Transportation Legislation Review Committee (08/10/2012)

Final
STAFF SUMMARY OF MEETING

TRANSPORTATION LEGISLATION REVIEW COMMITTEE

Date:	08/10/2012	ATTENDANCE

Time:	09:37 AM to 03:24 PM	Barker	X
		Brown	X
Place:	HCR 0112	Fischer	E
		Hamner	X
This Meeting was called to order by		Jones	X
	Senator Hudak	King S.	E
		Looper	E
This Report was prepared by		Newell	E
	Jonathan Senft	Priola	*
		Ramirez	*
		Renfroe	X
		Schwartz	E
		Scott	X
		Spence	X
		Tyler	X
		Williams A.	E
		Williams S.	X
		Young	X
		Vaad	X
		Hudak	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation by the Regional Transportation District Public Highway Authority Report Public Comment Public Utilities Commission Report Waste Tire Program		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

09:43 AM -- Presentation by the Regional Transportation District

Senator Hudak, chair, called the meeting to order.

Mr. Lee Kemp, Chairman of the Regional Transport District (RTD) Board of Directors introduced Mr. Phillip Washington, General Manager and CEO of RTD, who provided testimony on ridership data, cost recoveries, revenues, and general overview of the RTD status (Attachment A). Mr. Washington also provided the plans for the future, including Union Station and FasTracks. The FasTracks overview included status updates on West Rail Line (93 percent complete), Denver Union Station (63 percent complete), the East Rail/ Gold Line (property acquisitions underway), the I-225 line (first segment construction underway) and the U.S. 36 Route (construction of express lanes underway).

09:54 AM

Representative Tyler queried about the leveling of the track to the street platforms on the West rail line, mainly concerning the Oak Street crossing. He expressed concern that snowplows may cross and damage the rail. Mr. Washington replied that the RTD is aware of the issue and is addressing it. According to Mr. Washington, this line will be fully open on April 26, 2013. Representative Tyler then queried about the quality of Call-and-Ride. Mr. Washington said that RTD has cut the original recommendation down and instead will keep fixed-route buses, leaving less Call-and-Ride service than was originally considered under the West line plan.

10:00 AM

Mr. Washington continued discussing the "Eagle P3" project, a multiple partner agreement to design-build-finance-operate-maintain the East rail line, Gold line, Northwest Electrified Segment (segment one of the Northwest rail line) and Commuter Rail Maintenance Facility project under a single contract. Mr. Washington stated that it is a 34-year contract, with six years to design and build the segments and lines, and 28 years for operation and maintenance.

10:05 AM

Senator Hudak queried about the BNSF rail line, an existing privately owned rail line, and negotiations concerning the Northwest rail line. Mr. Washington said that the portion of line referred to by Senator Hudak is not owned by BNSF. The Northwest rail line after Westminster is not part of the Eagle P3 Plan. Representative Vaad asked about private equity interest and return on investment and where revenues would come from to pay back those lenders. Mr. Washington deferred the question to Mr. Terry Howerter, RTD CFO, who said this exposure will be paid by sales tax revenue.

10:15 AM

Mr. Washington elaborated on the Keiwit proposal concerning the I-225 project. He indicated that the proposal was recently accepted. Representative Tyler then asked about a potential one-mile connectivity project from the Five Points area of Denver to Denver International Airport (DIA), and whether it could be privately funded. Mr. Washington responded that private funding is a goal in planning this project. Senator Spence asked about the Keiwit proposal, and how internal estimates weigh against bids. The trend is that bids tend to be lower than internal estimates. Mr. Washington said that poor economic conditions can spur lower bids. Representative Ramirez queried about the current tax structure funding FasTracks and altering rail plans for the Northwest Line. Mr. Washington responded that RTD needs additional revenues.

10:28 AM

Representative Jones inquired about funding and taxes for the Northwest line. He expressed concern of an inequity in funding for tracks to the north. He commented that the bulk of the funding is going to lines other than the north. Mr. Washington responded that the question is at the direction of the RTD Board of Directors.

10:37 AM

Representative Jones directed RTD to "do the basics first," referring to the construction of the Northwest line. He asked that Mr. Washington convey this message to the RTD Board. Representative Ramirez echoed Representative Jones' comments. Senator Williams also commented in favor of the remarks of Representatives Ramirez and Jones.

10:45 AM

The committee took a brief recess.

10:57 AM -- Public Highway Authority (PHA) Reports

Senator Hudak called the meeting back to order.

Mr. Randy Drennen, Chairman E-470 Authority, Mr. John McCuskey, Executive Director E-470 Authority, and Mr. Dave Kristick, Deputy Executive Director E-470 Authority introduced themselves to the committee. Attachment B was distributed to the committee. Mr. McCuskey began to explain the handout.

11:04 AM

Mr. Kristick discussed the emerging sticker system associated with customer accounts for tolling. He identified potential issues with temporary license plates issued by the Department of Revenue (DOR). He indicated that some types of toll readers cannot identify them. Mr. Kristick stated that the E-470 Authority is meeting with DOR concerning this issue next week.

11:08 AM

Representative Vaad asked about the 20 percent discount for the Express toll and whether there are larger administrative costs for using this system. Mr. Kristick responded affirmatively. Representative Ramirez mentioned his personal experiences with the toll system and praised the customer service.

11:11 AM

Representative Hamner asked about the amount of the toll. Mr. Kristick responded that a regular toll for a car is between $2.25 and $3.15 at each toll plaza, depending on the toll plaza and route. Senator Hudak asked about average costs. Mr. McCluskey said the full distance of the highway is approximately $12.00.

11:13 AM

Rep Vaad asked about tolls on motor carriers. He discussed the efficiency concerning collections and administrative costs and raised the issue of the federal bill regarding a nationwide transponder mandate.

11:21 AM

Ms. Pat Soderberg, Northwest Parkway Public Highway Authority, and Mr. Pedro Costa, Brisa, representing the concessionaire, introduced themselves to the committee. Ms. Soderberg provided a general overview of the presentation materials (Attachment C).

11:26 AM

Representative Tyler asked about potential extensions of the Northwest Parkway through the Interlocken area near US 36, specifically whether the northern part works its way through Interlocken Park. Ms. Soderberg said that it does, and then briefly outlined the plan as it pertains to the Jefferson Parkway.

Representative Vaad asked Mr. Costa about current investment, revenue and payments. Mr. Costa explained these figures in the context of the difficult economy.

11:36 AM

Discussion ensued concerning the effectiveness of the Public/ Private concessionaire system. Mr. Costa said that come companies are starting to find that the arrangement its not such a good deal, and cited the sale of the Indiana turnpike as one example. Mr. Costa explained that new financing arrangements place pressure for companies to be efficient.

Senator Hudak asked about average tolls on the highway. Ms. Soderberg responded that the full distance, I-25 to U.S. 36, is $3.30 per trip. Mr. Costa referred to the presentation materials that showed the trends over the last few years.

11:42 AM

Representative Jones asked about potential rises in tolls, and the downward level of use of the highway. Ms. Soderberg responded that the downturn in usage is due to the economic downturn. She said that tolls can rise at a minimum of 2 percent per year. Representative Jones commented that tolls are too high now, and expressed concern about any rise in the current toll.

11:44 AM

Mr. Bill Ray, Executive Director of the Jefferson County Public Highway Authority, introduced himself to the committee. Attachment D was distributed to the committee.

Representative Ramirez asked about the StorageTek area just south of Broomfield. Mr. Day continued his presentation on the status of land acquisition, and discussed Open Space and the Rocky Flats area.

11:55 AM

Mr. Ray discussed the "Section 16" land deal, and broadly outlined an ongoing legal suit, and the possibility that a deal on the state land involved in construction may discontinue. Senator Hudak asked about the future of the section of Highway 93 that is planned to be part of the Parkway. Mr Ray responded that it will be widened. Senator Hudak followed up with questions about potential environmental damage.

12:02 PM

Representative Jones asked about Highway 93 and potential tolls. Mr. Day responded that there will be no tolls on this section.

12:03 PM

The committee recessed.

01:06 PM -- Public Comment

The committee returned to order.

Ms. JoAnn Herrick, member of the River North Community of Denver, expressed concern about a proposed parking garage near Coors Field on land owned by the Stadium District. She spoke about the lack of public opportunity to comment on the proposed development. She also explained that the RTD is paying to purchase parking spaces in the garage. She urged the Colorado General Assembly to oversee the Stadium District. Senator Williams explained that state law authorizes the Audit Committee to audit the Stadium District.

01:15 PM

Mr. Scott Meiklejohn, United Rentals and Sunbelt Rentals, expressed concern about a tax on rentals of special mobile equipment (SMM) and the state reporting requirement related to this tax. He urged the committee to sponsor legislation to amend the reporting requirement to make it less onerous. He also responded to questions from the committee concerning reporting requirements for other states and alternative reporting methods that would be less onerous on his business.

01:22 PM -- Public Utilities Commission

Mr. Ron Jack , Chief Operating Officer, Public Utilities Commission (PUC), described the implementation of House Bill 12-1327, concerning security requirements for towing carriers. He also described the role of affected towing carriers in the rulemaking process to implement House Bill 12-1327.

01:29 PM

Mr. Cliff Henson, representing the Investigations Unit of the PUC, described enforcement of state regulations concerning towing carriers by the PUC and local law enforcement. He also responded to questions from the committee about the use of penalty revenue that is deposited into the state General Fund.

01:35 PM

Mr. Jack described current law concerning PUC regulatory authority over motor carriers (Attachment E). He also responded to questions from the committee concerning PUC regulation of taxi service and how applications for new taxi services are evaluated.

01:52 PM

Mr. Henson responded to questions about PUC enforcement against illegal taxis.

01:57 PM

Mr. Jack described the regulation of towing carriers under current law, and responded to questions from the committee about regulated towing carriers and the implementation of House Bill 12-1327. He also described the regulation of household good carriers under current law.

02:06 PM

Mr. Jack identified fees collected by the PUC from regulated carriers and explained the use of these moneys to pay for the cost of the regulatory program. He also described the Unified Carrier Registration System for vehicles that are required to register with the U.S. Department of Transportation.

02:12 PM

The committee took a brief recess.

02:16 PM -- Waste Tire Program

The committee returned to order.

Mr. Charles Johnson, Solid Waste Material Management Program Manager, Colorado Department of Public Health and Environment (CDPHE), distributed the 2011 Annual Report for the Waste Tire Recycling Program (Attachment F) and a chart that described the allocation of fees collected by the Colorado Department of Revenue to support the waste tire program (Attachment G). He described the purpose of the program, tires affected by the state regulation, and programs to promote the use of waste tires. He commented on problems related to the illegal disposal of waste tires and measure to prevent such disposal and to promote the clean up illegal waste tire dumps.

02:36 PM

Mr. Johnson described the legislative history of the waste tire program, including House Bill 10-1018 and House Bill 12-1037 concerning waste tire processors fees. He explained that House Bill 10-1018 established an advisory committee that is required to report to the General Assembly in January 2013 concerning the benefit of the program and potential legislation to improve it. He also described a task force that has been formed to address the beneficial use waste tires by agricultural operators that will begin meeting in September 2012.

02:44 PM

Mr. Brian Gaboriau, Waste Tire Grants Administrator, Division of Environmental Health and Sustainability, responded to questions from the committee concerning use of waste tires for road building materials and sound barriers.

02:49 PM

Mr. Johnson responded to questions from the committee about the number of waste tires that are disposed of annually in Colorado and the number of tires that are currently being recycled for fuel and other purposes. He also described grants for public safety agencies to address hazards related to waste tires such as fires.

02:53 PM

Mr. Gaboriau described the use of recycled waste tires for athletic field bases, playgrounds, and other uses. He explained pictures of waste tires in the 2011 Waste Tire Report and responded to questions about potential environmental hazards related by waste tires. He also discussed the use of waste tire funds to clean up abandoned or illegal waste tire sites, recycling incentive grants, and other programs, and described the rulemaking process to implement House Bill 12-1037.

03:11 PM

Mr. Johnson responded to questions from the committee about the importation of waste tires into Colorado from other states and how these facilities are regulated.

03:20 PM -- Discussion on Future Agenda

Mr. Jason Gelender, Office of Legislative Legal Services, described the process for requesting draft legislation that will occur on the August 21, 2012.

03:24 PM

Senator Hudak requested the Colorado Department of Transportation provide information about vehicle miles traveled on August 21, 2012.

03:24 PM

The meeting adjourned