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R52V v i tI `J & e at: =, t dw,.v5 j43Y CITY OF KENNEDALE RESOLUTION NO. 52 A RESOLUTION OF THE CITY OF KENNEDALE ENDORSING THE ESTABLISHMENT OF A NORTH TEXAS TOLLWAY AUTHORITY. WHEREAS, the Sunset Advisory Commission is reviewing the Texas Department of Transportation (TxDOT) and the Texas Turnpike Authority (TTA) and there is legislative intent to consolidate the two agencies; and WHEREAS, North Texas mobility would be best served by the North Texas assets and operations of the TTA remaining in the Dallas -Fort Worth region; and WHEREAS, continued efficient toll road development is an integral component of the regional mobility plan for North Texas; and WHEREAS, maintaining mobility in the Dallas -fort Worth area is important to the economic vitality of the state and the region; and WHEREAS, a tollway authority in Austin within or closely associated with TxDOT can be established to serve the tollway needs of Texas outside of Harris County and the Dallas -Fort Worth region. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS: 1. That the counties of Collin, Dallas, Denton and Tarrant be and hereby are encouraged to work together to establish a North Texas Tollway Authority. 2. That the Sunset Advisory Commission, TxDOT, TTA and the Texas Legislature be and hereby are urged to support the establishment of a North Texas Tollway Authority which incorporates the assets, liabilities and operations of the existing TTA. 3. That copies of this resolution be furnished to the Sunset Advisory Commission, the leaders and district representatives of the Texas House and Texas Senate, TxDOT, TTA and the North Texas Tollway Coalition. PASSED AND APPROVED on this the 11th day of July, 1996. APPROVED: Mayor, R ✓ Mundy ATTEST: City Sec etary ` - k North '3E'exm6s 'T°ollwa sr Coa,li Lio A coalition of public and private officials and leaders in Collin, Dallas, Denton and Tarrant Counties formed to support the establishment of a North Texas Tollvvay Authority - Co- Chairmen: The Honorable Ron Harris. The Honorable - Lee Jackson.... .. .- -. Dallas County .... ,. - ,.. .. ... The Honorable Jeff Moseley, Denton County The Honorable - TomVandergriff. ; The Proposal: For -A - TarrantCounty ' North Texas Tollway. . Authority Issues and Answers 7th Edition P.O. Box 610246 • DFN Airport • Texas 75261 • Metro (214) 621-0400 • Fax (214) 929 -0916 1 of 6 The Current Situation `There" are presently two tollway authorities "operati ng in Texas. The Texas' Turnpike'Authority (TTA) and the Harris County Toll Road,Authority. TTA is a state agency based in Dallas, established by the Legislature in 1953:. Its first project was the Dallas -Fort Worth Turnpike, which is now IH -30.' TTA' currently operates two projects: the Mountain Creek Lake Bridge and the Dallas North Tollway (DNT). The President George Bush Turnpike (SH -190T) and the Addison Airport Tunnel are being built now as extensions of the DNT. The TTA has, 235,:., employees and a $14 million annual budget, funded exclusively from toll revenues. Harris County formed its toll authority in 1983 as a means of responding directly and quickly to its rising roadway congestion problem. Since then the Harris County Toll Road Authority has built 50 miles of tollways in the Houston metropolitan area and plans to construct an additional 32 miles TTA has studied the feasibility of toll roads outside of the Dallas -Fort Worth region but has built none except for the Houston Ship Channel Bridge, which was transferred to the Harris County Toll Authority in 1994. TTA currently is considering or performing feasibility studies for 12 potential tollway projects - -6 within and 6 outside the DFW metropolitan area. What's wrong with the status quo. -- why consider TTA changes now? TTA has been very effective over the past.43 years in responding to the needs of North Texas communities and in building and operating successful projects, but there is now growing pressure to broaden the TTA focus beyond North Texas and to merge TTA with TxDOT. ♦ Increased interest in looking to toll revenues to finance all or part of feasible roadway projects arises from the declining ability of traditional funding sources (motor vehicle fuel tax and registration fee) to meet the State's transportation needs -- TxDOT is now able to fund only about 40% of its project development needs. ♦ When a major tollway project in Austin, San Antonio or elsewhere in Texas is initiated in the near future, there will be even greater pressure for an Austin - based tollway development authority within or closely aligned with TxDOT. ♦ The Legislature in 1991 declared its intention to consolidate TTA within TxDOT on September 1, 1997. ♦ Both TTA and TxDOT are currently undergoing Sunset review. 1 2 of 6 ♦ The Sunset Advisory Commission staff issued a report in April, 1996 stating that.a separate agency develop toll roads is not needed and recommending that the Legislature consolidate the functions,of:TTA ; within The Commission itself has not yet.stated a position on the issue - -it should do so the last week of- August, 1996:',, o TxDOT wants authority.for bonding and tolling as a means of meeting Texas' transportation needs and sees a merger with TTA as the method to obtain this additional authority. What are the probable implications. of TTA merging with TxDOT? - - - A TTA merger with TxDOT without a simultaneous creation of a North Texas Tollway Authority to operate the existing TTA projects and to develop additional North Texas toll roads has several probable implications, which have negative consequences for the Dallas -Fort Worth metropolitan area: ♦ toll road decision- making moving from Dallas to Austin 'reduced access to key officials ♦ decreased responsiveness to North Texas mobility needs ♦ longer project development time periods and possibly higher project costs ♦ increased likelihood of efforts to divert revenues from tolls paid by North Texas motorists to develop toll roads outside the Dallas -Fort Worth region Is the main objection to TTA consolidation within TxDOT that Dallas North To/Iway reserve funds will be redistributed around Texas? No. The proposed TTA -TxDOT merger would mean a loss of regional influence as the final authority for North Texas toll projects would be moved from Dallas to Austin but it would not. necessarily change the use of bond funds which are committed to each toll project by the bond covenants. Although the use of funds might not be changed initially, it would open the door for future pressures to change the laws or future bond agreements to allow transfer of funds. Why create a North Texas Tollway Authority in 9997? ♦ In light of the current Sunset review of TTA and TxDOT and TxDOT's desire to obtain bonding /tolling authority, the 1997 legislative session may be the opportune time to negotiate a permanent resolution of the issue that will protect the independence of the North Texas projects while transferring to Austin the toll project development role for the rest of the State. 3of6 ♦ Like Houston, the Dallas -Fort Worth metropolitan area needs a toll authority which can focus exclusively on its roadway needs. Toll roads account for over $1 billion of the 20 -year regional transportation plan for North Texas. They are an essential component of regional mobility and must be able to be analyzed for feasibility, designed and constructed as efficiently as possible. What is the North Texas proposal to create a regional tollway authority? ♦ a proposal sponsored by Collin, Dallas, Denton and Tarrant counties and endorsed by numerous cities, chambers of commerce and other organizations in the Dallas -Fort Worth metropolitan area .: ♦ a governing board of North Texas residents appointed, sponsored by Collin, Dallas, Denton and Tarrant counties, with details of the administrative structure to be established by statute in the 1997 session of the Texas Legislature ♦ transfer of all assets and liabilities of the existing TTA to the new North Texas Toilway Authority (NTTA), including all TTA staff, equipment, facilities, the Mountain Creek Lake Bridge project and the Dallas North Toliway project (which includes the Addison Airport Tunnel and President George Bush Turnpike projects) ♦ assumption and continuation of all current TTA construction and professional services contracts, so that no delay occurs in any project currently under feasibility study, design or construction ♦ transfer of TTA feasibility study funds to its successor agency in Austin in sufficient amount to continue studies of pending tollway projects outside North Texas ♦ retirement or assumption of all existing TTA debt ♦ continued utilization of all TTA assets and revenues exclusively to operate; maintain and develop existing and future tollway facilities What are the advantages to the Dallas -Fort Worth area of transitioning from the TTA to the NTTA? ♦ more aggressive local support for new tollroad projects due to a board of local leaders who will share responsibility with local governments to find solutions to transportation funding shortages ♦ ability of professional staff to focus exclusively on development of local projects without additional responsibility for travel and development of projects in other parts of Texas ♦ dedication of regional tollway user fees to regional tollway needs, resolving political struggles over diversion of current and future North Texas transportation revenues + ♦ potential for increased flexibility and interest -rate savings by adding new regional projects as part of a tollway system in North Texas, rather than financing separate projects How might the NTTA benefit TxDOT and the State of Texas? ♦ more aggressive leveraging' of potential NTTA revenues to assist TxDOT in meeting some of the billions of dollars of unmet highway needs in North Texas which are beyond current and projected TxDOT funding abilities ♦ with legislative _ approval, new tollway,, development and revenue bond capabilities in Austin to focus exclusively on Texas tollway projects outside of the Houston and Dallas -Fort Worth areas ♦ NTTA would have operational responsibilities for the existing TTA projects, freeing TxDOT of the distraction of administering these operating projects from Austin. The toll projects are very different from highway construction and maintenance. ,i ♦ Dallas -Fort Worth continues to have most of the feasibility studies of future tollway projects and will continue to dominate the staff attention of a single statewide toll agency if the NTTA is not established. Are there any other regional tollway authorities in Texas? ♦ Yes, the Harris County Toil Road Authority serves the Houston metropolitan area. ♦ The Harris County Toll Road Authority was established in 1983 and has functioned very effectively, having built 50 miles of tollways with plans to build another 32 miles. ♦ The Houston Ship Channel Bridge was developed by the TTA. In 1994, it was transferred to the Harris County Toll Authority, just as the North Texas proposal now suggests that the Mountain Creek Lake Bridge and Dallas North Tollway be transferred to a new NTTA in 1997. Why should Dallas -Fort Worth and Houston have their own to# authorities? ♦ Their roadways are the most congested in Texas -- only DFW and Houston have a Roadway Congestion Index above 1.0. ♦ The level of roadway congestion in DFW and Houston is among the ten highest in the U.S. and continues to rise. ♦ Together DFW and Houston comprise over 50% of the Texas economy, and Dallas -Fort Worth produces more population and job growth than any other Texas region, which further increases its roadway congestion. 5of6 How could the proposed North. Texas Tollway Authority serve the toll road needs in counties adjacent to Collin, Dallas,, Denton and Tarrant ?i:a The future may bring a need for toll roads in the adjacent counties. For example,.the Southwest . in Fort Worth maybe built : as -a toll road.and,at some point could extend to Cleburne in Johnson County? The North Texas Tollway' - Authority will have the legal authority,to operate in any,county and therefore could accommodate this extension by way of an service agreement with Johnson County: This has happened,in.Houston where the ,Harris County Toll Road Authority has extended tollways into Montgomery and Fort Bend counties. Should the'North Texas'area pay the State of7exas some calculation of' fair'market value" for TTA assets? t :. „• : - ; Local governments believe it is not logical for the motorists in North Texas to purchase any TTA assets from the State because: ♦ All existing TTA assets were acquired or developed with revenues derived solely from tolls paid by North Texas motorists, i.e., North Texans have already paid for the TTA , assets. - • County governments are an arm of the state government and ° have a responsibility to assist the State in developing the surface transportation system. The assets will be transferred from. one public agency, to another public agency and used exclusively for the sole purposes for which they were initially acquired or developed. , ♦ No state tax revenue has been appropriated to TTA, or invested in TTA. assets, except the recent investment in the 190 /Bush Tollway which was a significant reduction from its cost as a state highway. ' ♦ The Dallas -Fort Worth area has a backlog of $6 billion of unfunded highway projects which TxDOT is requested to fund. Aggressive development of tollroads will help address this state responsibility, and there is no logic in requiring the diversion of any, of these dedicated North Texas transportation resources. Why doesn't North Texas just create a toll authority and put its own money into toll roads like Houston did? _ Since the TTA has an existing staff in place in North Texas, there has been no reason to duplicate these administrative costs. Harris County did have a bond election in which voters approved a property tax levy to build toll roads, but it has never had to use this tax authority because toll revenues have been sufficient to cover the debt service on its revenue bonds. While an ad valorem tax was approved In Houston, the tax was never actually levied and collected. North Texas counties have the same option available. They can seek voter approval of a tax to supplement toll road revenues if there should ever be a need to do so - -if some future project should require local funding above and beyond estimated toll revenues. Y 6of6 What are the arguments against creating a North Texas Tol /way Authority? The TxDOT Argument ♦ Full consolidation of TTA and TxDOT without an NTTA would give TxDOT direct and ultimate control when developing toll projects - -an optimum concentration of responsibility for toll road development in one agency. TxDOT would not have to work with a separate toll authority, eliminating unnecessary duplication and non - essential coordination. Response ♦ There will always be a need to coordinate highway planning with local governments. NTTA can perform this coordination function better than TxDOT because it is closer to and more involved with the local governments in North Texas. Many toll projects, just like the President George Bush Turnpike, involve multiple local governments. TxDOT would be better off coordinating with one agency - -the NTTA- -than with several local governments. This coordination has worked in a satisfactory manner in Harris County, and TxDOT does not propose to consolidate the Harris County Toll Road Authority. The Sunset Commission Staff Argument • Partial consolidation of TTA's toll authority with TxDOT would not provide the same benefits as a full merger, and the state as a whole would be better served by having one agency responsible for planning and construction for both toll and traditional highway projects. Response ♦ Neither the benefits of a single statewide toll authority or the drawbacks of a partial merger were specifically itemized by the Sunset staff, but North Texas local officials do not accept the implication that a single agency would be inherently better for Texas or for North Texas. The Reduced Bureaucracy Argument ♦ Mergers generally have the benefit of reducing overhead costs. Response ♦ In the case of TTA, administrative costs are minimal, making any cost reduction from full consolidation with TxDOT negligible. V