Pass Through Tolls In Montgomery County

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(as seen in TxDOT's minutes of the July TTC meeting);

d. Montgomery County - Consider a proposal from Montgomery County to construct,

under a pass-through toll agreement, improvements to FM 1485, FM 1488, FM 1314, and

FM 3083, and tolled direct connectors from SH 242 and SH 105 to I-45; authorize the

executive director to negotiate a pass-through toll agreement with Montgomery County

Commissioner Johnson made a motion, seconded by Commissioner Andrade, and

the commission approved the following minute order presented by Finance Division

Director James Bass:

109734

FIN

On April 26, 2004, Montgomery County submitted a proposal for a pass-through

toll agreement. The county's proposal, among other things, provided for the county to

construct, maintain, and operate improvements to FM 1485, FM 1488, FM 1314, and FM

3083, and direct connectors from SH 242 and SH 105 to I-45.

Section 222.104( , Transportation Code, authorizes the Texas Department of

Transportation (department) to enter into an agreement with a public or private entity that

provides for the payment of pass-through tolls to the public or private entity as

reimbursement for the construction, maintenance, or operation of a toll or non-toll facility

on the state highway system by the public or private entity. A pass-through toll is a per

vehicle fee or a per vehicle-mile fee that is determined by the number of vehicles using a

facility.

The Texas Transportation Commission (commission) previously adopted rules,

codified at 43 TAC

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Commissioners work toward pass-through toll program

By: Lauren Hutton , Courier staff 09/14/2004

Montgomery County might travel down unfamiliar roads with the new state pass-through toll program.

However, county commissioners have sought the guidance of transportation specialists to lead the county down this path.

Gerry Pate, of Pate Engineering, who put together the county's comprehensive transportation improvement program, discussed what the county will ask for in the upcoming contract negotiations with the Texas Department of Transportation during a workshop meeting Monday with commissioners.

The contract will iron out the kinks of the agreement between the state and county concerning the pass-through toll program.

Authorized in 2003 by the state legislature, the program has nothing to do with tollbooths, or any traditional idea of toll roads.

Instead, the mechanism allows the county to finance state road projects through, in this case, the use of a $125 million road bond, which would have to be authorized by the voters. Then the state would pay back 80 percent of the road costs to the county at a later date.

"This is a program where we can move quickly," Pate said.

Precinct 2 Commissioner Craig Doyal, who represents the area where the much-needed FM 1488 expansion awaits funding from the state, said although there are always concerns about new programs, he saw the pass-through toll program as a tremendous opportunity.

"The dollars are very limited at TxDOT," he said. "If we don't take advantage today, it may be gone tomorrow."

Commissioners have expressed their support for the new program and authorized $330,000 in expenses to pay for Pate Engineering's services.

Phase I of the projects would include construction on FM 1485, FM 1488, FM 1314 and FM 1484.

Under the law, the state can either pay the county back per vehicle or per vehicle mile.

Pate said the idea is to get the first round of projects going and reinvest the money the state repays in a second round of road construction.

With Montgomery County the first in the state to win the support of the Texas Transportation Commission for the program, Pate said negotiations could go either way for the county.

"There are good things and bad things about going first," he said.

But the firm also has solicited the help of John Langmore, a transportation consultant out of Austin, who will lead the negotiation team.

Langmore served in the last legislative session as policy director for the House Transportation Committee, helping spell out the specifics of the bill.

Montgomery County will provide the legal and engineering liaisons.

Key negotiation priorities for the county include being paid back by the state as quickly as possible and being paid back for environmental costs, right-of-way acquisitions, engineering and construction costs and bond interest during construction.

"We might try to work out a deal with capping the right-of-way expenses," Pate said. "This is the first, so we don't have a model of a contract.

"But I think together we can work it out."

The county also will work to gain program delegation, which includes putting projects out for bid.

However, TxDOT does require the pass-through toll program to be administered through an outsourced program manager.

Norm Wigington, a TxDOT public information officer in Houston, said because TxDOT had not seen the presentation, he could not comment.

County Judge Alan B. Sadler said negotiations would begin in the next 30 days.

He hopes to have a signed contract by the end of the year.

"I feel confident that we will reach that goal," Sadler said.

Lauren Hutton can be reached at lhutton@mail.hcnonline.net.

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Road bond could total $150 million

By: Burton Speakman , Courier staff 10/12/2004

THE WOODLANDS - County Judge Alan B. Sadler said Monday the bond issue required to build roads throughout Montgomery County under a new mechanism called "pass-through" tolling could total $150 million.

Sadler, speaking at the Monday luncheon of the Commercial Real Estate Association of Montgomery County, said the bond issue is expected to cost between $120 and $150 million, but could be more if Texas 105 east of Conroe is added to the project list.

The bond issue should be on the ballot for voters sometime in 2005, he said.

"Montgomery County is already 7-10 years behind in the construction of new roads," Sadler said. It is also growing by 15,000 to 18,000 residents each year.

The money raised through the new funding mechanism would act as seed money to get local construction projects started that otherwise would not be able to begin for the next 10 years, he said.

Bond funding would pay for projects on FM 1488, FM 1314 and expansions to Airport Road in the first phase, Sadler said. The Texas 105 east project could be added later.

Pass-through tolling was developed as a way to help push projects forward on a local level, since the state and federal government do not have enough highway funds available for all projects, Sadler said. "Pass-through tolls are the only way to create new road projects."

In "pass-through" tolling, local governments provide the funding up front on eligible state road and highway projects; in return, the state pays the county back for the roadways over three to seven years based on traffic counts on the roadways or time, Sadler said.

The method of repayment is still being negotiated.

Sadler expects an agreement with the state will be reached for the pass-through toll program by January 2005.

Money paid back to the county will pay for projects in the second phase of the plan. This includes the Fish Creek Expansion, which is crucial because it will serve as a centrally located alternative to travel north and south through Montgomery County, Sadler said.

Sadler also mentioned FM 2978 and FM 1097 as candidates for the second phase of county projects.

As for the lack of state funding, Sadler said Texas is still getting its share of highway funds from the gas tax, but that money is being sent to other projects throughout the state, he said.

A lot of projects are being done in the Valley along the U.S.-Mexican border that are important to the North American Free Trade Agreement, Sadler said.

In the Houston area, much of the funding is going toward the Katy Freeway and some also is being diverted to Governor Rick Perry's Trans Texas Corridor.

"Unfortunately this is where our money is going," he said.

"It's either do this (pass-through tolling) or nothing. It's that simple and it's that dire," he said.

"My preference would be to do all the roadwork without toll projects," Sadler said "The problem is the money is not there and probably won't be there for the next 10 years."

Sadler also discussed two other pure toll projects the county is planning.

One is a direct toll route from Texas 242 to Interstate 45 on both sides of the interstate, he said.

Another will be a similar project on Texas 105 in Conroe that will potentially go beyond Loop 336 South to connect motorists to the interstate.

Responding to questions from the audience, Sadler provided updates on other projects as well.

These include Interstate 45, which should be finished to FM 3083 by 2009, with construction taking the interstate to the Walker County line to begin in 2010, he said.

"I think once we have the Interstate finished up to the Walker County line then we'll have it under control," Sadler said.

Grand Parkway also is progressing well, he said.