$12.25 million Toll Equity Grant outlined

At a recent meeting of the North East Texas Regional Mobility Authority (NET RMA) Chairman Jeff Austin III outlined a few of the many momentous events the NET RMA experienced in 2006.

Among the most significant events were the Toll Equity Grant for $12.25 million the organization received from the Texas Department of Transportation (TXDOT), and the grand opening of Loop 49, the state's first two-lane, totally electronic toll road.

"Our organization is in its infancy, but we have been able to accomplish a great deal in a short time frame due to the tremendous cooperation and partnerships that we have seen from our elected officials, the NET RMA Board and the citizens of East Texas," Mr. Austin said. "The spirit of teamwork will continue to be vital as we compete for our fair share of the limited transportation dollars available to us."

During 2006 the NET RMA formed a team of legal counsel, financial advisors and general engineering consultants that will assist the NET RMA Board of Directors in addressing transportation needs and priorities in North East Texas. The Board also adopted a series of policies that will govern the NET RMA administrative procedures.

Gregg County Judge Bill Stoudt said 2006 was a year for the NET RMA to solidify the structure of the organization. He said the partnerships that were formed will be integral to planning for the area's transportation infrastructure.

"I believe the regional concept that is bringing everyone together is very positive for the area. We need to band together," Stoudt said. "From the Gregg County standpoint, I'm encouraged that we have some projects that we can get off the ground in the near future."

While much of the focus in 2006 centered around Loop 49, the NET RMA is poised to take on many other transportation issues in 2007, including a regional rail plan that addresses both freight and passenger rail, examining the possibility of multi-modal hubs in North East Texas, and researching the opportunities at the region's airports. Through the authority granted by Texas state statute, an RMA has the ability to design and construct projects that deal with tolled or non-tolled roadways, passenger or freight rail, pedestrian or bicycle facilities, intermodal hubs and other transportation issues.

"Loop 49 is the NET RMA's first project, and it is progressing nicely," Mr. Austin said. "But Loop 49 is just the beginning of the blue print. Eventually Loop 49 will connect to the East Texas Hourglass, and then traffic in North East Texas will begin to have a long-range solution. It's all about connectivity, partnerships and economic opportunity."

The full report, 2006 Year in Review: Highlights and Accomplishments, is attached as part of this press release.

About the NET RMA

The NET RMA is an independent government agency created to accelerate the development of transportation projects in North East Texas. Our mission is to implement transportation solutions that will enhance the quality of life and the economic environment in our area. The NET RMA is governed by an 11-member board of directors that represent each of the member counties: Gregg, Smith, Cherokee, Harrison, Rusk and Upshur. Texas RMAs were made possible through an initiative passed by the state legislature in 2001. The NET RMA was established in October 2004.

NET RMA "Firsts"

+ First RMA in the state to expand by adding four counties (Cherokee, Harrison, Rusk, Upshur

+ First RMA to have jurisdiction in two TxDOT Districts, Tyler and Atlanta

+ First Segment of Toll 49 Grand Opening in August: first 2-lane totally electronic toll road in Texas

+ First tolls collected on Toll 49: 12:15 a.m. Nov. 27, 2006

+ First Interlocal Agreement with member county: Gregg County and NET RMA are moving forward on construction/ expansion of Highway 149 and George Richey Road based on a pass-through financing agreement with TxDOT

Administrative

Accomplishments

+ Signed interim PDA with TxDOT, and received Toll Equity Grant of $12.25 million for Loop 49

+ All board members completed Open Meetings and Open Records Act training

+ Branded the East Texas Hourglass as Toll 49 where the entire project will have the same number and name

+ Adopted 11 organization policies

+ Formed Rail Sub-Committee to address local/regional concerns for freight, high-speed and commuter issues and to also bring together the different rail advocacy groups

+ Formed Public Education/ Outreach Sub-Committee to maintain open lines of communication with the public

+ Completed annual update to counties, fulfilling NET RMA statute to give a report each year to each member county's commissioners' court

+ Updated and adopted revised strategic plan

+ Passed resolution supporting the toll rates for Toll 49

Organizational

Accomplishments

+ Selected General Engineering Contractor: PBS&J

+ Selected Project Director: Everett Owen, P.E. (partnership with CTRMA, where Everett serves as director of engineering)

+ Selected general counsel: Brian Cassidy of Locke, Liddell & Sapp LLP

+ Selected financial advisors: First Southwest/Southwest Securities and Estrada-Hinojosa

+ Selected Auditing Firm - Wilhelmi, Prothro & Co.

+ Launched NET RMA website, www.netrma.org

+ Adopted NET RMA logo

+ Launched first issue of the NET RMA newsletter

+ Printed NET RMA informational brochure

+ Drafted and adopted a oneyear budget and five-year budget forecast

+ Welcomed four new board members: Gaylon White (Harrison County), John Cloutier (Rusk County), Steve McCarty (Cherokee County) and Frank Breazeale (Upshur County)

+ Board member Tab Beall, participated in TeamTX events and gave an update at the quarterly NET RMA meeting

+ Three counties, Wood, Bowie and Panola, passed resolutions to join the RMA, paving the way for further expansion for the NET RMA. Vice Chairman Linda Thomas is leading an effort to explore the interest of other counties, and has visited Morris, Cass and Nacogdoches counties.

+ Presentations to many community groups, including: Rotary clubs, NET MOB organizing team, El Paso RMA, Texas Transportation Forum, Hidalgo County RMA

+ Vice Chairman Thomas attended several meetings for the Interstate 69 Alliance

+ NET RMA has increased its support of TTC-I-69 in East Texas

+ Attended meetings in support of the Transportation Planning Steering Committee (public transit) and the East Texas Corridor Council (rail)

Important Partnerships

+ Interlocal Agreement with CTRMA, allowing NET RMA to utilize key CTRMA staff and expertise

+ Interlocal Agreement with Gregg County for Highway 149

+ University of Texas at Tyler: MBA Program (2 research projects)

+ Improved partnership with Tyler MPO and Longview MPO

+ Tyler 21: Members of the NET RMA participated in the City of Tyler's visioning process. Chairman Austin provided input about the long range plans of the RMA.

+ Joined as a Participating Agency on Toll 49 Segment 4 (Lindale Relief Route EIS)

Project Accomplishments

+ Smith County submitted letter to TxDOT requesting to handle the abandoned rail line from Whitehouse to Troup

+ Loop 49 - Segment 1 complete and open to traffic. Segment 2 scheduled to open in December 2007. Segments 5 and 3A are in the design phase.

Gregg County

+ East Texas Hourglass: completed initial study, including 22 toll feasibility studies undertaken by the GEC

+ George Richey Road expansion: completed feasibility study on pass-though financing

+ Highway 149: Interlocal Agreement with Gregg County.

Cherokee County

+ US 69 relief route in Wells has been re-energized and is moving forward to Rusk

+ Considering possible passthrough financing project on Henderson Loop Harrison

+ East Texas Hourglass participation - evaluated possible north/south link between I-20 and proposed Hourglass on either side of Hallsville

Upshur

+ Began looking into ideas for Highway 271 linkage to East Texas Hourglass

A Look Ahead: 2007 Focus

+ Long range expansion of Highway 64 between Henderson and Tyler

+ TTC I-69

+ Monitoring Union Pacific rail line between Big Sandy and Gilmer