30, 2011

COMMISSION MEMBERS:

Deirdre Delisi, Chair

Ned S. Holmes

Ted Houghton

William Meadows

Fred Underwood

STAFF:

Amadeo Saenz, Executive Director

Bob Jackson, General Counsel

Roger Polson, Executive Assistant to the

Deputy Executive Director

JoLynne Williams, Chief Minute Order Clerk

ON THE RECORD REPORTING

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I N D E X

AGENDA ITEM PAGE

CONVENE MEETING 8

1. Approval of Minutes of the May 26 meeting 12

of the Texas Transportation Commission

2. Reports/Discussion Items

a. Report on TxDOT's modernization project 14

b. Update on recently enacted legislation 37

that affects the operation of the

department

c. Discussion of options for the establishment 48

of eligibility, prioritization, and

selection criteria for highway improvement

projects to be funded using the proceeds

from bonds, notes, and other public

securities issued under Transportation

Code, '222.004, known as Proposition

12 bonds, as well as undistributed funds

from the State Highway Fund (Fund 6)

d. Discuss the department's approach in 66

responding to a rescission of unobligated

federal-aid highway funds apportioned

to Texas

3. Aviation

a. Various Counties - Award federal grant 69

funding for airport improvement projects

at various locations (MO)

b. Appoint a member to the Aviation Advisory 73

Committee (MO)

4. Public Transportation

a. Award state funds to public transportation 74

providers for FY 2012 as appropriated by

the 82nd Texas Legislature (MO)

b. Various Counties - Award federal '5304, 74

'5311, '5311(f), '5316, '5317, Rural Transit

Assistance Program funds for the FY 2012

coordinated call for projects and award

transportation development credits (MO)

c. Various Counties - Award federal '5310 74

Funds, Special Needs of Elderly Individuals

and Individuals with Disabilities Program,

and award transportation development credits

for FY 2011 (MO)

d. Various Counties - Awards federal '5311, 74

Nonurbanized Area Formula Program funds

to rural transit districts for FY 2011

(MO)

e. Galveston County - Award federal '5316, 74

ON THE RECORD REPORTING

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Job Access Reverse Commute, grant program

funds to Houston Kiddie Express Transit

Service (MO)

f. Various Counties - Award federal '5303 74

Metropolitan Transportation Planning

funds, and award transportation development

credits for FY 2012 (MO)

g. Various Counties - Approve changes to 78

public transit projects previously approved

for funding from Texas' portion of the

American Recovery and Reinvestment Act

(ARRA) (MO)

5. Rail Project 79

Authorize acceptance of a grant from the

federal High-Speed Intercity Passenger Rail

Program and use of the Grant for preliminary

engineering and NEPA studies concerning high

speed rail service between Dallas-Forth Worth

and Houston (MO)

6. Promulgation of Administrative Rules Under

Title 43, Texas Administrative Code, and the

Administrative Procedures Act, Government Code,

Chapter 2001:

a. Final Adoption

(1) Chapter 9 - Contract and Grant 83

Management (MO)

Amendments to '9.42, Administrative

Qualification (Contracting for

Architectural, Engineering, and

Surveying Services)

(2) Chapter 10 - Ethical Conduct by 85

Entities Doing Business with the

Department (MO)

Amendments to '10.51, Internal Ethics

And Compliance Program (Other

Entities' Internal Ethics and

Compliance Procedures)

b. Proposed Adoption

(1) Chapter 1 - Management (MO) 87

Amendments to '1.1, Texas

Transportation Commission and '1.2,

Texas Department of Transportation

(Organization and Responsibilities)

(2) Chapter 2 - Environmental Policy, 88

Chapter 9 - Contract and Grant

Management, Chapter 24 - Trans-Texas

Corridor, and Chapter 27 - Toll

Projects (MO)

Amendments to '2.1, General Emergency

Action Procedures, '2.2, Definitions,

'2.12, Environmental Impact Statement

(EIS), '2.16, Mitigation, '2.19, Rail

ON THE RECORD REPORTING

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Transportation Project (Environmental

Review and Public Involvement for

Transportation Projects), '9.6,

Contract Claim Procedure for

Comprehensive Development Agreement

(General); Repeal of '24.11,

Comprehensive Development Agreements,

And '24.12, Environmental Review and

Public Involvement (Development of

Facilities); and Amendments to '27.2,

Definitions (Comprehensive Development

Agreements)

(3) Chapter 21 - Right of Way (MO) 89

Amendments to '21.10, Negotiations,

'21.13, Highway Right of Way Values,

And '21.14, Qualifications of Real

Estate Appraisers and Other Technical

Experts or Estimators (Land Acquisition

Procedures), and Amendments to 21.111,

Definitions and '21.118, Relocation

Review Committee (Relocation

Assistance and Benefits)

(4) Chapter 25 - Traffic Operations (MO) 99

Amendments to '25.1, Uniform Traffic

Control Devices (General)

(5) Chapter 25 - Traffic Operations (MO) 100

Amendments to '25.21, Introduction,

'25.22, Regulatory and Advisory Speeds,

'25.23, Speed Zone Studies, '25.24,

Speed Zone Approval (Procedures for

Establishing Speed Zones)

(6) Chapter 27 - Toll Projects (MO) 104

New '27.90, Purpose, '27.91 Definitions,

And '27.92, Financial Terms (New

Subchapter H, Determination of Terms

for Certain Toll Projects)

7. Toll Road Projects

a. Accept the Report of Actual Traffic and 106

Revenue for the Central Texas Turnpike

System (CTTS) (MO)

b. Montgomery County - Consider the approval 107

of the department's determination to

exercise its option to develop, construct

and operate the portion of SH 99 (Grand

Parkway) in Montgomery County, authorize

the project with DEVELOP authority (MO)

8. Regional Mobility Authority 111

El Paso County - Camino Real Regional Mobility

Authority (CRRMA) - Authorize the CRRMA to

undertake projects to make aesthetic improvements

to the I-10corridor from Loop 375-Transmountain

Road through Loop 375-Americas Avenue, and

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authorize the executive director to enter into

a project development agreement with the CRRMA

(MO)

9. Transportation Planning

a. Appoint a member to the Port Authority 113

Advisory Committee (MO)

b. Grayson County - Approve the redesignation 114

of the Sherman-Denison Metropolitan

Planning Organization (MO)

c. Harris County - Authorize the transfer of 116

$17 million in Category 12 (Strategic

Priority) funding from the Hardy Toll

Road Extension Project to the Elysian

Street Bridge Replacement Project (MO)

d. Nueces County - Authorize the Harbor 117

Bridge Project with DEVELOP authority and

increase the Corpus Christi District's

Discretionary Programming Authority by

$600 million (MO)

10. Rulemaking Advisory Committee 118

Create a rulemaking advisory committee to

advice the department regarding revisions to

the rules for the transportation development

credit (TDC) program, and designate entities

authorized to appoint members to the committee

(MO)

11. State Infrastructure Bank (SIB) 119

Final Approval

Hidalgo County - City of Donna - Consider

granting final approval of an application

from the City of Donna (city) to borrow up

to $607,000 from the SIB to pay for utility

relocation and ROW costs associated with the

overlay and reconstruction of FM 493 from

Business US 83 to US 281 (MO)

12. Obligation Limit and Cash Reports

a. Status report on the FY 2011 Obligation 120

Limit, the actual obligations utilized

through the current month, proposed

remaining highway maintenance and

construction contract letting for the

fiscal year and an update on motor

fuel tax receipts

b. Quarterly report on FY 2011 State 121

Highway Fund 6 cash status

13. Contracts

Award or reject contracts for maintenance,

highway, and building constructions

a. Highway Maintenance and Department 125

ON THE RECORD REPORTING

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Building Construction

(see attached itemized list) (MO)

b. Highway and Transportation Enhancement 127

Building Construction

(see attached itemized list) (MO)

14. Eminent Domain Proceedings 128

Various Counties - Authorize the filing of

condemnation proceedings to acquire real

property by eminent domain for non-controlled

and controlled access highways (see attached

list) (MO)

15. Routine Minute Orders 149

a. Donations to the Department

Beaumont District - Consider a donation

from Enterprise Products Operating LLC

for sufficient funding to construct an

extension of FM 565 from LP 207 to SH

146, which will then be conveyed to the

state in exchange for the right of way

on the existing LP 207 from FM 565,

south of SH 146 (MO)

b. Right of Way Dispositions and Donations

(1) Dallas County - SL 12 at SH 180 in

Dallas - Consider the sale of surplus

right of way to the abutting landowner

(MO)

(2) Hays County - I-35 at County Road 210

in Kyle - Consider the exchange of

surplus right of way for new right

of way (MO)

(3) Houston County - SH 7 northeast of

Kennard - Consider the sale of

surplus right of way to the abutting

landowner (MO)

(4) Midland County - SH 58, BS 158-B,

SS269 and SS 268 in Midland - Consider

the designation, redesignation and

removal of various highway segments

and the quitclaim of surplus right

of way and transfer of control,

jurisdiction and maintenance to the

City of Midland (MO)

(5) Rockwall County - SH 205 at FM 549

in Rockwall - Consider the sale of

a surplus easement to the property

owners (MO)

(6) Tarrant County - SH 121 along Union

Pacific Railroad in Fort Worth -

Consider the sale of surplus right

of way and waiver of the service fee

to the abutting landowner and

designate permitted access to the

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abutting landowner (MO)

c. Release of Access Rights

Brazoria County - SH 288, immediately

south of Hughes Road/CR 403 - Consider

the designation of a location on the

highway at which access will be permitted

to the abutting landowner (MO)

d. Speed Zones

Various Counties - Establish or alter

regulatory and construction speed zones

on various sections of highways in the

state (MO)

16. Executive Session Pursuant to Government Code, 125

Chapter 551

OPEN COMMENT PERIOD 150

ADJOURN 152

ON THE RECORD REPORTING

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P R O C E E D I N G S

MS. DELISI: Good morning. It is 9:07 a.m., and I call the regular June 2011 meeting of the Texas Transportation Commission to order. Note for the record that public notice of this meeting, containing all items on the agenda, was filed with the Secretary of State at 2:26 p.m. on June 22, 2011.

Before we begin today's meeting, I'd ask you to please place all your cell phones and other electronic devices on the off or silent mode, please.

We welcome you to the Texas Capitol for today's meeting. Our usual meeting space in the Greer Building is undergoing renovation and we expect to be back there for next month's meeting.

And as is our custom, we'll start with comments from the other commissioners, and we'll begin with today with Commissioner Meadows.

MR. MEADOWS: Thank you, Madam Chair, and thank you all for being here with us this morning

It's a real pleasure to have the opportunity to have this meeting at the Capitol and I'll note that Roger or somebody will probably note what a historic occasion this is for this commission. But in any event, we certainly are appreciative of the opportunity to be here while our regular meeting room is under construction.

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Let me just mention briefly, last Friday I know several of the people in the audience were in attendance as well, but I had the opportunity to, the real pleasure of participating in the dedication of our two new ferry boats at the Port Aransas ferry system. And to me what was remarkable and really wonderful was that because of the tradition of naming of these ferry boats after our executive directors, it really reminds you of what a wonderful tradition and traditions the agency does have and does celebrate on a regular basis, and really the hallmark and the strength of the agency really, as we all know, the people of the agency. So it was a wonderful reminder of that and a wonderful celebration.

You know, those were the first new ferry boats we've had since, as former Commissioner Johnny Johnson was present and pointed out, the first ferry boats that we have had since the 1990s, I believe. And he said in his entire tenure on the commission he didn't have the opportunity to take part in such an event.

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But we had some great people involved in coordinating that celebration. John Casey, our district engineer in Corpus; Howard Gillespie, who is the admiral of the fleet, I believe, at least he looks like that; Tom Tagliabue who is our public information officer there and Amy Loos who is the public information officer in the Yoakum District who had been involved. Also, the mayor of Port Aransas, and representatives from Senators Hegar, Hinojosa, and Todd Hunter had staff present as well.

But congratulations to Mike Behrens and Wes Heald as those boats are named for them.

And one last thing, I know this is lengthy, but I just want to congratulate the legislature for concluding a very successful session, and I want to acknowledge and express appreciation, as I know we all would, to our staff that were involved in legislative activities as they worked and interacted with members of the legislature to advance issues that are important to the citizens that we represent in the transportation arena.

In any event, thank you very much and welcome.

MR. UNDERWOOD: I associate myself with my colleague's remarks. I've got to get the recipe for that.

(General laughter.)

MR. UNDERWOOD: I just want everybody in the audience to know that I was very impressed with our legislature for the job they did during very tough economic times and the constraints that they were under. And I really want to thank our staff for working with the legislature to help the taxpayers of Texas get the most bang for their buck. So to our staff, the hard work they did, to the legislature, very impressive session.

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So thank you very much.

MR. HOLMES: Good morning and welcome. It is kind of fun to be sitting up on this really high perch, you kind of begin to feel how important you are.

(General laughter.)

MR. HOLMES: I'd like to acknowledge the legislature, our staff, but also all of those folks that work for members of the House and Senate. We interacted with them a lot and I think they did a great job.

And Bill, one of these months we're going to have a boat named for Johnny Johnson too.

Thank you, and welcome.

MR. HOUGHTON: I associate with my fellow commissioners' remarks regarding the legislative session. It was very successful, and as Commissioner Underwood said, in the times of constraint it was a tough session as far as being able to do what the legislators had to do to keep the spending in check, and my congratulations not only to them but our staff for bringing it across the goal line and providing the funds necessary that we'll need ‑‑ not necessary but we'll use to build somewhat of a transportation system over the next couple of years.

And Commissioner Meadows, I hope you accord us the same opportunity in El Paso when we have our ferry system across the Rio Grande River.

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(General talking and laughter.)

MR. HOUGHTON: The legal ferry system in El Paso.

But welcome, everyone.

MS. DELISI: I just want to remind everybody if you wish to address the commission during today's meeting, please complete a speaker's card at the registration table outside of this conference room. To comment on an agenda item please complete a yellow card and identify the agenda item. If it's not an agenda item, we'll take your comments at the open comment period at the end of the meeting, and for those comments please fill out a blue card. Regardless of the color of card, we do ask that you try and limit your comments to three minutes.

Our first order of business is approval of the minutes from the May 26 meeting. Members, the draft minutes have been provided in your briefing materials. Is there a motion to approve?

MR. UNDERWOOD: So moved.

MR. HOLMES: Second.

MS. DELISI: All in favor?

(A chorus of ayes.)

MS. DELISI: The motion passes.

With that, Amadeo, I'll turn the agenda over to you.