1996-047A RESOLUTION OF THE CITY OF 0-' 7
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 SOUTHLAKE
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.
Adopted this
16th
day of
July
Sandra L. LeGrand
City Secretary
1996.
4
MAYOR RICK STACY
CITY MANAGERZWO3`tZZ
X"OXX-vwa y' riOR.11fii0='S.
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 Tollway Authority
Co -Chairmen:
The Honorable
Ron Harris,
Collin County TO: Mayors and City Managers
The Honorable
Lee Jackson, FROM: Dan S. Petty and Vic Suhm
Dallas County
The Honorable DATE: June 12, 1996
Jeff Moseley,
Denton County SUBJECT: _Resolution of_Support for North Texas Tollway. Authority_
The Honorable
Tom Vandergriff,
Tarrant County Enclosed is a fact sheet along with a sample resolution explaining and endorsing the
proposal to establish a regional tollway authority for the DFW metropolitan area.
The question of who builds tollways in Texas is shaping up as a big issue for the'97
legislative session. The basic options are:
1) Maintain the status quo,
2) Merge the Texas Turnpike Authority (TTA) into the Texas Department of
Transportation (TxDOT), or
3) Establish a new North Texas Tollway Authority (NTTA), transfer the TTA
to the NTTA, and give TxDOT authority for tollways outside DFW and
Houston.
The Regional Transportation Council (NCTCOG); the commissioners courts of
Collin, Dallas, Denton and Tarrant counties; and numerous DFW area city councils
and chambers of commerce have determined that option (3) is most advantageous to
our region. Option (1) is generally viewed as an acceptable compromise or fall -back
position. In 1991 the Legislature declared its intent to implement option (2) in 1997,
and last April the Sunset Advisory Commission staff issued a report supporting
option (2). The Sunset Advisory Commission is scheduled to adopt a position in late
August to recommend to the Legislature.
We are urging city councils to pass a resolution (sample endwed) endorsing option
3). Please support this effort and send us a copy of your resolution before August if
possible.- -If younave anyquc5uuiia, pleasezall Vic,Suln,rat metro 214/621-0400
extension 118. Thank you very much for your help.
P.O. Box 610246 • DFW Airport • Texas 75261 • Metro (214) 621-0400 • Fax (214) 929-0916
1 Torth Z' was
Z'ollway Coalztiosz
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 Tollway Authority
Co -Chairmen:
The Honorable
Ron Harris,
Collin County
The Honorable
Lee Jackson,
Dallas County
The Honorable
Jeff Moseley,
Denton County
The Honorable
TomVandergriff,
Tarrant County The Proposal For A
North Texas Tollway Authority
Issues and Answers
7th Edition
P.O. Box 610246 • DFW Airport • Texas 75261 • Metro (214) 621-0400 • Fax (214) 929-0916
1 of 6,
The Current Situation
There are presently two tollway authorities operating 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.
2 of 6
The Sunset Advisory Commission staff issued a report in April, 1996 stating
that a separate agency to develop toll roads is not needed and recommending
that the Legislature consolidate the functions of TTA within TxDOT. The
Commission itself has not yet stated a position on the issue --it should do so the
last week of August, 1996.
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 Tof/way
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 Toflway Authority in 1997?
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 to//way 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
Tollway Authority (NTTA), including all TTA staff, equipment, facilities, the
Mountain Creek Lake Bridge project and the Dallas North Tollway 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 insufficient
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
4 of 6
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.
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 Toll 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 toff 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 Tof/way Authority serve the tog road needs in
counties adjacent to Collin, Dallas, Denton and Tarrant?
The future may bring a need for toll roads in the adjacent counties. For
example, the Southwest Parkway in Fort Worth may be 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 interlocal 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 of Texas some calculation of "fair market
value" for TTA assets?
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 tog authority and put its own money into tog
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.
6 of 6
What are the arguments against creating a North Texas To//way Authority?
The TxDOT Araument
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 Araument
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 Bureaucracv Araument
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.
Nh. C*
NORTH TEXAS COMMISSION
TO: NTC Board and Friends
Metroplex City Managers
Metroplex Chamber Executives
FROM: Dan S. Petty
DATE: July 3, 1996
SUBJECT: North Texas Tollway Coalition
UPDA14E
CITY MANAGER
7 S
Since being formed, the NTTC has been active on a number of fronts and it was felt that providing
you with an update would be useful.
The North Texas Tollway Coalition is 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 Tollway
Authority.
The proposal for a North Texas Tollway Authority (copy attached) has been developed by the
Coalition and is being distributed to and discussed by interested parties in the region and throughout
the state.
Presentations of the proposal have been made to the Sunset Advisory Commission, the
Transportation Committee of theTexas House of Representatives, and various state officials.
A not-for-profit corporation, Tollways for North Texas, Inc., has been organized to raise funds to
support the efforts of the North Texas Tollway Coalition to establish a regional tollway authority in
the 1997 session of the Texas Legislature.
For more information about the Coalition or how you might support its efforts, please contact Vic
Suhm or me at 214/621-0400.
Thank you.
Enclosure
FIRK WILSON c i JN?
1. SCOTT AR.MEY
PRECINCT 1 PRECINCT 3
ti (•\
SANDY JACOBS G OFFICE OF CITY DON HILL
PRECINCT 2SECRETARY PRECINCT 4
1846
CDENTON_COUNTY COMMISSIONERS COURT
JUDGE JEFF MOSELEY
July 30, 1996 FILE
Honorable Pick Stacy
City of Southlake
667 North Carroll Avenue
Southlake, Texas 76092
Re: Resolution of support for North Texas Tollway Authority
Dear Mayor Stacy:
On Tuesday, July 30, 1996, Commissioners Court of Denton County approved the
enclosed resolution supporting the concept of a multi -county tollway authority to continue
development, construction and operation of tollways in the counties of Collin, Dallas, Denton and
Tarrant.
Also enclosed is a sample resolution explaining and endorsing this concept of a regional
tollway authority for the DFW metropolitan area. The question of who builds tollways in Texas is
shaping up as a big issue for the 1997 legislative session. The basic options are:
1) Maintain the status quo.
2) Merge the Texas Turnpike Authority (TTA) into the Texas Department of
Transportation (TxDOT), or
3) Establish a new North Texas Tollway Authority (NTTA), transfer the TTA to the
NTTA, and give TxDOT authority for tollways outside DFW and Houston.
The Regional Transportation Council (NCTCOG); the commissioners courts of Collin,
Dallas, Denton and Tarrant counties; and numerous DFW area city councils and chambers of
commerce have determined that option (3) is most advantageous to our region. Option (1) is
generally viewed as an acceptable compromise or fall -back position. In 1991 the Legislature
declared its intent to implement option (2) in 1997, and last April the Sunset Advisory
Commission staff issued a report supporting option (2). The Sunset Advisory Commission is
scheduled to adopt a position in late August to recommend to the Legislature.
COURTHOUSE ON THE SQUARE - 110 W. HICKORY - DENTON, TEXAS 76201
817)686-8863 -(817)686-8888 -(800)348.3189
The North Texas Tollway Coalition and the commissioners court of Collin, Dallas, Denton
and Tarrant counties are urging city councils to pass a resolution (sample enclosed) endorsing
option (3). Please support this effort and send us a copy of your resolution before August 20,
1996. If you have any questions, please contact my office at 817-565-8687. Thanking you for
your assistance,
truly,
Judge
7M:kb
Enclosures
PC: Commissioners Court
Resolution
supporting
CONCEPT OF MULTI -COUNTY TOLLWAY AUTHORITY TO CONTINUE
DEVELOPMENT, CONSTRUCTION & OPERATION OF TOLLWAYS
WHEREAS, the Counties of Collin, Dallas , Denton and Tarrant have a strong interest in the continued
development and successful operation of tollroads in North Texas, and
WHEREAS, the State of Texas has granted to certain counties the ability to establish local tollway authorities
with powers and duties similar to those of the Texas Turnpike Authority, and
WHEREAS, Texas counties may establish cooperative organizations by interlocal agreement, and
WHEREAS, the Texas Legislature in 1997 will be asked to authorize multi -county tollway authorities
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED by the Denton County Commissioners
Court that:
Denton County supports the establishment of a regional tollway authority for North Texas and will support
legislation to enable such an entity,
2. Denton County will join with Collin, Dallas and Tarrant counties to develop and enter into an interlocal
agreement which will establish an organization, the North Texas Tollway Authority; which will not have
the full powers of a tollway authority until authorized by State law but will develop plans for such an
authority and be prepared to act in a transition capacity when a permanent authority is created;
3. Denton County recognizes that the attached "Proposal Concerning the Establishment of a North Texas
Regional Tollway Authority" will serve as the basis for drafting an interlocal agreement and future
legislation and acknowledges that this outline of issues will continue to
rb
e developed and amended.
DONE JN O EN COURT, this the 30th day of J*, 1996 upon motion by 1
seconded by 1 J-1—), ands) Members of the Court being present an v g "aye".
n
PRECIN 1
11 ARMEY, C 4MISSION
PRECINCT 3
ATTEST:
TIM HODGES, County Clerk
and Ex -Officio Clerk of the
Commissioners Court of
Denton County
BY:
COUNTY
SANDY JACOBS, C MISSIONER
PRECINCTS 1
Sco -.",
I
iQ:•• • RrO,1, DON HIL COMMISSIONER
O. . PRECIN
y.
L)
h'f'••• . •. rte`
A RESOLUTION OF THE CITY OF
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
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.
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 Tcl!way Coalition.
Adopted this day of 11996.