Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, September 5, 2008
10:00 a.m.

San Marcos Activity Center
501 E. Hopkins
San Marcos, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, September 5, 2008. Chairman Sid Covington called the meeting to order at 10:13 a.m.

   Participants:

   • Sid Covington, Chair
   • Tullos Wells, Vice Chair
   • Tommy Adkisson
   • Gloria Arriaga
   • Hal Baldwin
   • Jeff Barton
   • Mary Briseño
   • Mariano Camarillo
   • Sheryl Cole
   • Will Conley
   • John Cowman
   • Patty Eason
   • Debbie Ingalsbe
   • Carroll Schubert
   • John Thomaides
   • Jeff Wentworth
   • Pat Wiggins

   Other participants included Ross Milloy, Bill Bingham, Alison Schulze, Jennifer Moczygemba, Mike Marler and Don Karban.

2. Chairman and Member Comments

   Chairman Covington welcomed new Board member Councilmember Sheryl Cole who was appointed July 24 to represent the City of Austin. Chairman Covington introduced State Representative Patrick Rose and Windcrest Mayor Jack Leonhardt and thanked them for their continued support of the Rail District.

   Chairman Covington reported on his presentation to the El Paso Metropolitan Planning Organization on August 29. Chris Blewett, project director of the New Mexico Rail Runner commuter rail system, was also at the MPO meeting and provided an update on their system. The Rail Runner extension from Albuquerque to Santa Fe and is set to open by the end of 2008, on schedule and on budget at a cost of about $7 million per mile. Ridership on all routes is exceeding expectations. The University of New Mexico will fund a station for special events with additional student-use stops planned in the near future.

3. Consider Approval of June 6, 2008 Board Meeting Minutes

   Upon a motion by Gloria Arriaga and second by Commissioner Jeff Barton, the June 6 meeting minutes were unanimously approved. Councilmember Sheryl Cole abstained.

4. Committee Reports

   A. Branding Proposal Evaluation Committee Meeting August 7, 2008
   Committee Chair Mary Briseño reported on two key items discussed by the Committee:
   Contract for Website Services: The Committee unanimously recommended extending A3 Design’s contract for website/printing services for 1 year to September 2009. The recommendation was forwarded to the Program Management Oversight Committee for consideration and action on August 15.
   Branding Services Proposals: The Rail District received 17 proposals in response to the Request for Proposals (RFP) for Branding Services. The Committee narrowed the field of 17 proposals to a list of 4 firms to be interviewed. Ms. Briseno thanked the Committee and staff for their hard work.

   B. Branding Proposal Evaluation Committee Meeting August 21, 2008
   Committee Chair Mary Briseño reported that the Committee—Mayor Hal Baldwin; Commissioner Jeff Barton; Senator Jeff Wentworth; Councilmember Pat Wiggins, and herself—interviewed four firms for branding services: KGB Texas, Guerra DeBerry Coody, TateAustinHahn, and Sherry Matthews Advocacy Marketing. All four proposals were outstanding. Following the interviews the Committee voted unanimously to recommend the Board select TateAustinHahn as the lead firm, with KGB Texas added to the TateAustinHahn team as a subconsultant. Both firms subsequently agreed to the teaming arrangement. Discussion and Board action will follow under Agenda Item 11. Chairman Covington thanked the Committee for their good work.

   C. Program Management Oversight Committee Meeting August 15, 2008
   Committee Chair Mariano Camarillo directed the Board’s attention to the meeting summary included in the agenda packet, and reported on the key items discussed by the Committee.
   Bill Bingham briefed the Committee on his July meeting with Union Pacific. Mr. Bingham will repeat his report under Agenda Item 9.
   Contract for Website Services: Upon the recommendation of the Public Information Committee, the Program Management Oversight Committee (PMOC) unanimously approved extending A3 Design’s contract for website and printing services for an additional year to September 2009; there is no fee increase associated with the contract extension. The PMOC authorized Ross Milloy, Interim Executive Director, to execute the contract.
   Contract for Program Management and Technical Services: The PMOC voted unanimously to recommend the Board approve amendments to the Jacobs Cater Burgess Master Contract and Work Authorization. Discussion and Board action on the item will follow under Agenda Item 7.
   FY09 Budget: The PMOC voted unanimously to recommend approval of the draft FY09 budget to the Finance Committee. Discussion and Board action on this item will take place under Agenda Items 4D and 5.
   SH130 Fatal Flaw Analysis: Jacobs Carter Burgess presented the results of the analysis to the PMOC and will present their findings to the Board under Agenda Item 12.
   Station Location Policy: The PMOC reviewed the current policy on locating stations along the preferred route, and discussed recent inquiries by Rail District members to locate stations on alternative rail lines—in particular, the Katy line which diverges from the preferred route in New Braunfels and runs through the east side of San Antonio. The PMOC directed staff to find funding partners to study the passenger rail route on San Antonio’s east side (approximate cost: $500,000), and to develop an internal process and policy for moving stations to different rail routes and bring it back to the Committee for further discussion.

   D. Finance Committee Meeting August 28, 2008
   Ross Milloy reported on the meeting on behalf of Committee Chair John Clamp. The Committee discussed three key items:
   FY09 Budget: Upon the recommendation of the PMOC, the Finance Committee voted unanimously to recommend the Board approve the draft FY09 budget. Board action will take place under Agenda Item 5.
   Internal Audit: The Committee reviewed the audit results, which found no exceptions, and directed staff to distribute the internal audit report to the full Board. Copies of the report were issued to members at the Board meeting.
   Policy on Annual Dues for New Members: Bill Bingham briefed the Board on the current dues policy, which is $49,500 per year to fund the administrative operations of the Rail District. The Committee decided to make no changes to the policy at this time, but to continue to review the policy in the future as the Rail District moves toward revenue service.

5. Consider and Take Appropriate Action on FY09 Budget
   

   Upon the recommendation of the Finance Committee, the Board voted unanimously to approve the FY09 budget.

6. Consider and Take Appropriate Action on Amendments to Rail District’s Advanced Funding Agreement with Texas Department of Transportation

   Alison Schulze directed the Board’s attention to the Advanced Funding Agreement Amendment #3 in the agenda packet. TxDOT serves as the Rail District’s fiscal agent for the District’s federal funds. The Advanced Funding Agreement (AFA) sets out the terms and conditions for federal funds awarded to the Rail District. Amendment #3 identifies the $1.98 million appropriated by Senator Hutchison for the Rail District in FY06, and states the Rail District will pay a portion ($135,902 as approved by the Board in March 2008) of TxDOT’s San Antonio Freight Study Phase 3.

   Upon a motion by Commissioner Barton and second by Councilmember Pat Wiggins, the Board unanimously approved Amendment #3 to the AFA. Chairman Covington thanked TxDOT for their continued support and assistance.

7. Consider and Take Appropriate Action on Amendments to Jacobs Carter Burgess Master Contract and Work Authorization to Extend Program Management and Technical Services through September 2009
   

   Alison Schulze briefed the Board on the Jacobs Carter Burgess (Jacobs) contract and proposed amendments. The Jacobs contract consists of two documents: a Master Contract that identifies the end date of the contract and the total contract amount, and a Work Authorization that identifies specific work tasks and assigns a dollar amount to each task. Both documents expire on September 30, 2008.

   The amendment to the Master Contract extends the end date of the contract one year to September 30, 2009. No increase in the contract amount ($2.5 million) is proposed. The amendment to the Work Authorization extends the end date of the contract one year to September 30, 2009, amends the amount carried forward from FY07 to FY08, and carries forward the remaining funds (approximately $340,000) for technical services in FY09.

   Board discussion ensued on the services and deliverables Jacobs Carter Burgess will provide in the coming year. Upon a motion by the PMO Committee, the Board unanimously approved the amendments to the Jacobs Cater Burgess Master Contract and Work Authorization.

8. Consider and Take Appropriate Action on Resolution of Support for the Texas Rail Relocation and Improvement Fund

   Ross Milloy directed the Board’s attention to a resolution in the agenda packet which asks the Texas Legislature to set aside $200 million per year to finance the Texas Rail Relocation and Improvement Fund. The fund was created by the 2005 Legislature, but the 2007 Legislature failed to fund it. A statewide coalition has formed to ask the Legislature to act in the upcoming 2009 session. Staff is asking the Rail District as well as all local governments in the Austin-San Antonio Corridor to pass resolutions of support by the end of October. The resolutions will be forwarded as a package to the Legislature’s leadership.

   Board discussion followed on the statewide coalition supporting the Rail Relocation Fund and on the wording of the resolution. Board members asked that clauses be inserted in the resolution on benefits to the environment, to energy independence, and to air quality. Upon a motion by Commissioner Adkisson and second by Mayor Baldwin, with friendly amendments by Commissioner Conley and Councilmember Cole on wording to be added, the Board unanimously approved the resolution.

9. Consider and Discuss July Meeting with Union Pacific Railroad

   Bill Bingham directed the Board’s attention to a memo on the July 11 meeting included in the agenda packet, and summarized key points of the meeting with Union Pacific. Mr. Bingham noted that UP’s key management and executive-level staff attended the meeting. The focus of the meeting was the rerouting of UP’s through freight which is a large part of the train traffic on the Austin-San Antonio line. A small working group will be formed to continue discussions and to review TxDOT’s freight studies as they are released.

   Mr. Bingham reiterated that the Austin-San Antonio segment is a critical rail line for UP and vital to its business plan. It is very encouraging that UP is taking an active role in the rerouting discussions to develop solutions that will benefit all parties. The issues are immensely complex and discussions will be protracted. The Texas Rail Relocation Fund is vital to continued discussions.

   Board discussion ensued. Chairman Covington noted that the meeting was a watershed event for the Rail District and commended Mr. Bingham’s and Mr. Marler’s efforts. Mr. Marler added that the Rail District’s representatives understand UP’s needs and speak their language, and the Rail Relocation Fund provides a mechanism that shows funding interest and commitment. Both of these factors will continue to keep UP engaged and moving forward.

10. Presentation on Results of Phase 2 San Antonio Region Freight Study
    

    Jennifer Moczygemba, Director of TxDOT’s Multimodal Section, presented the results of the Freight Study. The study looked at the existing freight system in the Austin-San Antonio region, located bottlenecks, and identified improvements to alleviate the bottlenecks. The study identified $3.8 billion in needs, which include grade separations ($1.2 billion), grade crossing closures ($3.5 million), improvements to existing railroad infrastructure ($183 million), and new rail corridors ($1.4-$2.4 billion). TxDOT also quantified the direct public benefit of each category of improvements.

    The study identified existing freight customers, alternate locations for through-freight bypasses, and the impact of rerouting through freight on the existing train counts in the Austin-San Antonio corridor. The study also identified the public and private costs of each alternative.

    Board discussion followed on the study results and clarification of the costs included in the calculation of “direct public benefit.” Vice Chair Wells requested that Mr. Milloy draft a brief memo that puts the costs in context and send the memo to the full Board along with the TxDOT presentation.

11. Consider and Take Appropriate Action on Selection of Consultant for Branding Services

    Mary Briseño, Chair of the Branding Proposal Evaluation Committee, reported that the Committee met on August 21 to hear presentations from the four finalists for branding services. TateAustinHahn and KGB Texas were the winning proposers and the two firms agreed to partner on the project for a strong representation of the entire corridor. Branding will communicate the public benefits of the rail project to its stakeholders. The scope of work includes stakeholder research throughout the corridor, interviews, development of a concept and communication plan, and an image for the Rail District. Results are expected in spring 2009. Ms. Briseño introduced Jeff Hahn of TateAustinHahn and Jeff Coyle of KGB Texas.

    The Committee unanimously recommended the Board select TateAustinHahn as the lead firm, with KGB Texas added to the TateAustinHahn team as a subconsultant, and authorize staff to negotiate a contract. Upon the motion by the Committee, the Board unanimously approved the TateAustinHahn/ KGB Texas team for branding services and authorized staff to negotiate the contract.

12. Consider and Take Appropriate Action on Fatal Flaw Analysis of SH 130 Corridor

    Don Karban, Project Manager for the Jacobs Carter Burgess planning and engineering team, distributed the final report to Board members and presented the results of the high-level fatal flaw analysis of the SH 130 corridor as a possible future route for passenger rail service. The SH 130 corridor is 89 miles in length between Georgetown and Seguin. The corridor includes two separate toll road construction projects: Segments 1-4 (Georgetown to south Austin), which was completed in 2008, and Segments 5-6 (south Austin to Seguin) which is still in design and expected to be completed in 2012. To serve the City of San Antonio, rail service would also have to be implemented on existing freight lines between Seguin and south San Antonio, roughly 45 miles.

    The analysis identified three alignment alternatives for passenger rail: inside the center median, outside the frontage road, and between the frontage road and mainlanes. Jacobs Carter Burgess identified constraints and fatal flaws in each alternative, and determined the only viable option is inside the center median. Segments 1-4 were designed to accommodate passenger rail, the median is clear and passenger rail is feasible. However, Segments 5-6 were not designed to accommodate passenger rail—for example, the vertical clearance at bridges is too low to accommodate rail cars, and obstructions under bridges would not allow rail. Segments 5 and 6 are still under design, but it is unlikely the two southern segments will accommodate passenger rail; thus, these two segments should be considered fatal flaws for rail service. In accordance with direction from the PMO Committee, staff sent a letter to TxDOT requesting that the design of Segments 5-6 be modified to make the segments rail compatible.

    Committee discussion ensued on the design of Segments 5 and 6. The Rail District will wait on TxDOT’s response on modifying the design of Segments 5 and 6 before proceeding with next steps.

13. Financial Report

    Ross Milloy summarized two financial reports in the agenda packet: the third quarter statement for FY08 and the reconciliation report.

14. Legislative Update

    Bill Bingham reported that he has drafted the legislation to amend the Rail District statute to allow new members to join the District. The legislation will be introduced in the 2009 session.

15. Other Business

    There was no other business.

16. Public Comment

    There were no public comments.

17. Adjourn

    Chairman Covington reminded the Board the next Board meeting will be on December 5, 2008 at 10:00 a.m. at the Activity Center in San Marcos. There being no further items, the meeting adjourned at 12:25 p.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, June 6, 2008
10:00 a.m.

San Marcos Activity Center
501 E. Hopkins
San Marcos, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on
   Friday, June 6, 2008. Vice Chair Tullos Wells called the meeting to order at 10:14 a.m.

   Participants:

   • Tullos Wells, Vice Chair
   • Gloria Arriaga
   • Hal Baldwin
   • Jeff Barton
   • Lisa Birkman
   • Mary Briseño
   • Mariano Camarillo
   • Will Conley
   • John Cowman
   • Gerald Daugherty
   • Debbie Ingalsbe
2. Carroll Schubert
3. John Thomaides
4. Jeff Wentworth
5. Pat Wiggins

Other participants included Ross Milloy, Bill Bingham, and Alison Schulze.

6. Chairman and Member Comments

   Vice Chairman Wells noted that Chairman Covington is in New Mexico. Mr. Wells reported that due
   to the rising cost of gas, mass transit systems nationwide are breaking ridership records. He then
   introduced Tony Kimmey with Jacobs Carter Burgess, Clif Davis’ replacement as Project Director of
   the Planning & Preliminary Engineering Team, and Mike Marler, Jacobs’ Rail Group Manager.

   Councilmember John Thomaides welcomed Board members to San Marcos and thanked local
   citizens for attending the Board meeting.

   Commissioner Jeff Barton announced the Alliance for Public Transit in Austin is promoting mass
   transit and has expressed interest in passenger rail service between Austin and San Antonio.

   Senator Jeff Wentworth reported that TxDOT annually tracks out-of-state tourist destinations in
   Texas and the top four destinations are in the Austin-San Antonio corridor: 1) the Alamo in San
   Antonio, 2) the Riverwalk in San Antonio, 3) the Outlet Mall in San Marcos, and 4) the State Capitol
   in Austin.

7. Consider Approval of March 7, 2008 Board Meeting Minutes

   Upon a motion by Gloria Arriaga and second by Commissioner Debbie Inglasbe, the March 7
   meeting minutes were unanimously approved.

   Vice Chair Wells asked Ross Milloy to brief the Board on the background and current status of the
   passenger rail project, in advance of the remaining agenda items. Mr. Milloy reported that when the
   Rail District determined it would probably not qualify for the Federal New Starts Program, the
   District began to pursue two separate strategies: initiate interim passenger service from San Antonio
   to Georgetown (short-term strategy), and expand to full service once Union Pacific’s through freight
   is relocated to a new corridor (long-term strategy). The Rail District’s goal for starting service is
   2011-2012. To implement interim service the Rail District began discussions with Amtrak, and
   Amtrak and TxDOT are currently negotiating a contract to conduct a feasibility study. The Rail
   District also met with Union Pacific (UP), which will be reported in greater detail in Agenda Item 9.
   Additionally, the Capital Area Metropolitan Planning Organization (CAMPO) recently awarded the
   Rail District $10 million (which includes $2 million from the Rail District as required matching
   funds) in fiscal years 2009 and 2010. The CAMPO award partially matches the $20 million award
   from the San Antonio-Bexar County MPO for FY 2011 and FY 2012. When CAMPO funding for
   FY 2011 and FY 2012 becomes available, the Rail District will apply for an additional $10 million.

   The long-term freight relocation effort includes two studies on relocation of the UP’s through freight.
   TxDOT’s Phase 2 Freight Rail Study, to be issued in July, examines various alignments that may be
   suitable for UP and looks at the implications on a broader level. The Phase 3 Freight Rail Study will
   be discussed in detail under Agenda Item 7. Additionally, the Rail District has organized a statewide
   coalition to encourage the legislature to allocate at least $200 million per year to finance a bond
   program that will fund rail relocation projects. TxDOT has identified $18 billion statewide in rail
   chokepoints, including critical projects in Austin-San Antonio, Dallas, El Paso, and Houston. Mr.
   Milloy asked Board members to encourage their individual state senators and representatives to
   support financing the Rail Relocation Fund during the upcoming session.

8. Report on Status of Appointments to the Board

   Bill Bingham reported the Rail District has 20 Board members, all 2008 Board appointments have
   been made and oaths have been executed, with the exception of the City of Austin which is scheduled
   to make a new appointment after the City Council runoff election on June 14.

9. Committee Report

   A. Executive Committee Meeting May 2, 2008

   Mariano Camarillo, reporting on behalf of Executive Committee Chair Sid Covington, directed the
   Board’s attention to the summary of the Executive Committee meeting included in the agenda packet.
   Mr. Camarillo reported on four key items discussed by the Committee:

       • Request for Proposals (RFP) for Branding Services: The Public Information
   Committee recommended—and the Executive Committee unanimously approved—
   issuing an RFP for branding services. Discussion and Board action on the RFP will
   follow in Agenda Item 6.
       • Carter-Burgess proposal to conduct a fatal flaw analysis of the SH 130 corridor: On
   April 18 the Program Management Oversight Committee approved a contract with
   Carter-Burgess to conduct a fatal flaw analysis of SH 130; on May 2 the Executive
   Committee concurred. The analysis will look at the SH 130 corridor as a possible
   future passenger rail corridor—rail in SH 130 would not be in lieu of rail in the UP
   corridor. TxDOT suggested reviewing the route in light of enormous growth along
   SH 130. The contract was executed on May 14, and results are expected in August
   2008.
       • Amtrak Feasibility Study: Amtrak will begin studying the feasibility of improving
   intercity passenger rail service in the UP corridor. Preliminary study results are
   expected in October 2008. Bill Bingham noted the contract is under review at TxDOT
   and expected to be executed soon.
       • TxDOT’s San Antonio Freight Study, Phase 3: TxDOT has completed two phases of
   the freight study. Phase 3 will determine the feasibility of using the existing UP
   freight corridor for intercity passenger rail once UP through freight is relocated. The
   Rail District will fund a portion of the Phase 3 study due to TxDOT budget
   constraints. Discussion and action on the Phase 3 study will occur under Item 7.

   B. Public Information Committee Meeting May 14, 2008

   Committee Chair Mary Briseño directed the Board’s attention to the meeting summary included in
   the agenda packet. The Committee approved an RFP for branding services and agreed on a process
   for evaluating RFPs and selecting a consultant. The RFP will be discussed further in Agenda Item 6.

10. Consider and Take Appropriate Action on Request for Proposals (RFP) for Branding
    Services
    

    Mary Briseño stated the purpose of the RFP for Branding Services is to give the Rail District traction
    in terms of identity, establish a name that is easier to understand and will communicate the purpose
    and function of the Rail District, and create an image that increases public awareness. The Public
    Information Committee met March 28 and May 14 to develop the RFP and approved the final RFP
    for Branding Services on May 14. On May 20, Board Chair Covington appointed five Board
    members to the Proposal Evaluation and Selection Committee: Mary Briseño, Chair; Mayor Hal
    Baldwin; Commissioner Jeff Barton; Senator Jeff Wentworth; and Councilmember Pat Wiggins. On
    May 2, the Executive Committee voted unanimously to send an RFP for Branding Services to the
    Board for approval.

    Upon Board approval, the RFP will be issued on June 11, and responses will be due on July 23. In
    August 2008, the Proposal Evaluation and Selection Committee will meet to review the proposals and
    interview shortlisted candidates. The results will be presented to the Board in September for
    selection of a branding consultant.

    Upon the recommendation of the Public Information Committee and second by Commissioner Will
    Conley, the Board voted unanimously to approve issuing an RFP for Branding Services. Vice Chair
    Wells commended Ms. Briseño for her leadership on the branding effort.

11. Consider and Take Appropriate Action on TxDOT Freight Mobility Study, Phase 3

    Bill Bingham briefed the Board on TxDOT’s freight study, which is being conducted in three phases.
    The study analyzes the freight rail system and freight operations from south of San Antonio to
    Taylor, which includes the proposed route for most of the Austin-San Antonio intercity passenger rail
    system. Phase 1 is complete and includes an inventory of the freight rail system and freight
    operations. Phase 2 identifies alternative freight routes; the final draft is under review and expected
    to be released in July 2008. Phase 3 is directly applicable to the Austin-San Antonio system and will
    determine the feasibility of using the region’s existing freight rail lines for passenger rail. Phase 3
    was put on hold due to TxDOT’s budget constraints; but, this phase is critical to the Rail District and
    it would be a worthwhile expenditure to contribute to the study in order to move it forward. The
    proposal before the Board is to contribute funds to the Phase 3 study, which will be conducted by
    TxDOT and its consultants. The Rail District will be engaged throughout the study.

    Ross Milloy noted the Program Management Oversight Committee voted unanimously to participate
    in the Phase 3 study. The Rail District will contribute $135,902; the total cost of the study is
    $206,606. The Rail District will be an integral part of the study via input on the study parameters,
    participation in committee meetings, and reviewing results. Vice Chair Wells noted that in recent
    years the Rail District has become a leader in freight mobility and relocation issues, and will continue
    to play a leadership role in the Phase 3 study.

    Upon a motion by the Program Management Oversight Committee and second by Mayor Hal
    Baldwin, the Board unanimously approved funding the Phase 3 Freight Mobility Study and
    authorizing the Executive Director to execute a contract with TxDOT.

12. Consider and Take Appropriate Action on Jacobs Carter Burgess Proposal to Prepare
    Texas Emissions Reduction Plan (TERP) Application
    

    Ross Milloy reported that due to Senator Wentworth’s leadership, the Texas legislature made certain
    rail projects eligible for funding through the Texas Emissions Reduction Plan (TERP) program—a
    program designed to improve air quality. On behalf of the City of San Marcos, the Rail District
    pursued funding from TERP to replace at-grade rail crossings with grade-separated crossings. TERP
    regulations require strict monitoring and reporting for 15 years, and repayment of the TERP funds if
    the air pollutants are not removed. Based on these findings, the City of San Marcos and the Rail
    District decided not to pursue TERP funding; but, to work with the Texas Commission on
    Environmental Quality (TCEQ) on application requirements, and to pursue a legislative approach
    during the 2009 session. As such the item requires no action at this time.

13. Report on Status of Potential Intercity Passenger Rail Opportunities
    

    Ross Milloy directed the Board’s attention to a memo in the agenda packet that summarizes the Rail
    District’s May 7 meeting with Union Pacific and TxDOT. Union Pacific is anxious to move out of its
    existing corridor and wants to form a working group with TxDOT, Rail District and Union Pacific
    staff to discuss relocation phasing and costs. Mr. Milloy noted that regardless of the amount spent to
    upgrade the existing rail corridor to add capacity for interim passenger service, the public will realize
    a benefit in the long run when the Rail District eventually takes control of the rail line and implements full passenger service. Additionally, the improvements can be fully funded through the
    Railroad Rehabilitation and Improvement Financing (RRIF) Program, a federal loan program.

    Bill Bingham noted that the Rail District’s ability to operate passenger rail service in the UP corridor
    is fundamentally tied to the UP relocation effort—one can’t be done without the other. UP owns the
    rail corridor and passenger rail would interfere with its business of moving freight; however, there are
    substantial public safety and economic benefits to moving UP’s through freight out of the city centers
    along the corridor. In the past few years UP has not been willing to discuss the Rail District’s
    proposal, but the recent meetings have been productive, key staff are engaged, and parameters are
    being established for meaningful discussions. All of the key stakeholders are encouraged.

    Vice Chair Wells reiterated that relocating UP’s through freight is critical for passenger service, but
    UP’s local freight service will remain in the corridor; thus a key issue will be dispatch rights—that is,
    control of train departures and schedules.

    Board discussion followed on the benefit of relocation to UP and why UP would consider moving its
    through freight to a new corridor. Ross Milloy stated the benefits to UP are increased capacity,
    greater efficiency, and less liability. Mr. Milloy highlighted several difficult issues for UP in the
    existing corridor:

        • Capacity: There are 136 problematic grade crossings between San Antonio and Round
    Rock. UP’s capacity is constrained in several places by tight curves and steep slopes that
    require UP to add locomotives to navigate steep grades north of the Colorado River.
    Finally, UP anticipates a dramatic increase in NAFTA trade in the coming decades.
        • Efficiency: UP currently travels at 17 mph in the existing corridor; relocation to a grade-
    separated corridor could increase speeds to 79 mph, which creates efficiency and cost
    savings.
        • Liability: The number of at-grade crossings and safety issues regarding transportation of
    hazardous materials through densely populated areas increase UP’s liability.

    Board discussion ensued on the public benefits (congestion relief, safety issues, rerouting hazardous
    materials) and the private benefits (increased speeds equal increased capacity and a competitive
    advantage with truck trade; safer and more efficient routes in less populated areas) of relocating UP.
    Commissioner Gerald Daugherty requested data on the number of at-grade crossings in each city
    along the proposed route, which Alison Schulze agreed to send. The Board also requested cost data
    on UP relocation as it becomes available. Councilmember John Thomaides reported local freight
    impacts in San Marcos: 2 overpasses over the rail line cost $15 million each, 5 freight cars carrying
    hazardous material recently derailed raising safety issues, 10,000-15,000 students commute daily to
    Texas State University, and noise issues are affecting quality of life.

14. Financial Report

    Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the second
    quarter statement for FY08 and the reconciliation report. Mr. Milloy noted the District’s finances
    remain on budget.

15. Legislative Update
    

    Ross Milloy reported on preparations being made for the 2009 legislative session: Bexar County
    Judge Nelson Wolfe has agreed to chair the statewide rail relocation coalition; and a finance working
    group is reviewing state revenue sources and collaborating on funding of the relocation effort.

16. Other Business

    Alison Schulze directed the Board’s attention to the agenda packet and the May 16 letter from Jacobs
    Carter Burgess regarding staff changes. Tony Kimmey, located in Dallas, is the new Project Director
    for the Planning & Preliminary Engineering Team. Don Karban, located in Austin, replaces Tom
    Shelton as Project Manager. Mike Marler, Jacobs’ Rail Group Manager, will be a key member of the
    team.

17. Public Comment

    Jennifer Moczygemba, Director of TxDOT’s Multimodal Division, reported on several items:
        • Amtrak Feasibility Study: The contract between TxDOT and Amtrak is currently under
    review by Amtrak’s legal department.
        • Land use impacts of Union Pacific relocation: UT’s Center for Transportation Research
    just completed a rail corridor preservation study.
        • Cost of UP relocation: Cost estimates are included in TxDOT’s Phase 2 Freight Study.
    The study is complete and under review by the railroads. Upon completion, TxDOT will
    make the information available.

18. Adjourn

    Vice Chairman Wells announced the next Board meeting will be on September 5 at 10:00 a.m. at the
    Activity Center in San Marcos. There being no further items, the meeting adjourned at 11:29 a.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, March 7, 2008
10:00 a.m.

Alamo Area Council of Governments (AACOG)
8700 Tesoro
San Antonio, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, March 7, 2008. Chairman Covington called the meeting to order at 10:06 a.m.

   Participants:

   • Sid Covington, Chair
   • Tommy Adkisson
   • Gloria Arriaga
   • Hal Baldwin
   • Jeff Barton
   • Mary Briseño
   • Will Conley
   • John Cowman
   • Patty Eason
   • Debbie Ingalsbe
   • Carroll Schubert
   • Jeff Wentworth
   • Pat Wiggins

   Other participants included Ross Milloy, Bill Bingham, and Alison Schulze.

2. Chairman and Member Comments

   Chairman Covington introduced new Board member, Leander Mayor John Cowman, who represents Austin’s Capital Metropolitan Transportation Authority. Mr. Covington announced the Texas Transportation Forum will take place in Austin on April 20 – 22, 2008. The deadline for the discounted-registration rate is March 7. Registration is available on-line.

   Councilmember Patty Eason reported the results of the City of Georgetown’s Quality of Life survey. The #1 issue was traffic. Transportation solutions ranked as follows, in order of preference: 35% in favor of commuter rail, 26% in favor of HOV lanes to Austin, 16% for fixed-route bus service within the city, and 16% for bus service to Austin. In addition, the survey results indicated people were willing to pay higher taxes for traffic solutions to fix the problems. There were no other comments from Board members.

3. Consider Approval of December 7, 2007 Board Meeting Minutes

   Upon a motion by John Clamp and second by Tullos Wells, the September 7, 2007 meeting minutes were unanimously approved.

4. Committee Report: Rules & Procedures Committee Meeting February 22, 2008

   Mayor Hal Baldwin, Committee Chair, reported the Rules & Procedures Committee consensus items. The Committee recommended two amendments to the State statute:
   • Expand the definition of political subdivisions that may join the Rail District
   • Expand the powers and duties of the Rail District to include “intercity or other types of
   passenger rail service”
   Board action on the amendments will follow under agenda item 8.

   The Committee recommended three amendments to the Rail District’s bylaws:
   • Delete annual certification of Board’s qualifications
   • Delete limitation on size of Executive Committee
   • Delete mail confirmation of meetings
   • Leave as written:
   §11: At least 4 Board meetings per year
   §15(b): Powers of Executive Committee

   The Committee recommended the Board discuss two issues, which will be taken up under agenda items 6 and 7:
   • The role and size of Executive Committee
   • Frequency of Board and Executive Committee meetings

5. Consider and Take Appropriate Action on Amending Bylaws

   Alison Schulze directed the Board’s attention to the material in the agenda packet, which included a summary of the proposed amendments as well as the bylaws with the proposed changes shown in legislative style. Ms. Schulze summarized the Rules & Procedures Committee’s recommended bylaws amendments:
   • §6, pg. 2: Delete annual certification of Board’s qualifications, which isn’t necessary.
   • §15(b), pg. 6: Delete limitation on size of Executive Committee, which currently limits
   the Committee to four members plus the Board Chair and Vice-Chair (delete the word
   “four”). The Board would decide the size of the Executive Committee.
   • §16, pg. 6: Delete mail confirmation of Board meetings, which isn’t necessary.

   Upon a motion by Councilmember Pat Wiggins and second by Councilmember Patty Eason, the Board voted unanimously to amend the bylaws as recommended by the Rules & Procedures Committee.

6. Consider and Take Appropriate Action on Appointment of Executive Committee

   Chairman Covington noted that, in accordance with the bylaws, the Board appoints the Executive Committee and the Board Chair appoints all other committees. Based on the bylaws’ amendments approved in the prior agenda item, there is no longer a limitation on the size of the Executive Committee.

   Mr. Covington directed the Board’s attention to the proposed slate of Executive Committee members (seven members and two alternates) in the agenda packet, and to the assignments on each of the operating committees, which were slightly revised to balance the load on members. Mr. Covington stated he tried to geographically balance the makeup of each Committee and not unduly overload any single member.

   Upon a motion by Carroll Schubert and second by Gloria Arriaga, the Board unanimously approved Chairman Covington’s proposed slate of seven Executive Committee members plus two alternates. Bill Bingham recommended the motion establish the size of the Executive Committee at seven members in addition to electing the Executive Committee members. Upon an amended motion by Carroll Schubert and second Gloria Arriaga, the Board voted unanimously to establish the size of the Executive Committee at seven members and to approve Chairman Covington’s proposed slate of members (Board Chair Covington, Board Vice Chair Wells, Board Secretary Thomaides, Board members Briseño, Camarillo, Eason, and Schubert; and two alternates, Board members Barton and Wentworth).

7. Consider Revised Board Meeting Schedule

   Chairman Covington reported that the Rules & Procedures Committee recommended the Board meet quarterly and the Executive Committee meet monthly as needed. Given the large size of the Board and the length of the corridor, monthly Board meetings have become cumbersome. The smaller Executive Committee is a more manageable size and could more efficiently make day-to-day business decisions. The powers of the Executive Committee are limited by the bylaws; thus, major decisions would still be directed to the full Board, the Board has the authority to overturn Executive Committee decisions, and all Board members would be notified and invited to attend Executive Committee meetings.

   Mr. Covington noted the Rules & Procedures also proposed that all Board meetings be held in San Marcos. Having the meetings in a central location would improve attendance by reducing the drive time for most, and having the meetings at one set location would improve attendance because of the certainty of the meeting location—rotating meeting locations has been confusing to Board members and to the public.

   Board discussion ensued regarding meeting attendance when meetings were held at either end of the corridor and that quarterly meetings reflect the reality of the Board’s meeting schedule over the past two years. Councilmember Patty Eason suggested that Board meetings be physical meetings, not teleconference meetings. Chairman Covington responded that the four Board meetings would require physical attendance, but Executive and other committee meetings would consider teleconferencing as an option.

   Upon a motion by Mayor Hal Baldwin and seconds by Commissioner Will Conley and Commissioner Jeff Barton, the Board unanimously approved quarterly Board meetings, monthly Executive Committee meetings as needed, and all meetings will be held in San Marcos.

8. Consider and Take Appropriate Action on Recommended Legislative Amendments to
   Expand Definition of Political Subdivisions That May Become Members of the Rail
   District and Expand Powers
   

   Bill Bingham briefed the Board on two proposed amendments to the State statute. The first amendment would allow other governmental entities to become members of the Rail District. Under the current state statute, counties, cities over 18,000 in population, metropolitan and rural transportation authorities, and others specified in the statute may join the District. The amendment would allow other government entities such as state universities and regional mobility authorities to become members. The Rules & Procedures Committee recommended that additional entities be given the opportunity to join, but that the size of the Board not increase. Every entity does not need to be on the Board as there is already ample and broad representation.

   The second amendment recommended by the Rules & Procedures Committee would allow the District to provide intercity or other types of passenger rail under the same conditions it is currently authorized to provide commuter rail service. The purpose of the amendment is to provide flexibility on the type of service to be provided and allow the District to fit within any funding source.

   Board discussion followed on whether new members would pay dues (the Finance Committee will consider dues when the issue arises) and if water districts and municipal utility districts would be allowed to join the District.

   Upon a motion by Mayor Hal Baldwin and second by Councilmember Pat Wiggins, the Board voted unanimously to approve the two legislative amendments recommended by the Rules & Procedures Committee.

9. Report on Status of Potential Intercity Passenger Rail Opportunities

   RBill Bingham reported that Amtrak has expressed interest in providing passenger rail service for the Rail District, and summarized recent meetings and correspondence between Amtrak, TxDOT and the Rail District. TxDOT has requested that Amtrak conduct a study on the potential for improving intercity rail service in the corridor. Details on funding, timing and scope of the study are still under discussion. The Rail District will be a partner in the study.

   Amtrak brings two important powers to the process: indemnity in case of accidents and access to Union Pacific’s right-of-way. Planning to-date has assumed Union Pacific’s through-freight would be relocated. Under this new scenario, Amtrak would look at improvements (double track, passing sidings, stations) to be made on the existing UP line to provide extra capacity to run passenger trains in addition to Amtrak’s current service. Amtrak provides an alternative that may allow initial service to begin quicker, although the Rail District will continue to pursue through-freight relocation to increase speeds and capacity on the main UP line.

   Board discussion ensued on the timeline and deliverables of the study, and similar corridor studies being conducted by Amtrak.

10. Financial Report

    Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the first quarter statement for FY08 and the reconciliation report. Mr. Milloy noted the District’s finances remain on budget. An audit of the Rail District’s finances has been completed and the report is available for review. Staff will present the audit report to the Finance Committee at its next scheduled meeting.

11. Legislative Update

    Ross Milloy reported on recent efforts to form a statewide coalition to encourage the legislature to fund the Rail Relocation and Improvement Fund. A funding source will have to be identified for rail relocation. Mr. Milloy commended Senator Wentworth for his continued support and assistance with funding for rail crossing improvements through the Texas Emissions Reduction Program (TERP).

12. Other Business

    Bill Bingham reminded Board members Kim, Ingalsbe, Clamp, Conley, Thomaides and Baldwin that their terms expired on February 1st and they need to be reappointed. A letter will be sent to each appointing jurisdiction that the reappointments should be made as soon as possible and forwarded to the Rail District.

    Chairman Covington reminded the Board that the Capital Area MPO will conduct a public hearing on project requests for federal STP-MM funds—including the Rail District’s request—on March 17. Board members are encouraged to attend and support the funding request.

13. Public Comment

    Jennifer Moczygemba, Director of TxDOT’s Multimodal Division, reported on several items:
    • TxDOT is updating the State Rail Plan in support of the needs for the Rail Relocation and Improvement Fund. Public meetings across the state—including meetings in Austin and San Antonio— are expected to begin in early summer.
    • TxDOT is continuing to work with the Texas Commission on Environmental Quality (TCEQ) on models and information required for the Texas Emissions Reduction Program (TERP), and will make the information available to the Rail District. The application deadline for TERP funds is April 11, 2008.
    • Phase 2 of the San Antonio Freight Study is complete and under review by the railroads. Upon completion of the review, the study will be forwarded to the Board.

14. Adjourn

    There being no further items, the meeting adjourned at 11:11 a.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, December 7, 2007
10:00 a.m.

Alamo Area Council of Governments (AACOG)
8700 Tesoro
San Antonio, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, December 7, 2007. Chairman Covington called the meeting to order at approximately 10:06 a.m.

   Participants:

   • Sid Covington, Chair
   • Tullos Wells, Vice Chair
   • Tommy Adkisson
   • Gloria Arriaga
   • Hal Baldwin
   • Jeff Barton
   • Lisa Birkman
   • Mariano Camarillo
   • John Clamp
   • Will Conley
   • Gerald Daugherty
   • Patty Eason
   • Debbie Ingalsbe
   • Jennifer Kim
   • Carroll Schubert
   • John Thomaides
   • Jeff Wentworth
   • Pat Wiggins

   Other participants included Ross Milloy, Bill Bingham, and Alison Schulze.

2. Chairman and Member Comments

   Chairman Covington introduced and welcomed the newest Board members: Hays County Commissioner Debbie Ingalsbe representing CARTS, Manor Council Member Jamie Allen representing Capital Metro, Commissioner Will Conley representing Hays County, Council Member John Clamp representing the City of San Antonio, and Mayor Hal Baldwin representing the City of Schertz. Mr. Covington noted the Board now includes 20 members representing 17 entities.

   Chairman Covington reported that an orientation workshop for new Board members was conducted on November 26 for the six recently appointed members, and commended staff for their work organizing the workshop. There were no comments from other Board members.

3. Consider Approval of September 7 Board Meeting Minutes

   Upon a motion by John Clamp and second by Tullos Wells, the September 7, 2007 meeting minutes were unanimously approved.

4. Consider and Take Appropriate Action on Status of Appointments to Board and Administration of Oath of Office to Newly Appointed Board Members, and Decision on Board Member Terms

   Bill Bingham explained that the original statute creating the Rail District provided for two-year terms for Board members with all terms ending on the same date. The statute was amended in 2005 to allow the Board to determine the lengths of members’ terms so that one-half of the terms would expire each year. The amended statute allows the Board to achieve staggered terms either by agreement or by drawing lots.

   The Board had previously agreed that the five jurisdictions—San Antonio, Austin, Travis County, Bexar County, TxDOT—that appoint two Board members would be better served by having one member’s term expire each year. Appointees of each of the five entities agreed to terms. The remaining ten Board members determined terms by drawing lots. A one-year term expires February 1, 2008, a two-year term expires February 1, 2009; thereafter, all terms are two-year terms. When his/her term expires, a Board member may be reappointed; there are no term limits.

   By agreement and by drawing, the following Board members’ terms will expire February 1, 2008:

   • Jamie Allen
   • Gloria Arriaga
   • Hal Baldwin
   • Lisa Birkman
   • John Clamp
   • Will Conley
   • Debbie Ingalsbe
   • Jennifer Kim
   • John Thomaides
   • Tullos Wells

   By agreement and by drawing, the following Board members’ terms will expire February 1, 2009:

   • Tommy Adkisson
   • Jeff Barton
   • Mary Briseño
   • Mariano Camarillo
   • Sid Covington
   • Gerald Daugherty
   • Patty Eason
   • Carroll Schubert
   • Jeff Wentworth
   • Pat Wiggins

   Mr. Bingham noted that all members have taken the oath of office and are fully qualified as members. Mr. Bingham read the final order and, upon a motion by Tommy Adkisson and second by Gloria Arriaga, Board terms were unanimously approved. Each jurisdiction will be notified of the terms.

5. Consider Committee Assignments

   Chairman Covington directed the Board’s attention to the list of committee assignments in the agenda packet. Mr. Covington noted that, as Board Chair, he appoints members to the five standing committees: Program Management Oversight, Public Information, Rules and Procedures, Finance, and Freight Rail Relations. He emphasized the importance of the work done at the committee level and noted that committee assignments are effective December 7.
   Chairman Covington stated that, in accordance with the bylaws, the Board appoints the Executive Committee. He asked Board members to review his recommended slate for the Executive Committee, which will be considered at the next Board meeting.

   Lisa Birkman asked if the Executive Committee is set at six members. Chairman Covington noted that the bylaws establish the number of members: “The Executive Committee shall consist of the Chairman of the Board, Vice Chairman of the Board, and four other Board members appointed by the Board.” Additionally, the bylaws require diverse geographic representation—at least two members from the north part of the Rail District and two from the south. The Board could revise the bylaws regarding the Executive Committee and Mr. Covington suggested the Rules and Procedures Committee meet and recommend changes if that’s the will of the Committee.

6. Discuss Various Rail Service Alternatives

   Bill Bingham briefed the Board on recent discussions between Amtrak, TxDOT and the Rail District. To date Rail District plans have been based on the premise that Union Pacific’s through freight would be relocated from the existing mainline to a new rail line thereby freeing capacity for passenger rail service; however, freight rail relocation remains unfunded. Union Pacific (UP) has been reluctant to share its freight traffic data, which the Rail District needs to determine capacity constraints on UP’s existing line. Amtrak recently expressed interest in studying the improvements that would be necessary to allow additional passenger rail service on the UP mainline—e.g., double tracking, passing sidings, signal systems, grade crossings. TxDOT initiated a meeting on November 19 between the Rail District, Amtrak, and TxDOT executive-level representatives to discuss the possibility of providing passenger service. The result of the meeting was that TxDOT, Amtrak and the Rail District agreed to execute a memorandum of understanding (MOU) to study the improvements required to provide passenger service. TxDOT is preparing the MOU.

   Mr. Bingham noted that Amtrak is a federally created corporation with unique powers regarding passenger service: Amtrak can offer passenger service on any Class 1 railroad and it has the power to indemnify railroads from liability involved with passenger train operations. Amtrak recently received additional authority to increase its intercity passenger rail service. Amtrak would be good partner because they have the equipment, crews, and ability to operate passenger service.

   The MOU and subsequent studies do not commit the Rail District to a course of action. Mr. Bingham noted that this rail service alternative is different than previous strategies discussed by the Board, which relied on relocating UP’s through freight. The Rail District could partner with Amtrak to improve the existing rail line and provide interim service as UP’s through freight is relocated.

   Ross Milloy emphasized Amtrak would probably only provide interim service and the new approach would not diminish efforts to relocate UP’s through freight. Mr. Milloy also noted the Railroad Rehabilitation & Improvement Financing (RRIF) Program—a $3 billion federal loan program for the rehabilitation of railroads—granted its first loan two weeks ago to a commuter service similar to the Austin-San Antonio system.

   Chairman Covington noted that Amtrak could operate the service or simply provide equipment and infrastructure. Those details would be determined in the bidding process. Board discussion ensued on TxDOT’s level of interest and involvement; the scope of the studies that would identify improvements needed to provide capacity for passenger service; and the timelines for relocating UP’s through freight and for providing passenger operations.

   Chairman Covington noted the Amtrak approach provides an opportunity to operate passenger service before UP’s through freight is relocated, which is still the long-term goal. Additional discussion ensued on the timeline for starting passenger service, limited federal funding and recent recisions, Amtrak’s grant funds, and coordinating the Rail District’s federal lobbying effort with the lobbying efforts of the individual jurisdictions in the Austin-San Antonio corridor.

   Bill Bingham concluded the discussion by noting the next step for the Rail District is to identify a specific funding request, which is the purpose of the studies with Amtrak and TxDOT.

7. Discuss San Antonio Region Freight Study

   Bill Bingham briefed the Board on TxDOT’s freight rail study in the San Antonio region. The study, which is being conducted in three phases, was expanded to include the Austin region. Phase 1 of the freight study was released in October 2007 and includes a detailed inventory of existing rail lines and rail traffic in the area. Phase 2 of the study is underway and will identify potential track upgrades, alternative rail alignments, and freight flows. The results of Phase 2 are under review by Union Pacific and should be complete by February 2008. Phase 3 of the study has not yet been started and will determine the feasibility of using existing freight rail lines for passenger rail service. The freight study will complement the Amtrak-Rail District studies discussed under the previous agenda item. Mr. Bingham noted in conclusion that the study does not provide a timeline or funding source for implementing passenger rail service. However, the information compiled in the study will help the Rail District refine its cost estimates and schedule, and is a significant step toward achieving the Rail District’s goal of providing passenger service.

   Board discussion ensued. Jennifer Moczygemba, Director of TxDOT’s Multimodal Section, gave a brief overview of the status of Phases 2 and 3 of the study. Phase 2 will be complete once the public and private benefits of freight relocation have been quantified. Phase 3 has been postponed temporarily because of budget issues.

8. Financial Report

   Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the fourth quarter statement and the reconciliation report. Mr. Milloy noted the Rail District’s finances remain on budget with the exception of an overage on legislative services, which was for a study approved by the Board earlier in the year.

9. Legislative Update

   Bill Bingham noted that he had touched on Amtrak’s additional authority and funding in agenda item 6. Ross Milloy stated there is a $100 million federal appropriation for intercity rail that is in conference committee. Additionally, a Congressional study group looking at transportation financing and needs over the next 50 years recommended a $350 billion investment in intercity rail.

10. Other Business

    Ross Milloy briefed the board on recent meetings with transportation leaders in Houston and Dallas on building a statewide coalition in support of the Rail Relocation Fund. In a meeting with Michael Morris, Director of Transportation for the North Central Texas COG, on December 3, Mr. Morris suggested joining forces on several common issues including funding for rail relocation and local option sales tax funding for transit and economic development.

    Ross Milloy thanked Senator Jeff Wentworth for his help during the recent legislative session to make funds in the Texas Emissions Reduction Program (TERP) available for rail. Mr. Milloy noted Carter & Burgess is developing a scope and fee to conduct a study to quantify rail’s emission reductions and to prepare an application for TERP funds. The proposed study will be presented to the Program Management Oversight Committee and ultimately to the Board for action.

    Alison Schulze briefed the Board on the Rail District’s application to the Capital Area MPO for Surface Transportation Program-Metropolitan Mobility (STP-MM) funds, which are discretionary funds awarded by the MPOs. In January 2007, the San Antonio-Bexar County MPO committed $10 million to the Rail District in Fiscal Year 2011 and $10 million in FY 12. An application for STP-MM funds was submitted to the Capital Area MPO in October that requested $5 million in FY 09 and $5 million in FY 10. CAMPO will award the funds in April 2008. At the appropriate time, the Rail District will request $5 million in FY 11 and $5 million in FY 12 from CAMPO, so that by Fiscal Year 2012 each MPO will have contributed $20 million to the project.

    Carroll Schubert welcomed all the new Board members.

    Patty Eason thanked Alison Schulze and Carter-Burgess staff Clif Davis, Tom Shelton, and Allan Zreet for their assistance in developing Georgetown’s Transit Oriented Development regulations.

11. Public Comment

    There was no public comment.

12. Adjourn

    Chairman Covington announced that the January 2008 Board meeting will be cancelled. The next Board meeting will be Friday, February 1, at the Activity Center in San Marcos. Chairman Covington noted the Board may only need to meet quarterly in 2008 and suggested that the Rules and Procedures Committee consider the issue of quarterly meetings. Mr. Covington thanked Board members and the audience for their attendance and participation. There being no further items, the meeting adjourned at 11:23 a.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, September 7, 2007
10:00 a.m.

Alamo Area Council of Governments (AACOG)
8700 Tesoro
San Antonio, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, September 7, 2007. Chairman Covington called the meeting to order at approximately 10:22 a.m.

   Participants:

   • Sid Covington, Chair
   • Tullos Wells, Vice Chair
   • Jeff Barton
   • Lisa Birkman
   • Mary Briseño
   • Mariano Camarillo
   • Patty Eason
   • Jennifer Kim
   • Dave Marsh
   • Carroll Schubert
   • John Thomaides
   • Pat Wiggins

   Other participants included Ross Milloy, Bill Bingham, Alison Schulze, and Chris Shields.

2. Chairman and Member Comments

   Chairman Covington welcomed Council Member Pat Wiggins, representing the City of New Braunfels, as the newest member of the Rail District Board. Mr. Covington noted Hays County, Capital Metro and the City of San Antonio appointments to the Board are still pending.

   Chairman Covington recognized outgoing Board member Dave Marsh, who represents CARTS, for his outstanding service to the Rail District and presented him with a certificate of appreciation. Vice Chair Wells thanked Mr. Marsh for his valuable contributions to the Board. Mr. Covington noted that when all Board vacancies have been filled, Board committees will be re-formed. He encouraged Board members to volunteer for their preferred committees.

   Council Member Patty Eason distributed announcements of a public workshop on Transit-Oriented Development to be held in Georgetown on September 12-14. Consultants will conduct planning sessions and prepare zoning codes for the SE Inner Loop/Maple Street area in Georgetown, which is the location of the proposed commuter rail station.

3. Consider Approval of May 4, 2007 Board Meeting Minutes

   Upon a motion by Tullos Wells and second by Commissioner Jeff Barton, the May 4, 2007 meeting minutes were unanimously approved.

4. Consider and Take Appropriate Action on Status of Appointments to Board and Administration of Oath of Office to Newly Appointed Board Members

   Bill Bingham noted that New Braunfels Council Member Pat Wiggins was appointed to the Board on August 27, and has taken the oath of office. Mr. Bingham confirmed there are presently 17 named Board members; upon completion of all appointments and replacements, the Board will have 19 members. Pending appointments and replacements include Hays County, Capital Metro, City of San Antonio, and CARTS.

   Mr. Bingham reported that the amended State statute allows staggered terms for Board members. When the full Board is in place, members will conduct a drawing to determine 1-year or 2-year terms. The drawing should take place by January 2008.

5. Committee Reports

   1. Public Information Committee Meeting May 14, 2007

      Committee Chair Dave Marsh directed the Board’s attention to the written summary of the meeting included in the agenda packet. The committee reviewed and discussed the baseline video presented by Carter & Burgess, but decided to postpone action on the video in order to incorporate the video as part of a comprehensive public information campaign. Mr. Marsh noted the committee also postponed action on a general public information brochure for the same reason.

      The PI Committee approved updating the visual design of the website. Finally, the PI Committee recommended issuing a request for proposals for a comprehensive public outreach campaign and directed staff to draft an RFP.

   2. Public Information Committee Meeting June 27, 2007

      Committee Chair Dave Marsh directed the Board’s attention to the written summary of the meeting included in the agenda packet. The committee approved functional improvements to the website. The committee also approved converting the 1998 VHS video, We Are All Connected, to DVD and making 20 copies for distribution.

      Mr. Marsh noted that, after much discussion, the committee postponed action on issuing an RFP for a public information campaign. The committee instead recommended a phased approach to the comprehensive outreach campaign starting with a market study and a public strategy. The committee directed staff to draft a scope of work and develop a cost estimate for a market study.

   3. Public Information Committee Meeting August 20, 2007

      Committee Chair Dave Marsh directed the Board’s attention to the written summary of the meeting included in the agenda packet. The PI Committee approved extending the website maintenance contract for one year, and endorsed a legislative strategy for a 2-year statewide campaign to fund the Rail Relocation Fund. The committee postponed action on a market study pending guidance from the Board on an overall strategy for engaging the public.

      Board discussion ensued. Commissioner Birkman commented that residents in the north end of the corridor are not aware of the Rail District’s project, and the public confuses the Austin-San Antonio passenger rail project with Capital Metro’s rail project in Austin. The Board discussed the need to engage the public, the timeline for moving forward with a public information campaign, managing public expectations, and avoiding duplicating efforts on the public outreach process. Chairman Covington noted that a presentation on engaging stakeholders would follow under agenda item 9.

   4. Program Management Oversight Committee Meeting August 23, 2007

      Committee Chair Mariano Camarillo directed the Board’s attention to the written summary of the PMO Committee meeting included in the agenda packet. The committee unanimously recommended approval of a one-year extension of the Carter & Burgess contracts, which the Board will act on in agenda item 8. The PMO Committee also unanimously concurred with the PI Committee’s action to extend the contract for website maintenance for one year. In addition, the PMO Committee endorsed the legislative strategy of leading a 2-year statewide campaign to fund the Rail Relocation Fund in 2009, and also endorsed increasing funds for legal services in the FY08 budget for local funds.

   5. Finance Committee Meeting August 23, 2007

      Committee Chair Mariano Camarillo directed the Board’s attention to the written summary of the meeting included in the agenda packet. The Finance Committee reviewed and discussed the draft FY08 budget, which includes increases in local funds for legislative assistance and legal services. Mr. Camarillo reported the Finance Committee unanimously recommended approval of the FY08 budget, and noted the Board will take formal action on the budget under agenda item 7.

6. Presentation on Engaging Stakeholders

   Chairman Covington took item 9 out of order to provide a context for the subsequent discussion on the Rail District’s strategy for moving forward. Ross Milloy reported that the Public Information Committee directed staff to ask a public strategies firm to address the Board and present ideas on engaging stakeholders. Mr. Milloy introduced Chris Shields, a lobbyist who represents cities, counties, and transit authorities in the legislature.

   Mr. Shields spoke on translating public support for the project to legislative support, and the legislative and economic issues of transportation. Transportation has become the leading issue of controversy in the Texas legislature, in part because transportation encompasses numerous sub-issues such as quality of life, economic development, scarce funding resources, and the environment. Mr. Shields stated that the Dallas/Fort Worth metroplex has done the best job of building community consensus for rail projects. He recommended the Rail District join forces with the metroplex on common transportation and legislative issues, such as a local option sales tax. A regional sales tax is the best solution for funding regional rail projects, and the metroplex model is the best in the State for building coalitions to support legislation. Mr. Shields suggested the Rail District develop a community process that results in recognition and buy-in by the community for a regional solution. The Rail District has to position its project as the economic and viable alternative supported by community consensus.

   Chairman Covington thanked Mr. Shields for his insight and noted that funding and mobility crises are evident in Texas and across the country. A lengthy discussion ensued on the local option sales tax, quality of life issues, mobility issues, building community awareness, and the metroplex’s consensus building process. Board members requested additional information and education on the Dallas/Fort Worth model.

7. Discuss Development Strategy

   Ross Milloy and Bill Bingham presented a strategy for moving forward in 2008. Topics included:

   • Milestones and accomplishments to date
   • Near-term goals and activities
   • Implementation strategies
   • Union Pacific issues
   • Rail relocation scenarios
   • Public finance approaches
   • Funding strategies
   • Private sector development options
   • Immediate next steps

   Board discussion ensued on private sector involvement and the experience of other commuter rail systems in the U.S., discussions with Union Pacific, current freight operations and customers in the Austin-San Antonio Corridor, the legislative strategy of leading a 2-year statewide campaign to fund the Rail Relocation Fund in 2009, and the upcoming sunset review of TxDOT.

8. Consider and Take Appropriate Action on FY08 Budget

   Ross Milloy directed the Board’s attention to the proposed FY08 budget document included in the agenda packet. The budget consolidates the Rail District’s local and federal funds. Under locally funded expenses, Mr. Milloy noted increases in legal services and legislative consultants in FY08, which decrease the reserve in local funds. The remaining federal funds will be used to continue current consultant services and contracts. Chairman Covington noted that legal services is a broad category that also includes strategic planning and general counsel by Bill Bingham. Upon a motion by the Finance Committee, the Board unanimously approved the FY08 Budget.

9. Consider and Take Appropriate Action on Carter & Burgess Master Contract and Work Authorization for Planning & Preliminary Engineering (P&PE-1)

   Alison Schulze directed the Board’s attention to the memo and attachments in the agenda packet. The proposed contract amendments would extend Carter & Burgess’ services for one year and would not increase the fee in either the master contract or the work authorization. Unspent funds in the current work authorization would be redirected to cover the work to be performed in the upcoming year. The amendments would provide the following.
   Extend the end dates of both the mater contract and the work authorization one year to September 30, 2008
   Allow Carter & Burgess and Public Financial Management (PFM) to continue providing basic program management and on-call technical and financial support services for one year for a fee not to exceed $250,000

   Upon a motion by the Program Management Oversight Committee, the Board unanimously approved the amendments to the Carter & Burgess master contract and work authorization for Planning & Preliminary Engineering (P&PE-1).

10. Consider and Take Appropriate Action on 2008 Board Meeting Calendar

    Alison Schulze directed the Board’s attention to the proposed 2008 Board Meeting Calendar. Ms. Schulze noted the meetings will rotate between San Antonio, San Marcos and Austin, with one meeting in Round Rock per Commissioner Birkman’s request. Ms. Schulze further noted that the calendar would allow the Executive Committee to meet in place of the full Board where appropriate and in accordance with the Rail District’s bylaws. Upon a motion by Tullos Wells and second by Dave Marsh, the 2008 Board Meeting Calendar was approved.

    Council Member Jennifer Kim suggested that the Austin meetings be held at a more convenient location than the Ruiz Library and stated she would work with staff to find a suitable location. Chairman Covington stated that he reserves the right to cancel Board meetings when there are no items that require Board action.

11. Financial Report

    Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the quarterly statement and the reconciliation report. Mr. Milloy noted the District’s finances remain on budget.

12. Legislative Update

    There were no additional legislative issues to report.

13. Other Business

    Dave Marsh commented on his service on the Board, and stated that although he’s no longer on the Board he remains on the team. Mr. Marsh noted the CARTS Board will appoint Hays County Commissioner Debbie Ingalsbe as his replacement, and that Commissioner Ingalsbe will join the Rail District Board once her appointment is ratified by Travis County.

14. Public Comment

    Jennifer Moczygemba, TxDOT, stated that House Bill 2510 set a precedent by providing taxing authority within the 2¢ cap for the newly formed Border Commuter Rail District. Wilda Won, TxDOT, noted that the new Houston Freight District also has the option of operating commuter rail.

15. Adjourn

    Chairman Covington announced that the next Board meeting is scheduled for October 5 at the TxDOT headquarters complex in Austin. Mr. Covington thanked Board members and the audience for their attendance and participation. There being no further items, the meeting adjourned at 12:16 p.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, May 4, 2007
10:00 a.m.

San Marcos Activity Center
501 E. Hopkins
San Marcos, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, May 4, 2007. Chairman Covington called the meeting to order at 10:10 a.m.

   Participants:

   • Sid Covington, Chair
   • Tommy Adkisson
   • Gloria Arriaga
   • Jeff Barton
   • Mary Briseño
   • Mariano Camarillo
   • Gerald Daugherty
   • Patty Eason
   • Fred Harless
   • Richard Perez
   • Carroll Schubert
   • John Thomaides

   Other participants included Ross Milloy, Bill Bingham, Alison Schulze, Clif Davis and Tom Shelton.

2. Chairman and Member Comments

   Council Member Patty Eason reported that the Georgetown Chamber of Commerce passed a resolution of support for the Rail Relocation Fund. Commissioner Jeff Barton announced that Hays County Commissioners Court will consider joining the Rail District on May 15.

   Chairman Covington reported on a meeting held on May 2 to discuss the MoKan Corridor—the abandoned rail corridor that runs from Georgetown to Austin east of I-35. Mr. Covington noted that the northern portion of the MoKan corridor—from US 79 in Round Rock to Georgetown—is the route of the Austin-San Antonio commuter rail system, as adopted by the Rail District. The meeting was organized by Scott Polikov and Representative Krusee; representatives from the Rail District, TxDOT (Austin District), Capital Metro, and the cities of Austin, Georgetown, Round Rock, and Pflugerville attended. Capital Metro is planning a rail project in the MoKan corridor from the Austin airport to Georgetown, although much of the corridor is outside Capital Metro’s service area. TxDOT indicated they will take the lead and contract for environmental clearance on the entire MoKan corridor. The environmental process could take up to 5 years. Mr. Covington will continue to keep the Board apprised.

3. Consider Approval of March 2 Board Meeting Minutes

   Board Member Arriaga requested that Item 2 in the minutes be amended to reflect that she was appointed by Bexar County. Upon a motion by Council Member Richard Perez and second by Commissioner Jeff Barton, the March 2, 2007 meeting minutes were approved as amended.

4. Consider and Take Appropriate Action on Status of Appointments to Board, Administration of Oath of Office to Newly Appointed Board Members, and Decision on Board Member Terms

   Bill Bingham reported that all 17 Board members have been appointed or reappointed to the Board, and recommended that the Board determine 1-year and 2-year terms at the next Board meeting. At that time, Mr. Bingham will present a motion and conduct a drawing so that half of the Board members are assigned 1-year terms and half assigned 2-year terms. Terms expire on February 1 in accordance with the Rail District’s bylaws. The drawing will establish initial term lengths and thereafter allow for staggered 2-year terms as prescribed by the legislature.

5. Consider and Take Appropriate Action on Appointment of Executive Committee

   Chairman Covington noted that the bylaws established an Executive Committee, which is appointed by the Board and may stand in for the Board as appropriate. Mr. Covington directed the Board’s attention to a memo in the agenda packet that summarizes the Executive Committee’s powers, duties, and composition. At the March Board meeting Mr. Covington proposed a slate of six members for the Committee, subject to Board action at the following meeting. Upon a motion by Council Member Richard Perez and second by Commissioner Jeff Barton, the Board appointed the following members to the Executive Committee: Chairman Covington, Vice-Chairman Wells, Mr. Camarillo, Council Member Kim, Council Member Perez, and Mr. Schubert.

6. Committee Report: Program Management Oversight Committee Meeting April 20, 2007

   Committee Chair Mariano Camarillo directed the Board’s attention to the written summary of the meeting included in the agenda packet. The Committee conducted a meeting on April 20 in four locations via conference call. The Committee considered three items:

   • Carter-Burgess presented station evaluation criteria. The criteria recommended by the Committee will be presented to the Board under agenda item 7.
   • The Committee authorized Ross Milloy to spend up to $15,000 in local funds for consultant services during the current legislative session for research and analysis of alternative funding strategies related to the Rail Relocation Fund and ongoing discussions with Union Pacific.
   • The Committee approved up to $5,000 in local funds for legislative assistance during the current session.

7. Consider and Take Appropriate Action on Station Location Evaluation Criteria

   Tom Shelton noted that the Program Management Oversight Committee directed Carter-Burgess to develop criteria for establishing station locations in response to questions from the District’s local jurisdictions. The criteria were presented to the PMO Committee on April 20, and refined based on the Committee’s feedback.

   Stations are an important piece of the rail system because the station is the point where riders interact with the system—it’s the point of reference and recognition. Proper location is critical to the project’s success. To guide the station evaluation process, policy goals should be clearly identified. On April 20, the PMO Committee voted unanimously to recommend to the Board six policy goals as the goals for the overall rail system and for the station location evaluations:

   • Maximize transit ridership
   • Maximize development potential
   • Minimize environmental impact
   • Minimize capital cost
   • Minimize annual operation and maintenance cost
   • Minimize real estate acquisition impact

   Mr. Shelton outlined the station evaluation process. To engage cities, counties and agencies in the corridor, a technical advisory committee would be convened for each city for their respective stations. Rail District staff and the consultant team would lead the effort, which is expected to take 6 months. The station evaluation process would be conducted concurrently with preliminary engineering and environmental analysis to take advantage of the public involvement element included in that phase of project development. The process could begin as early as fall of 2007.

   Mr. Shelton described the general criteria that would be used to evaluate alternative sites for a given station, and directed the Board’s attention to the detailed criteria included in the agenda packet. The criteria use a 5-point ranking system, and are divided into four key areas of analysis:

   • Program and function
   • Access and transportation
   • Environment and urban design
   • Real estate

   Board discussion followed on who pays to develop stations, member jurisdictions’ need for assistance on how to incorporate transit-oriented development in their current regulations and implement TOD in their cities, the importance of connectivity and circulation at each station to maximize ridership, and the need to educate each city on connectivity issues.

   Mariano Camarillo, PMO Committee Chair, stated that the Committee makes a motion that the Board approve the policy goals and evaluation criteria presented by Mr. Shelton, and that the evaluation process be conducted concurrent with preliminary engineering. The motion was approved unanimously.

8. Presentation on Results of Financial and Economic Benefits Study

   Chairman Covington introduced the item by noting that the Financial and Economic Benefits Study was done at the request of the Transportation Commission and provided another opportunity to peer review the project’s benefits and validate the District’s previous studies.

   Clif Davis stated that the Financial and Economic Benefits Study is the third economic study conducted by the District and is the most comprehensive study to date on benefits to the region, the State, and Union Pacific Railroad. The key finding of the study is that the aggregate local-regional- state benefit is $3.2 billion over 18 years (2012-2030). In the context of the project’s capital and operating costs—$1 billion from 2012 to 2030—the project provides a 3-to-1 return. For every dollar spent on the project, the region and State can expect a $3 return in economic benefits.

   Mr. Davis presented the study results, which quantified financial benefits to the users of the regional transportation system (reduced congestion delay, fuel cost savings), financial benefits to the State of Texas (savings in highway construction and maintenance, air quality benefit, avoidance of accidents), financial benefits to freight railroads (savings in travel time), and economic development benefits to the region and the State (increases in gross state product, personal income, property values, taxable sales, and local, regional and state tax revenues).

   • Costs savings to the region and the State (2012-2030): $1.3 billion
   • Economic benefit to Union Pacific (2012-2030): $38 million - $104 million
   • Economic benefits to the region and the State (2012-2030): $16 billion - $17 billion total tax base impact, and $1.8 billion total tax revenue impact.

   Board members stated that the project’s benefits aren’t being promoted and communicated aggressively enough. District staff and the consultant team can promote the project on a technical level, but each Board member needs to be engaged and initiate talks with policy makers in their jurisdiction to ensure that the decision makers are well informed. Board members noted that the construction cost of $380 million for two additional highway lanes on I-35 seems too low given the cost of recently completed projects and AASHTO’s estimate of $40 million per mile for urban highways. Mr. Davis stated that the estimate was conservatively low and does not include interchanges and additional right-of-way, but he will review the costs with Mr. Milloy.

9. Financial Report

   Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the check reconciliation report and the 2nd quarter statement.

10. Legislative Update

    Ross Milloy reported on the current legislative session, saying that funding for rail relocation would be difficult to achieve in the existing legislative environment. Senator Wentworth and Representative Ruth McClendon are both working to help get financing for the rail relocation fund. Mr. Milloy is also pursuing funding for rail relocation from the Texas Emissions Reduction Program. In the next 2- 3 weeks Board members may be asked to contact legislators to express support for the Rail Relocation Fund, and Mr. Milloy urged members to respond.

11. Other Business

    1. Status Report on Meetings with Member and Local Jurisdictions

       Alison Schulze directed the Board’s attention to the summary of questions and comments from local jurisdictions’ senior staff, which is included in the agenda packet, and to the handout—a report card on meetings to date, financial support, and action needed. Staff and the consultant team have made progress: 16 meetings with policy boards and 9 meetings to- date with senior staff. In addition, the District is attracting new members—Hays County and the City of New Braunfels will consider joining the District in May. The public and the policy makers support the project, but that support isn’t being communicated to the jurisdictions’ senior staff. Rail District staff needs help and support from the Board to advance the cause. Of the 16 jurisdictions, only four have shown a willingness to support the project financially. Staff needs the Board’s help to turn the “undecideds” into “yeses” in terms of financial support.

       Board discussion followed. Local jurisdictions need specific information on cost sharing, rather than a range of costs; and they need to know which year local funds are needed and what year service will start. The Rail District needs to identify the exact amount needed from each jurisdiction and when it’s needed. Local jurisdictions also need to balance competing priorities within limited budgets. The Board suggested staff and the consultant team call each Board member to brief them on the meeting held with their staff.

    2. 2007 Texas Transportation Forum, July 18-20

       The Texas Transportation Forum will be held in Austin on July 18-20. It would be useful for Board members to attend. Board members can contact staff for registration information.

    3. Amtrak and Talgo Trains, Seattle, August 2007

       Amtrak and Talgo (a Spanish rail car manufacturer) are going to invite the Board to visit Seattle in August to demonstrate the Sounder passenger rail system and Talgo’s higher-speed rail car. When specific dates become available, Mr. Milloy will distribute the information to Board members.

12. Public Comment

    Mr. Jerry Roane spoke on TriTrack, a personal monorail system. TriTrack could be built faster and cheaper and would provide faster service than conventional commuter rail trains. TriTrack is an elevated system supported by pipes every 60 feet, so environmental clearance would probably be waived. Each car seats 4 people and travels at 180 mph. TriTrack is new technology and not currently in use in the U.S. Texas Transportation Institute is conducting a study on TriTrack that should be complete by September. Chairman Covington asked Mr. Roane to send information on TriTrack to Alison Schulze—in particular, the TTI study—for distribution to the Board.

13. Adjourn

    Chairman Covington announced that the next Board meeting would be on June 1 at AACOG in San Antonio. Mr. Covington thanked Board members and the audience for their attendance and participation. The meeting adjourned at 11:45 a.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, March 2, 2007
10:00 a.m.

Alamo Area Council of Governments (AACOG)
8700 Tesoro
San Antonio, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Commuter Rail District was held on Friday, March 2, 2007. Chairman Covington called the meeting to order at approximately 10:12 a.m.

   Participants:

   • Sid Covington, Chair
   • Tullos Wells, Vice Chair
   • Tommy Adkisson
   • Gloria Arriaga
   • Jeff Barton
   • Mary Briseño
   • Patty Eason
   • Dave Marsh
   • Richard Perez
   • Carroll Schubert
   • John Thomaides

   Other participants included Ross Milloy, Bill Bingham, Alison Schulze, and Frank Russo.

2. Chairman and Member Comments

   Chairman Covington welcomed two new Board members: Commissioner Jeff Barton representing Capital Area MPO (CAMPO), and Gloria Arriaga, appointed by Bexar County to represent AACOG’s Alamo Regional Transit.

3. Consider Approval of February 2 Board Meeting Minutes

   Upon a motion by Council Member Richard Perez and second by Council Member John Thomaides, the February 2, 2007 meeting minutes were approved.

4. Presentation on Public-Private Partnerships for Rail Station Development

   Chairman Covington introduced Frank Russo, who is assisting Houston Metro with a wide range of program management services, including implementation of Design-Build-Operate-Maintain-Finance contracts for rail development. Mr. Russo spoke on the principles and benefits of public-private partnering to deliver public transportation projects, and cited examples of public-private partnerships across the country (e.g., New Jersey, Denver, Phoenix, Los Angeles, Miami).

   The primary reason that public-private partnerships are becoming more popular is that as projects are getting larger, public agency resources are getting scarcer. In addition, large, complex projects require a large staff dedicated to project management and coordination, which is difficult for most agencies. Good candidates for a public-private partnership (3P) model are projects that are outside the agency’s core area of expertise, projects with complex interface requirements, and projects that need financing—that is, projects that need relief from agencies’ traditional cash flow restrictions.

   Benefits for the public sector partner include a single point of responsibility for the agency, and the ability to implement a complex project with a small core agency staff. Benefits for the private sector partner include early involvement in the project’s development; greater financial stability provided by large, long-term projects; and more opportunity for profit consistent with the additional risk they take. Lessons learned from successful 3P projects: involve the industry early in project development (preferably during the preliminary engineering phase), require early partnering meetings, address areas of shared risk, and address changes early and equitably.

   A lengthy discussion ensued on Mr. Russo’s Houston Metro experience, the 3P contracting model, public vs. private ownership of infrastructure, and station development.

5. Committee Report: Program Management Oversight Committee Meeting February 16, 2007

   Alison Schulze directed the Board’s attention to the written summary of the meeting included in the agenda packet. On February 16, the PMO Committee unanimously recommended approval of the Carter & Burgess contract amendment, which will be discussed in greater detail under agenda item 6. The Committee also discussed rail station locations. The results of the station area economic analyses indicate that if the goal is economic development potential, some station locations could be improved. However, there may be other goals to consider in addition to economic development. The Committee directed Carter & Burgess to develop criteria and a process for refining station locations. Upon completion, the criteria will be brought to the full Board for policy direction. The PMO Committee also discussed and endorsed the policy statement that it is not financially feasible for the Rail District to provide service to jurisdictions that choose not to join the District.

6. Consider and Take Appropriate Action on Amendments to Carter & Burgess Work Authorization and Master Contract

   Alison Schulze directed the Board’s attention to two contract amendments in the agenda packet. Ms. Schulze noted that on February 16, the PMO Committee voted unanimously to recommend approval of the following amendments to Carter & Burgess’ work authorization:

   • Extend the end date of the work authorization to September 30, 2007
   • Additional program management and technical services for Carter & Burgess
   • Additional services for Carter & Burgess and Public Financial Management related to meetings with local jurisdictions
   • Additional services for Carter & Burgess and M2 Studios for design and development of a video animation of the commuter rail project

   The total fee for the additional services is $312,245 which, when added to Carter & Burgess’ current authorized fee, exceeds the fee cap in Carter & Burgess’ master contract. Staff recommended that the master contract be amended to increase the fee cap from $2,250,000 to $2,500,000 to accommodate the additional services approved by the PMO Committee.

   Board discussion followed. Upon a motion by Tullos Wells and second by Council Member Richard Perez, the amendment to Carter & Burgess’ work authorization was approved. Upon a motion by Council Member Richard Perez and second by Gloria Arriaga, the amendment to Carter & Burgess’ master contract was approved.

7. Consider and Take Appropriate Action on Status of Appointments to Board, Administration of Oath of Office to Newly Appointed Board Members, Mechanism to Stagger Board Terms, and Decision on Board Member Terms

   Bill Bingham reported that five Board members have been appointed or reappointed since the February Board meeting: Commissioner Adkisson, Ms. Arriaga, Commissioner Barton, Mr. Covington, and Council Member Kim. Six appointments remain, which include Senator Wentworth, Mayor Pro Tem Harless, Mr. Marsh, Commissioner Daugherty, Council Member Perez, and Mr. Schubert. The remaining appointments are in the process of being made, and all Board members continue to hold their positions until they or a successor are appointed.

   Mr. Bingham briefed the Board on the statute regarding staggered terms. The Board has been operating under a system in which each Board member is appointed for two years and all terms expire in February. The statute was amended in 2005 to allow staggered terms so that approximately half of the Board terms expire each February. To establish staggered two-year terms, the Board will assign a one-year term or a two-year term to each Board member position to determine the end date for each position.

   There are several mechanisms for staggering terms. Terms can be assigned by agreement or by a general drawing among all members. An additional consideration is that five agencies appoint two Board members. For each of the five agencies that appoint two members, one member could be given a one-year term and the other member could be given a two-year term so that both appointees’ terms don’t end at the same time. Then the remaining seven members would draw one-year or two- year terms. Once each Board position has been assigned either a one-year or two-year term, the end date for each Board position is established so that the terms remain staggered in the future. Mr. Bingham recommended that the Board approve a mechanism for staggering terms, but wait and conduct the drawing after the remaining members have been appointed or reappointed.

   Board discussion followed. Upon a motion by Dave Marsh and second by Commissioner Adkisson, the Board approved a mechanism to stagger Board terms by having the appointees from the five agencies that appoint two members agree on one- and two-year terms, and conducting a drawing among the remaining seven members so that three members are assigned one-year terms and four members are assigned two-year terms.

   The Board unanimously directed Mr. Bingham to place the approved mechanism in writing, distribute it to the Board, attempt to assist the members appointed by the five agencies to agree on one- and two-year terms, present a motion assigning terms for consideration by the Board, and conduct the drawings when the remaining Board members have been appointed.

8. Consider and Take Appropriate Action on Amending Legislation to Expand Definition of Political Subdivisions that May Become Members of the Rail District

   Chairman Covington noted that at the February meeting the Board directed Mr. Bingham to develop a recommendation for potentially expanding membership to other entities without increasing the size of the Board. Mr. Bingham outlined a range of options:

   • Allow a governmental entity to become a member, but not obtain a seat on the Board. This option could apply to state universities and colleges, who would be represented on the Board by existing members.
   • Allow a governmental entity to join the District and get a seat on the Board. This option could apply to smaller cities (cities with a population of less than 18,000), state universities and colleges, and/or regional mobility authorities.

   Both options would require amending the state statute. Mr. Bingham noted that under the current statute several entities are eligible to join and have a position on the Board, but have not joined yet, including Hays County, Comal County, New Braunfels, Schertz, Cibolo, and Round Rock.

   Board discussion followed on keeping the Board a manageable size, establishing levels of Board membership (e.g., full members, associate members), creating a new category of Board membership that is treated differently in terms of representation, using the vacant Board seat to fill any gaps on the current Board, revising the definition of the vacant Board seat, and leaving the Board as is.

   Upon a motion by Carroll Schubert and second by Commissioner Adkisson, the Board sent the issue to the Rules and Procedures Committee for further discussion.

9. Financial Report

   Ross Milloy directed the Board’s attention to two financial reports in the agenda packet: the quarterly statement and the reconciliation report. Two additional items related to financing are also included in the packet: a statement by Senator Hutchison supporting the Austin-San Antonio commuter rail project and an article on discussions in Austin about how certain funds are allocated.

10. Legislative Update

    Ross Milloy reported on the Rail Relocation Fund, which is being considered by the State legislature.

11. Other Business

    1. Committee Assignments

       Chairman Covington distributed a list of proposed assignments for the Executive Committee as well as standing Committees. At the next meeting the Board will vote on the Executive Committee. The Board Chairman appoints all other Committees, and the assignments will stand as shown unless a member notifies the Chairman.

    2. Status Report on Meetings with Member and Local Jurisdictions

       Ross Milloy reported that sixteen meetings were held with elected officials and governing boards of local and member jurisdictions. Overall the meetings and the feedback have been very positive. The final meeting was a presentation on February 28 to a joint meeting of the San Antonio City Council and the Policy Board of the San Antonio-Bexar County MPO. The next step in the process will be to meet with senior staff in each jurisdiction to discuss specific financing mechanisms as well as tax increment financing agreements and transit-oriented development ordinances.

12. Public Comment

    Charlotte Kahl reported that the Old Spanish Trail Centennial planners are working to bring economic development to the east side of San Antonio. Relocating the Austin-San Antonio commuter rail system to Sunset Station on the east side, instead of the proposed west-side route, would generate economic development. There is an existing multimodal transportation facility underneath the Alamodome that could be used by the Rail District.

13. Adjourn

    Chairman Covington announced that the next Board meeting will be April 13 at the Griffith Library in Round Rock. Mr. Covington thanked Board members and the audience for their attendance and participation. There being no further items, the meeting adjourned at 11:51 a.m.

Austin-San Antonio Intermunicipal Commuter Rail District Board Meeting

Friday, February 2, 2007
10:00am

San Marcos Activity Center
501 E. Hopkins
San Marcos, Texas

1. Call to Order

   Notice was duly posted and a meeting of the Austin-San Antonio Intermunicipal Commuter Rail District was held on Friday, February 2, 2007. Chairman Covington called the meeting to order at approximately 10:10 a.m.

   Participants:

   • Sid Covington, Chair
   • Gonzalo Barrientos
   • Lisa Birkman
   • Mary Briseño
   • Mariano Camarillo
   • Gerald Daugherty
   • Patty Eason
   • Fred Harless
   • Jennifer Kim
   • Dave Marsh
   • Al Notzon
   • Carroll Schubert
   • John Thomaides

   Other participants included Ross Milloy, Bill Bingham, Alison Schulze, Clif Davis, and Tom Shelton.

2. Chairman and Member Comments

   Chairman Covington welcomed Board members and the audience. Mr. Covington noted that in January the San Antonio-Bexar County MPO allocated $10 million for the commuter rail project in the FY11 Transportation Improvement Program (TIP) and earmarked $10 million in the FY12 TIP. He expressed the appreciation of the Rail District for the MPO’s action and thanked Board members Notzon, Adkisson, and Perez for their support.

   Chairman Covington recognized outgoing Board members Al Notzon and Senator Barrientos for their outstanding service to the Rail District and presented them with certificates of appreciation. Mr. Covington also noted that as new members are appointed to the Board, he will revisit committee assignments. He encouraged Board members to volunteer for their preferred committees.

   Councilmember Thomaides remarked that commuter rail was an important issue in San Marcos’ recent City Council elections. Two of the City’s top state and federal legislative priorities are commuter rail and freight rail relocation.

   Al Notzon thanked his fellow Board members for their service and their support. He observed that the Austin-San Antonio corridor needs a reliable alternative to I-35 and the Rail District has an important responsibility to develop a viable option. Commissioner Daugherty commented that commuter rail won’t be as fast or as convenient as cars because riders will have to transfer to other transportation modes to get to their final destinations. Mr. Notzon noted that the commuter rail system will integrate with the local bus systems—VIA, Capital Metro, CARTS and AART—to ensure connectivity. He emphasized that connectivity and integration are key issues to providing a reliable alternative. Commissioner Daugherty reiterated that two of his concerns are connectivity and fares. Councilmember Thomaides noted that Texas State University has 10,000 commuter students and, because parking is limited and expensive, students are looking for a viable alternative even if they have to pay for it. Mary Briseño remarked that the benefit of commuter rail is more than simply providing congestion relief on I-35—it’s also about providing education and employment opportunities and providing an alternative to people who don’t have cars. Chairman Covington noted that Texas State University President Denise Trauth spoke at a Growth Summit the previous day in Austin and said that the university is considering capping enrollment because of the transportation and parking problems on campus, and she strongly urged the region to implement commuter rail service between Austin and San Antonio. Mr. Covington noted that the Board should look at all aspects of the project—economic as well as transportation, benefits as well as costs—and understand that the project is more than the number of daily riders.

3. Consider Approval of November 3 Board Meeting Minutes

   Upon a motion by Fred Harless and second by Dave Marsh, the November 3, 2006 meeting minutes were approved.

4. Committee Report: Program Management Oversight Committee Meeting December 5, 2006

   Committee Chair Mariano Camarillo directed the Board’s attention to the written summary of the meeting included in the agenda packet. On December 5 the Committee met in three different locations via conference call. The Committee voted unanimously to extend the end date of Carter & Burgess’ contract from January 31 to March 31, 2007. The extension allows Carter & Burgess to complete on-going work for the District and present information at the February 2 Board meeting. The contract amendment only extends the end date, it does not change the fee or scope of services.

5. Consider and Take Appropriate Action on Status of Appointments to Board, Administration of Oath of Office to Newly Appointed Board Members, Election of Board Officers, and Amendments to Bylaws

   Bill Bingham announced Board appointments to date include Birkman, Briseño, Eason, Camarillo, Thomaides and Wells. The remaining appointments are in the process of being made, and all Board members continue to hold their positions until they or a successor are appointed.

   Mr. Bingham continued with the election of Board officers. The statute that created the District states the Board will elect a chairman and vice chairman, the District bylaws also add a secretary and treasurer. In the past the Board chose not to elect a secretary and treasurer, but the Board may fill those positions as well. Upon a motion by Carroll Schubert and second by Fred Harless, Sid Covington was unanimously re-elected Board chairman. Upon a motion by Mariano Camarillo and second by Al Notzon, Tullos Wells was unanimously re-elected Board vice-chairman. Following discussion by the Board on the secretary and treasurer positions, and upon a motion by Dave Marsh and second by Patty Eason, John Thomaides was unanimously elected Board secretary. The Board took no action on the treasurer position.

   Mr. Bingham directed the Board’s attention to the memo included in the agenda packet on bylaws amendments. He noted that, in accordance with the District’s bylaws, Board members were notified 10 days in advance that amendments would be considered. The proposed amendments on meetings by videoconference and on staggered terms for Board members track the language in the state statute. A lengthy discussion ensued on adding meetings by webconference to the bylaws. Mr. Bingham advised the Board that the District does not currently have statutory authority to conduct meetings by webconference, but the District can conduct meetings by videoconference and provide web access. The Rail District is one of two entities in Texas allowed to conduct meetings by videoconference in non-emergency situations, and was given the authority due to its unique situation of having members located throughout a 112-mile corridor. Videoconferencing will be used initially for Committee meetings. As the technology improves the Board could consider revising the state statute.

   The Board also discussed the amendment on staggered terms. Mr. Bingham noted that today’s action on amending the bylaws recognizes there will be staggered terms, with approximately half of the Board rotating each February so that all members’ terms don’t end at one time. Once the full Board is appointed, the Board will take action on how to stagger terms. The mechanism to stagger terms should consider that five entities (TxDOT, Austin, San Antonio, Bexar County, Travis County) appoint two members each to the Board.

   Chairman Covington noted that the amendments bring the District’s bylaws into compliance with the state statute, give the District flexibility, and follow the intent of the Open Meetings Act. Upon a motion by Al Notzon and second by Jennifer Kim, the bylaws amendments were approved. The Board directed staff to develop a proposed mechanism for staggering Board terms and present it to the Board in March.

6. Consider and Take Appropriate Action on Amending Legislation to Expand Definition of Political Subdivisions that May Become Members of the Rail District

   Bill Bingham briefed the Board on membership requirements under the state statute. Currently, counties in the service area and cities with a population of 18,000 may join the District. Other entities have expressed interest in joining; in particular, cities in the service area with a population of less than 18,000. Membership requirements could be loosened to allow any city along the rail line to join regardless of population. The definition of who may become a member of the District could be expanded to also include regional mobility authorities, state colleges and universities, independent school districts, and special districts. If the Board wants to change the membership requirements, the state statute would have to be amended. Board discussion followed on which entities should become members, keeping the Board a manageable size, using some mechanism to allow smaller cities to participate, and the level of financial participation expected for new members. Several Board members noted that school districts and universities are already represented by the city council members and county commissioners on the Board, and all organizations are welcome to attend, offer comments, and participate in Board meetings.

   Mr. Bingham noted that a section in the statute creates a Board position, now vacant, for an elected official to represent all municipalities in the District that are not otherwise represented. If the Board expands the definition to include all local governments and universities, the vacant position could be used to represent other entities that wished to join. The Board directed staff to develop a recommendation that would let other organizations have a voice while not increasing the size of the Board.

7. Consider and Take Appropriate Action on Resolution of Support for Texas Rail Relocation and Improvement Fund

   Ross Milloy presented a resolution in support of the Rail Relocation Fund for the Board’s approval. Board discussion followed and Commissioner Daugherty recommended language be added to the resolution that the $200 million annual appropriation for the Rail Relocation Fund not come out of Fund 6. Upon a motion by Dave Marsh and second by Lisa Birkman, the resolution in support of the Rail Relocation and Improvement Fund was approved as amended.

8. Consider and Take Appropriate Action on Contract Extension for Federal Legislative Assistance

   Ross Milloy briefed the Board on the consultant selection process in 2006 for federal legislative assistance. In June 2006 the Board authorized Mr. Milloy to execute a contract with Smith, Dawson & Andrews through the end of the fiscal year (September 2006). The Rail District needs continued legislative assistance and Mr. Milloy requested the contract be extended for one year. Board discussion followed on the District’s recent lobbying efforts in Washington DC, federal legislative priorities, the 2006 request for proposals, and the Proposal Evaluation and Selection Committee’s process. Council member Kim requested that the work plan for the legislative program be distributed to the full Board. Upon a motion by Dave Marsh and second by John Thomaides, a one-year contract extension was approved. The Board directed the consultant team to brief the Proposal Evaluation and Selection Committee (Dave Marsh, Commissioner Adkisson, Council member Thomaides) on the federal legislative program, notify the full Board of the meeting date and time, and report back to the Board.

9. Presentation on Results of Financial and Economic Benefits Study

   In August 2006 the Board directed Carter & Burgess and Cambridge Systematics to conduct a study to quantify the benefits of the commuter rail project. Clif Davis and Tom Shelton presented the draft results, which focused on four areas:

   • Financial benefits to users of the regional transportation system in terms of reduced congestion delay and fuel cost saving: cumulative cost saving of $544 million to $584 million over 18 years (2012-2030)
   • Financial benefits to the State in terms of savings in highway construction and highway maintenance, air quality benefits, and savings in accident avoidance: cumulative cost saving of $1.5 billion over 18 years (2012-2030)
   • Financial benefits to freight railroads in terms of savings in travel time and additional freight: aggregate benefit of $11 billion to $21 billion over 18 years (2012-2030)
   • Economic benefits to the region and the State in terms of additional jobs, increased tax base, and increased tax revenues: aggregate benefit of $6 billion to $7 billion over 18 years (2012-2030)

   There are substantial and significant benefits associated with the project. The Board commended the consultant team on their analysis. Board discussion followed on identifying the economic benefits to local jurisdictions. The final report will be delivered in the next few weeks.

10. Financial Report

    Ross Milloy directed the Board attention to two financial reports in the agenda packet. The first quarter statement shows the Rail District is under budget in all categories for the year.

11. Legislative Update

    There was nothing to report.