Public Works Department Pass Through Financing Program August 2013 What is Pass-Through Financing? Currently Texas has $4 Billion of transportation needs with no identified revenue stream to fund In 2003 the Texas Legislature authorized Texas Department of Transportation (TxDOT) to enter into agreements with public entities for the reimbursement of construction costs on state highway systems A program called Pass Through Financing was developed as a tool to help address the funding shortfall The local governmental entity issues debt to build the project and upon completion TxDOT pays back construction costs Purpose is to accelerate and build today, TxDOT projects scheduled for several years in the future. Repayment amount is set in an agreement with TxDOT and the repayment schedule is based on actual traffic counts (initially referred to as shadow tolls) 1
How does it work? The County becomes the developer on a segment of the State s highway system and is responsible for the project financing and soft costs Upon completion, TxDOT is responsible for reimbursement back to the County all construction costs The County must identify an additional funding source to cover the soft costs & financing (ad valorem tax, sales tax, etc.) In Bexar County we created the Advanced Transportation District (ATD) and the ATD sales tax was authorized by voters in the November 2004 election (City of San Antonio only) however this funding source is only available for projects inside the city limits Soft & financing costs can also be paid thru formation of a Public Improvement District (PID); Tax Increment Reinvestment Zone (TIRZ) or Road Improvement District (RID) Overview Currently 6 TxDOT Pass Through Projects totaling $158.4 Million Round 1: 2006 1. Blanco Road (Complete) $29.8 Million 2. Culebra Road (Complete) $26.5 Million Round 2: 2008 1. SH 211 (Design, Environmental, & ROW) $18.1 Million 2. FM 1957 (Design and Environmental) $37.5 Million Round 3: 2011 1. Loop 1604 East (Design Complete) $28 Million Round 4: 2012 1. FM 471 (Design & Environmental) $18.5 Million 2
Round 1: Blanco & Culebra Roads 2006 2 major groups of projects were identified by Bexar County as suitable to pursue under a pass through financing agreement with TxDOT. The magnitude of the original projects proposed totaled approximately $240 Million and consisted of both major interstate and local highway systems projects During negotiations liability concerns eliminated the major interstate projects. Of the 3 remaining local highway system projects, another project was also eliminated because the right of way and utility relocation was too complex and presented a significant risk to Bexar County. This left two projects: FM 3487 (Culebra Road) and FM 2696 (Blanco Road). Pass Thru Agreement with TxDOT for both projects was approved December 2006. ATD revenue for financing and soft costs was secured March 2007. Construction on both projects began May 2008. Round 1 Blanco Road Total Cost: $29.8 M (Complete) Traffic :14,400 ADT (in 2005) 23,900 ADT (projected by 2025) 38,070 ADT (actual post const.) Scope: Road was upgraded to a four lane divided section with bicycle lanes, curbs, sidewalks, and ditch drainage Significant existing residential communities Second of 5 Reimbursement Payments from TxDOT have been received. 3
Round 1 Blanco Road Full Reconstruction Urban, Controlled Access Facility Significant Utility Issues High Pressure Gas Main Underground Storm Drainage 6 Foot Bicycle Lanes 5 Foot Sidewalks Built Within Existing ROW Significant Coordination With TCEQ for Aquifer Protection, USACOE for Floodplain Compliance, and USFWS for Required Protection of Endangered Species Round 1 Culebra Road Total Cost: $26.5 M (Complete) Traffic: 25,000 ADT (in 2007) 83,500 ADT (projected in 2027) Scope: Culebra Road was expanded to 7 lanes including sidewalks, bike lanes and drainage improvements Significant commercial and residential development First of 5 Reimbursement Payments from TxDOT have been received. 4
Round 1 Culebra Road Roadway Widening (16 +/ each side) High Density Urban Setting Adds One Travel Lane Each Direction Adds 5 Foot Bicycle Lanes Adds 5 Foot Sidewalks Built Within Existing ROW Underground Storm Drainage Round 1 Lessons Learned Be in control of your own destiny! o o Hire your own design consultant 90% design plans on Culebra were provided by TxDOT, but after letting we discovered significant constructability issues. Had to re design project while under construction Manage the construction or the construction will manage you Develop a strong partnership with your DOT Obtain Buy in from all area Elected Officials Keep excellent records: Audits, audits, audits, Avoid projects requiring extensive right of way and separate utility relocations (anything you can t control that impacts your schedule) Step up and expand Public Outreach efforts 5
Round 2 SH 211 & Potranco Roads 2008 Western Bexar County is experiencing tremendous growth and severe urban congestion with average daily traffic counts exceeding the capacity of the existing infrastructure It is projected that 55% of all homes built in Bexar County over the next 10 years will be in this area with an estimated population of 250,000 4 private landowner groups approached the County requesting formation of a Public Improvement District (PID) to fund the infrastructure needs Landowners provided a $15 Million investment upfront for design, ROW, and environmental clearance on these projects Both Projects will enhance regional mobility and connectivity Both projects are being advanced by 15 to 25 years Round 2 SH 211 & Potranco Road Total Cost: $55.6 M SH 211 will consist of a 2 lane rural highway which completes the 7.6 mile gap from Culebra to Potranco. Will provide a major relief route to existing outer loop. Status: Completing Environmental Assessment; Est. Construction Start: 1Q 2015 FM 1957 (Potranco) will widen the 4.7 mile existing 2 lane roadway to 4 lanes Traffic is expected to increase from 34,000 ADT to 55,100 ADT in 2035. Status: Design 95% complete; Categorical Exclusion received July 2013; Est. Bid 1Q 2014 (still dealing with ROW) 6
Round 2 SH 211 & Potranco Status Bexar County approved the PID in May 2008 Delays in project development due to downturn in real estate market Landowners will complete Environmental Clearance, ROW Acquisition and Engineering Design at an approximate cost of $15 Million and donate those deliverables to the County. The County will issue bonds and construct the 2 projects. Estimated construction costs are $55.6 Million. TxDOT will reimburse the County $55.6 Million once the projects are complete. Westside PID will reimburse interest costs, reserve fund deposits, and Cost of Issuance associated with the County Bonds and any principal amounts that exceed the TxDOT reimbursement. Round 2 SH 211 & Potranco Road 7
Round 3 & 4: Loop 1604 East & FM 471 TxDOT issued a call for projects in May 2011 and March 2012 Loop 1604 East was selected because the corridor is an important component of the connection between IH 10 and IH 35 with 13% of the ADT coming from truck traffic. The new divided roadway will also address a major safety issue: five fatal accidents from head on collisions. FM 471 was selected because the project will increase roadway capacity to allow for projected growth, increase safety with the continuation of the existing section east of FM 1560 and added bicycle lanes and enhance regional mobility ATD revenue for the financing and soft costs was secured for both projects Round 3 Loop 1604 East Total Cost: $28 M Design Status: 100% Est. Bid 4Q 2013 Traffic: 25,100 ADT (in 2012) 39,200 ADT (projected in 2032) Scope: The proposed improvements will expand Loop 1604 from its existing two lane configuration to a four lane divided roadway. Signalized intersections are located at Lower Seguin Road, Autumn Run and Loop 1604 frontage 8
Round 4 FM 471 Total Cost: $18.5 M Design Status: 90%; Est. Bid 1Q 2014 Traffic: 19,700 ADT (in 2013) 33,000 ADT (projected in 2033) Scope: Reconstruction of FM 471 (approximately 2.4 miles) to include 2 lanes in each direction with continuous center left turn lane, curbs, bike lanes and necessary drainage facilities Overall Program Benefits This program along with the Advanced Transportation District Sales Tax, allows the County to finance and build today, TxDOT projects that were not funded or scheduled for construction for another 15 to 25 yrs. Eliminates significant congestion present today and allow us to plan for future growth Secures TxDOT dollars for local transportation projects which might not be available in the future Demonstrates Bexar County s continued commitment to solving local transportation issues. To date Bexar County is the largest recipient of Pass Through Financing projects in the State. These 6 projects which were undertaken by the County, represent a $159 Million investment in major mobility transportation projects which otherwise would have remained unfunded and unbuilt. 9
Questions? 10