Board Meeting
June 6, 2003
11:00 a.m. – 12:00 p.m.
Alamo Area Council of Governments
8700 Tesoro Drive
San Antonio, Texas 78217

I. Call to Order:

Notice was duly posted and a meeting of the Austin-San Antonio Intermunicipal Commuter Rail District Board was held on June 6, 2003. Chairman Wells called the meeting to order at approximately 11:05 a.m.

Participants:

• Tommy Adkisson
• Mariano Camarillo
• Sid Covington
• Gerald Daugherty
• Fred Harless
• Dave Marsh
• Al Notzon
• Shelton Padgett
• Carroll Schubert
• Tullos Wells
• Jeff Wentworth

Senator Barrientos, Gus Garcia, and Shelton Padgett were unable to attend. Other participants were Bill Bingham and Ross Milloy.

II. Chairman And Member Comments:

Chairman Wells advised that the legislative session just ended and was a very good session for the Board for 3 reasons: (1) dumb luck; (2) the Board’s delegation, Senator Barrientos and Senator Wentworth, provided air cover and great leadership; and (3) because of the hard work by the Board members.

Chairman Wells also sent special thanks to Mario Medina, TxDOT, for all his cooperation and assistance.

Chairman Wells stated that he attended the San Antonio Transportation Association meeting earlier this week and made a donation to their scholarship fund in the name of the Board.

III. Approval of Minutes of May 2 Meeting:

Al Notzon made a motion to approve the minutes for the May 2, 2003 meeting. Commissioner Daugherty seconded Mr. Notzon’s motion. The Board unanimously approved the motion.

IV. Status Report on Project Management RFP:

Ross Milloy thanked Mario Medina for his assistance in the preparation of the Timeline for Federal Funding Acquisition and Request for Proposal documents. Mr. Milloy then discussed the Timeline for Federal Funding Acquisition in greater detail.

Chairman Wells appointed a committee to review the RFP responses: Sid Covington, Committee Chair, Al Notzon, Mariano Camarillo, Chairman Wells, Mario Medina, and representatives from FHWA and FTA for additional technical skills.

Chairman Wells asked all of the members to review the final RFP that will be posted next Thursday at 2:00 p.m.

Mr. Milloy inquired about the July and August board meetings for scheduling purposes and Chairman Wells advised that the meeting would occur as follows: July 11, 2003 (to be held in Austin – location to be determined at a later date) and August 1, 2003 (to be held in San Marcos – location to be determined at a later date).

V. Report on Meetings with FTA, FRA, FHWA:

Mr. Milloy advised the group that he met with senior leadership and senior regional leadership for FTA, FRA, FHWA. He stated that the general sense is that this project is a hybrid project. Mr. Milloy suggested that, because initial funding is coming from the FHWA, the FHWA might be a logical choice as a Federal Sponsor, particularly because their split is 80/20 as compared to FTA’s split of 50/50.

Mr. Milloy told the member that he has prepared a draft letter to Messrs. Robert Tally and Michael Leary, with the Federal Highway Administration, and requests approval from the Board to send the letter out.

Dave Marsh made a motion to approve the letter. Sid Covington seconded Mr. Marsh’s motion. The Board unanimously approved the motion.

VI. Status/Adoption of TxDOT Funding Agreement:

Bill Bingham discussed the proposed Resolution and Local Transportation Project Advance Funding Agreement that has been reviewed and approved by TxDOT.

Mr. Bingham advised that the resolution will authorize the Board to enter in to the agreement, authorize the use of the toll credits, authorize Chairman Wells to sign the agreement on behalf of the Board, and designate Mr. Milloy as the contact person. Since TxDOT has already approved these documents, Mr. Bingham stated that they were ready for the Board’s approval.

Mr. Covington moved to approve the Resolution and Location Transportation Project Advance Funding Agreement. Commissioner Daugherty seconded Mr. Covington’s motion. The Board unanimously approved the motion.

VII. Approve Letter Agreement on Administrative Services:

Bill Bingham discussed the draft Interim Administrative Services Agreement, which allowed the Corridor Council to serve as interim administrative staff to the Board. He stated that this letter was in compliance with the Board’s previous instruction. Mr. Bingham pointed out that the agreement is pre-dated to June 4, 2003 and is for an indefinite length of time. However, either party may terminate the agreement with 30 days notice.

Chairman Wells advised that this agreement would provide not only a functional infrastructure, but also legal infrastructure going forward.

Al Notzon, Commissioner Daugherty, and Commissioner Adkisson requested to abstain from voting because of their membership and participation on the Executive Committee of the Corridor Council. Legal counsel Bill Bingham stated this was not necessary but would be fine if they wish to do that.

Senator Wentworth made a motion for approval of the Interim Administrative Services Agreement and Initial Work Plan and Funding Scenario. Commissioner Schubert seconded Senator Wentworth’s motion. The voting members unanimously approved the motion (3 abstaining – Mr. Notzon, Commissioner Daugherty, and Commissioner Adkisson).

VIII. Temporary Funding Update:

Chairman Wells discussed the Resolution of the Capital Metropolitan Transportation Authority Board of Directors, which contributes $49,500, subject to the funding of other members, and the Board commits to considering Capital Metro’s FY 04 share in the upcoming budget process.

Chairman Wells and Mr. Milloy sent special thanks to Fred Harless for his assistance in obtaining this contribution.

IX. Legislative Report:

Mr. Milloy told the members that the bill that would restructure the committee, as proposed by Chairman Krusee, died in committee.

Mr. Milloy also discussed a bill proposed by Senator Wentworth and Senator Barrientos that passed. Because of this bill, TxDOT is authorized to use funds for Project 130 to make it rail compatible. The language also states that it is the legislators’ intent and hope to make SH 130 compatible and they hope that TxDOT will comply. Mr. Milloy advised that the Governor has not signed this bill at the present time, but it is the Governor’s bill, so he is expected to sign.

Senator Wentworth suggested writing to the Governor about the bill, so the Governor knows that it is important. Senator Wentworth told the members that the Governor has been taking an active role in reviewing all proposed bills and not vetoing any! Senator Wentworth advised that if the bill is not initially acceptable, communication with the Governor’s office regarding acceptable revisions might make it acceptable.

Mr. Milloy then discussed inserts in the member’s package: (1) the testimony of the Honorable Allan Rutter, Administrator, Federal Railroad Administration; and (2) the testimony of Mr. James (Rocky) Query, Senior Vice President, Lehman Brothers.

Additionally, Mr. Milloy thanked Lamar Smith for his continued support. Mr. Milloy informed the members that Congressman Lapinsky has requested that Mr. Milloy, Mr. Wells, or Chairman Krusee testify on June 26, 2003 as to the need for rail in the Austin-San Antonio area.

Mario Medina told the members that he has received instructions to try to generate some activity on the rail system in the Austin area. He further advised that on June 20th, TxDOT will conduct a meeting to discuss the rail system in Austin. The main point of the meeting is to develop a strategic vision for commuter rail in the Austin area.

X. Public Comment:

Larry Blow, of Transrapid International USA, presented a power point presentation on a high-speed option alternative. Mr. Blow is the Project Manager for all US projects and believes Transrapids’ high-speed option alternative would benefit the State of Texas. [Presentation to be emailed for distribution.]

XI. Adjourn:

There being no further items of business brought before the Board, Chairman Wells adjourned the meeting at 12:05 p.m.