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HomeMy WebLinkAboutAgenda CC 08.23.2016 WorkshopNotice of M eeting of the Governing B ody of the City of Georgetown, Texas August 2 3, 2 0 1 6 The Ge orgetown City Council will meet on August 2 3, 2016 at 3:30 PM at City Co uncil Chambers, 101 E. 7th St., Geo rgeto wn, Texas The City o f Georgetown is committed to co mpliance with the Americans with Disabilities Act (ADA). If you re quire assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or ac c ommo datio ns will be provided upo n request. P lease contact the City Se c retary's Office, at least three (3 ) days prio r to the scheduled meeting date, at (512) 930- 3652 o r City Hall at 113 East 8th Street fo r additional information; TTY use rs ro ute through Relay Texas at 7 11. Policy De ve lopme nt/Re vie w Workshop - A Re vie w and discussion regarding an ESD #8 partnership with the future Fire Station #6 -- John Sullivan, Fire Chief B Update, information and possible feedback on the budget for Downtown West – Eric Johnson, CIP Manager and Laurie Brewer, Assistant City Manager. C Prese ntation and Discussion relate d to the Lo ne Star Rail District -- Edward G. Polasek, AICP Transpo rtation Services Director Exe cutive Se ssion In compliance with the Open Meetings Ac t, Chapter 551, Government Co de , Verno n's Texas Codes, Annotate d, the items listed below will be discussed in closed session and are subject to action in the regular se ssio n. D Se c . 55 1.0 71 : Consul tati on wi th Atto rney - Advice fro m attorney about pending or co ntemplated litigation and o ther matters on which the attorney has a duty to advise the City Co uncil, including agenda items Se c . 55 1.0 72 : Del i berati on abo ut Real P roperty Forwarded fro m the Georgetown Transpo rtation Enhancement Corpo ratio n - Rivery Blvd. Extension Project (Parc el 11 , 16 11 Park Lane) - Mays Street Project (Parcel 8, Westinghouse at Rabbit Hill Rd.) - SW Bypass P roject (Laubach – 4 20 0 IH35 So uth) Se c . 55 1.0 74 : Personnel Matter s - City Manager, City Attorney, City Se c retary and Municipal Judge: Consideration of the appointment, employment, evaluatio n, reassignment, duties, discipline, o r dismissal Se c . 55 1.0 87 : Del i berati on Regardi ng Eco nomi c Devel opment Ne go ti ati ons - Tamiro Plaza Phase 2 Adjournme nt Ce rtificate of Posting Page 1 of 89 I, Shelley No wling, City S ecretary for the C ity of Geo rgeto wn, Texas , do hereby c ertify that this Notic e o f Meeting was posted at City Hall, 113 E. 8th Street, a p lac e read ily acc es s ib le to the general pub lic at all times , o n the _____ day of _________________, 2016, at __________, and remained so p o s ted for at leas t 72 c o ntinuo us ho urs p receding the s cheduled time of s aid meeting. __________________________________ Shelley No wling, City S ecretary Page 2 of 89 City of Georgetown, Texas City Council Workshop August 23, 2016 SUBJECT: Review and disc ussio n regarding an ESD #8 partnership with the future Fire Station #6 -- John Sullivan, Fire Chief ITEM SUMMARY: The Fire Department e njo ys a collaborative relationship with Emergency Service District #8 (ESD8 ) and has explored the option of co-deve lo ping a fire station in the area of Four T Ranch Road and Williams Drive. The lo cation o f the fire station was based upon previous deployme nt studies and a current assessment of emergency service demands. The ESD has purchased the two (2) ac re site and has offe re d to pay for the construction of the fire station. Additional terms may include the fire department operating a minimum o f one (1) engine company o ut o f the new facility (statio n 6). Additionally, it is being propo sed that the City would assume the operational costs of maintaining the fac ility and provide annexation terms that wo uld reimburse the ESD fo r the facility. A pre sentatio n of the background, general terms, optio ns and timeline will be presented during the August 23 rd Council meeting. FINANCIAL IMPACT: Discussion only SUBMITTED BY: John Sullivan, Fire Chief ATTACHMENT S: Description F ire Statio n #6 P ro p o s al Page 3 of 89 GEORGETOWNFIRE/MEDICAL Fire/Medical Station 6 Council Workshop –August 23, 2016 Page 4 of 89 GEORGETOWNFIRE/MEDICAL Agenda Introduction of ESD Commissioner’s Overview of ESD/City Relationship Emergency Service Demand -Analysis Proposed Fire Station Site General Terms, Timeline and Operation Open Discussion/Feedback Page 5 of 89 GEORGETOWNFIRE/MEDICAL ESD Commissioners Bobby Bunte, President Benny Piper, Vice President Troy Rodriguez, Secretary Troy Dalton, Member Dr. Ira Wood Page 6 of 89 GEORGETOWNFIRE/MEDICAL ESD Map Page 7 of 89 GEORGETOWNFIRE/MEDICAL Drive Time 4-minute 5-minute 6-minute Total Response Dispatch Turn-out Drive time Drive Time Model Page 8 of 89 GEORGETOWNFIRE/MEDICAL Emergency Service Demand Page 9 of 89 GEORGETOWNFIRE/MEDICAL Emergency Service Demand Page 10 of 89 GEORGETOWNFIRE/MEDICAL Placement for Current/Future Demand Page 11 of 89 GEORGETOWNFIRE/MEDICAL General Terms ESD8 Purchase property and pay for construction Maintain title on property Maintain insurance on building City Assist with RFP/Q process and construction oversight Pay portion of FF&E Assume operational costs (move Engine from FS5) Reimburse ESD for FMV of building (if annexed) Consideration of FS costs within service contract Joint Design and approval Page 12 of 89 GEORGETOWNFIRE/MEDICAL Proposed Construction Timeline Oct 2016 –Finalize Term Agreement Nov 2016 –RFQ/P for Design Jan 2017 –RFQ/P to GGAF, ESD, Council Feb 2017 –Design/Develop (8-weeks) April 2017 –Present to Council/ESD April 2017 –Construction Docs (12-weeks) August 2017 –Present to Council/ESD for CM@R September 2017 –Construction (9 –12 months) October 2018 –Station 6 Operational Page 13 of 89 GEORGETOWNFIRE/MEDICAL Questions and Comments Page 14 of 89 City of Georgetown, Texas City Council Workshop August 23, 2016 SUBJECT: Update, informatio n and po ssible feedback on the budget fo r Downtown West – Eric Johnson, CIP Manager and Laurie Brewer, Assistant City Manager. ITEM SUMMARY: Follow-up from Council feedbac k at the July 2 6, 2 01 6 Workshop. This is an update regarding the Downtown West P roject. Staff will pre sent Council requested options and will be ask for feedback to steer the detailed design based on budgetary conside ratio ns. FINANCIAL IMPACT: The funding fo r constructing these City facilities c omes partially from pro ceeds associated with the sale of the Albertson’s building, and the prospective sale of othe r City facilities. Near the end of the Architectural De sign phase of the project, Balfour Beatty will submit a Guarantee d Maximum P rice for the project and we will return to Council for approval of that GMP. SUBMITTED BY: Eric Johnson, CIP Manager and Laurie Brewer, Assistant City Manager ATTACHMENT S: Description Do wntown Wes t Bud get P res entation Page 15 of 89 8/17/2016 1 Downtown West Budget Update August 23, 2016 Development Process • First step is programming • Programming uncovers needs • Schematic Design is based on those needs • Not unusual to see escalation through that process City of Georgetown Page 16 of 89 8/17/2016 2 Benefits of Downtown West, Downtown • Buffer between Downtown and Residential • Money gained from sale offset by land purchase • Keeps Light and Waterworks as part of Campus • Shared Parking • Revitalizes buildings we already own • Shotgun House is on Old Library lot City of Georgetown Downtown West • Considered in both 2003 and 2014 Downtown Master Plans • Extensive public process that sought input from internal and external stakeholders • Parking study concluded there is ample parking for the use • Relocates approx. 50 employees (cars) out of Downtown core, plus MC/CC visitors City of Georgetown Page 17 of 89 8/17/2016 3 City Council Feedback from July 26th • Renovation Plan that is Worthy of our City and Exemplifies our Values • Cursory Review of Demolition and Reconstruction • Funding Strategy • $13,000,000 City of Georgetown Renovate Existing Buildings - $13,000,000 • Assumptions – Delay Street Improvements – Omit Side Walls of Façade MC/CC – Reduce A/V Budget $50,000 (8%) – Reduce Furniture Budget $75,000 (9%) – Renovation at $180/SF & New at $300/SF City of Georgetown Page 18 of 89 8/17/2016 4 City of Georgetown Renovate Existing Buildings - $13,000,000 • Includes – Construction - $10,500,000 ($285/sf) – Other City Contracted Services - $2,500,000 •A/V • Furniture • Owner Contingency • Testing • Security • TempSet (A/C controls) City of Georgetown Page 19 of 89 8/17/2016 5 Other City Contracted Services City of Georgetown City of Georgetown Page 20 of 89 8/17/2016 6 City of Georgetown Possible Future Expansion City of Georgetown Page 21 of 89 8/17/2016 7 Benefits / Challenges • Benefits – Provides Expandability • 18 spaces in CH and 10 spaces in MC/CC – Quickest Option – Lowest Cost – Open Existing Structure Allows Flexibility • Challenges – Unforeseen Existing Conditions – Connecting to Existing Structure City of Georgetown Demolition of Old Library ONLY - $15,787,000 City of Georgetown •+$2,787,000 •+6 - 10 months • Assumptions – Same Square Footage – Renovation & Addition to GCAT – Demolition Costs – New Construction at $300/SF – Similar Sitework costs Page 22 of 89 8/17/2016 8 Demolition of Old Library ONLY - $15,787,000 City of Georgetown • Includes – Construction - $13,287,000 – Other City Contracted Services - $2,500,000 •A/V • Furniture • Owner Contingency • Testing • Security • TempSet (A/C controls) Benefits / Challenges • Benefits – Could Allow for a Second Floor – Could Reorient the Building – Could Better Tie in to Adjacent Development – Could Maximize Efficiency • Challenges – Higher Cost – More Time – Aesthetic Compatibility with Neighborhood City of Georgetown Page 23 of 89 8/17/2016 9 Demolition of Old Library and GCAT - $20,926,000+ City of Georgetown •+$7,926,000+ •+12 – 18+ months (Data Center) • Assumptions – Demolition Costs – New Construction at $300/SF – Similar Sitework costs – Relocation of Data Center (Equipment - $1M) – Does not Include Location for Data Center Demolition of Old Library and GCAT - $20,926,000 City of Georgetown • Includes – Construction - $18,426,000 – Other City Contracted Services - $2,500,000 •A/V • Furniture • Owner Contingency • Testing • Security • TempSet (A/C controls) Page 24 of 89 8/17/2016 10 Benefits / Challenges • Benefits – Same as Library Demolition • Challenges – Significantly Higher Cost – Significantly More Time – Moving the Data Center • Acquiring Location • Acquiring Equipment • Building new Data Center City of Georgetown Cash Funding In addition to design modifications, we also evaluated possible alternate funding sources to supplement the sale of the buildings at $6,249,000 City of Georgetown Page 25 of 89 8/17/2016 11 Funding Options • Other Possible Funding • Certificate of Obligation City of Georgetown $1,295,000 Supplement Remaining Balance Funding Summary • Budget • Cash Funding • Other Possible Funding • Certificate of Obligation – Debt Service (20 yr) City of Georgetown $13,000,000 $ 6,249,000 $ 1,295,000 $ 5,456,000 $ 381,920 Page 26 of 89 8/17/2016 12 Next Steps • Feedback on Design Options • Proceed with Design Development • Guaranteed Maximum Price – Fall 2016 • Begin Construction – Winter 2016/2017 • Occupy Building – By the end of 1 st Quarter 2018 City of Georgetown Page 27 of 89 City of Georgetown, Texas City Council Workshop August 23, 2016 SUBJECT: P resentation and Discussio n related to the Lone Star Rail District -- Edward G. Po lasek, AICP Transportation Servic e s Director ITEM SUMMARY: Membership in the Lone Star Rail District was discussed extensive ly with City Council during the FY 2014 budge t process. The resolution at that time was that the City continue membership with the follo wing provisions: 1 . Provide Direct input into th e Scop in g p rocess of the EIS; 2 . En viro nmental process would Fe derally clear corridor for ran ge o f tra nsit/transportation op tion s (e.g. elig ible for future Fede ra l Fu nd in g); 3 . This recommendation does no t n e cessa rily extend to funding co nstruction /operations of the Lon e S ta r Ra il project; however, it affo rds th e GTAB Board time to co ntin ue stu dying the Lone S ta r/Tra nsit Options as directed by City Council on July 9. 2 01 3, while p ursuing environmental clea ra nces; and 4 . Con tinu ed membership is an an nu al bu dget decision Staff began working with Lo ne Star Rail to determine the funding options for operations and maintenance. Recently Union P acific has withdrawn from the disc ussio n with Lone Star Rail regarding relo cation and the CAMPO P olicy Board has taken action to potentially remove the Lo ne Star Rail Program fro m the financially constrained eleme nt of the 2040 Plan. This mo ve would effectively end the Environmental Process undertaken by the District. SP ECIAL CONSIDERATIONS: The City may po tentially benefit from this EIS Process in several ways. First, if funding does become readily available fo r the Rail Distric t the re wo uld be clearances necessary to build the project. Second, if we remain in the project through the environmental study, and chose not to fund our portio n of the operations at that time, we still have that option in the future when the funding is mo re readily available. Finally, we wo uld have environmental cle arances o n the corridor for othe r transit options (dedicated bus lanes, high-occupanc y vehicle (HOV) lanes, etc.) or e ven a traditio nal roadway if the Rail P roject does not materialize. FINANCIAL IMPACT: $49,500 Annual dues paid to Lone Star Rail due after October 10, 2016. SUBMITTED BY: Edward G. Polasek, AICP Transportation Services Dire cto r ATTACHMENT S: Description Lo ne Star Res olution by CAMP O CAMPO Bac kground Material Page 28 of 89 Page 29 of 89 Page 30 of 89 Date: August 1, 2016 Continued From: June 6, 2016 Action Requested: APPROVAL To: Transportation Policy Board From: Chairman Conley Agenda Item: 8 Subject: Discussion and Action of CAMPO’s Activities to Improve Mobility between Georgetown and San Antonio RECOMMENDATION Staff recommends the approval of Resolution 2016-8-8 authorizing CAMPO staff to begin the process of removing LSRD’s commuter rail project from the 2040 Plan on the basis of its inconsistency with the federal fiscal constraint requirement. PURPOSE AND EXECUTIVE SUMMARY LSRD has been forced back to the early stages of an Environmental Impact Statement and Alternatives Analysis of potential commuter rail service in the UP Corridor that runs between Georgetown and San Antonio due to the February 9, 2016 letter from Union Pacific Railroad that severed the agreement between the two organizations. The EIS was initiated with the publication of notice in the Federal Register on October 6, 2014 (please see the Federal Register Notice here: http://eis.lonestarrail.com/images/uploads/virtual/NOI_FedReg_2014OCT6.pdf or in Attachment A). On February 9, 2016, UP sent a letter to LSRD that ended the agreement between the two organizations. The agreement allowed LSRD to study and potentially implement commuter rail service in UP’s privately owned rail corridor running between the cities of Georgetown and San Antonio (please see Attachment B). Subsequent to February 9, 2016, there have been meetings between UP, LSRD staff/consultants and board members, CAMPO, AAMPO, and TxDOT to discuss potential next steps. LSRD staff also made a trip to UP Headquarters in Omaha, Nebraska on February 29, 2016 to discuss UP’s intentions. On March 1, 2016, there was another meeting between TxDOT, LSRD, and the Federal Highway Administration (FHWA) to discuss potential next steps. Three (3) options were discussed in detail. Those options were: 1.Close the current Environmental Impact Study (EIS) with the selection of the “No Build” alternative. Should LSRD choose this option, there would be no required payback of funds expended to date. This option would also allow for the examination of other potential strategies to address mobility in the corridor; 2. Continue to advance the current EIS but eliminate the UP Corridor alternative as “fatally flawed” and proceed with new alternatives that haven’t been discussed with participating agencies or the general public along the corridor. The selection of this option would entail advancing an Alternatives Analysis with options that haven’t been discussed with Page 31 of 89 the public or participating agencies. For transparency, FHWA and TxDOT recommended that LSRD get concurrence from AAMPO and CAMPO before proceeding since the federal funds allocated by those agencies were allocated to study and implement commuter rail service in the UP Corridor in particular. (Please see Attachment C – Federal Project Authorization Agreement) 3. Continue to advance the EIS as it is currently written with the UP Corridor in it. FHWA cautioned that it would be difficult to advance this option given UP’s firm position. Further, FHWA stated that they could not justify the expenditure of federal funds to study an outcome that cannot be implemented. There was also a LSRD board meeting held on March 4, 2016 where this issue was discussed. UP’s position has consistently been that commuter rail service in this particular corridor does not support their business model. Going back to a feasibility study done as early as 1999 by TxDOT, UP is described as being skeptical of the proposed commuter rail service and having concerns about the potential effect on their business and their long-standing customers in the corridor (Please see the “1999 Austin San Antonio Commuter Rail Study” located here: www.txdot.gov/inside-txdot/projects/studies/austin/commuter-rail.html). In March 2016, the TPB discussed next steps for the LSRD and authorized the CAMPO Executive Committee and the CAMPO Executive Director to negotiate with our sister agency, the Alamo Area Metropolitan Planning Organization (AAMPO), the Texas Department of Transportation, and the Texas Transportation Commission on a viable approach to move forward on ways to improve passenger mobility between our fast-growing regions in light of the recent developments between the Union Pacific Railroad (UP) and the Lone Star Rail District (LSRD). The CAMPO and AAMPO Executive Committees met April 20, 2016 and received briefings from LSRD and TxDOT on the current status and potential next steps for the environmental study. Chairman Conley sent a letter to AAMPO Chairman Lopez (please see Attachment D) that asked about the status of AAMPO’s decision. Chairman Lopez responded and stated that AAMPO would take this item up at its August 22, 2016 board meeting. FINANCIAL IMPACT In June 2011, the CAMPO Transportation Policy Board allocated $20 million in Surface Transportation Program – Metropolitan Mobility (STP-MM) funds to LSRD. State and federal funds allocated to LSRD flow through the Texas Department of Transportation. TxDOT has an oversight role and must ensure that LSRD follows the requisite state and federal procurement rules as well as ensuring that expenses incurred meet the eligibility requirements. LSRD has spent approximately $23 Million in federal and state funds. Agency/Funding Source Amount Awarded Amount Expended Congressional Earmark $5,700,000 $5,600,000 Congressional Earmark $1,980,000 $1,938,726 CAMPO $20,000,000 $11,926,671 TxDOT $8,700,000.00 $5,612,793.00 Page 2 of 54Page 32 of 89 Alamo Area MPO $20,000,000 $0 Total $56,380,000 $23,139,464 1 LSRD does not have the ability to tax and SB 657 provided no clear revenue source but it can issue revenue bonds and charge for the use of its facilities as well as enter into public/private partnerships. LSRD can also receive funding from federal, state, and local sources. In 2011, CAMPO awarded $20 million in STP-MM funds to LSRD for the purpose of conducting feasibility and environmental studies in the Union Pacific corridor between the greater regions of Austin and San Antonio. The Alamo Area Metropolitan Planning Organization (AAMPO) also awarded $20 million to LSRD in 2011 for the purpose of project implementation (construction). In addition to the STP-MM funding awarded by CAMPO and AAMPO, LSRD has received federal earmark funds of $1.98 and $5.7 million sponsored by Representative Lamar Smith. They have also received another $8.7 million in Texas General Revenue and Texas Mobility Fund monies. LSRD has also spent an estimated $11,926,671 of the $20 million of STP-MM awarded to it by the CAMPO Transportation Policy Board in 2011. FHWA and the Federal Transit Administration (FTA) are responsible for confirming fiscal constraint of long-range transportation plans and Transportation Improvement Programs per long standing federal law going back to the passage of the Intermodal Surface Transportation and Efficiency Act of 1991 and carried through subsequent federal transportation bills into the current FAST Act. Under the regulatory requirements of 23 CFR 450.324(f)(11)(i-v), metropolitan planning organizations and transit operators must demonstrate that a proposed project or program of projects has “reasonably” sufficient revenues in the future to construct, operate, and maintain the infrastructure. The FHWA and FTA have a Question and Answer document on Fiscal Constraint that may help to provide more information on this subject. Please see Attachment H. Please note, however, that the legal citation references in the document have not been updated so it may be necessary to access a current copy of the statute or the regulations. Both the statute and the regulations can be found on the FHWA website located at www.fhwa.dot.gov. 23 CFR 450.324(f)(11)(i-v) reads as follows: (f) The metropolitan transportation plan shall, at a minimum, include: (11) A financial plan that demonstrates how the adopted transportation plan can be implemented. (i) For purposes of transportation system operations and maintenance, the financial plan shall contain system-level estimates of costs and revenue sources that are reasonably expected to be available to adequately operate and maintain the Federal-aid highways (as defined by 23 U.S.C. 101(a)(5)) and public transportation (as defined by title 49 U.S.C. Chapter 53). 1 Source: Texas Department of Transportation – Rail Division. Lone Star Rail District billings from inception to March 2016. Page 3 of 54Page 33 of 89 (ii) For the purpose of developing the metropolitan transportation plan, the MPO, public transportation operator(s), and State shall cooperatively develop estimates of funds that will be available to support metropolitan transportation plan implementation, as required under §450.314(a). All necessary financial resources from public and private sources that are reasonably expected to be made available to carry out the transportation plan shall be identified. (iii) The financial plan shall include recommendations on any additional financing strategies to fund projects and programs included in the metropolitan transportation plan. In the case of new funding sources, strategies for ensuring their availability shall be identified. The financial plan may include an assessment of the appropriateness of innovative finance techniques (for example, tolling, pricing, bonding, public private partnerships, or other strategies) as revenue sources for projects in the plan. (iv) In developing the financial plan, the MPO shall take into account all projects and strategies proposed for funding under title 23 U.S.C., title 49 U.S.C. Chapter 53 or with other Federal funds; State assistance; local sources; and private participation. Revenue and cost estimates that support the metropolitan transportation plan must use an inflation rate(s) to reflect “year of expenditure dollars,” based on reasonable financial principles and information, developed cooperatively by the MPO, State(s), and public transportation operator(s). (v) For the outer years of the metropolitan transportation plan (i.e., beyond the first 10 years), the financial plan may reflect aggregate cost ranges/cost bands, as long as the future funding source(s) is reasonably expected to be available to support the projected cost ranges/cost bands. The regulatory language above details what must be done when producing a new long-range transportation plan and/or Transportation Improvement Program. However, the language contained in 23 CFR 450.324(f)(11)(viii) details the requirements of an MPO to demonstrate fiscal constraint in the event there is an amendment to the long-range transportation plan and/or Transportation Improvement Program. The specific regulatory language of 23 CFR 450.324(f)(11)(viii) reads as follows: (viii) In cases that the FHWA and the FTA find a metropolitan transportation plan to be fiscally constrained and a revenue source is subsequently removed or substantially reduced (i.e., by legislative or administrative actions), the FHWA and the FTA will not withdraw the original determination of fiscal constraint; however, in such cases, the FHWA and the FTA will not act on an updated or amended metropolitan transportation plan that does not reflect the changed revenue situation. The regulatory language above directly addresses the situation in which CAMPO and AAMPO currently finds themselves. The February 9, 2016 letter from Union Pacific to the Lone Star Rail District that severs the relationship among the two agencies has irreparably damaged the ability of LSRD to demonstrate fiscal constraint on the project and that revenue will be reasonably available in the future to construct, maintain, and operate the commuter rail service that has been contemplated and studied by LSRD since 1999. Page 4 of 54Page 34 of 89 LSRD has had and continues to employ consultants that have developed financial models based on the use of the Union Pacific track to produce increment tax revenues from development that might be spurred by the existence of the commuter rail service at various locations within the Union Pacific rail corridor. LSRD’s 2006 Executive Summary on the Economic Impact Analysis of Passenger Rail Station Areas estimated $161 Million in tax increment revenue that would be generated over 25 years and available to LSRD for operations and maintenance. Union Pacific’s change in its business model and the severance of the agreement that would have allowed the use of UP facilities calls the financial model into question and thus triggers an examination of fiscal constraint on this project and the 2040 Plan. The commuter rail project is currently listed in the 2040 Plan at $2.049 Billion. LSRD also anticipates the award of FTA New Starts grant or Full Funding Grant Agreement (FFGA) to fund a substantial portion of the upfront construction and rolling stock costs. The FTA New Starts process is a rigorous analysis that focuses heavily on financial viability as well as projected ridership. Additionally, the New Starts Process “requires documentation of local and state government support and an acceptable degree of local financial commitment including evidence of stable and dependable financing sources”2 for a project to receive an FFGA. Since the receipt of the Union Pacific letter, several county and city governments have cancelled their membership in LSRD or have not yet renewed their commitment to funding the project through their commissioners’ courts and/or city councils. This lack of public official support from the northern to southern termini of the corridor also calls into question the LSRD financial model and its ability to successfully navigate the FTA New Starts Process upon completion of the EIS with the selection of an option of anything other than “No Build.” BACKGROUND AND DISCUSSION During the 75th Texas Legislative session, Senator Gonzalo Barrientos sponsored Senate Bill 657 (please see Attachment E for the full bill language) that provided for the creation of rail districts. The specific bracketed language of SB 657 led to the creation of the Austin – San Antonio Intermunicipal Commuter Rail District (later to be renamed Lone Star Rail District) in 2003. The mission of the rail district, as laid out in SB 657, is to “provide commuter rail service between two municipalities….” The Lone Star Rail District (LSRD) is composed of a board of 23 organizations: Hays, Williamson, Bexar, Bastrop, Travis, and Caldwell Counties; the cities of Austin, Georgetown, New Braunfels, San Antonio, Schertz and San Marcos; the transit authorities of Alamo Area Regional Transit, VIA Metropolitan Transit, Capital Metropolitan Transportation Authority (Cap Metro), Capital Area Rural Transportation System (CARTS); two members appointed by the Texas Transportation Commission; and a representative from Austin Community College. LSRD also has two (2) full-time paid staff members. The LSRD board meets monthly at 10:00 am in San Marcos at the Activity Center located at 501 E. Hopkins Road. Past meeting agendas and minutes can be found at the following location: http://lonestarrail.com/index.php/lstar/about-rail-meetings/. 2 Source: Federal Transit Administration website Page 5 of 54Page 35 of 89 LSRD Previous Studies 24 studies on the potential for commuter rail service between Georgetown and San Antonio in the Union Pacific Corridor (and other potential alternatives) have been completed by the Lone Star Rail District and/or TxDOT since 1997. Please see Attachment F for a full compendium of the studies that can be seen at the following link http://lonestarrail.com/index.php/lstar/about- planning/. LSRD Current Activities An Environmental Impact Statement and an Alternatives Analysis were initiated by LSRD and its consultants in December 2014. The EIS is currently 20-30 percent complete and will require another 12-24 months to complete according to LSRD staff. The Alternatives Analysis being done for the purpose of preparing the Locally Preferred Alternative from the EIS to enter into the Federal Transit Administration’s New Starts process is also in the early stages of development and will take another 12-24 months to complete. SUPPORTING DOCUMENTS Attachment A – Federal and State Register Notices Attachment B - Union Pacific Letter to Lone Star Rail District Attachment C – Federal Project Authorization and Agreements Attachment D – LSRD CAMPO Letter to AAMPO and Response Attachment E – SB 657 from the 75th Legislature Attachment F – LSRD Completed and Underway Studies Attachment G – Letter from LSRD to CAMPO TPB (July 6, 2016) Attachment H – Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions and Answers Page 6 of 54Page 36 of 89 RESOLUTION (2016-8-8) AMENDMENT OF THE 2040 PLAN WHEREAS, pursuant to federal law, the Governor of the State of Texas designated the Capital Area Metropolitan Planning Organization (CAMPO) as the Metropolitan Planning Organization for the Austin region in 1973; and WHEREAS, CAMPO’s Transportation Policy Board is the regional forum for cooperative decision- making regarding transportation issues in Bastrop, Burnet, Caldwell, Hays, Travis, and Williamson Counties in Central Texas; and WHEREAS, pursuant to federal law, the Governor of the State of Texas designated the Alamo Area Metropolitan Planning Organization (AAMPO) for the San Antonio region in 1963; and WHEREAS, AAMPO’s Transportation Policy Board is the regional forum for cooperative decision- making regarding transportation issues in Bexar, Comal, Guadalupe, and a portion of Kendall Counties in Central Texas; and WHEREAS, the Lone Star Rail District (LSRD) was established by the Texas Legislature in 1997 to facilitate rail improvements between Austin and San Antonio; and WHEREAS, LSRD and the Texas Department of Transportation (TxDOT) began feasibility and environmental studies on potential commuter rail service between Austin and San Antonio in 1999 and LSRD is currently working on an Environmental Impact Statement (EIS) that focuses on the Union Pacific Rail Road, SH 130, and IH 35 corridors; and WHEREAS, the Union Pacific Rail Road notified LSRD on February 9, 2016 that is no longer interested in exploring the possibility of passenger rail service on its privately-owned line and cancelled the agreement between LSRD and UPRR to study commuter rail in the UP rail corridor; and WHEREAS, the TxDOT has informed LSRD that passenger rail service within the current rights-of-way of IH 35 and SH 130 are not feasible from engineering and cost perspectives; and WHEREAS, LSRD’s financial models to demonstrate financial feasibility per the requirements of the National Environmental Policy Act (NEPA) and 23 CFR 450 have been and continue to be focused on the use of the Union Pacific’s rail corridor which is financially fatally flawed as a result of the cancellation of the agreement between Union Pacific and LSRD; and WHEREAS, the Transportation Policy Board of CAMPO has a fiduciary responsibility to demonstrate fiscal constraint in the long-range transportation plan and in the Transportation Improvement Program and amendments of those documents per the requirements of 23 CFR 450.324; and WHEREAS, the efficient mobility of people and goods between and across the Austin and San Antonio regions provide quality of life and economic benefits to the residents of the State and both regions; and WHEREAS, the Transportation Policy Board would like to direct the use of remaining Surface Transportation Program – Metropolitan Mobility Funds allocated to the planning and project development of commuter rail between Austin and San Antonio towards reasonable outcomes that can be implemented Page 7 of 54Page 37 of 89 within the financial constraints of funding that can reasonably be assumed to be available to LSRD during the horizon of the 2040 Plan; and WHEREAS, the Texas Department of Transportation has state and federal responsibility for studying, developing, and implementing transportation alternatives between cities in the State of Texas; and WHEREAS, the Texas Department of Transportation has the technical capacity and expertise to conduct a planning feasibility study; and WHEREAS, AAMPO, CAMPO, and the Texas Department of Transportation have a longstanding partnership of collaboration on planning studies and are required to work together to develop and implement transportation-related goals that benefit the residents of their respective regions and the State of Texas per state and federal transportation law; NOW, THEREFORE BE IT RESOLVED that the CAMPO Transportation Policy Board hereby votes to remove the Lone Star Rail District commuter rail project from the CAMPO 2040 Plan because the project cannot demonstrate fiscal constraint. The Policy Board also requests the Texas Department of Transportation to direct the Lone Star Rail District to cease the expenditure of all funds related to this project save those expenditures necessary to close out the current Environmental Impact Statement with a finding of “No Build.” The Policy Board also requests the Texas Department of Transportation to form a partnership with the staff of AAMPO and CAMPO to conduct a robust transportation alternatives study between the Austin and San Antonio regions that utilizes the previous work of the Lone Star Rail District and any other studies conducted by other organizations that examined multimodal options in the Austin – San Antonio Corridor; and Hereby orders the recording of this resolution in the minutes of the Transportation Policy Board; and BE IT FURTHER RESOLVED that the Board delegates the signing of necessary documents to the Board Chair. The above resolution being read, a motion to was made to authorize CAMPO staff to remove the Lone Star Rail District’s commuter rail project from the 2040 Plan on August 8, 2016 by _____________________; duly seconded by ______________________. Those voting "AYE": Page 8 of 54Page 38 of 89 Those “Opposed”: Abstain: Absent and Not Voting: SIGNED this 8th day of August 2016. Chair, CAMPO Board Attest: Director Page 9 of 54Page 39 of 89 Page 40 of 89 60232 Federal Register /Vol. 79, No. 193/Monday, October 6, 2014/Notices DEPARTMENT OF TRANSPORTATION Federal Highway Administration Environmental Impact Statement; Lone Star Regional Rail Project, Williamson, Travis, Bastrop, Hays, Caldwell, Comal, Guadalupe, and Bexar Counties, TX AGENCY: Federal Highway Administration (FHWA), DOT. ACTION: Notice of intent. SUMMARY: Pursuant to 40 CFR 1508.22 and 43 TAC §2.5(e)(2), the Federal Highway Administration (FHWA), Texas Department of Transportation (TxDOT), and the Lone Star Rail District (LSRD) are issuing this notice to advise the public that an Environmental Impact Statement (EIS) will be prepared for a proposed transportation project to construct and operate a regional passenger rail service system along the IH–35 corridor connecting the greater Austin and San Antonio metropolitan areas. A required letter of initiation pursuant to 23 U.S.C. 139 was completed as well. As the project proponent, the LSRD intends to apply for Transportation Infrastructure Finance and Innovation Act (TIFIA) program funding and seek to retain federal funding eligibility for this proposed project. The proposed project would provide for implementation of passenger rail service within the existing Union Pacific Railroad (UPRR) corridor that extends from Williamson County to Bexar County, Texas. FHWA as the lead federal agency will coordinate closely with the Federal Railroad Administration (FRA) and the Federal Transit Administration (FTA), to perform the analyses required to evaluate reasonable alternatives for the proposed action. The EIS may include a potential alternative that would include development and operation of a new freight bypass to carry some of the existing freight rail traffic between Taylor and San Antonio to allow the addition of passenger service along the existing UPRR line. FOR FURTHER INFORMATION CONTACT: Mr. Salvador Deocampo, District Engineer, Federal Highway Administration, Texas Division, 300 East 8th Street, Room 826, Austin, Texas 78701, Telephone 512– 536–5950. SUPPLEMENTARY INFORMATION: The LSRD (formed in 2003 with authorization of the State of Texas) is an independent and accountable public agency focused on providing regional passenger rail service. As the project proponent, the LSRD has conducted numerous planning, environmental, and alternatives analyses over the past 10 years to evaluate feasible options for development of passenger rail service along the IH–35 corridor between the metropolitan areas of Austin and San Antonio. Through these efforts, the LSRD has worked closely with the UPRR, as a major stakeholder, to evaluate operational scenarios for joint freight and passenger operations within UPRR’s existing system. A potential alternative to be evaluated in the EIS includes development and operation of passenger rail service within the abandoned MoKan railroad right-of-way between Georgetown and Round Rock, and along the existing UPRR corridor between Round Rock and San Antonio. A branch route providing passenger rail service between Round Rock and Taylor along the existing UPRR corridor could also be evaluated. A potential alternative could include development of a freight bypass to accommodate some existing freight rail traffic that could be displaced by the proposed passenger rail operations. The proposed freight rail bypass could extend from the UPRR Austin Subdivision near Taylor and follow a greenfield alignment (new location) to Seguin. From Seguin, the proposed freight rail bypass could follow existing UPRR right-of-way through the San Antonio area and terminate at Tower 105 near downtown San Antonio. The need for the proposed project stems from the rapid growth occurring in Central and South Texas. Congestion within the IH–35 corridor has resulted in decreased mobility and travel time reliability for both travelers and freight transporters. The deficiencies of the existing transportation network, including lack of modal transportation options and limited roadway capacity, contribute to decreased regional air quality, increased crash rates, and diminished quality of life for residents living in close proximity to IH–35. The Lone Star Regional Rail Project would provide regional passenger rail service connecting communities along the IH–35 corridor between the metropolitan areas of Austin and San Antonio. As currently envisioned, the project would span approximately 120 miles across Williamson, Travis, Bastrop, Hays, Caldwell, Comal, Guadalupe, and Bexar counties. Based upon previous studies, the purpose of the proposed project is to improve mobility, accessibility, transportation reliability, modal choice, safety, and facilitate economic development along the IH–35 corridor in Central and South Texas. The EIS will be prepared in accordance with the National Environmental Policy Act of 1969 (NEPA), the Council on Environmental Quality (CEQ) regulations implementing NEPA, and FHWA regulations. The EIS will evaluate the reasonable alternatives and the No Action (the no-build alternative), Transportation System Management (TSM)/Transportation Demand Management (TDM), and other transit, rail, and roadway alternatives incorporated by reference from other applicable studies. Federal Surface Transportation Program-Metropolitan Mobility (STP–MM) funds were used to conduct the previous studies and are funding the current EIS. The EIS will analyze potential direct, indirect, and cumulative impacts from the proposed construction and operation of the reasonable alternatives considered including, but not limited to the following: regional transportation system impacts (including all modes and effects on congestion); air quality impacts; noise and vibration impacts (in accordance with FRA/FTA guidelines); impacts to water quality and water resources including surface and groundwater, wetlands, rivers, and streams, and floodplains; impacts to historic, archaeological, and cultural resources; impacts to threatened and endangered species and protected habitats; impacts on farm and range lands; socioeconomic impacts including environmental justice communities; impacts on land use and potential displacements; hazardous materials; and impacts to aesthetic and visual resources. Public involvement is a critical component of the NEPA process and will occur throughout this study. Scoping letters describing the proposed action and a request for comments will be sent to federal, state, and local agencies as well as stakeholders, community groups, and citizens who previously expressed an interest in the proposed project. Agency and public scoping meetings are planned for the fall of 2014. The purpose of agency and public scoping is to identify relevant and potentially significant issues related to the Lone Star Regional Rail Project as part of the NEPA process. Scoping meetings, conducted pursuant to 23 U.S.C. 139, will provide opportunities for cooperating agencies, participating agencies, and the public to be involved in review and comment on the Draft Project Coordination Plan, defining the need and purpose for the proposed action, determining the range of reasonable alternatives to be considered in the EIS and the appropriate methodologies to be used, and the level of detail required in the analysis of alternatives. Federal agencies with VerDate Sep<11>2014 17:17 Oct 03, 2014 Jkt 235001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\06OCN1.SGM 06OCN1ms t o c k s t i l l o n D S K 4 V P T V N 1 P R O D w i t h N O T I C E S Attachment A Page 10 of 54Page 41 of 89 60233 Federal Register /Vol. 79, No. 193/Monday, October 6, 2014/Notices jurisdiction by law or special expertise with respect to potential environmental issues (such as FRA and FTA) will be requested to act as Cooperating Agencies in accordance with 40 CFR 1501.16. Agencies and the public will be notified of the dates, times, and locations of the scoping meetings at a later date. Additional public meetings will also be held on dates to be determined at a later time. In addition to public meetings, public hearings will also be held. Public notice will be given of the times and places for the public meetings and public hearings. Because of the geographic scope of the project, public meetings and public hearings may be conducted at multiple locations. Opportunities for public participation will also be announced through mailings, notices, advertisements, and on the EIS Web page http:// www.LoneStarRail.com. To ensure that the full range of issues related to this proposed action is addressed and all significant issues are identified, comments and suggestions are invited from all interested parties. Such comments or questions concerning this proposed action should be directed to the FHWA at the address provided above. (Catalog of Federal Domestic Assistance Program Number 20.205, Highway, Planning, and Construction. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities apply to this program.) Issued on: September 29, 2014. Salvador Deocampo, District Engineer. [FR Doc. 2014–23711 Filed 10–3–14; 8:45 am] BILLING CODE 4910–22–P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. NHTSA–2014–0090] Notice of Buy America Waiver AGENCY: National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Correction to Notice of Buy America Waiver SUMMARY: On September 16, 2014, NHTSA published a Notice of Buy America Waiver that provided findings to requests from the Michigan Office of Highway Safety Planning (OHSP) to waive the requirements of Buy America. The Notice stated an effective date of October 16, 2014. However, that date did not correctly reflect NHTSA’s intentions for the effective date. Also, the Notice did not accurately cite the appropriate section of the United States Code for motorcyclist safety grant funds, 23 U.S.C. 405(f). This document corrects those errors. DATES: The effective date of this correction is the date of publication October 6, 2014. FOR FURTHER INFORMATION CONTACT: For program issues, contact Barbara Sauers, Office of Regional Operations and Program Delivery, NHTSA (phone: 202– 366–0144). For legal issues, contact Andrew DiMarsico, Office of Chief Counsel, NHTSA (phone: 202–366– 5263). You may send mail to these officials at National Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590. SUPPLEMENTARY INFORMATION: On September 16, 2014, NHTSA published a Notice of Buy America Waiver that provided findings in regards to five requests from the Michigan Office of Highway Safety Planning (OHSP) to waive the requirements of Buy America. In summary, NHTSA found the following: •A waiver of the Buy America requirements, 23 U.S.C. 313, was appropriate for OHSP to purchase a portable data projector, wireless remote control presenter, DVDs, high-visibility motorcycle vests and twenty training motorcycles. •A non-availability waiver of the Buy America requirements was inappropriate for OHSP to lease a copy/printer/fax machine. Need for Correction The Notice of Buy America Waiver stated the waiver was effective on October 16, 2014. This date did not correctly state NHTSA’s intentions. On September 16, 2014, at 79 FR 55529, NHTSA intended the waiver to be effective on an earlier date in order to allow the grantee an opportunity to purchase the items requested. Also, the Notice did not accurately cite the appropriate section of the United States Code for motorcyclist safety grant funds. The Notice cited to 23 U.S.C. 405(g), but NHTSA intended to cite 23 U.S.C. 405(f) for motorcyclist safety grant funds. In FR Doc. 2014–0090 appearing on page 55529 of the Federal Register of Tuesday, September 16, 2014, the following corrections are made: In the DATES section in the left column, revise the paragraph to read as follows: ‘‘The effective date of this waiver is the date of publication.’’ In the SUPPLEMENTARY INFORMATION section in the middle column, revise the first and second paragraph to cite the following provision: ‘‘23 U.S.C. 405(f).’’ Issued in Washington, DC, on September 30, 2014, under authority delegated in 49 CFR part 1.95. O. Kevin Vincent, Chief Counsel. [FR Doc. 2014–23822 Filed 10–3–14; 8:45 am] BILLING CODE 4910–59–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. AB 55 (Sub-No. 736X; Docket No. AB 290 (Sub-No. 368X] CSX Transportation, Inc.— Abandonment Exemption—in Knoxville, Knox County, Tenn.; Norfolk Southern Railway Company— Discontinuance of Service Exemption—in Knoxville, Knox County, Tenn. CSX Transportation, Inc. (CSXT) and Norfolk Southern Railway Company (NSR) (collectively, applicants) have jointly filed a verified notice of exemption under 49 CFR part 1152 subpart F–Exempt Abandonments and Discontinuances of Service for CSXT to abandon, and for NSR to discontinue service over, approximately 1.18 miles of rail line on CSXT’s Second Creek Spur on CSXT’s Central Region, Huntington Division, KD Subdivision between milepost 0KS 275.09 (Valuation Station 15304+87) at the end of the track and milepost 0KS 276.27 (Valuation Station 15368+89 near West Baxter Avenue in Knoxville, Knox County, Tenn. (the Line). The Line traverses United States Postal Service Zip Code 37921 and includes no stations. Applicants have certified that: (1) No local traffic has moved over the Line for at least two years; (2) any overhead traffic on the Line can be rerouted over other lines; (3) no formal complaint has been filed by a user of rail service on the Line (or by a state or local government entity acting on behalf of such user) regarding cessation of service over the Line, and no such complaint is either pending with the Surface Transportation Board (Board) or with any U.S. District Court or has been decided in favor of a complainant within the two-year period; and (4) the requirements at 49 CFR 1105.7(c) (environmental report), 49 CFR 1105.11 (transmittal letter), 49 CFR 1105.12 (newspaper publication), and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met. As a condition to these exemptions, any employee adversely affected by the VerDate Sep<11>2014 17:17 Oct 03, 2014 Jkt 235001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\06OCN1.SGM 06OCN1ms t o c k s t i l l o n D S K 4 V P T V N 1 P R O D w i t h N O T I C E S Attachment A Page 11 of 54Page 42 of 89 Attachment A Page 12 of 54Page 43 of 89 Attachment A Page 13 of 54Page 44 of 89 Attachment B Page 14 of 54Page 45 of 89 Attachment B Page 15 of 54Page 46 of 89 Attachment C Page 16 of 54Page 47 of 89 Attachment C Page 17 of 54Page 48 of 89 Attachment C Page 18 of 54Page 49 of 89 Attachment C Page 19 of 54Page 50 of 89 Attachment C Page 20 of 54Page 51 of 89 Attachment C Page 21 of 54Page 52 of 89 Attachment C Page 22 of 54Page 53 of 89 Attachment C Page 23 of 54Page 54 of 89 June 19, 2016 Hon. Ray Lopez, Chairman Alamo Area Metropolitan Planning Organization 825 South St. Mary’s Street San Antonio, TX 78205 Re: Environmental Impact Analysis on Commuter Rail Between San Antonio and Georgetown Dear Chairman Lopez: The purpose of this letter is to ascertain the position of the Alamo Area Metropolitan Planning Organization (AAMPO) on the Environmental Impact Analysis (EIS) currently being conducted by the Lone Star Rail District (LSRD) on the feasibility of commuter rail between our two (2) regions. As you may recall, our Executive Committees met jointly in New Braunfels on April 20, 2016 to discuss the current status of the EIS. At the end of the discussion, CAMPO Executive Committee members asked AAMPO Executive Committee members a significant question. CAMPO wanted to know if the AAMPO Policy Board would be willing to change its policy that prevents the use of Surface Transportation Program – Metropolitan Mobility (STP-MM) funds for environmental studies. CAMPO asked this question because our region has so far provided all of the MPO-controlled funding for the current LRSD-led environmental study. CAMPO board members also asked that AAMPO provide an answer to our question in order for us to discuss and take action on CAMPO’s continued participation at our June 2016 Transportation Policy Board meeting. Since our conversation, CAMPO has continued to discuss this matter with the state elected officials in our region, the Texas Department of Transportation (TxDOT), the Federal Highway Administration (FHWA), and the Lone Star Rail District (LSRD). We did not take action at our June 2016 meeting but instead opted to gather more information and to discuss the matter further. LSRD staff was at our June 2016 Transportation Policy Board meeting and several Board members had the opportunity to ask key questions about the status of the EIS. Many of our board members now firmly believe that LSRD is not the appropriate organization to carry this concept through to implementation. CAMPO is willing to work on looking at all alternatives to improve safety, mobility, and economic development along IH 35 and other corridors. As such, many of CAMPO’s board members believe that the responsibility for conducting the feasibility of and undertaking the appropriate NEPA process, that would include an aggressive and inclusive public outreach program, is best located at the MPO level where the elected officials who are most accountable and closest to the electorate are in control of the process. Unfortunately, we find ourselves no closer to a resolution with LSRD than when LSRD began this work in the late 1990s. It is the belief of many of our board members that the six (6) options laid out by LSRD are not feasible. The first issue with LSRD’s approach is that it takes the EIS Attachment D Page 24 of 54Page 55 of 89 process back to Step One. A quick examination of LSRD’s six (6) options reveals serious issues with each option and does not warrant the additional expenditure of millions more in public money. CAMPO’s concerns with LSRD’s options are as follows: Option 1 is the same option that has been rendered fatally flawed by the Union Pacific Railroad’s decision to withdraw from the agreement they had with LSRD to use their tracks. It has been LSRD’s position that Union Pacific has a history of “flip-flopping” on commuter rail issues across the country. That has yet to be proven by LSRD, but if it were true, it also raises questions as to why LSRD would base so much public money on a deal with a fickle organization. Option 2 involves a potential line adjacent to Union Pacific’s corridor. This option is also fatally flawed. The cost of buying the right-of-way needed would be astronomical and would render the financial model that LSRD has developed to date to be unworkable. Therefore, the project could not demonstrate fiscal constraint. Additionally, buying the needed right-of-way would do nothing for communities along the corridor such as New Braunfels and San Marcos. Those communities want fewer freight trains coming through – this option would add additional trains and additional at-grade crossings while removing property from the tax rolls and displacing a large number of businesses and families. It is also highly unlikely that LSRD would be able to obtain all of the needed parcels along such a lengthy corridor without exercising its eminent domain powers. The use of eminent domain would most certainly cause concern for local and state elected officials along the entire corridor. Option 3 would entail using the IH 35 Corridor. TxDOT – Austin and San Antonio District Offices have indicated that there is no room within the existing right-of-way to place rail service. TxDOT has been planning for at least five (5) years to use nearly all of the available right-of- way to implement the long-planned for improvements to the IH 35 Corridor. An examination of the schematics of the project in the Austin region quickly reveals there is no room. Additionally, the right-of-way situation becomes even worse from Slaughter Lane to US 183 North in Austin. LSRD has mentioned a tunnel option to address that problem. A tunnel option in Austin alone would drive the cost of the project up to the point of making it unfeasible as the tunnel would have to be extremely long and would have to be cut through solid limestone on the Austin end of the line and perhaps on the San Antonio end as well. A tunnel option would also not forego major issues associated with station and access accommodations that are critical to successful operations. There is also the issue of digging the tunnel underneath the Colorado River as it flows through Austin. As we have several significant karst features both in Austin and San Antonio, a tunnel option, even if financially feasible, could pose significant engineering and safety problems for IH 35 and for surrounding structures. Lastly, launching an EIS study of IH 35 for commuter rail would endanger ongoing NEPA work being conducted by TxDOT as well stand-alone construction projects geared to make desperately needed operational improvements to the IH 35 Corridor. We should not jeopardize our ongoing efforts on IH 35 for a concept that is so undefined and problematic. Option 4 proposes to use the SH 130 Corridor for commuter rail purposes. SH 130 was previously studied by TxDOT and was found to be inadequate from an engineering and a financial perspective. Please see the September 2008 study on SH 130 that was conducted by Attachment D Page 25 of 54Page 56 of 89 Carter and Burgess as a contractor to TxDOT. The entrance and exit ramps on SH 130 were found to be problematic from an engineering and safety perspective, according to the study, and the corridor doesn’t have the population to meet necessary ridership estimates now or in the reasonable time line of this project to support the ongoing operations and maintenance costs. Also, the current grades on SH 130 are too steep for rail service. Therefore, this option is fatally flawed from a financial and a technical perspective. Option 5 proposes to use portions of the IH 35 Corridor, some of Capital Metro’s track assets, and/or buying right-of-way adjacent to the existing Union Pacific line. This proposal is simply an amalgamation of previous options that already have fatal flaws either from an engineering, financial or environmental process perspective. Option 6 proposes to use a yet to be named “hybrid” of Options 1-5. This option lacks any true definition and is simply an insurance policy for LSRD that allows them to keep studying something when Options 1-5 are found to be fatally flawed. The CAMPO board will take action at its August 8, 2016 board meeting. We respectfully request that AAMPO provide a response to our initial question on AAMPO’s potential policy change by July 29, 2016, if possible. We also request that AAMPO provide any additional funding that LSRD might need to complete the EIS and to fund potential construction if LSRD actually produces a timely and implementable result. Sincerely, Will Conley CAMPO Policy Board Chairman Attachment D Page 26 of 54Page 57 of 89 Attachment D Page 27 of 54Page 58 of 89 Attachment D Page 28 of 54Page 59 of 89 Page 60 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 1-1 By: Barrientos, et al. S.B. No. 657 1-2 (In the Senate - Filed February 18, 1997; February 24, 1997, 1-3 read first time and referred to Committee on State Affairs; 1-4 April 4, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 13, Nays 0; April 4, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 657 By: Gallegos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of intermunicipal commuter rail districts; 1-11 granting authority to issue bonds and power of eminent domain. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 13, Title 112, Revised Statutes, is 1-14 amended by adding Article 6550c-1 to read as follows: 1-15 Art. 6550c-1. INTERMUNICIPAL COMMUTER RAIL DISTRICTS 1-16 Sec. 1. DEFINITIONS. In this article: 1-17 (1) "Commission" means the Texas Transportation 1-18 Commission. 1-19 (2) "Commuter rail facility" means any property 1-20 necessary for the transportation of passengers and baggage between 1-21 points in a district. The term includes rolling stock, 1-22 locomotives, stations, parking areas, and rail lines. 1-23 (3) "Creating municipality" means a municipality 1-24 described by Section 2(a) of this article. 1-25 (4) "Department" means the Texas Department of 1-26 Transportation. 1-27 (5) "District" means an intermunicipal commuter rail 1-28 district created under this article. 1-29 (6) "System" means all of the commuter rail and 1-30 intermodal facilities leased or owned by or operated on behalf of a 1-31 district created under this article. 1-32 Sec. 2. CREATION OF DISTRICT. (a) A district may be 1-33 created to provide commuter rail service between two 1-34 municipalities: 1-35 (1) each of which has a population of more than 1-36 450,000; and 1-37 (2) that are located not farther than 100 miles apart 1-38 as determined by the department. 1-39 (b) A district is created on passage of a resolution 1-40 favoring the creation of the district by the governing body of each Attachment E Page 29 of 54Page 61 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 1-41 creating municipality and the governing body of each county in 1-42 which a creating municipality is located. 1-43 (c) The following political subdivisions may become a part 1-44 of a district created under Subsection (b) of this section with the 1-45 approval of the governing body of the political subdivision: 1-46 (1) a county located adjacent to a county in which a 1-47 creating municipality is located; and 1-48 (2) a municipality with a population of more than 1-49 18,000 located in a county described by Subdivision (1) of this 1-50 subsection. 1-51 (d) For purposes of this article, a municipality is located 1-52 in a county only if 90 percent or more of the population of the 1-53 municipality resides in that county according to the most recent 1-54 federal census. 1-55 Sec. 3. BOARD. (a) A district is governed by a board of 1-56 directors. The board is responsible for the management, operation, 1-57 and control of the district. 1-58 (b) The board is composed of the following members: 1-59 (1) two public members appointed by the commission; 1-60 (2) one member appointed by each political subdivision 1-61 that has become a part of the district under Section 2 of this 1-62 article; 1-63 (3) one member appointed by each creating municipality 1-64 to represent the regional planning organization of which the 2-1 municipality is a part; 2-2 (4) one member appointed by each creating municipality 2-3 to represent the business community of the municipality; 2-4 (5) one member appointed by each authority created 2-5 under Chapter 451, Transportation Code, that serves a creating 2-6 municipality; 2-7 (6) one member appointed by each county in which a 2-8 creating municipality is located to represent transportation 2-9 providers that provide service to rural areas in the county; and 2-10 (7) one member appointed by all other board members to 2-11 represent all municipalities in the district that do not otherwise 2-12 have representation on the board. 2-13 (c) A vacancy on the board is filled in the same manner as 2-14 the original appointment. Each member serves a term of two years. 2-15 (d) The members of the board shall elect one member as 2-16 presiding officer. The presiding officer may select another member 2-17 to preside in the absence of the presiding officer. Attachment E Page 30 of 54Page 62 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 2-18 (e) The presiding officer shall call at least one meeting of 2-19 the board a year and may hold other meetings as the presiding 2-20 officer determines are appropriate. 2-21 (f) A member of the board is not entitled to compensation 2-22 for serving as a member but is entitled to reimbursement for 2-23 reasonable expenses incurred while serving as a member. 2-24 (g) The board shall adopt rules for its proceedings and 2-25 appoint an executive committee and may employ and compensate 2-26 persons to carry out the powers and duties of the district. 2-27 (h) Chapter 171, Local Government Code, applies to a board 2-28 member of a district. 2-29 Sec. 4. POWERS AND DUTIES OF DISTRICT. (a) A district 2-30 created under this article is a public body and a political 2-31 subdivision of the state exercising public and essential 2-32 governmental functions and has all the powers necessary or 2-33 convenient to carry out the purposes of this article. A district, 2-34 in the exercise of powers under this article, is performing only 2-35 governmental functions and is a governmental unit within the 2-36 meaning of Chapter 101, Civil Practice and Remedies Code. 2-37 (b) A district has perpetual succession. A district is 2-38 subject every 12th year to review under Chapter 325, Government 2-39 Code (Texas Sunset Act), but is not abolished under that chapter. 2-40 (c) A district may sue and be sued in all courts of 2-41 competent jurisdiction, may institute and prosecute suits without 2-42 giving security for costs, and may appeal from a judgment without 2-43 giving supersedeas or cost bond. An action at law or in equity 2-44 against the district must be brought in the county in which the 2-45 principal office of the district is located, except that in eminent 2-46 domain proceedings, suit must be brought in the county in which the 2-47 land is located. 2-48 (d) A district may acquire by grant, purchase, gift, devise, 2-49 lease, or otherwise and may hold, use, sell, lease, or dispose of 2-50 real and personal property, licenses, patents, rights, and 2-51 interests necessary, convenient, or useful for the full exercise of 2-52 any of its powers under this article. 2-53 (e) A district may acquire, construct, develop, own, 2-54 operate, and maintain intermodal and commuter rail facilities 2-55 inside, or connect political subdivisions in, the district. For 2-56 these purposes and with the consent of any municipality, county, or 2-57 other political subdivision, the district may use streets, alleys, Attachment E Page 31 of 54Page 63 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 2-58 roads, highways, and other public ways of any municipality, county, 2-59 or other political subdivision and may relocate, raise, reroute, 2-60 change the grade of, or alter, at the expense of the district, the 2-61 construction of any street, alley, highway, road, railroad, 2-62 electric lines and facilities, telegraph and telephone properties 2-63 and facilities, pipelines and facilities, conduits and facilities, 2-64 and other properties, whether publicly or privately owned, as 2-65 necessary or useful in the construction, reconstruction, repair, 2-66 maintenance, and operation of the system. A district may not use 2-67 or alter a road or highway in the state highway system without the 2-68 permission of the commission. A district may at its discretion 2-69 acquire by purchase any interest in real property for the 3-1 acquisition, construction, or operation of any commuter rail 3-2 facility on terms and at a price as agreed to between the district 3-3 and the owner. The governing body of any municipality, county, 3-4 other political subdivision, or public agency may make conveyance 3-5 of title or rights and easements to any property needed by the 3-6 district to effect its purposes in connection with the acquisition, 3-7 construction, or operation of the system. 3-8 (f) A district has the right of eminent domain to acquire 3-9 lands in fee simple and any interest less than fee simple in, on, 3-10 under, or above lands, including easements, rights-of-way, and 3-11 rights of use of airspace or subsurface space. The power of 3-12 eminent domain under this section does not apply, however, to land 3-13 under the jurisdiction of the department or a rail line owned by a 3-14 common carrier or municipality. The district shall, to the extent 3-15 possible, use existing rail or intermodal transportation corridors 3-16 for the alignment of its railroad. Proceedings for the exercise of 3-17 the power of eminent domain are begun by the adoption by the board 3-18 of a resolution declaring the public necessity for the acquisition 3-19 by the district of the property or interest described in the 3-20 resolution and that the acquisition is necessary and proper for the 3-21 construction, extension, improvement, or development of commuter 3-22 rail facilities and is in the public interest. The resolution of 3-23 the district is conclusive evidence of the public necessity of the 3-24 proposed acquisition and that the real or personal property or 3-25 interest in property is necessary for public use. 3-26 (g) A district may make agreements with any other public 3-27 utility, private utility, communication system, common carrier, 3-28 state agency, or transportation system for the joint use of 3-29 facilities, installations, or properties within or outside the Attachment E Page 32 of 54Page 64 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 3-30 district and establish through routes, joint fares, and, subject to 3-31 approval of any tariff-regulating body having jurisdiction, 3-32 divisions of tariffs. 3-33 (h) A district may adopt rules to govern the operation of 3-34 the district, its employees, the system, service provided by the 3-35 district, and any other necessary matter concerning its purposes, 3-36 including rules regarding health, safety, alcohol or beverage 3-37 service, food service, and telephone and utility services, to 3-38 protect the health, safety, and general welfare of residents of the 3-39 district. 3-40 (i) A district may make joint ownership agreements with any 3-41 person. 3-42 (j) A district shall establish and maintain rates or other 3-43 compensation for the use of the facilities of the system acquired, 3-44 constructed, operated, regulated, or maintained by the district 3-45 that is reasonable and nondiscriminatory and, together with grants 3-46 received by the district, is sufficient to produce revenues 3-47 adequate: 3-48 (1) to pay all expenses necessary to the operation and 3-49 maintenance of the properties and facilities of the district; 3-50 (2) to pay the interest on and principal of all bonds 3-51 issued by the district under this article and payable in whole or 3-52 in part from the revenues, as they become due and payable; and 3-53 (3) to fulfill the terms of any agreements made with 3-54 the holders of bonds or with any person in their behalf. 3-55 (k) A district may make contracts, leases, and agreements 3-56 with, and accept grants and loans from, the United States of 3-57 America, its departments and agencies, the state, its agencies and 3-58 political subdivisions, and public or private corporations and 3-59 persons and may generally perform all acts necessary for the full 3-60 exercise of the powers vested in it. The commission may enter an 3-61 interlocal agreement with a district under which a district may 3-62 exercise a power or duty of the commission for the development and 3-63 efficient operation of intermodal corridors in the district. A 3-64 district may acquire rolling stock or other property under 3-65 conditional sales contracts, leases, equipment trust certificates, 3-66 or any other form of contract or trust agreement. Any revenue bond 3-67 indenture may provide limitations on the exercise of the powers 3-68 granted by this section, and the limitations apply so long as any 3-69 of the revenue bonds issued pursuant to the indenture are Attachment E Page 33 of 54Page 65 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 4-1 outstanding and unpaid. 4-2 (l) A district by resolution may adopt rules governing the 4-3 use, operation, and maintenance of the system and shall determine 4-4 all routings and change them when the board considers it advisable. 4-5 (m) A district may lease the commuter rail facilities or any 4-6 part to, or contract for the use or operation of the commuter rail 4-7 facilities or any part by, any operator. A district shall 4-8 encourage to the maximum extent practicable the participation of 4-9 private enterprise in the operation of commuter rail facilities. 4-10 The term of an operating contract under this subsection may not 4-11 exceed 20 years. 4-12 (n) A district may contract with any county or other 4-13 political subdivision of the state for the district to provide 4-14 commuter rail transportation services to any area outside the 4-15 boundaries of the district on such terms and conditions as the 4-16 parties agree to. 4-17 (o) A district may purchase an additional insured provision 4-18 to any liability insurance contract. 4-19 (p) Before beginning the operation of commuter rail 4-20 facilities, the board of a district shall adopt an annual operating 4-21 budget specifying the anticipated revenues and expenses of the 4-22 district for the remainder of the fiscal year, and the district 4-23 shall adopt an operating budget for each succeeding fiscal year. 4-24 The fiscal year of the district ends September 30 unless changed by 4-25 the board. The board shall hold a public hearing before adopting 4-26 each budget except the initial budget. Notice of each hearing must 4-27 be published at least seven days before the date of the hearing in 4-28 a newspaper of general circulation in the district. A budget may 4-29 be amended at any time if notice of the proposed amendment is given 4-30 in the notice of meeting. An expenditure that is not budgeted may 4-31 not be made. 4-32 (q) A district is eligible to participate in the Texas 4-33 County and District Retirement System. 4-34 (r) The board of a district shall by resolution name one or 4-35 more banks for the deposit of district funds. District funds are 4-36 public funds and may be invested in securities permitted by Chapter 4-37 2256, Government Code. To the extent funds of the district are not 4-38 insured by the Federal Deposit Insurance Corporation or its 4-39 successor, they shall be collateralized in the manner provided for 4-40 county funds. 4-41 Sec. 5. BONDS AND NOTES. (a) A district may issue revenue Attachment E Page 34 of 54Page 66 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 4-42 bonds and notes from time to time and in such amounts as its board 4-43 considers necessary or appropriate for the acquisition, purchase, 4-44 construction, reconstruction, repair, equipping, improvement, or 4-45 extension of its commuter rail facilities. All bonds and notes are 4-46 fully negotiable and may be made redeemable before maturity, at the 4-47 option of the issuing district and at prices and under terms and 4-48 conditions the issuing district determines in the resolution 4-49 authorizing the bonds or notes, and may be sold at public or 4-50 private sale, as the board determines. 4-51 (b) A district shall submit all bonds and notes authorized 4-52 to be issued, except notes issued to an agency of the federal or 4-53 state government, and the records relating to their issuance to the 4-54 attorney general for examination before delivery. If the attorney 4-55 general determines that they have been issued in accordance with 4-56 the constitution and this article and that they will be binding 4-57 obligations of the district issuing them, the attorney general 4-58 shall approve them, and the comptroller shall register them. Bonds 4-59 and notes issued under this article are incontestable after 4-60 approval, registration, and sale and delivery of the bonds to the 4-61 purchaser. 4-62 (c) To secure the payment of the bonds or notes, the 4-63 district may encumber and pledge all or any part of the revenues of 4-64 its commuter rail facilities, may mortgage and encumber all or any 4-65 part of the properties of the commuter rail facilities and 4-66 everything pertaining to them acquired or to be acquired, and may 4-67 prescribe the terms and provisions of the bonds and notes in any 4-68 manner not inconsistent with this article. If not prohibited by 4-69 the resolution or indenture relating to outstanding bonds or notes, 5-1 a district may encumber separately any item of real estate or 5-2 personalty. 5-3 (d) All bonds and notes are legal and authorized investments 5-4 for banks, trust companies, savings and loan associations, and 5-5 insurance companies. The bonds and notes are eligible to secure 5-6 the deposit of public funds of the state, cities, towns, villages, 5-7 counties, school districts, or other political corporations or 5-8 subdivisions of the state. The bonds and notes are lawful and 5-9 sufficient security for the deposits to the extent of the principal 5-10 amount or market value of the bonds or notes, whichever is less. 5-11 Sec. 6. COMPETITIVE BIDS. A contract in the amount of more 5-12 than $15,000 for the construction of improvements or the purchase Attachment E Page 35 of 54Page 67 of 89 75(R) SB 657 Senate committee report - Bill Text Attachment A 75(R) SB 657 Senate committee report.html[3/16/2016 11:49:05 AM] 5-13 of material, machinery, equipment, supplies, or any other property 5-14 except real property may be let only on competitive bids after 5-15 notice published, at least 15 days before the date set for 5-16 receiving bids, in a newspaper of general circulation in the 5-17 district. A board may adopt rules governing the taking of bids and 5-18 the awarding of contracts. This section does not apply to: 5-19 (1) personal or professional services; 5-20 (2) the acquisition of existing rail transportation 5-21 systems; or 5-22 (3) a contract with a common carrier to construct 5-23 lines and to operate commuter rail service on lines owned in whole 5-24 or in part by the carrier. 5-25 Sec. 7. EXEMPTION FROM TAXES. The property, material 5-26 purchases, revenues, and income of a district and the interest on 5-27 bonds and notes issued by a district are exempt from all taxes 5-28 levied by the state or a political subdivision of the state. 5-29 SECTION 2. The importance of this legislation and the 5-30 crowded condition of the calendars in both houses create an 5-31 emergency and an imperative public necessity that the 5-32 constitutional rule requiring bills to be read on three several 5-33 days in each house be suspended, and this rule is hereby suspended, 5-34 and that this Act take effect and be in force from and after its 5-35 passage, and it is so enacted. 5-36 * * * * * Attachment E Page 36 of 54Page 68 of 89 Studies To-Date (listed in chronological order) STUDY AUTHOR(S) DATE 1 Origin-Destination Survey and Multimodal Assessment for the Austin- San Antonio Corridor Texas Transportation Institute March 1997 2 Feasibility Report, Austin-San Antonio Commuter Rail Study Carter & Burgess March 1999 3 Final Report, Austin-San Antonio Commuter Rail Study Carter & Burgess July 1999 4 Public Involvement Plan PBS&J, Carter & Burgess February 2004 5 Program Work Plan PBS&J, Carter & Burgess March 2004 6 2004 Feasibility Study Update includes (as Appendix B): The Economic Implications of Regional Passenger Rail PBS&J, Carter & Burgess Texas Perspectives December 2004 7 Station Design Report, Final Draft Carter & Burgess March 2006 8 Economic Impact Analysis, Passenger Rail Station Areas, Executive Summary* * Individual EIAs listed on page 3 Carter & Burgess, Capital Market Research April 2006 9 Phase 2 Travel Demand Model Report Carter & Burgess, AECOM June 2006 10 Phase 3 Travel Demand Model Report Carter & Burgess, AECOM June 2006 11 2006 Conceptual Engineering Design Report Carter & Burgess December 2006 12 Seaholm Station Study Carter & Burgess December 2006 13 Financial and Economic Benefits Study Carter & Burgess, Cambridge Systematics March 2007 14 Existing Conditions Report Carter & Burgess April 2007 15 Alternatives Analysis, Passenger Rail Carter & Burgess December 2007 16 Report on Rail & Transit Options in the SH 130 Corridor, Fatal Flaw Analysis Carter & Burgess September 2008 17 Brand Development Research, Brand Style Guide Hahn,Texas May 2009 1 Attachment F Page 37 of 54Page 69 of 89 Lone Star Rail District Studies To-Date December 2014 ____________________________________________________________________________________ STUDY AUTHOR(S) DATE 18 Station location analyses, station planning studies, environmental baseline: passenger rail Jacobs Engineering Studies put on hold 2012 19 Alternative Alignments Analysis for the Lone Star Rail District Freight Rail Relocation Project, Taylor to Seguin, Texas Jacobs Engineering April 2012 (final draft) 20 Local Government and Stakeholder Engagement, Executive Summary Hahn,Texas November 2013 21 Freight Rail Benefits, Economic Development and Impact Hahn,Texas, Texas Perspectives 22 Freight Rail/Truck Diversion Study Hahn,Texas, Atkins 23 LSTAR Station Evaluation Planning Study (PEL Report) Jacobs Engineering May 2014 24 Alternative Alignments Analysis for the Lone Star Rail District Freight Rail Relocation Project, Taylor to Seguin, Texas (PEL Report) Jacobs Engineering July 2014 25 Lone Star Regional Rail Environmental Impact Statement Burns & McDonnell On-going, started June 2014 2 Attachment F Page 38 of 54Page 70 of 89 Lone Star Rail District Studies To-Date December 2014 ____________________________________________________________________________________ Economic Impact Analysis, Passenger Rail Station Areas (listed in geographic order, north to south) (Note: Economic Impact Analyses are currently being updated.) ECONOMIC IMPACT ANALYSIS AUTHOR DATE 8a Georgetown Passenger Rail Station Economic Impact Analysis (EIA) Capital Market Research June 27, 2005 8b Round Rock Passenger Rail Station EIA Capital Market Research May 18, 2005 8c McNeil Road Passenger Rail Station EIA (North Travis County) Capital Market Research May 2, 2005 8d Braker Lane Passenger Rail Station EIA (North Austin) Capital Market Research June 3, 2005 8e 35th Street Passenger Rail Station EIA (Central Austin) Capital Market Research August 30, 2005 8f Austin CBD/Seaholm Passenger Rail Station EIA (Downtown Austin) Capital Market Research May 24, 2005 8g Slaughter Lane Passenger Rail Station EIA (South Austin) Capital Market Research March 31, 2005 8h Kyle-Buda Passenger Rail Station EIA Capital Market Research August 22, 2005 8i San Marcos Passenger Rail Station EIA Capital Market Research September 30, 2005 8j New Braunfels Passenger Rail Station EIA Capital Market Research November 29, 2005 8k Schertz-Garden Ridge Passenger Rail Station EIA Capital Market Research December 21, 2005 8l Loop 1604 Passenger Rail Station EIA (Far North San Antonio) Capital Market Research July 29, 2005 8m Loop 410 Passenger Rail Station EIA (North-Central San Antonio) Capital Market Research October 31, 2005 8n San Antonio CBD Passenger Rail Station EIA (Downtown San Antonio) Capital Market Research December 30, 2005 8o Kelly USA Passenger Rail Station EIA (South San Antonio) Capital Market Research December 30, 2005 3 Attachment F Page 39 of 54Page 71 of 89 Page 72 of 89 Attachment G Page 40 of 54Page 73 of 89 Attachment G Page 41 of 54Page 74 of 89 Attachment G Page 42 of 54Page 75 of 89 Page 76 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] Planning Topics Border Planning Census Issues Congestion Management Context Sensitive Solutions and Transportation Planning Delta Region Economic Development Freight Planning Health in Transportation Livability Initiative Megaregions and Multi-Jurisdictional Planning National Highway System Performance Based Planning Planning Menu Planning Processes Statewide Planning Metropolitan Planning Rural Planning Tribal Planning Pedestrian & Bicycle Program Land Use & Transportation Planning Tools Public Involvement FHWA ĺ Planning Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers I. Introduction and Background: Fiscal constraint has remained a key component of transportation plan and program development since enactment of the Intermodal Surface Transportation Efficiency Act (ISTEA) in 1991 followed by the Transportation Equity Act for the 21st Century (TEA- 21) in 1998 and most recently by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) on August 10, 2005. In response to the passage of SAFETEA-LU, FHWA and FTA developed and issued the Final Rule on statewide and metropolitan transportation planning and programming processes, published in the Federal Register on February 14, 2007 with an effective date of March 16, 2007. The following "Questions and Answers" are intended to provide non-binding information on financial planning and fiscal constraint as part of transportation plan and program development, in support of the FHWA/FTA Final Rule on statewide and metropolitan transportation planning and programming processes. This information does not establish additional prescriptive requirements; rather, it outlines the wide range of transportation planning and programming processes and practices undertaken by State DOTs, metropolitan planning organizations (MPOs), and public transportation operators, and offers a range of options under a variety of circumstances. As such, this information is not presented in a regulatory framework, rather, these "Questions and Answers" highlight some (but not necessarily all) of the options currently available to State DOTs, MPOs, and public transportation operators in meeting financial planning and fiscal constraint requirements in transportation planning and programming. II. Questions and Answers: General Information and Key Terms and Definitions 1. What are the differences between future revenue sources that are "reasonably expected to be available" and those that are "available" or "committed?" Revenue forecasts that support a Statewide Transportation Improvement Program (STIP), metropolitan transportation plan, or a metropolitan Transportation Improvement Program (TIP) may take into account new funding sources and levels of funding not currently in place, but which are "reasonably expected to be available" Planning Environment Real Estate HEP Events Guidance Publications Glossary Awards Contacts Office of Planning, Environment, & Realty (HEP) About Programs Resources Briefing Room Contact Search FHWA Attachment H Page 43 of 54Page 77 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] Contacts For more information, please contact Lorrie Lau. Regional Models of Cooperation SAFETEA-LU Section 1927 Scenario Planning and Visualization in Transportation Transportation Planning Update Travel Model Improvement Program (TMIP) Transportation Planning Excellence Awards Transportation Safety Planning [see 23 CFR 450.216(m), 23 CFR 450.322(f)(10)(ii), and 23 CFR 450.324(h), respectively]. New funding sources are revenues that do not currently exist or that may require additional actions before the State DOT, MPO, or public transportation operator can commit such funding to transportation projects. In addition, future revenues may be projected based on historic trends, including consideration of past legislative or executive actions. To be considered "reasonable," the financial information and financial plans that accompany the TIP, STIP, and metropolitan transportation plan must identify strategies for ensuring the availability of these new revenue sources in the years when they are needed for project development and implementation [see 23 CFR 450.216(m)]. In air quality nonattainment and maintenance areas, the fiscal constraint requirements are more stringent. To support air quality planning under the Clean Air Act, as amended in 1990, the U. S. Environmental Protection Agency's transportation conformity regulations specify that an air quality conformity determination can only be made on a fiscally constrained metropolitan transportation plan and TIP in air quality nonattainment and maintenance areas consistent with DOT's metropolitan planning regulations[see 40 CFR 93.108]. Relative to STIP/TIP development in air quality nonattainment and maintenance areas, projects included in the first two years of the STIP and TIP shall be limited to those for which funds are "available" or "committed" [see 23 CFR 450.216(m) and 23 CFR 450.324(i), respectively]. Definitions for the terms "available funds" and "committed funds" are contained in 23 CFR 450.104. Therefore, nonattainment and maintenance areas may not rely upon proposed new taxes or other new revenue sources to support projects listed in the first two years of the TIP and STIP. As such, new funding from a proposed gas tax increase, bonding, a proposed regional sales tax, or a major funding increase still under consideration would not qualify as "available" or "committed" until it has been enacted by legislation or referendum. However, for the third and fourth years, the STIP/TIP may include a project or project phase if full funding can reasonably be expected to be available for the project within the time period contemplated for its completion. For information on treatment of public-private partnerships and other innovative financing mechanisms, see Q&A 11. 2. What are some examples of "reasonable" and "not reasonable" revenue forecast assumptions? Determining whether a future funding source is "reasonable" requires a judgment decision. Two important considerations in determining whether an assumption is "reasonable" are: (a) evidence of review and support of the new revenue assumption by State and local officials and (b) documentation of the rationale and procedural steps to be taken with milestone dates for securing the funds. Albeit not all-inclusive, some examples of "reasonable" and "not reasonable" assumptions are highlighted in the following table. Additionally, please note that the examples labeled "reasonable" do not necessarily meet the special test of "available funds" or "committed funds" (see above Q&A #1). Reasonable A new toll or other user fee dedicated to a particular project or program may be reasonable if there is clear evidence of support by the Governor, legislature, and/or other appropriate local/regional decision-makers and a strategy exists with milestones for securing those approvals within the time period for implementing the affected projects. Reasonable A new tax for transportation purposes requiring local and/or State legislation and/or support from the Governor is reasonable if there is clear evidence of sufficient support (both governmental and public) to enact the new tax and a Attachment H Page 44 of 54Page 78 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] strategy exists for securing those approvals within the time period for implementing the affected projects. Reasonable If a State or local jurisdiction has past historical success in incrementally increasing gas taxes for transportation purposes, it is reasonable to assume that this trend (and the historic rate of increase) over a comparable period of time will continue. Reasonable A new bond issue for a particular project or program may be reasonable if there is clear evidence of support by the legislature, Governor and/or other appropriate decision-makers and a strategy exists with milestones for securing those approvals within the time period for implementing the affected projects or program. Reasonable If a transit operator has past historical success in incrementally increasing transit fares, it is reasonable to assume that this trend (and the historic frequency of increase) over a comparable period of time will continue. Reasonable If a transit operator that has never received discretionary major capital transit (e.g. New Starts) funding in the past proposes a major capital transit project for inclusion in the metropolitan transportation plan, it could be reasonable if a strategy with milestones is presented for satisfying the FTA program requirements. For example, in conducting an alternatives analysis to determine a locally preferred alternative (LPA) the LPA must be adopted into the metropolitan transportation plan as a means for solidifying candidacy for New Starts project development (i.e. preliminary engineering, final design, and receipt of a Full Funding Grant Agreement). Not Reasonable Assuming new funds from an upcoming Statewide, regional, or local ballot initiative would not be reasonable if polls indicate a strong likelihood of defeat or there is a history of repeated defeat of similar ballot initiatives in recent years. However, this assumption could be reasonable if a new strategy has been developed to achieve success where past attempts have failed, and is supported by State and/or local decision-makers. Not Reasonable A 25 percent increase in gas tax revenues over five years is not reasonable if the growth over the previous five years was only 15 percent. However, special circumstances may justify and support a significantly higher increase than the historic rate, provided there is clear evidence of support from State and/or local decision-makers. Not Reasonable An assumption that a single metropolitan area will receive funding for multiple large-scale transportation projects under a federal discretionary program (e.g., FTA's New Starts) is not reasonable if the assumption would result in that one metropolitan area receiving a disproportionately high percentage of the total national program dollars. Revenue Projection and Cost Estimation Methods 3. To what extent can future Federal program funds be assumed when developing metropolitan transportation plans, TIPs and STIPs, particularly beyond the current authorization in SAFETEA-LU that ends at the end of FY 2009? When the horizon year for the metropolitan transportation plan or the TIP/STIP period extends beyond the current authorization period for federal program funds, "available" funds may include an extrapolation based on historic authorizations of Federal funds that are distributed by formula. For Federal funds that are distributed on a discretionary basis (including FTA's New Starts, earmarks, and other congressionally- designated funding), any funding beyond that currently authorized and targeted to the area may be considered as reasonably available, if past history supports such funding levels. Attachment H Page 45 of 54Page 79 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] Therefore, when determining future year authorizations/apportionments, a growth rate estimated on the basis of previous authorizations can be used to approximate the future annual growth rate of Federal authorizations. For example, since SAFETEA-LU authorized Federal transportation programs for Federal Fiscal Years (FY) 2005 to 2009, funding beyond FY 2009 could be estimated based upon the growth rate over the prior five years. Upon the enactment of new authorizing legislation, State DOTs (in cooperation with MPOs and public transportation operators) should use the actual authorization levels and individual discretionary project funding amounts in the development of a metropolitan transportation plan, TIP, or STIP. 4. How should Federal and non-Federal funding sources be reflected in the TIP and STIP? All projects and programs funded under Title 23 and 49 (of the U.S. Code) must be listed in the TIP/STIP [see 23 CFR 216(g)]. There is an important distinction, however, between the specific projects listed in the TIP/STIP and the financial plan and information that accompany and support the TIP/STIP. Highway and transit operations and maintenance (O&M) activities typically do not involve Federal funds, and are therefore are not required to be listed individually in a metropolitan transportation plan, TIP, or STIP. For example, with the exception of Federally-supported transit operating costs in urbanized areas with populations less than 200,000, and Federally supported preventive maintenance in areas with more than 200,000 in population, transit O&M activities are funded by a variety of non-Federal sources (e.g. States, localities, as well as advertising and fares). While these non Federal sources are not included in the project listings of the TIP/STIP, this important information is needed to demonstrate how the transit operator and other Federal funds recipients in a metropolitan area and/or State will operate and adequately maintain the programmed Federal capital investments and should be provided in the financial plan and supporting information accompanying the TIP/STIP. Similarly, non-Federal highway system O&M costs do not have to be included in the project listings of the TIP/STIP, but should be provided in the financial plan and supporting information accompanying the TIP/STIP. It is acceptable to present non-Federal O&M costs and their funding sources at a systems- level of detail (e.g. for highways by highway functional classification). In the event that a proposed transit system expansion project has been approved for entry into the FTA planning and project development process (for preliminary engineering, final design, project development, etc.), the system wide operating and maintenance costs should be consistent between the TIP/STIP and the financial plan submitted for FTA project approvals. The Federal funding reflected in the TIP and STIP (and the supporting financial plan) for projects/project phases may be based on authorization levels for each year, although obligation authority limitations may be utilized for a more conservative approach. In addition, for Federally-funded projects, the project-specific portion of the STIP/TIP must identify the source(s) of Federal and non-Federal funding by year [see 23 CFR 450.216(i)(3) and 23 CFR 450.324(e)(3), respectively]. The cumulative total of the State and Federal funds in the TIPs and STIP should not exceed, on an annual basis, the total State and Federal funds reasonably available to the State. 5. To what extent should cost and revenue estimates be reflected in year of expenditure (YOE) dollars? Attachment H Page 46 of 54Page 80 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] As outlined in the FHWA/FTA Final Rule on statewide and metropolitan transportation planning and programming (published February 14, 2007), cost and revenue estimates for the STIP, metropolitan transportation plan, and TIP must use an inflation rate(s) to reflect "year of expenditure dollars," based on reasonable financial principles and information, developed cooperatively by the State DOT, MPOs, and public transportation operators [see 23 CFR 450.216(l), 23 CFR 450.322(f)(10)(iv), and 23 CFR 450.324(h), respectively]. Past trends suggest that it may not be reasonable to use the same inflation rates for forecasting costs and revenues. Future project costs generally will be tied to construction cost indices, while revenue forecasts track more closely with past trends in tax receipts and cost of living indices. The use of YOE may reveal that revenue growth is insufficient over time to accommodate the effects of inflation on costs for construction, operations, and maintenance, of highway and transit projects and programs. In these cases, additional sources of revenue may be needed, or certain projects in the STIP, TIP, and/or the metropolitan transportation plan may need to be scaled back, delayed or removed to bring the costs of the highway and transit projects or program in line with revenue projections. 6. Is there a recommended inflation rate(s) for cost estimates as part of fiscal constraint for metropolitan transportation plans, TIPs, and STIPs? When State and/or local cost data are available, States and MPOs are encouraged to use them to develop cost inflation indices. Local historic cost data and experience with cost inflation are valuable data sources for use in projecting future rates. In the absence of State and/or local data, FHWA and FTA would be comfortable if State DOTs and MPOs utilize an annual inflation rate of four percent for project costs. Because circumstances may vary from State-to-State, from region to region, as well as between highway and transit projects, a State DOT or MPO may assume a lower or higher rate based on circumstances. Inflation assumptions should be documented in the financial plan. It is important to note that the four percent inflation rate applies only to "planning/programming-level" cost estimates. As projects advance through project development to construction, these "planning/programming-level" assumptions should be replaced by more recent and rigorous cost estimation performed by project sponsors, consistent with appropriate project documentation. For projects estimated to cost over $100 million (major projects), the cost estimate information developed in accordance with FHWA's major project requirements (see question and answer number twelve for more information on major projects.) We recognize that developing and applying cost inflation rates is not an "exact science." Several sources are available for States and MPOs to utilize in forecasting highway and transit capital, operations and maintenance costs including construction cost indices, the consumer price index, and State and local project cost histories. National resources such as http://www.fhwa.dot.gov/exit.cfm? link=http://www.economy.com/default.asp, local universities, and Engineering News Record may also be used. 7. What are some possible approaches for developing cost estimates for financial plans and projects/project phases reflected in the STIP/TIP? Capital costs can be based on historical costs for projects of comparable scale and design. Cost forecasts may be established in a number of ways. For example, capital costs can be based on historic costs for: (a) an interchange; (b) new construction on new rights-of-way; (c) structure (number, type, and deck square footage (area) for various structure types); (d) transit vehicles for rolling stock procurement; or (e) widening and/or reconstruction, based on the extent of the project. Information from more detailed project cost estimates can be used, if it is available. O&M costs can be based on historic data applied on a per-lane mile and functional Attachment H Page 47 of 54Page 81 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] classification basis or an annual lump sum basis. For bridges, O&M costs might be based on historic data on a per-square foot of bridge deck area basis. Transit operating costs can be estimated by general mode type on a revenue-mile or passenger-mile basis. Major transit capital projects (e.g. New Starts) can be estimated during planning from data collected in FTA's Standard Cost Categories. Transit agency O&M cost estimates should be consistent with and based upon recent trends as reported by regional transit agencies and transportation service providers in the National Transit Database. The operating costs should be inflated through the period of the TIP and STIP, and include additional operating costs necessary for any proposed transit system expansions that are listed in the TIP and STIP. The increasingly refined cost estimates prepared during project development should be incorporated into the project information contained in the TIP/STIP as well as the underlying financial plans, when the TIP/STIP are updated. 8. Do changes in revenue sources after the metropolitan transportation plan, TIP, or STIP are adopted automatically nullify and void the FHWA/FTA fiscal constraint determination? No. In cases where FHWA/FTA find a STIP, metropolitan transportation plan, or TIP to be fiscally constrained and a revenue source is subsequently removed or substantially reduced (e.g., by legislative or administrative actions), FHWA/FTA will not withdraw the original determination of fiscal constraint. However, in such cases, FHWA/FTA will not act on an updated or amended STIP, metropolitan transportation plan, or TIP that does not reflect the changed revenue situation [see 23 CFR 450.216(o), 23 CFR 450.322(f)(1)(viii), and 23 CFR 450.324(o), respectively]. 9. What tools exist on cost estimation and management for "pre- construction" (i.e., transportation planning and programming) phases? National Cooperative Highway Research Program (NCHRP) Project 08-49 (Procedures for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction) resulted in a comprehensive guidebook on highway cost estimation management and project cost estimation procedures aimed at achieving greater consistency and accuracy between long-range transportation planning, priority programming, and preconstruction cost estimates. The completed guidebook, entitled Guidance for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction (NCHRP Report 574), is available from the Transportation Research Board's website at http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_574.pdf . Additional processes, methods, and tools focused on right-of-way (ROW) cost estimation and management to complement the NCHRP Report 574 currently are being developed. Entitled NCHRP Project 08-49(2), Right-of-Way (ROW) Methods and Tools to Control Project Cost Escalation, the objectives of this research effort are to: (a) refine ROW-related cost estimating and the management processes that support ROW cost estimating; (b) develop ROW-based methods and tools, focused especially on those used in the planning phase of project development; and (c) provide specific guidance on how to implement those strategies, methods, and tools related to ROW cost estimating and estimate management for projects. This report is expected to be available from TRB in the second half of calendar year 2009. The National Transit Database (NTD), maintained by FTA, contains a wealth of statistics on the transit industry. Over 650 transit agencies and authorities file annual reports with FTA for inclusion in the NTD. The reported data consist of selected Attachment H Page 48 of 54Page 82 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] financial and operating data that describe public transportation characteristics. The NTD is a valuable resource that can assist in developing cost estimates for public transit during the transportation planning process. A tool to manipulate and analyze NTD data is available at http://www.fhwa.dot.gov/exit.cfm?link=http://www.ftis.org/. Though developed to help assist transit agencies in Florida, the Integrated National Transit Database Analysis System contains NTD data from all reporting agencies nationwide, which can be helpful in developing peer transit system profiles for comparison to an existing an/or planned future expanded system. Also, FTA is currently developing guidepost cost data on components of major capital transit investments (e.g., New Starts), based upon projects implemented to date and projects currently in project development. This summary-level data can assist planners in estimating costs of major capital transit investments for planning documents. These summary project cost data will be available online at http://www.fta.dot.gov/12304.html. Highway and Transit Operations and Maintenance (O&M) 10. To what extent must highway and transit O&M be reflected in the STIP, metropolitan transportation plan, and TIP? For purposes of transportation systems O&M, the financial plans and financial information that support the metropolitan transportation plan, TIP, and STIP shall include financial information containing systems-level estimates of costs and revenue sources that are reasonably expected to be available to adequately operate and maintain Federal-aid highways (as defined by 23 U.S.C. 101(a)(5)) and public transportation (as defined by 49 U.S.C., Chapter 53) [see 23 CFR 450.216(m), 23 CFR 450.322(f)(10)(i), and 23 CFR 450.324(h), respectively]. Systems-level cost and revenue planning estimates for O&M will be more general than estimates for individual projects. For the financial plan that supports the TIP, the MPO may rely on the system-level information contained in the financial plan that supports the metropolitan transportation plan in developing four-year "snapshot" estimates of O&M funding sources and costs. For the non-metropolitan portions of the STIP, the State DOT may utilize other documents (e.g. the long-range statewide transportation plan and/or other State DOT budget information) to provide this system-level information for the time period covered by the STIP. O&M involving local and/or State funds may be shown in the applicable financial plan as a "grouped line item." In addition, there is a longstanding Federal requirement that States properly maintain, or cause to be maintained, any projects constructed under the Federal-aid Highway Program (see 23 U.S.C. 116) and FTA's Financial Capacity Policy holds public transit operators to similar requirements1. FHWA/FTA do not specify at what level a transportation project or system must be maintained and operated for purposes of estimating necessary revenues and costs for the financial plan for the STIP, TIP, or metropolitan transportation plan, associated with operating and maintaining the system. Where applicable, this is left to the State, MPO, transit operator, and local decision making processes. Innovative Finance, Flex Funds, Advance Construction (AC), and Public-Private Partnerships (PPPs) 11. To what extent must innovative finance mechanisms and Federal funds transfers between programs be reflected in the STIP, metropolitan transportation plan, and TIP? Both public and private sources of funding are to be reflected in the financial Attachment H Page 49 of 54Page 83 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] information and financial plans that support the STIP, metropolitan transportation plan, and TIP. Among the financing techniques2 to be included in the financial plans (to the extent they are utilized) are: Tolls and pricing; Grant Anticipated Revenue Vehicles (GARVEE bonds) and/or Grant Anticipation Notes (GANs); State Infrastructure Banks (SIBs); and Transportation Infrastructure Finance and Innovation Act (TIFIA) credit assistance; Private Activity Bonds (PABs); Public/Private Partnerships (PPPs). Moreover, cash management techniques (e.g., AC, tapered match, flexible match, and toll credits) are to be reflected in the financial plans. The fiscal constraint demonstration for projects supported by transfers of Federal flexible funds should be based on the original ("pre-flex") funding source. Furthermore, it is important that the fiscal constraint demonstration for other projects supported by the pre-flex funding programs take the flexible fund transfer into account. (a) To what extent must Advanced Construction (AC) be shown in the STIP/TIP? The two key actions governing AC projects are: 1. Prior to Federal authorization of a project as AC, the project must be included in the Federally-approved STIP [see 23 CFR 630.705]. The project will be demonstrated as supporting the fiscally constrained element of the STIP using all or some combination of State, local and private funds. The financial limit on the amount of AC is set by the State's or MPO's ability to demonstrate fiscal constraint of the STIP or TIP respectively. 2. Generally, when an AC project is converted to a federally funded project, the STIP will document the full or partial conversion of the project as an individual project or as part of a project grouping. This project or group of projects needs to meet all STIP/TIP requirements, including the indication of the Federal funding category(ies) that are intended to be used for the conversion. Fiscal constraint must be demonstrated for the individual categories of Federal-aid funds. The amount of conversion is limited by the amount of apportioned Federal-funds available in the category to be converted and the amount of obligation authority available at the time of the conversion. As with any project, it should be noted that the State is not locked into the category of funds identified in the approved STIP/TIP. However should the approved AC "conversion" substantially change the current STIP/TIP's fiscal constraint determination; the STIP/TIP may need to be amended. The fiscal constraint determination should be supported by showing the individual project or group of project conversions in the STIP/TIP or by showing the total amount and source(s) of Federal funds to be converted as part of the financial plan for the STIP/TIP. (b) How should GARVEE/GAN debt service be reflected in the STIP, metropolitan transportation plan, and TIP? Attachment H Page 50 of 54Page 84 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] For a GARVEE- or GAN-funded project, the Federal share of the debt-related costs (e.g., interest and principal payments, associated issuance costs, and ongoing debt servicing expenses) anticipated to be reimbursed with Federal-aid funds over the life of the bonds should be designated as AC in the transportation plan/program document showing GARVEE/GAN bond proceeds as the revenue source.3 In the case of projects taking advantage of the new Debt Service Reserve reimbursement capability, the same process should be followed, but including immediate repayment of the debt service reserve in the first year of the debt. (c) How should "public-private partnerships" (PPPs) be treated in the STIP, metropolitan transportation plan, and TIP? Like any other transportation project, the funding sources associated with financing a PPP project generally are to be "reasonably expected to be available." The exception is the first two years of the TIP and STIP in air quality nonattainment and maintenance areas, in which projects shall be limited to those for which funds are "available" or "committed" (see 23 CFR 450.104 for the definitions of these terms). A PPP project may be "reasonable" if there are clear expressions of support by the Governor and/or other appropriate local/regional decision makers and a strategy exists for securing necessary approvals within the time period for implementing the affected project(s). Other indictors of "reasonableness" for PPP projects are if a State or local jurisdiction has had past success in implementing PPP's, and if State enabling legislation is in place, or if efforts are underway to enact State enabling PPP legislation and there is evidence of support by the Governor and/or legislature. There should also be interest in the project from the investment community. PPP projects often are undertaken to supplement conventional procurement practices as a way to achieve cost and time efficiencies and expand funding sources, thereby reducing demands on constrained public budgets. Some of the funding sources used to support PPPs include: (a) shareholder equity; (b) grant anticipation bonds/notes (GARVEEs and GANs); (c) revenue and general obligation bonds; (d) private activity bonds; (e) bank loans; (f) SIB loans; (g) TIFIA credit assistance; (h) direct user charges (tolls and transit fares) leveraged to obtain bonds; (i) normal Federal-aid formula funds; and (j) other public agency dedicated revenue streams made available to a private franchisee or concessionaire (e.g., leases, direct user charges from other tolled facilities, and shadow tolls). Additional information on new PPP approaches to project delivery can be obtained online at www.fhwa.dot.gov/ppp/index.htm. Additional information on these financing approaches and tools is available online from the American Association of State and Transportation Officials at http://www.fhwa.dot.gov/exit.cfm? link=http://www.innovativefinance.org/. (d) How should tolling/pricing strategies be treated in the metropolitan transportation plan, TIP, and STIP? The following considerations should be kept in mind: 1. While tolling/pricing may be a means to pay back a variety of funding mechanisms (e.g. bond measures, private equity, and State revenues), toll revenues are usually used in combination with other fund sources. 2. The existence of State enabling legislation allowing a State and/or a locality(ies) to pursue alternative funding through the use of tolling and/or PPPs is a key first step in determining fiscal constraint "reasonableness," particularly for the metropolitan transportation plan. Knowing the parameters or rules for the new tolling or pricing provisions also is Attachment H Page 51 of 54Page 85 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] important. For example: How much funding is available each year through the proposed program? Can the tolling/pricing provisions only be used in certain corridors or municipalities? Are tolling/pricing provisions only available for a specific type of project? Is Federal authority required for the tolling? (e) How should TIFIA be treated in the metropolitan transportation plan, STIP, and TIP? The TIFIA statute conditions a project's receipt of TIFIA assistance on the project's satisfaction of all applicable planning and programming requirements. That includes inclusion in the applicable long range transportation plan and the STIP/TIP. The TIFIA project has to be fiscally constrained to be included in the applicable STIP, TIP, and metropolitan transportation plan with funds reasonably expected to be available. For projects in the first two years of the STIP/TIP in metropolitan non- attainment and maintenance areas, funds for the project must be available and committed. TIFIA loans would typically be shown in the STIP/TIP as one of several revenue sources for the project. The financial plan for the STIP/TIP and the metropolitan transportation plan should also show the repayment for a TIFIA loan. (f) How should Private Activity Bonds (PABs) be treated in the metropolitan transportation plan, TIP, and STIP? These bonds should be shown in the STIP/TIP and transportation plan as a revenue source when used in combination with other funds on a Title 23 eligible project. Since repayment of principle and interest on the PAB is the responsibility of the private developer/operator of the project, repayment of the PAB does not have to be shown in the TIP, STIP, or metropolitan transportation plan or the accompanying financial plan to the TIP, STIP or MTP. Other Issues 12. What is the connection between financial plans that support statewide and metropolitan transportation plans and programs and financial/funding information for FHWA major highway projects and FTA major capital investment projects? Financial plans that support the metropolitan transportation plan and TIP include revenues from public and private sources that are reasonably expected to be available to carry out the metropolitan transportation plan and TIP, and include any additional financing strategies needed for projects and programs [see 23 CFR 450.322(f)(10) and 23 CFR 450.324(h), respectively, for additional details]. However, more detailed project-level financial plans must be prepared and updated annually for individual highway projects with an estimated total cost of $100 million or more [SAFETEA-LU Section 1904] and FTA major capital investment (New Starts) projects. Financial plans for projects with an estimated total cost of $500 million or more have to be approved by FHWA. These project-specific financial plans contain specific cash flow information.4 While the financial plans used in metropolitan transportation planning and statewide transportation planning are different from those developed for "big ticket" highway and transit projects, their underlying assumptions (e.g. local economic Attachment H Page 52 of 54Page 86 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] conditions; future inflation rates; revenue sources, growth rates, and yields based upon population and employment projections) should be consistent. The project- specific cash flow schedule information from a project-specific financial plan can serve as a valuable resource on annual levels and sources of revenues for developing the financial plans and financial information that support the metropolitan transportation plan, TIP, and STIP. Furthermore, a Full Funding Grant Agreement (issued for FTA New Starts projects) should be referenced in the STIP/TIP and accompanying financial plans as it establishes the maximum Federal share and payout schedule for a FTA New Starts project. Project-level financial information that is refined during project development should be incorporated into the TIP/STIP and their underlying financial plans when the TIP and STIP are updated. 13. When might cost bands be utilized in the financial plan for the metropolitan transportation plan? For the outer years of the metropolitan transportation plan (i.e., beyond the first 10 years), the financial plan may reflect aggregate cost bands, as long as the future funding sources necessary to pay for these costs are reasonably expected to be available to support the upper limit of the projected cost bands (23 CFR 450.322(f) (10)(v)). Cost bands are useful where there is significant potential for uncertainty and risk. Some projects in the second 10-years of a metropolitan transportation plan might fall into this category, particularly larger projects. Risks and uncertainties may result from cost escalation (materials and labor), construction unknowns (unknown site conditions), uncertain environmental mitigation, unknown right-of-way needs, contractor risk and other causes. A cost band is a potential range of project costs that considers these and other risks and other potential uncertainties. A cost band can help convey the uncertainty of an estimate for a project and help educate other parties (such as the public and elected officials) who may not be intimately familiar with the project about cost variability. The use of cost bands in the second ten years of the metropolitan transportation plan can help avoid misleading the public or others with a false sense of precision. The use of cost bands does not avoid the requirement to show fiscal constraint. Revenues necessary to meet the outer (upper) band of the cost band in the financial plan must be "reasonably expected to be available." All necessary financial resources from public and private sources that are reasonably expected to be available to carry out the upper band(s) of the cost band(s) shall be identified. In the case of new funding sources, strategies for ensuring their availability shall be identified [see 23 CFR 450.322(10)(v)]. III. Additional Information and Resources: The National Transit Institute (NTI) course Financial Planning in Transportation addresses topics such as transportation plan and program revenue projections, cost estimates, and fiscal constraint "reasonableness." Additional information on this course can be obtained on-line from NTI at http://www.fhwa.dot.gov/exit.cfm? link=http://www.ntionline.com/CourseInfo.asp?CourseNumber=ID811. FHWA and FTA are collecting and sharing examples and case studies of noteworthy fiscal constraint practices and financial plans that support metropolitan transportation plans, TIPs, and STIPs, and posting them online via the FHWA/FTA Transportation Planning Capacity Building Program website at http://www.planning.dot.gov/. 1 Financial Capacity Certifications may be utilized to fulfill the requirement for demonstrating transit operators' ability to operate and maintain their systems. FTA Attachment H Page 53 of 54Page 87 of 89 Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA Financial Planning and Fiscal Constraint for Transportation Plans and Programs Questions & Answers - Planning - FHWA.htm[8/2/2016 4:19:01 PM] Privacy Policy | Freedom of Information Act (FOIA) | Accessibility | Web Policies & Notices | No Fear Act | Report Waste, Fraud and Abuse U.S. DOT Home | USA.gov | WhiteHouse.gov Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000 Circular C 7800.1A - "Financial Capacity Policy" requires FTA grantees to certify their ability to: a) operate and maintain current assets, b) operate and maintain new projects listed in the TIP/STIP, and C) maintain the same level of service during a 20- year period, or a single equipment replacement cycle. These self-certifications are subjected to FTA review during STIP approval and, subsequently, at the time of grant application. Circular C 7800.1A also calls for Unified Planning Work Programs to include "...development of analytical revenue and cost forecasting techniques needed to assess financial capacity..." 2 Additional information on innovative financing techniques include: FHWA Innovative Finance Guidance (http://www.fhwa.dot.gov/ipd/finance/); FHWA Innovative Finance Primer (http://www.fhwa.dot.gov/ipd/finance/resources/general/); TIFIA Credit Program (http://www.fhwa.dot.gov/ipd/tifia/); and Innovative Financing Techniques for America's Transit Systems (http://www.fta.dot.gov/12309.html). 3 Prior to project authorization, "AC" projects must be identified in a fiscally constrained TIP and/or STIP. At the programming stage, the MPO and/or State needs to document, by year, the revenues necessary for the AC project, including the amount of Federal funds available for obligation sufficient to fund the estimated costs that will be incurred on all projects on a Federal fiscal year basis. This would include previously authorized AC projects that are not fully obligated. 4 Additional information on financial plans for major highway projects is available at http://www.fhwa.dot.gov/ipd/project_delivery/default.aspx while additional information on financial plans for FTA major capital investments is available at http://www.fta.dot.gov/12304_3559.html. HEP Home Planning Environment Real EstateUpdated: 10/19/2015 Attachment H Page 54 of 54Page 88 of 89 City of Georgetown, Texas City Council Workshop August 23, 2016 SUBJECT: Sec. 551.071: Consul tati on w i th Attorney - Advice from attorney about pending o r co ntemplated litigation and other matters o n which the attorney has a duty to advise the City Council, including agenda items Sec. 551.072: De l i berati o n about Real Proper ty Forwarded from the Georgetown Transportation Enhancement Corporation - Rivery Blvd. Exte nsion Pro ject (P arcel 11, 1611 Park Lane) - Mays Street Pro ject (P arcel 8, Westinghouse at Rabbit Hill Rd.) - SW Bypass P roje c t (Laubach – 4200 IH35 South) Sec. 551.074: Personnel Matters - City Manager, City Attorney, City Sec re tary and Municipal Judge: Consideratio n of the appointment, employme nt, evaluation, reassignment, duties, discipline, or dismissal Sec. 551.087: De l i berati o n Regardi ng Economi c Devel opment Negoti ati ons - Tamiro Plaza Phase 2 ITEM SUMMARY: FINANCIAL IMPACT: NA SUBMITTED BY: Page 89 of 89