wccl-rma boardmtg.notice&agenda-final (for12-15-14)€¦ · the next meeting of the wccl-rma is...
TRANSCRIPT
MEETING NOTICE
TO: Webb County-City of Laredo Regional Mobility Authority Board Members
FROM: Mr. Ruben Soto, Chair
SUBJECT: November Board Meeting
The next meeting of the WCCL-RMA is scheduled as follows:
DATE: Monday, December 15, 2014 TIME: 9:00 AM
PLACE: Texas Department of Transportation – Laredo District Meeting Room
1817 Bob Bullock Loop Laredo, Texas 78043
Webb County (Located at the rear of the District Headquarters Building /
Please see the attached map for best route into the TxDOT Facility)
Enclosed are the agenda and other pertinent information for your review prior to the meeting. Should you have any questions, please call me at (956) 723-9841.
WEBB COUNTY-CITY OF LAREDO REGIONAL MOBILITY AUTHORITY (WCCL-RMA) BOARD OF DIRECTORS MEETING
9:00 AM Monday, December 15, 2014 TxDOT – Laredo District Meeting Room
1817 Bob Bullock Loop Laredo, Texas 78043
Webb County
1. Welcome and Opening Remarks – Ruben Soto (RMA Presiding Officer)
2. Discussion/Approval of Past Board Meeting Minutes
3. Committee Reports
4. RMA/TRZ/TRiZ Workshop - Arturo Bujanda (Texas Transportation Institute)
5. Required RMA Reports, etc. – David Plutowski (TxDOT Statewide RMA Coordinator)
6. Comments 7. Date/Time/Location of the Next Full Board Meeting 8. Adjournment of Open Meeting into Executive Session – The Webb County-City of Laredo
Regional Mobility Authority Board may retire into Executive Session pursuant to the Texas Government Code, Sections 551.071 - 551.088 to discuss any of the following: (The items listed below are matters of the sort routinely discussed in Executive Session, but the Board may move to Executive Session to discuss any of the items on this agenda, consistent with the terms of the Open Meetings Act, as amended.)
Section 551.071 CONSULTATION WITH ATTORNEY Section 551.072 DELIBERATION REGARDING REAL PROPERTY Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS Section 551.074 PERSONNEL MATTERS Section 551.076 DELIBERATION REGARDING SECURITY DEVICES
COURTESY RULES Thank you for your presence. The WCCL RMA appreciates your interest. If you wish to address the RMA on any agenda item, Public Participation Forms will be available before the meeting. These forms must be filled out and turned in to the RMA Chair or Secretary prior to the time the agenda item in question is addressed by the RMA. You must be recognized by the Chair. (NOTE: Items will not necessarily be presented in the order they are posted.) OPEN COMMENT PERIOD At the conclusion of all other agenda items, the Board will allow an open comment period, not to exceed one hour, to receive public comment on any other matter that is under the jurisdiction of the Board. Public comment that does not relate to a specific agenda item must be made during the open comment period. Each speaker will be allowed a maximum of three (3) minutes. Speakers must be signed up prior to the beginning of the open comment period. For subjects that are not otherwise part of the agenda for the meeting, Board members may neither comment nor question speakers during the open comment period, but may request the Chair, or a
recognized committee, to investigate the subject further. No action will be taken on matters that are not part of the agenda for the meeting. NOTE Enumerated agenda items are assigned for ease of reference only, and will not necessarily be considered by the Board in that particular order. The Chair may rearrange the order in which agenda items are considered. Presenters with audiovisual needs are requested to contact Raul Leal at (956) 712-7416 at least two working days prior to the meeting. ACCESSIBILITY STATEMENT FOR DISABLED PERSONS This meeting site is accessible to disabled persons as follows: wheelchair ramp at the main entrance to the Meeting. If any special assistance or accommodations are needed in order to attend this RMA meeting, please contact Raul Leal at (956) 712-7416 at least two working days prior to the meeting so that appropriate arrangements can be made. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services, such as interpreters for person who are deaf or hearing impaired, and readers of large print or Braille, are requested to contact Raul Leal at (956) 712-7416 at least two working days prior to the meeting so that appropriate arrangements can be made.
RMA Minutes \ Dec. 15, 2014 \ Page 1 of 7
Webb County – City of Laredo Regional Mobility Authority (RMA)
Board of Directors Meeting Monday, December 15, 2014
9:00 AM
Minutes
The Webb County – City of Laredo Regional Mobility Authority Board of Directors convened in a meeting at 9:04 a.m. on Monday, December 15, 2014 at the Texas Department of Transportation (TxDOT) Office in the Laredo District Meeting Room, 1817 Bob Bullock Loop, Laredo, TX. They discussed the following agenda:
1. Welcome and Opening Remarks 2. Discussion / Approval of Past Board Meeting Minutes 3. Committee Reports 4. RMA / TRZ / TRiZ Workshop 5. Required RMA Reports, Etc. 6. Comments 7. Date/Time/Location of the Next Full Board Meeting 8. Adjournment of Open Meeting into Executive Session 9. Adjournment
Minutes are as follows: Present: Ruben Soto, Jr., Chairman and Presiding Officer; David Arredondo, Carlos Flores, Viviana Frank, Albert Muller, Sr., Jose Murillo and Enrique S. Valdez Absent: Steve LaMantia and Board Member for Precinct 3 & 4 (Unassigned) Others: Melisa D. Montemayor, TxDOT District Administrator, Laredo District
David Plutowski, Transportation Engineer, TxDOT Austin Planning Division (Presenter) Raul Leal, Public Information Officer, TxDOT Laredo District (Photographer) Mike Graham, Environmental Coordinator, TxDOT Laredo District Marissa Montoya, Office Technician, TxDOT Laredo District (Registration, Note taker) Araceli Rangel, Staff Assistant, CPA Office of Ruben Soto, Jr., (Note taker) Arturo Bujanda, Associate Research Specialist, Texas A&M Transportation Institute (Presenter)
1. Welcome and Opening Remarks After establishing a quorum, Presiding Officer Ruben Soto, Jr., called the meeting to order at 9:04 a.m. He asked everyone to stand for the Pledge of Allegiance. Mr. Soto informed all present that the meeting was being recorded. He proceeded to thank TxDOT for hosting, and Marissa and Araceli for taking notes.
RMA Minutes \ Dec. 15, 2014 \ Page 2 of 7
2. Discussion / Approval of Past Board Meeting Minutes Chairman Soto asked board members if they had a chance to review the meeting minutes and if they had any recommendations or revisions that needed to be made. Mr. Jose Murillo stated that he approved the minutes as such. Mr. Murillo made a motion, seconded by Albert Muller, Sr., to approve the meeting minutes for the Webb County – City of Laredo RMA meeting that took place on Monday, November, 17, 2014. Motion carried.
Mr. Soto then stated that an email was sent out to the Board Members regarding the requirements of the Texas Open Meetings Act and Public Information Act training. Mr. Soto informed the Board Members that they had to complete the trainings in 90 days from the day of appointment. After they get their certificate of completion, they can mail/email it to Mr. Soto so he can have it on file. He stated that the RMA would have to put the procurement policies on hold because they need legal representation to help them decide on the policies and procedures. Mr. Soto then asked Mrs. Melisa Montemayor, TxDOT Laredo District Administrator, to discuss Webb County funds. She stated that they’re a couple of avenues that she looked into and discussed with TxDOT Division and other RMA’s throughout the state. One avenue is through an advanced funding agreement, an inter-local agreement between Webb County and the RMA, where a legally binding document is executed for X amount of dollars to be diverted from Webb County to the RMA. That document would have the associate items that funds can be used for. Another way that it can be done is through a resolution from Webb County Commissioners Court. It would be taken to an agenda meeting, be approved, and then those funds would be diverted to the RMA, again with associated costs listed where those funds can be used. She then stated that she forwarded an example to Mr. Soto from another RMA and what they used to execute and divert money from a County to an RMA, which was in the form of an agreement. Whatever the County and the RMA feels comfortable with, whether the agreement or the resolution, that would be something that both entities can discuss further and make a decision on.
3. Committee Reports Chairman Soto asked the By-Laws Committee to discuss the recommendations and revisions on the proposed By-Laws. Mr. Carlos Flores passed out an original and a red lined copy (Attached) of the By-Laws to the Board Members. Mr. Flores stated that the By-Laws Committee met last week for an informal meeting to discuss proposed changes to a draft that had been prepared by the City of Laredo. The red lined copy is the Committee’s changes to the draft. He mentioned that changes were made to Sub Section 2: Principal Office, page 1, where there was a suggestion to change the principal office of the Authority to the ‘County of Webb,
RMA Minutes \ Dec. 15, 2014 \ Page 3 of 7
Texas,’ but the committee decided to keep ‘City of Laredo’ because it is the largest municipality within Webb County. Section 4: Initial Board, page 1; the Committee proposed that the Board Members who drew a short term should have a two year term, and those that drew a long term should have a four year term. The reason behind this is because they have several projects that are already on board that they are going to be working on, and the timeframe for those projects can go for several years, so they wanted to make sure that the people that are appointed are here to see these projects through in their entirety, or close to their entirety. He stated that they made that change to both the members appointed by the Webb County Commissioners Court and those appointed by the City of Laredo. Section 4: Initial Board, C, page 2, they added a statement that no Board Members should be able to serve more than eight consecutive years. On Section 4, when the Commissioners Court or the City of Laredo appoints a Board Member in the future, they are requiring that the Board Member resides in the precinct or district from where they’ve been appointed. The reasoning behind that is if a Board Member resides in Pct. 1, they might have particular insight into what the needs are in that area. Also, when the petition to form the RMA was sent, that was a requirement. Mr. Flores then asked if anyone had questions. No response followed. Section 5: Subsequent Directors, B., page 2, he stated that anyone who is appointed after them will also serve a four year term. Mr. Jose Murillo then mentioned to Mr. Flores, regarding Section 5, E., page 3, it stated that the Directors can only serve for eight years, but in letter E. there is no limitation on the number of years. (That proposed change will be added to the action item list and will be changed prior to voting on the By-Laws.) Section 5, D., page 3, Mr. Flores stated that if a new entity is added to the Authority that the Director of that new entity would be appointed by the Governor. Mr. Soto stated that that portion was an example from another RMA’s By-laws. Mr. Flores then recommended that the new entity appoint their own Director. Mr. Soto then added that they would have to look into and abide by the Transportation Code. Section 6: Qualifications of Directors, H. (1 & 2), page 4, based on their review of the Transportation Code, they eliminated the local governmental agencies, the City of Laredo and Webb County. Section 6, H., 1 & 2, will only include TxDOT and/or the Authority. Section 8: Resignation and Removal, page 5, Mr. Flores stated that the main change was on the last sentence of Section 8, B., where it states, “Additionally, the Webb County Commissioners Court (or the Commissioners Court of another county appointing a Director) or the Laredo City Council, may respectively remove a Director appointed by that entity for just cause pursuant of state law.” The reason why they included “pursuant of state law,” is because the Transportation Code has that stated as a specific reason why someone would be removed. It allows for any changes in state law to be applicable to the By-Laws. Section 11: Additional Obligations of Directors, page 7, the Committee added a letter E., which states, “Adopt policies and procedures governing the procurement of goods and services on behalf of the RMA.” They also added letter F., which states, “Adopt resolutions necessary for conducting the business of the RMA and providing the Executive Director directives.” Mr. Flores stated that it is within their authority, but it was not stated. For example, when they are
RMA Minutes \ Dec. 15, 2014 \ Page 4 of 7
seeking an Executive Director, he stated that they may want to lay out the criteria, or if they want to give them policy direction. Section 17: Notice of Meetings, page 10, the Committee added a statement that says “Notice of each meeting of the Board shall be posted in accordance with the Texas Open Meetings Act.” Section 23: Chairman, page 11, they added a statement under the duties of the chairman to include “The Chairman will be the sole spokesperson on behalf of the WCCL-RMA and any other director(s) as authorized by the Chairman.” This means that whenever the RMA is going to take an official position on something, like the RMA projects for this calendar year, then he is the sole person to speak on behalf of the RMA. Section 29: Interim Executive Director, page 14, Mr. Flores stated that this was constructed by the City of Laredo to provide us with an interim or outsourced Executive Director until the RMA has approved one. The Committee did not find it in the other RMA By-Laws, so they are rejecting it. They are not looking to outsource, they would just select an interim Director internally until they have an Executive Director to replace them. Section 30: Indemnification by the Authority, page 14, this section is regarding indemnification of the Authority and individual Directors. The Committee questioned who would pay for the indemnification. Mr. Flores said that he spoke to Chairman Soto and he stated that the RMA would be getting insurance, so that the indemnification provision can be insured through an insurance policy. He said more information will follow. Mr. Carlos Flores stated that these are the proposed changes to the original draft, and if anyone had other changes or comments please email him and he will incorporate them for the next meeting. Chairman Soto stated that if everyone was in agreement of the proposed revisions, then they would adopt the By-Laws at the next meeting. Additional information can be found on the attached red lined By-Laws.
Actions:
By-Law Committee will edit By-Laws Section 5, E., to include Director term limit.
By-Law Committee will check Section 5, D., with the Transportation Code.
4. RMA / TRZ / TRiZ Workshop Mrs. Melisa Montemayor then introduced Arturo Bujanda, a Texas Transportation Institute Assistant Research Scientist and Project Manager, who was instrumental in developing a workshop that took place several months ago for the City and County staff and elected officials in preparation of forming the RMA. This helped inform the local public and elected officials of the benefits of the RMA, how the RMA works, how the Transportation Reinvestment Zone works, and how it could be implemented here in Laredo. For additional information, please view the attached PowerPoint that was presented by Mr. Arturo Bujanda.
RMA Minutes \ Dec. 15, 2014 \ Page 5 of 7
Mrs. Montemayor stated this was one of the financing tools available to the City and the County, and clarified that it’s the City and the County that have the authority to establish the Transportation Reinvestment Zone. Once a decision is made, then they divert a percentage of that TRZ to transportation projects, in this case to the RMA priority projects. She informed the Board that time is of the essence when it comes to a TRZ. When it comes to the priority projects, I-69 and Loop 20, they are looking to start the development as soon as possible. The longer they wait, the more development occurs along Loop 20, and the smaller the delta is between post-development and pre-development, which is a difference of monies that would go to the tax increment account. They want to be able to catch the TRZ at the time when development has not occurred, so they have the largest delta that goes into the tax increment account. She reiterated that if a TRZ is going to be implemented, sooner rather than later is best so that more chance of monies will be diverted to the tax increment account and then hopefully diverted to the RMA so they can use it towards priority projects. Mrs. Montemayor then stated that regarding pass through tolls, which was mentioned in Mr. Bujanda’s presentation, there were several slides that mentioned innovative financing options. Texas Department of Transportation is currently not accepting applications for pass through tolls. For those not familiar with pass through tolls, the Laredo District built one in Del Rio, Texas, SL 79. The County came together with a private entity, who built the roadway, which is a loop around Del Rio. The State is paying them back based on traffic taking that relief route in Del Rio every year. They are secured the minimum amount per year regardless of traffic, but if the traffic gets higher, there is an increment towards the maximum amount that can be reimbursed from the State to the developer. Webb County has obtained a State Infrastructure Bank (SIB) Loan from the State in the past. Those are very low interest rate loans that can be applied for by the City or the County through Texas Department of Transportation. She stated that the SIB loan is very lucrative and for the RMA priority projects, that loan could be something that the Board might want consider.
5. Required RMA Reports, Etc. Chairman Soto then introduced Mr. David Plutowski, TxDOT Statewide RMA Coordinator. Mr. Plutowski stated that the reporting and audits is basically what the Texas Transportation Code states in the statute or law. In TxDOT, the Texas Administrative Code (TAC) rules show that TxDOT has limited oversight of the RMA. The RMA in general has more power to do more effective projects than TxDOT. He mentioned that the rules have changed and expanded the definition of transportation projects for the RMA. He then proceeded to discuss what was needed from the RMA in regards to reporting and auditing. For additional information, please view the attached RMA Reporting and Audits handout that was presented by Mr. David Plutowski.
6. Comments No public comments.
RMA Minutes \ Dec. 15, 2014 \ Page 6 of 7
7. Date/Time/Location of the Next Full Board Meeting Chairman Soto stated that everyone should have received a tentative schedule of meetings for the rest of the year. He proposed the next meeting be held on Wednesday, January 21, 2015, at 9 a.m. at the TxDOT facilities. He asked if anyone had any comments or conflicts with the schedule to email him. Attached is the tentative schedule of meetings for the year.
8. Adjournment of Open Meeting into Executive Session
Chairman Soto then closed the Webb County – City of Laredo RMA meeting at 10:21 a.m. for the Executive Session. He thanked everyone for coming and asked for the general public to step out during the Executive Session. [The Webb County-City of Laredo Regional Mobility Authority Board may retire into Executive Session pursuant of the Texas Government Code, Sections 551.071 – 551.088 to discuss any of the following: (The items listed below are matters of the sort routinely discussed in Executive Session, but the Board may move to Executive Session to discuss any of the items on this agenda, consistent with the terms of the Open Meetings Act, as Amended.)] Section 551.071 Consultation with Attorney Section 551.072 Deliberation Regarding Real Property Section 551.073 Deliberation Regarding Prospective Gifts Section 551.074 Personnel Matters Section 551.076 Deliberation Regarding Security Devices Mr. Soto adjourned the Executive Session at 11:07 a.m. to return to the Webb County – City of Laredo RMA meeting. He then asked the general public to join the Board Members.
9. Adjournment
Jose Murillo made a motion, seconded by Albert Muller, Sr. to adjourn the Webb County – City of Laredo RMA meeting at 11:08 a.m. Motion carried.
RMA Minutes \ Dec. 15, 2014 \ Page 7 of 7
Action Items Previously Discussed
Date Action Item Date Completed
11/17/14 Board members will decide the term limits. 12/15/2014 11/17/14 Board members will decide on the RMA Mission Statement 11/17/14 Legal Responsibilities:
Surety Bonds
Conflict of Interest Policy forms
Procurement Policy (Samples will be discussed at the next board meeting. A RMA standard must be used.)
File an annual Personal Financial Statement
Training on responsibilities under the Open Meetings Act and Publication Information Act
Nepotism laws
Ethics and Compliance Program
11/17/14 Future Services / Facilities Required:
Lease facilities for staff
Banking services (Finance Committee will need to draw up agreement with county to agree how much the $10 fee will go to RMA and then set up an account.)
Legal council
Financial advisory services
Accounting and auditing services
Public informational material
Branding, web site design & maintenance
Inter-local Agreements- TRZ, Toll Equity Bonds, Tolling
Executive Director (job description to be developed and posted when needed with experience in business, management, state policy and TxDOT)
Staffing (Receptionist, secretary (preferably paralegal), executive director and support staff.)
MINUTES FOR THE WEBB COUNTY – CITY OF LAREDO REGIONAL MOBILITY AUTHORITY BOARD OF DIRECTORS MEETING HELD ON DECEMBER 15, 2014 WERE COMPLETED ON THIS THE 4th DAY OF FEBRUARY 2015. Submitted by: Marissa J. Montoya Office Technician TxDOT Laredo Dist.
A. Developed for WCCLRMA by TxDOT – TPP Division in Austin, TX on 12-2-2014. B. For more detailed information on RMAs, see the Texas Administrative Code, Title
43, Part 1, Chapter 26 website: www.sos.state.tx.us and Texas Transportation Code, Chapter 370 website: http://www.statutes.legis.state.tx.us/
Regional Mobility Authority (RMA) Reporting & Audits
1. Items that need TX Transportation Commission/TxDOT approval: a. Approval of a transportation project (TAC §26.32) b. Highway designation to be On-the-state-system (TAC §26.35) c. Allocating maintenance or operation responsibilities to TxDOT
(TAC §26.35) d. Annual Compliance Report (TAC §26.65(a)) e. Annual Project Report (TAC §26.65(b)) f. TxDOT to have access to all operating and financial reports.
2. Other Reports (approved by RMA board and certified by chief
administrative officer of RMA) (TAC §26.61) a. Annual operating & capital budgets, surplus revenue report
i. Submit to city and county within 90 days after beginning of FY or adoption of amended budget
b. Financial reports & Investment reports/independent auditor’s review
i. Submit to city and county within 30 days after disclosure or approval of independent auditors’ report
3. Annual Audit (TAC §26.62) a. Submit to city and county within 120 days after end of FY b. Must be completed by an independent CPA c. Minimum 4 year retention period of all work paper and
reports
1
Regional Mobility Authorities and
Transportation Reinvestment Zones
TxDOT Laredo District Office
December 15, 2014
RMAs and TRZs concepts and applications
Agenda
� RMA—background and next steps
� TRZ—concepts and implementation steps
– Value capture for transportation funding
– Texas TRZs
– TRZ implementation steps
– TRZ analysis
� Case examples
� TRZ implementation in an RMA context
� Conclusion and questions
Workshop on RMA and TRZ Concepts 2
� RMA—background and next steps
2
What’s in the Notebook
• TxDOT RMA Guidebook
• RMA “Getting Started” Flowchart
• RMA Enabling Legislation and Related Statutes
• RMA Sample Documents and Location Listing
• TRZ Case Examples
• Workshop Participant CD-ROM
3Workshop on RMA and TRZ Concepts
RMAs in Texas
Workshop on RMA and TRZ Concepts 4
3
The Basics – Powers of an RMA
Workshop on RMA and TRZ Concepts 5
• Develop transportation
projects.
• Issue revenue bonds.
• Establish tolls.
• Acquire property for
transportation projects.
• Use surplus revenue to
finance local projects.
• Enter into Comprehensive
Development Agreements.
• Apply for federal highway
and rail funds.
• Contract with governmental
entities and Mexico.
• Apply for State Infrastructure
Bank loans.
• Maintain a feasibility fund.
• Set speed and weight limits.
• Enter into agreements with
other entities on behalf of
that entity.
Where Does the Money Come From?
To support operations, revenue can be generated
from:
• Tolls, fares, or other charges from transportation
projects.
• Proceeds from the sale or lease of a transportation
project.
• Proceeds from the sale or lease of property adjoining a
transportation project.
6Workshop on RMA and TRZ Concepts
4
Responsibilities of the Texas
Transportation Commission
• Authorize creation of the RMA.
• Approve connections to the state highway or TxDOT rail networks.
• Establish design and construction standards.
• Introduce auditing, reporting requirements, and ethical standards.
• Authorize agreements with Mexico.
• Approve applications for federal highway and rail funds.
7Workshop on RMA and TRZ Concepts
What Can an RMA Do?
Regional Mobility Authority and
Transportation Reinvestment Zones:
Concepts and Applications
8
• Tolled and non-tolled
roadways
• Passenger/freight rail
• Ferries
• Airports
• Transit systems
• Bridges
• Pedestrian/bicycle
facilities
• Intermodal hubs
• Border crossing stations
• Freight conveyor belts
• Air quality initiatives
• Public utility facilities
• Parking facilities
5
So You’ve Got an RMA – Now What?
9
Bonds & Insurance
• Secure surety bonds for directors and liability insurance coverage.
Bank Accounts
Staff
• Begin hiring staff & consultants
• Executive director
• General engineering consultant
• Legal counsel
• Financial advisors
• Accountants
• Investment bankers/underwriters
• CPAs/auditor
Policies
• Bylaws
• Procurement
• Environmental review.
• Conflict of interest.
• Employee drug and alcohol.
• Use of transportation project (tolls, speed limits, weight limits).
• Public access policy.
• Strategic plan.
MeetingBoard of Directors
• Laredo City Council appoints 4 members.
• Webb County Commissioners Court appoints 4 members.
• Governor appoints Presiding Officer.
• Serve 2 years and may be reappointed at the discretion of the appointing entity.
Workshop on RMA and TRZ Concepts
Successful Strategies
Workshop on RMA and TRZ Concepts 10
Transparency
Not elected governing entities must
operate with absolute transparency.
Creating, making available, and reporting
on clear, thorough policies.
Partnerships
Local, regional and national partnerships
(public and private) help to strengthen
regional cohesiveness and needs.
Project diversity
Different project types can:
• provide capacity
• increase multimodal connectivity
• promote safety
Non-traditional funding &
financial stewardship
Consider non-traditional funding options
for transportation is crucial since
traditional state transportation funding is
proving unreliable.
6
Agenda
� RMA—background and next steps
� TRZ—concepts and implementation steps
– Value capture for transportation funding
– Texas TRZs
– TRZ implementation steps
– TRZ analysis
� Case examples
� TRZ implementation in an RMA context
� Conclusion and questions
Workshop on RMA and TRZ Concepts 11
� TRZ—concepts and implementation steps
Value Capture leverages real estate
potential of infrastructure
• Innovative financing method that leverages the
real estate potential brought by infrastructure
improvements.
• Allows the public sector recovering increments
in real property values attributed to public
improvements rather than landowner actions.
• Used to finance transit investments in the U.S.
but its application to finance roadways is sparse.
12Workshop on RMA and TRZ Concepts
7
Texas TRZs are one of the first U.S.
roadway-specific applications of VC
• Enabled by legislation
passed in 2007 (amended in
2011 and 2013).
• Allow local governments to
leverage multiple funding
sources.
• Local entities sell bonds
secured by incremental tax
revenues.
Local TRZ Funds
State
Shadow Tolls
User Tolls
Traditional
Construction
Funds
13Workshop on RMA and TRZ Concepts
TRZ Legal Framework—the Basics
• A Texas TRZ definition:– A designated contiguous zone around a planned transportation
improvement.
– Necessary institutional/legal arrangement to facilitate VC via the property tax mechanism.
– Two types of TRZs allowed under the law: Municipal and County.
• Legislation first approved in 2007 -amended in 2011 & 2013– Senate Bill 1266 (2007)—authorizes the creation of County and
Municipal TRZs.
– House Bill 563 (2011) and SB 1110 (2013)—introduced significant changes that increased implementation flexibility.
– SB 971 (2013)—authorizes Port Authority TRZs, and SB 1746 (2013) authorizes County Energy TRZs.
14Workshop on RMA and TRZ Concepts
8
15
Value Capture Mechanism in a TRZ:
How it works
General Fund
Tax Increment
Account, RUD,
or third party
Tax Rate
(or County tax
abatement)
n
Tax Rate
(or County
abated tax rate)
n
Tax Increment Base = Appraised Value in Base Year
TRZ Life (yrs)
Appraised Property
Value Captured
Appraised
Value
Tax Increment
Base
16Workshop on RMA and TRZ Concepts
9
Legislative Changes Introduced in 2011
Facilitated Implementation
17
Original Legislation ProvisionsSB 1266 (passed in 2007)
New Legislation ProvisionsHB 563 (passed in 2011)
County
TRZs
�Tax increment to be set aside only
through a tax abatement and the
creation of a Road Utility District
(RUD)
�Tax increment can be set aside through a
tax abatement or other form of tax relief
�County can pledge all or part of the
increment to a public or private entity to
pay for project, or create a RUD
Applicable to Applicable to
any TRZ type
�Only real property tax increments
�Required a pass-through
agreement with TxDOT
�Only roadways projects eligible
�TRZ boundaries could not be
modified after designation
�Real property tax increments and
optionally, sales tax increments
�Pass-through agreement is only required
in cases involving sales tax increments
�Any transportation project eligible,
including aesthetic & transit.
�TRZ boundaries can be expanded but not
reduced, after designation
Municipal
TRZs�Required 100% of annual tax
increment to be set aside
�% of annual tax increment to be set aside
is flexible (e.g. 20%, 50%)
Workshop on RMA and TRZ Concepts
Legislative Changes Introduced in 2013
Expand TRZ Options
• SB 1110 – Municipal/County TRZs– Allows creating a TRZ in an adjacent jurisdiction to support a
project located outside of TRZ boundaries.
– De-couple sales tax TRZs from pass-through program.
– Clarify that a TRZ may be formed for “one or more” projects” within a zone.
• SB 971 – Port Authority TRZs– Authorizes port authorities and navigation districts to create TRZs.
– TRZ area must be unproductive/underdeveloped.
– TRZ should “improve the security, movement, and intermodal transportation of cargo or passengers in commerce and trade”.
18Workshop on RMA and TRZ Concepts
10
Legislative Changes Introduced in 2013
Expand TRZ Options
• SB 1747 and HB 2300– County Energy TRZs– Creates Transportation Infrastructure Fund (TIF) administered by
TxDOT ($225 million)• Grants for projects in areas affected by oil and gas production;
– Eligibility to receive TIF grant contingent on:• Establishing a County Energy TRZ (CETRZ)
• Creating a CETRZ advisory board
• County providing matching fund
– Allocation is formula-based• Well completions, weight tolerance limits, oil and gas production taxes, oil
and gas waste
– 100% of tax increment must be pledged and cannot be bonded against – must be transferred to Road Utility Dist.
19Workshop on RMA and TRZ Concepts
Design &
construction
costs
Engineer/
construction
contractor
Facility
manager/
operator
Maintenance
& operation
costs
Financial
institutions/
markets
Debt Repayments
% Tax
increment
payments
Tax Increment Account,
Road Utility District, or
Third Party
City and/or County
Transportation
Reinvestment Zone
Flow of Funds in a TRZ
Pass-through
Payments
TxDOT
Public Entity
(City, County, RMA)
or Agent
• Pass-through
Agreement
• Issue Bonds
Surplus
S.R. Vadali, R.M. Aldrete, A. Bujanda. Transportation Reinvestment Zone
Handbook. 0-6538-P1. Texas Transportation Institute, College Station, TX.
September 2012.
20Workshop on RMA and TRZ Concepts
11
Sequential Implementation
Process for City/County TRZ’s
21
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and Termination
5
Workshop on RMA and TRZ Concepts
1 - Initiation Stage
• Project identification and need:
– Specific economic benefit from projects
– Area eligibility
– Preliminary feasibility analysis
• Developing stakeholder relations and champions.
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and
Termination
5
Workshop on RMA and TRZ Concepts 22
12
Initiation Analysis Framework follows
3 steps
23
Data Collection
1
Definition of TRZ
Boundaries
2
Value Capture
(financial)
Analysis
3
• Central Appraisal District – Appraisal and Geographic Data.
• State Comptroller – # of parcels and taxable values.
• Texas A&M Real Estate Center.
• Dataset analysis on GIS.
• TRZ scenarios based on parcel distance from centerline of
roadway: 1-mile, ½ mile, and ¼ mile.
• Each property is indivisible, so properties with a centroid
inside the buffers are included in TRZ.
• Forecast value and development trends for five categories of
real property: 1.Commercial, 2.Industrial, 3.Residential,
4.Agricultural, and 5.Totally Exempt.
• Estimate value capture cash flows.
Workshop on RMA and TRZ Concepts
2. Formulation Stage
• Define boundaries, zones, parcels.
• Establish base year for tax increment collection.
• 60 day notice.
• Refine feasibility analysis.
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and
Termination
5
Workshop on RMA and TRZ Concepts 24
13
TRZ Boundaries
• Must be contiguous
• Unproductive/underdeveloped region
• Practical considerations drive boundaries but
not beyond 1 mile radii.
– Political will and revenue
• Boundaries may be established prior to
knowing exact project limits.
Workshop on RMA and TRZ Concepts 25
14
Steps to Operationalize Increment
Capture1. Establish Base Year and Base Year Appraised Value.
a. Year the TRZ is established.
b. Total appraised value of all real property taxable in the TRZ is defined as the base year
appraised value (tax increment base).
c. If applicable, the total amount subject to sales tax revenues in the TRZ.
2. Determine Final Captured Appraised Value and/or Sales Tax Increments.
a. Captured Appraised real property value.
b. Captured Sales Tax Increment.
3. Determine Total Tax Increment.
a. Amount of ad valorem and sales taxes levied and collected by the municipality or County
for the year.
b. Use the appropriate tax rates.
4. Determine Tax-Increment Set Aside
a. Use % of Tax Increment to determine revenue share (0-100%).
5. Recognize Pre-Existing Value Capture Arrangements.
a. Reduce revenue that may be payable to pre-existing active value capture agreements in
the boundary (through TIF/TIRZ or other value capture arrangements).
Workshop on RMA and TRZ Concepts 27
3. Adoption Stage
• Public hearings
• Ordinance (Municipal TRZ)
• Decree of the County Commissioner’s Court
(County TRZ)
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and
Termination
5
Workshop on RMA and TRZ Concepts 28
15
Final Steps for Implementation
• After
1) analyzing new project costs,
2) considering joint funding agreements among jurisdictions, and
3) deciding the % of annual revenue dedicated to TRZ account.
• Conduct a final revision and assess the impact, if any, on expected revenues and general revenue fund.
• Finally, extract and document parcels to be included in the approval of the final TRZs—list of parcels for:
– City Ordinances
– County Commissioners' Court Orders
29Workshop on RMA and TRZ Concepts
4. Implementation
• Develop a project queue for payout purposes.
• Financing aspects
• Inter-local agreement (RMA, inter-
jurisdictional).
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and
Termination
5
Workshop on RMA and TRZ Concepts 30
16
5. Monitor/Evaluation
• Project monitoring and evaluation
• Dissolution of TRZ : – December 31 of the year of compliance with
contractual requirement OR
– December 31 of the 10th year after establishment if not used for the purpose
31
Initiation
1
Zone Formulation
2
Adoption
3
Implementation
4
Evaluation and Termination
5
Workshop on RMA and TRZ Concepts
TRZs vs. Tax Increment Financing
• TRZs are similar to Tax-Increment-Finance (TIF)
and both are based on value capture principles.
• However, TRZs are Different from TIF because:
– TRZs cannot be established by petition, while TIF can
be established by landowners
– Revenues not portable across TRZs, but often
portable across TIFs in same jurisdiction
32Workshop on RMA and TRZ Concepts
17
Agenda
� RMA—background and next steps
� TRZ—concepts and implementation steps
– Value capture for transportation funding
– Texas TRZs
– TRZ implementation steps
– TRZ analysis
� Case examples
� TRZ implementation in an RMA context
� Conclusion and questions
Workshop on RMA and TRZ Concepts 33
� Case examples
Recent TRZ Case Examples
Location Project Type RMA Participation
City of El Paso•Road projects
•Single jurisdictionYes
Hidalgo County•Road project (Hidalgo Loop)
•Single jurisdiction Yes
City of Forney•Road project
•Single jurisdictionNo
El Paso County, Cities of
Socorro and Horizon
•Road project
•Multiple jurisdictionsYes
Port of Corpus / Counties
of Nueces & San Patricio
•Bridge project
•Multiple jurisdictionsNo
Workshop on RMA and TRZ Concepts 34
18
Case Example Lessons Learned
• Local governments in Texas have successfully used TRZs to fund transportation projects.
• Diverse case examples provide a cross-section of TRZ applications:
– Roadway and bridge projects
– Geographic location
– Project purpose
• Location, location, location … and project purpose are key considerations:
– Locality-specific factors, land use, development, property values and local tax rates.
– How does the project promote development?
Workshop on RMA and TRZ Concepts 35
Agenda
� RMA—background and next steps
� TRZ—concepts and implementation steps
– Value capture for transportation funding
– Texas TRZs
– TRZ implementation steps
– TRZ analysis
� Case examples
� TRZ implementation in an RMA context
� Conclusion and questions
Workshop on RMA and TRZ Concepts 36
� TRZ implementation in an RMA context
19
TRZs encourage inter-agency
coordination
• Institutional Coordination:– Multiple public partners
– Private sector
– Project scope
• Financing Coordination:– Local entities sell bonds
secured by incremental tax revenues
– Local/state agencies and private sector coordinate financing package
Project
Financing
Package
TR
Z r
ev
en
ue
TR
Z r
ev
en
ue
Sh
ad
ow
to
lls
Toll
re
ve
nu
e
Oth
er
Oth
er
37Workshop on RMA and TRZ Concepts
RMAs facilitate coordination and TRZ
project implementation
RMAs provide local agencies with valuable flexibility for project implementation
• Financial—issue/acquire own debt (eg. SIB loans, bonds) and use multiple sources of funds (eg. TRZ revenue, tolls, traditional funds)
• Jurisdictional—can implement projects across jurisdictions and outside their jurisdiction
• Contractual—can use complex contractual agreements with private contractors/developers (Traditional, Design-Build, P3s, etc.)
38Workshop on RMA and TRZ Concepts
20
RMA Participation Examples
• City of El Paso TRZ – Camino Real RMA– Acquired SIB loan secured by City of El Paso TRZ Revenue
– Multiple sources of funding (TRZ, pass-through, other funds)
• Hidalgo County TRZ – Hidalgo County RMA– Issue/acquire debt secured by County TRZ revenue
• El Paso County, Horizon City and Town of Socorro
Multi-jurisdiction TRZs – Camino Real RMA– Coordinate project implementation across multiple jurisdictions
and outside its own jurisdiction
– Issue/acquire debt secured by TRZ revenue from all three partner local governments
39Workshop on RMA and TRZ Concepts
Agenda
� RMA—background and next steps
� TRZ—concepts and implementation steps
– Value capture for transportation funding
– Texas TRZs
– TRZ implementation steps
– TRZ analysis
� Case examples
� TRZ implementation in an RMA context
� Conclusion and questions
Workshop on RMA and TRZ Concepts 40
� Conclusion and questions
21
Presenter
Arturo Bujanda
– Associate Research Scientist
– (915) 532-3759 Ext. 14116,
Coauthors
Rafael Aldrete
– Senior Research Scientist
– (915) 532-3759 Ext. 14101
Tina Geiselbrecht
– Associate Research Scientist
– (512) 407-1116 Ext. 12116,
Regional Mobility Authority and
Transportation Reinvestment Zones:
Concepts and Applications
41
Contact information