Board Meeting
May 7, 2004
1:30 p.m. – 3:30 p.m.
AACOG Conference Room
8700 Tesoro
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 May 7, 2004 commencing at approximately 1:50 p.m. Vice Chair Covington greeted all Board members and announced the absence of Chairman Wells who was ill. Vice Chair Covington announced that a quorum was present.

Participants:

• Commissioner Tommy Adkisson
• Al Notzon
• Mariano Camarillo
• Shelton Padgett
• Sid Covington
• Councilmember Carroll Schubert
• Commissioner Gerald Daugherty
• Councilmember Daryl Slusher
• Fred Harless

Sam Barshop, Senator Barrientos, Dave Marsh, Tullos Wells, and Senator Wentworth were unable to attend. Other participants included Ross Milloy, Steve Lowry and Bill Bingham. Joe Morris attended in Senator Wentworth’s absence and Graham Keever attended in Senator Barrientos’ absence.

I. Chairman and Member Comments:

There were no opening comments by members.

II. Approval of Minutes of March 5th and April 2nd Meetings:

Councilmembers Carroll Schubert moved and Gerald Daugherty seconded approval of the proposed minutes for the March 5th meeting. The minutes were unanimously approved.

Fred Harless moved and Councilmember Daryl Slusher seconded approval of the proposed minutes for the April 2nd meeting. The minutes were unanimously approved.

I. Committee Procedures and Reports:

A. Freight Rail Relations Committee (FRRC):

Vice Chair Covington advised the Board that the FRRC was scheduled to meet earlier that day, however, a quorum was not present so the meeting was postponed.

B. Program Management Oversight Committee (“PMOC”):

Mariano Camarillo stated that the PMOC had met just prior to the Board meeting. Steve Lowry provided a briefing on Work Authorization #5, Supplement “A”, authorizing PBS&J to conduct the work related to the environmental white paper. Mr. Camarillo explained that the way this Work Authorization is laid out, PBS&J will be allowed to do its work in three steps. He added that they would come back to the Program Management Committee, which will allow the Committee to review work done and authorize continued work. Mr. Camarillo explained that the reason for that is depending upon the results of the first three tasks, there may or may not be a need for PBS&J to proceed. Motion was made by Mr. Camarillo to approve Work Authorization #5. Vice Chair Covington explained that a second to the motion is not needed and that it can be voted on by the entire Board. Work Authorization #5 was unanimously approved. Mario Medina of TxDOT asked that the motion be made contingent on TxDOT’s approval that the expenditure was an allowable expense under Federal Highway Administration Guidelines, and Mr. Covington stated that the Board concurred with his request.

Mr. Camarillo reviewed Work Authorization #7 having to do with the services of PBS&J as general program management consultants. He explained that this Work Authorization has been under discussion with the Board for several months. Mr. Lowry explained the intent of Work Authorization #7 as support to the Rail District staff. Mr. Camarillo requested approval of Work Authorization #7. Councilmember Schubert requested explanation of the different Work Authorizations. Mr. Lowry explained the different Work Authorizations stating that they list specific tasks identified for the PBS&J team to accomplish that had not been earlier included in their scope of work and that this will carry them through to the umbrella contract. The motion to approve Work Authorization #7 was passed unanimously. Mr. Camarillo then moved to consider an amendment to the contract with PBS&J to set an available funds cap limit. Mr. Bill Bingham, Rail District Counsel, explained it is to be stated as a dollar value that is equal to approximately 15%. Mr. Camarillo moved to amend the contract for engineering services with PBS&J by providing that the maximum amount payable for completion of all work including authorizations for payment to sub-contractors or others is $1,300,000 with the program management portion of the work limited to $864,928. The motion was unanimously approved.

Mr. Camarillo stated that the final item was the addition of two consultant companies to the Project Management Team, WHM Transportation Engineering (WHM) and McGinnis, Lochridge, and Kilgore, LLP, (MLK). Mr. Lowry gave background of both companies anticipated involvement in this project. Further action was delayed to a later meeting.

C. Public Information Committee (“PIC”):

No committee report was given. Vice Chair Covington stated the next priority for this committee is to work on the website and get it operational. Mr. Lowry added that this project would be discussed by the committee on their next meeting.

I. Feasibility Study Update – Report on Station Location Meetings:

Mr. Lowry asked Pete Hackley with the Project Management team to address this item. Mr. Hackley gave an update on the project. The concern is the receipt of information from Union Pacific. Mr. Hackley expressed hope for a breakthrough with Union Pacific exchanging information with us. Mr. Hackley added that Work Authorization #5 is about on schedule with the intention to finalize the report by the end of the summer. Mr. Fred Harless asked if cost would be addressed. Mr. Hackley confirmed that it would be. Mr. Harless added that the station becomes an anchor that draws people, a solid financial investment. In calculating how to pay for stations, we should apply for TIFs, he added. Mr. Hackley agreed, explaining the station planning process with preliminary engineering. Mr. Shelton Padgett commented that we should discuss with communities and asked what communities in Bexar County have had these discussions. Mr. Hackley explained that four communities are considered: 1604; 410; Downtown; and Kelly. Everyone agreed that these four made sense today. It was recommended to keep in the Mo-PAC tracks on West side. Mr. Padgett commented that the sales tax referendum in November was to include transit facilities. He added that the funding should be identified within the next 30 days. Mr. Padgett recommended open discussion of other viable areas and requested other routes be considered because of growth with colleges and Toyota versus the Kelly stop. He also added that the population increase since 1999 in San Antonio should reflect more ridership for college campuses, Southpark Mall, and Toyota. Mr. Hackley said future discussions regarding southern most station will continue and all options will continue to be considered. Mr. Milloy explained this is for modeling at this time. Mr. Padgett said that he sees quicker return on investment going to Southpark Mall instead of Kelly. He added that we should consider acquiring land for that kind of use.

II. Report on Joint MPO Meeting (April 21), Possible Discussion Of Other Jurisdictions Within District Boundaries:

Mr. Covington then discussed the Joint MPO Meeting held April 21st in San Marcos. Councilmember Schubert stated that the San Antonio Mobility Coalition did not have a quorum present, however the meeting was very good. He added that the resolutions were approved. Vice Chair Covington and Councilmember Slusher both agreed with Councilmember Schubert at a later meeting on the success of the meeting. Councilmember Schubert thought the presentation by Chairman Tullos Wells and Vice Chair Sid Covington was very good. Mr. Milloy thanked Alison Schulze for her contribution to bring this meeting together. Mr. Milloy went on to share survey data shared at the meeting. He further stated that at the end of the Joint MPO meeting, Representative Mike Krusee requested that both MPOs plan to set aside $5 million each year for 10 years. Mr. Milloy expressed delight and eagerly recommends that the Board request to be placed on the agenda with both MPOs for the request for $5,000,000 from each MPO. Vice Chair Covington announced that two MPO motions passed and that it was an excellent meeting.

III. Report on Dallas-Ft. Worth Rail Trip By AUS/SAT Leaders:

Vice Chair Covington updated the Board on the DFW trip. He said the group took the TRE to downtown Ft. Worth and had presentations on the way. Vice Chair Covington added that they took buses to Love Field. He recommends a similar trip be planned for our leaders. He commented on observing those riding the train, reading papers, playing chess, and relaxing, stating that it occurred to him how much more comfortable it was for these riders than fighting traffic on the freeway. Mr. Milloy commented on the lack of development around the stations. City codes had influence on developing around stations, according to Mr. Milloy. He polled station managers and conductors about crime and no increase was reported. Mr. Milloy went on to add that as many as 30-40 freeway lanes connected Ft. Worth and Dallas on that line and they still have over 8,000 riders average daily, as compared to only six lanes between Austin and San Antonio. He also commented that they have a lot more freeway capacity than we do here in our corridor.

Vice Chair Covington stated that the employees they visited with are very jealous of our organization. He said that none of the employees are employed by the TRE, instead, the T in Ft. Worth or DART in Dallas employs them all. Vice Chair Covington added that they are working towards making it one organization – the TRE. The feedback given to Vice Chair Covington was that they expressed the need for larger parking lots. Commissioner Daugherty asked what kind of transportation options have they exercised. Vice Chair Covington explained the experience he had about the transition from train to other transportation such as buses. He observed a very heavy bus service around the rail, with seamless service, including a daily ticket for $4.50 per day, which covers everything, with the option of purchasing cheaper tickets. Commissioner Daugherty asked how many stops were there. Vice Chair Covington stated approximately five and that they were 10-12 miles apart.

IV. State and Federal Legislative Affairs Update:

Mr. Milloy referred a letter from Congressman Ciro Rodriguez’ along with a page labeled the National Corridor Infrastructure Improvement. This is the language that is in the bill in debate in Washington DC now.

Mr. Milloy also reported that he had testified before a Texas legislative committee with regard to rail in Highway 130. After Mr. Milloy’s testimony, testimony was given by Executive Director Behrens, who testified that the southern section of 130 is being examined as a potential route for Union Pacific relocation. Mr. Milloy also stated that TxDOT has hired consultants to look at Union Pacific to find a route from San Antonio to Taylor. Mr. Milloy stated that the executed MPO resolutions will be extremely useful in Washington DC in furthering our projects and thanked the MPO’s for their participation.

V. Approval of the Annual Report:

Vice Chair Covington praised Mr. Milloy, Mr. Marsh, Councilmember Slusher and A3 Designs on the completion of our Annual Report and Brochure. Councilmember Slusher commented that the material ‘looks great’. Vice Chair Covington agreed and Commissioner Adkisson seconded the praise. The Board approved the Annual Report and Brochure by unanimous consent.

VI. Legal Briefing Regarding Potential Conflicts of Interest:

Mr. Bill Bingham gave a general briefing on conflict of intent laws and regulations. He explained that the federal government has different layers of conflict rules that he will bring to the Board as time goes on.

VII. Status And/Or Possible Approval Of RFQ Responses On Alternatives Analysis/Environmental Clearance:

Vice Chair Covington asked Mr. Lowry to present the status of the RFQ. Vice Chair Covington went through the presentation, summarizing that a short-list of three companies was selected. He listed them in alphabetical order as Booz Allen Hamilton; Carter Burgess; and Parsons Brinckerhoff. Mr. Covington added that an Evaluation Committee would meet to interview the members of this short list on Thursday, May 20th at which time each of these companies will be allowed to give a presentation to this Committee. Shortly after this meeting, the Committee will review and make a recommendation to the Board at the next Board meeting scheduled for June 4th. Vice Chair Covington noted that the contract negotiations would take time. He predicted that the July or August Board meeting will be when the final decisions will be completed and a motion made to proceed. Vice Chair Covington expressed appreciation to all companies who submitted a response, stating that they were all very good, however these three best fit the District needs. Vice Chair Covington stated it would be held at 8:30 am on Thursday, May 20th at the TxDOT offices on Riverside Drive in Austin. He also emphasized that while these three companies have made the short-list, they will all come into this meeting with an even playing field and recommendations will be based solely on the presentations given at this meeting.

VIII. Presentation on Financial Strategies and Modeling:

Mr. Milloy asked Mr. John Bennett to give a summary for this agenda item. Mr. Bennett explained the financing support level with ‘what if’ modeling. He commented on the need to follow FTA regulations. Mr. Bennett detailed his presentation (included in packet).

Vice Chair Covington returned to Item VI(b) discussions to other jurisdictions joining. He asked Mr. Bingham about joining districts. Mr. Bingham explained that all counties touching Bexar and Travis Counties are eligible to join. He reminded the Board that we continue to have one vacancy on the Board adding that this position could be filled by an elected representative to represent other cities not now represented on this Board. Vice Chair Covington asked for disadvantages to join. Mr. Bingham discussed the possible disadvantages. Councilmember Slusher expressed concerns about the balance of representation for communities and funding per population. Mr. Padgett asked where are we with Hays County and San Marcos. Mr. Milloy explained there is tremendous interest. He stated that he had discussions with the San Marcos city manager. Mr. Milloy stated that he received a very positive response to their willingness to encourage this project. He also referred to the economic analysis of the benefits included in the packet provided.

Mr. Padgett asked about amending the statute taking into account universities that have 20,000+ students. Bingham said an amendment to the statutes would be required. Mr. Milloy added that an additional $9 million from the federal government may require matches by cities and county funds and he added that this needs to be discussed further.

IX. Other Business:

There was no other business to be discussed.

X. Financial Report:

Mr. Milloy reviewed the financial report. He stated that a quarterly statement would be provided for future reports. He explained that up to March 10th, the Corridor Council has advanced funds to the Rail District to maintain it administratively. Mr. Lowry referred to the Finance Committee and explained finances specifics presented earlier by Mr. Bennett. He also commented that the Finance Committee meeting a week and a half ago did not reach a quorum.

XI. Public Comment:

There were no comments from the public.

XII. Adjourn:

Vice Chairman Covington thanked the Members and the audience for their attendance and participation.

There being no further items of business brought before the Board, Vice Chairman Covington adjourned the meeting at 3:30 P.M.