California county says 'No' to unwanted toll project

Link to article here.

Texas politicians love to slam liberal California for just about everything. But this time they got it right. They actually LISTENED to the PEOPLE and nixed an unpopular toll road in response to public opposition. REFRESHING! Texas could use a lesson from California. The crony capitalists are alive and well and have a choke-hold over Texas. The conversion fo free lanes into toll lanes has alreayd happened in Texas. Mostly because TxDOT LIES to the public until the dirty deed is already done, which is illegal. But none of the GOP politicians with oversight lift a finger to halt it.

California County Says No To Tolling
Orange County, California rejects toll road option in light of overwhelming public opposition.
December 11, 2013
The Newspaper.com

California's busiest stretch of freeway will not be tolled. On Monday, the Orange County Transportation Authority (OCTA) agreed with local politicians and members of the public who expressed opposition to the proposed conversion of existing Interstate 405 lanes into toll lanes.

Macquarie found to commit fraud in misrepresenting traffic forecasts

Link to article here.

Of course, Toll Road News defends toll shysters, Macquarie, but common sense would side with the Judge on this one. It’s FRAUD! Just because wrongdoing has become commonplace doesn’t make it any less FRAUDULENT!

Bankruptcy reorganization for American Roads not as harmonious as seems
July 26, 2013
By Peter Samuel
Toll Road News

2013-07-26: American Roads LLC operator of the Detroit Windsor Tunnel and owner of four toll
bridges in Alabama will be owned by a major creditor Syncora Guarantee Inc if the 'prepackaged agreement' between its current owner Alinda Capital Partners and creditors is accepted by the US Bankruptcy Court. Syncora was one of nine other creditors that filed in favor of the American Roads reorganization plan in US Bankruptcy Court this week. The plan pays off eight of the creditors. And the transfer of ownership to Syncora satisfies Syncora's claims it says in the filings.

Sounds all very harmonious!

Except behind the look of a happily agreed joint filing under Chapter 11 is a fierce legal war that Syncora has been waging against Alinda and Macquarie in the New York state courts. American Roads was originally a creation of Macquarie in October 2006 - the financing which loaded it up with the debt now of $830m it is unable to service.

It was almost immediately spun off to Alinda by Macquarie.

In the little publicized litigation in the State Supreme Court of New York Syncora alleges that the financing and spinoff by Macquarie involved fraud and misrepresentation, in particular that Macquarie had a secret and improper relationship with Australian traffic and revenue forecaster Maunsell Australia Pty Ltd (since absorbed into Aecom) to produce unrealistically high traffic and revenue forecasts.

"Success fees"
Syncora was solicited for insurance for complex borrowing involving interest rate swaps, the insurance being used to get 'Aaa' ratings for $500m of backloaded bonds. Syncora agreed in December 2006 to provide the financing insurance, it claims, on the basis of fraudulent misrepresentations of the objectivity of Maunsell's traffic and revenue forecasts. 

The case is summarized by State Supreme Court judge Melvin Schweitzer in a 29-page judgment filed July 1. It says that an undisclosed scheme of "success fees" from Macquarie to Maunsell incentivized it to boost up traffic forecasts.



Judge Schweitzer's rendering of the allegation: "These under-the-table success fees amounted to additional millions of dollars per transaction, and were paid in connection with the American Roads transaction as well as many others. None of this was disclosed to Syncora which was instead led to believe that Maunsell was an objective adviser on whom it could, and did, rely.

"

The undisclosed under-the-table payments involved "conflicts of interest tainting Maunsell's work," Syncora claimed.

Syncora alleged that Maunsell's forecasts were "specifically engineered to ensure that the Macquarie Group could justify the overpriced bids it placed in acquiring infrastructure assets such as American Roads."



Macquarie responded that the Maunsell forecasts were presented as projections only and that they specifically warned of circumstances in which actuality would be below projection. It was well established in the courts that "speculation and expressions of hope for the future do not constitute actionable representations of fact."



The judge ruled in the case on a motion by Macquarie to dismiss it that Syncora had sufficiently strong arguments and evidence to go to trial. He ruled that Maunsell's erroneous forecasts weren't the heart of the case. That lay in the concealment of compensation arrangements with Maunsell, its conflict of interest and potential bias.



Schweitzer continued: "Syncora argues, and the court agrees, that the undisclosed conflict of interest under which Maunsell operated, in addition to secret success fees that Maunsell was paid... do amount to a material misrepresentation or omission of fact."


"Plainly actionable as fraud" - Judge
This, the judge said, was "plainly actionable as fraud."



Judge Schweitzer says in his ruling that Macquarie is accused by Syncora of "promoting inflated projections that Maunsell had prepared on promise of undisclosed success fees (so) Macquarie could quickly acquire asets around which to build an entire business model that generated a cascade of fees so long as they could keep the assets afloat through the issuance of debt."



Schweizter: "It is the court's opinion that Syncora alleged more than sufficient facts from which to infer that Macquarie acted with knowing fraudulent intent."



Syncora alleged that Macquarie wanted the assets bought at inflated prices so it could move them between funds and earn fees for the various funds on each transfer.
Macquarie argued in rebuttal that Syncora was a sophisticated investor and that it was capable of critically reviewing the Maunsell projections which had described the assumptions and methodology used. 

On the "under-the-table" fees paid to Maunsell, Macquarie acknowledged they that they paid "success fees" to the traffic and revenue forecaster. But they said Syncora never asked about Maunsell's compensation arrangements, so Macquarie could not be accused of any misrepresentation on this score.



Again Judge Schweitzer ruled against Macquarie saying that status and incentives of consultants is customarily covered by the bond prospectus or bond agreement and that Macquarie had a duty to disclose its payment method to Maunsell, and Maunsell's incentives to help close a deal. 

On every point the Judge ruled for Syncora saying it has the basis for a claim of fraud and compensation for damages against Macquarie. 



No comment
We can't get anyone in the case to address the relevance of this to the emergence of the prepackaged deal in Chapter 11 bankruptcy. But the deal looks mightily like a settlement of the NY Supreme Court litigation reached from Syncora's strong bargaining situation after Schweitzer's strong ruling in its favor earlier in the month.

Since Alinda has ceded control of American Roads to Syncora the State Supreme Court case now seems, as the lawyers say, "moot."



COMMENT: We find the notion that Macquarie deliberately and systematically overpriced its bids for greater fees earnings implausible. To the contrary the group as a whole has suffered large losses, and damage to its reputation, from bids that have proven to be over high. Potential losses on the Indiana Toll Road and Dulles Greenway for example would seem to vastly exceed any inflated fees income. But unfortunately for Macquarie its partner in the American Roads financing Syncora came to believe it had been 'had' by Macquarie and seems to be succeeding in persuading the courts of that. It clearly should have disclosed its "success fee" payments to the forecaster. Secrecy of this kind usually proves unwise - editor.

NJ toll hikes could reach $100 for bridge crossing

Link to article here.

New Toll Hike Hits Drivers Hard
By Hank Flynn
My 9 NJ.com
December 3, 2013

Fort Lee, New Jersey (My9NJ) - Could you imagine spending $100 to drive over a bridge or through a tunnel? Well, as of Sunday, that is the new reality for truckers driving into Manhattan.
This will be the third of five Port Authority toll increases passed since 2011. It means only a 75 cent increase for car drivers using E-ZPass. For cash paying truckers, on the other hand, it means a $12 hike, taking them from $90 per crossing to $102 just to cross the George Washington Bridge.

SA officials playing shell games with YOUR money

Link to article here.

San Antonio Officials Playing Shell-Games With Your Money
November 13, 2013
by Greg Harrison
Empower Texans

San Antonio’s Metropolitan Transit Authority, Via, is moving forward with an irresponsible and counterproductive streetcar program  San Antonio voters don’t want –paid for with their tax dollars.  Where exactly those funds are coming from should sound an alarm for voters who were promised their tax dollars wouldn’t be used to finance such boondoggles.

As previously mentioned, Via already tried to bring a light-rail program  to voters for approval in 2000, and it failed 70-30%.  The idea sat so negatively with voters that four years later, when Via held an election to increase their revenue through a sales tax raise of ¼ cent through the establishment of the Advanced Transportation District, they had to promise in their election literature none of the ATD funds would be used for light-rail or toll roads.

Half of the ATD revenue would be allocated to Via for public transportation, and the other half would be split evenly between the City of San Antonio and Bexar County for infrastructure improvements, including streets and sidewalks, and shared costs of primarily state or federally funded road projects.

In this arrangement, pending federal approval of an infrastructure project, Bexar County would put in its share of funding and receive four times as much in federal funds for approved projects.  (example: County puts in $250,000, receives $1,000,000, for a total of $1.25 million total funding for a project)

In 2011, Via again proposed another streetcar program, this time: $180 million for 4.56 miles of track as the first phase of their “2035 Long Range Comprehensive Transit Plan.”  It would require the County and the City to separately put up $55 million and Via would supply the rest.  The County’s share was to come from the ATD funds.

The starter plan has been revised multiple times, specifically around the issue of a circulator bus and the construction of an East-West line.  And although he had been always been a supporter of including the line,  County Judge Wolff is on record saying it didn’t matter where the route went, as long as the streetcar got started.  (One would think that when it comes to laying expensive, immobile track the location of the route becomes of great importance.)

And so, finally the East-West line was included, contingent on Bexar County shelling out an extra $37 million, for a total of $92 million from the ATD.

But remember they promised not to use these tax dollars on a light-rail system just eleven years earlier.

(This is where it gets messy.)

Voters remembered Via’s promise that this would not happen, and were not happy about it.  Understandably upset about the feeling of being lied to, concerned citizens raised the question of whether or not Via had entered into a “contract with the voters” by their election literature campaign promises.  A tricky legal issue, to be sure, this has garnered the ire of several elected officials, however their concerns have fallen on deaf ears…

And so, with scrutiny intensifying –and knowing full-well what a legal challenge can do to one’s timeline– Wolff decided to try to obfuscate with the origins of the funds.  Essentially playing a shell-game with the ATD funds, Wolff swapped the money out with the Texas Transportation Commission, moving the $92 million from the ATD by putting it toward an already funded project for improvements to loop 1604 and 281, in exchange for the exact same amount to be taken out of that project and be put towards the streetcar.

And in so doing, lost the county’s ability to leverage those funds for federal dollars –about $368 million – for infrastructure projects, such as highway improvements and congestion relief initiatives.

Voters are the masters of their elected officials.  That’s how the system is supposed to work, anyway, but people are also supposed to show up to the polls –hence the term civic duty.
With low voter turnout in San Antonio for local races such as city council and mayor, it’s not much of a surprise that dichotomy has been reversed; with elected officials telling voters what they’re getting, instead of listening to their needs. 

This particular situation is still developing now; and San Antonio residents still have time to do their due diligence and fight against having to finance the pet projects of their elected elites.

Perry AAA crony asks for corporate welfare handout

Link to article here.

Perry Supporter's Firm in Negotiations for State Grant
By Alexa Ura
Texas Tribune
Nov. 19, 2013

A company whose CEO is a longtime political contributor to Rick Perry is in negotiations to receive an economic development funding grant from the governor’s office.

The Automobile Club of Southern California, a AAA affiliate, is in talks over a potential Texas Enterprise Fund grant to support an expansion of its Texas subsidiary, AAA Texas. Thomas McKernan, the company’s president and CEO, has donated thousands of dollars to Perry and helped raise money for the governor’s failed 2012 presidential campaign.

“Representatives of ACSC and the Governor have entered into confidential economic development negotiations involving a possible grant under the Texas Enterprise Fund to support ACSC’s possible expansion of its operations in Texas,” Malek Khouri, the company’s vice president of administrative services, wrote in a letter to the Office of the Attorney General to appeal the release of the company's application as requested by The Texas Tribune through an open records request.

Khouri said the company sought to protect its "competitive position" in the negotiations as well as confidential commercial and financial information included in the application.

The taxpayer-funded Texas Enterprise Fund is used to award millions in tax dollars to businesses looking to relocate to the state or expand existing operations. The award money is used as a financial incentive to close deals with businesses that are in turn expected to create jobs in the state.

McKernan has contributed at least $23,750 to Perry since 2002. Perry initially reached out to McKernan about bringing jobs to Texas in 2009, according to various press reports. In 2011, McKernan served as a co-finance chairman of the Perry presidential campaign’s California finance team. On the same day that the Perry campaign announced its finance team, McKernan was part of a host committee that organized a fundraiser for Perry in California, contributing $10,000 himself. This September, Perry attended the AAA Texas/National Hot Rod Association Fall Nationals as McKernan’s guest.

Watchdog groups have criticized Perry over the use of such funds, saying they promote “crony capitalism” by providing handouts for corporations and executives that support him.

Asked about the AAA Automobile Club of Southern California application, Andrew Wheat, research director of the liberal watchdog group Texans for Public Justice, said there’s a lack of “checks and balances” to prevent the perceived conflicts of interest.

“This is one of the chief concerns about the Texas Enterprise Fund,” Wheat said. “You’ve got a large pot of taxpayer money that’s essentially being controlled by the state’s three top leaders who can use it as a political slush fund.”

The governor’s office did not comment on the negotiations or a possible conflict of interest.
“As a practice, we don’t confirm any potential ongoing negotiations,” said Lucy Nashed, a Perry spokeswoman.

The governor’s office has previously denied that politics influence Perry’s decision-making on what companies receive incentives through the fund. Perry has said that the Texas Enterprise Fund has helped bring several companies to Texas, bringing thousands of jobs and billions in capital investment to the state.

Calls seeking comment from McKernan at the ACSC were directed to AAA Texas, which declined to comment further.

Linda von Quintus, AAA Texas’ vice president for government and community affairs, referred questions on the negotiations and a possible conflict of interest to Khouri’s appeal letter.
“We’re going to let the document speak for itself,” she said.

Von Quintus did confirm that the company’s Irving-based Texas subsidiary plans to expand local operations. The expansion was set in motion earlier this year when AAA Texas purchased two buildings in Coppell to house its regional headquarters.

The Texas Enterprise Fund, which was created in 2003 by the Texas Legislature at Perry's request, awards grants at the governor’s discretion with prior approval from Lt. Gov. David Dewhurst and House Speaker Joe Straus. Since its creation, Perry has awarded more than $487 million in grants, although not all the award money has been distributed.

Perry has collected more than $2 million in contributions from executives, political action committees or investors tied to companies that have received Texas Enterprise Fund awards, according to an April report by Texans for Public Justice.

Dewhurst has received more than $1.3 million in similar contributions, and Straus has taken in $232,800.

Other Perry contributors whose companies have received Texas Enterprise Fund grants include Joe Sanderson of Sanderson Farms, which received a $500,000 grant in 2006, and Drayton McLane of McLane Advanced Technologies, which received a $1 million grant in 2009.
Sanderson and McLane have contributed at least $105,000 and $249,000, respectively, to Perry since 2003.

SA officials to use tax money to build toll roads

Sen. Donna Campbell amended the fee hike bill in committee to direct these tax revenues to the toll authority - with no restrictions on it going to toll roads. Now John Clamp, the unelected RMA Board Chairman and puppet of Rick Perry, is using those taxes to subsidize his loser toll projects that aren't financially viable without public subsidies. He claims TxDOT won't give us any money unless the local govt brings its own money to the table. But he has it all wrong - TxDOT wields OUR money like a weapon and is illegally withholding the gas taxes WE PAY until local officials capitulate to toll roads. That's extortion, and not the way road policy is supposed to work.
_______________________
Link to KSAT-TV 12 story on the ‘Super Toll Plan’ for San Antonio as well as the ’Turn Back’ proposal to make city taxpayers foot the bill for STATE highways in the city here.

Link to WOAI story here.

‘Super Toll’ Plan Gaining Traction at City Hall
by Jim Forsyth
WOAI radio
Thursday, November 21,2013  

That $1 billion scheme to build toll lanes on I-10, US 281, and Loop 1604 across the north side, dubbed ‘Super Tolls,’ appears to be getting traction at City Hall, as the plan was unveiled to city officials on Wednesday, 1200 WOAI news reports.

Truck toll discount another flop for SH 130

Why the truck toll discount on Texas 130 will end soon
By Ben Wear
Austin American Statesman
November 20, 2013

A toll discount for trucks on Texas 130 has significantly increased big-rig traffic on that road since the program began April 1, likely luring several hundred trucks a day off of Interstate 35 through Central Texas.

Despite that, what was projected to be a yearlong pilot program on the entire 89-mile tollway likely will be discontinued on the southern 40 miles at the end of the month, and, in the next couple of months, it likely will cease on the other 49 miles of the highway. The reason: lost revenue.

This story continues on our new premium website for subscribers only. 
Continue reading/get access here.

Traffic on private toll roads takes a dive

Another indicator that P3s are a risky bet and instead of investors shying away from financing loser toll projects, these special interests are lobbying full-time to ensure taxpayers pick-up the tab for any losses -- which WILL come. They're setting up the next 'too big to fail.'

Drop in Traffic Takes Toll on Investors in Private Roads
By Ryan Dezember and Emily Glazer
Wall Street Journal
Nov. 20, 2013

Millions of motorists cross the Foley Beach Express toll bridge every year, many to hit Alabama's beaches. But traffic never reached the 10 million drivers that the bridge's investors were led to believe would be paying tolls in 2012.

The result is a familiar scenario to global investors who wagered on U.S. toll roads in the years before the financial crisis—and have since seen many of those bets fail.

To read on, must be a subscriber. Go here.

Even An 85 MPH Highway Can't Fix Austin's Traffic Tangle

Link to article here.

Once again, the mention of swapping free Interstate 35 with the SH 130 tollway that's about to go bankrupt has raised ire across Texas, especially in Austin. It's yet another form of taxpayer bailout for private corporations.

Even An 85 MPH Highway Can't Fix Austin's Traffic Tangle
by Wade Goodwyn
National Public Radio
December 17, 2013

Four decades ago, Austin, Texas, had a population of 250,000 and a reputation as a laid-back oasis of liberal politics and live music. Today, the Austin metro area is home to 1.8 million people and has some of the nation's worst traffic congestion.

For years, the city has done little to address the growing problem. But most in the Texas capital now agree something has to change if Austin is to save what's left of its quirky character. The best way to experience Austin traffic may be from inside the police department's new helicopter. Breathtaking in the late afternoon sunlight, the state Capitol and the University of Texas Tower glow like torches.

But tear your eyes away from the skyline to look down and — poof! There goes your pretty picture. Nearly everywhere you look, the roads are backed up with cars, pickup trucks and 18-wheelers crawling along.

Alaska pulls plug on P3 project

Link to article here.

At least there's one Republican out there willing to pull the plug on the corporate welfare known as public private partnerships...

Parnell wants to abandon public-private partnership to let state build Knik Arm Crossing itself
By Pat Forgey
Alaska Dispatch
December 18, 2013

JUNEAU -- Gov. Sean Parnell says the new plan to get the Knik Arm Bridge built is to remove the "private" from the public-private partnership concept that has until now been a key selling feature.

"It is a change from the road we were on, but it isn't a change in the project itself," said Michael Foster, chairman of the Knik Arm Bridge and Toll Authority [3].

Talk of swapping I-35 with failing SH 130 tollway

Link to article here.

The Texas Transportation Commission Chairman, Ted Houghton, caused a firestorm of controversy over directing TxDOT to explore swapping free interstate 35 with the failing SH 130 tollway, forcing local traffic in Austin to pay tolls to use an interstate that today is free. Most lawmakers say 'No way!', but with TxDOT's powerful, illegal lobbying arm, it's only a matter of time. Yet another taxpayer bailout for private corporations looms...

Worsening Austin Traffic Prompts Talk of Toll Road Swap
By Aman Batheja
Texas Tribune
November 5, 2013

As congestion worsens on Interstate 35 through Austin, state leaders are seriously discussing a drastic response: tolling the highway's lanes in the city and making part of the nearby State Highway 130 toll road free.

“You’d move the free lanes out to 130 and the toll lanes to I-35,” Texas Transportation Commission Chairman Ted Houghton said last week at the commission’s monthly meeting. “I think that’s something that needs to be looked at — whether it’s legal; if it’s not, what you’d have to do to get it across that goal line.”

Black boxes: Is your car spying on you?

Link to article here.

Is your car spying on you? GPS tracks ‘consumers,’ identity theft at risk
Data collection raises concerns
By Phillip Swarts
Washington Times
January 7, 2014

Consumers' locations and other data are at risk of being leaked by companies that run automobile navigation services like GPS, a report has found, putting the national debate on privacy behind the wheel.

Despite telling consumers they are collecting the information and seeking consent, companies do not always disclose what information is collected and how it is used. Companies are also inconsistent when it comes to giving drivers the ability to delete their information.

TxDOT wants to put elevated toll lanes on I-35 in SA

TxDOT evaluating elevated toll lanes for I-35
By David DeKunder,
October 29, 2013
San Antonio Express-News



Motorists traveling on Interstate 35 from northeast San Antonio to Schertz could have the option of using toll lanes in the future as part of a proposed expansion of the highway.

The Texas Department of Transportation proposed Monday constructing elevated toll lanes along a 15-mile stretch of I-35 from Loop 410 to FM 1103 in Schertz.

As part of TxDOT's suggested plan, two elevated lanes would be built in each direction from Loop 410 to FM 1103, with access to the elevated lanes at three points along I-35: at 410 west, 410 south, and Loop 1604.

Details of the proposed project, which is part of TxDOT's 25-year plan to address capacity needs on I-35, were revealed during a public meeting and open house at the Schertz Civic Center.
The purpose of the meeting, which included exhibits and a DVD presentation on the proposed expansion of I-35, was to gather public feedback on TxDOT's plans, officials said.



Read more here. http://www.mysanantonio.com/default/article/TxDOT-evaluating-elevated-toll-lanes-for-I-35-4936983.php

Virginia Supreme Court props up toll roads

Link to article here.

Virginia Supreme Court Saves Toll Roads
Legality of toll roads restored by Virginia Supreme Court ruling.
November 13, 2013
The Newspaper.com

Toll roads in Virginia have found themselves in legal limbo since May, but the state's highest court came to the rescue on October 31. Portsmouth Circuit Court Judge James A. Cales Jr had thrown the industry into chaos with a ruling that found the General Assembly violated the state constitution when it gave the Virginia Department of Transportation (VDOT) and the Elizabeth River Crossings toll road company authority to raise taxes in the form of tolls, which would be taxation without representation. In a 55-page ruling, the Virginia Supreme Court rejected the reasoning of Judge Cales.

Since 1952, a tunnel has crossed the Elizabeth River to connect the cities of Portsmouth and Norfolk, but as the area has grown so has traffic congestion. The state has constructed additional crossings. In 1995, the General Assembly passed the Public-Private Transportation Act which allows private, for-profit companies to build toll roads with heavy subsidies from state taxpayers. VDOT was given authority to cut these deals, including setting toll rates, without involving lawmakers in any way. An Elizabeth River $2 billion midtown tunnel crossing was first on the list of projects under the new law, with tolls set to kick in on February 1, 2014.

Portsmouth residents sued in July 2012, arguing that the tolls are taxes because their primary purpose is raising revenue. The residents added that the payments are not "voluntary" because there are no reasonable travel alternatives to the tunnel. The Supreme Court rejected this line of argument, and overturned the lower court's judgment.

"In the present case, the tolls paid by users of the project facilities are user fees because: (1) the toll road users pay the tolls in exchange for a particularized benefit not shared by the general public, (2) drivers are not compelled by government to pay the tolls or accept the benefits of the project facilities, and (3) the tolls are collected solely to fund the project, not to raise general revenues," Justice Leroy F. Millette Jr wrote for the court.

The high court likewise found no problem with unelected officials at VDOT and the private company setting toll rates because lawmakers made the decision to give away this power.

"Our role is simply to ascertain whether the political entities have acted within the constitutional boundaries that limit the exercise of their governmental power," Justice Millette wrote. "If so, then their policy decisions are subject to, and properly evaluated by, the political will of the people, and we have no authority to override such political decisions."

The justices decided that the General Assembly can do whatever it wants, so long as it what it intends is not explicitly prohibited by the state constitution. The power to tax cannot be delegated, but because the court insisted that tolls are not taxes, there is no problem with delegation.

"We also hold that General Assembly properly delegated to VDOT the legislative power to impose and set the rates of user fees in the form of tolls, and that this legislative power was not impermissibly delegated to ERC," Justice Millette concluded.

A copy of the decision is available in a 200k PDF file at the source link below.

Source: Elizabeth River Crossings v. Meeks (Virginia Supreme Court, 10/31/2013)

Road repair costs have limits

Link to article here.

The ridiculous idea to swap the free Interstate 35 with the failing SH 130 tollway made news all the way up to the New York Times. You'd think that'd shame Gov. Rick Perry's Texas Transportation Commission into dropping the idea, but don't count on it unless the new Governor cleans house and brings sanity back to transportation policy.

Facing Limits on Financing Road Repairs
By ROSS RAMSEY

New York Times
November 7, 2013

Ross Ramsey, the managing editor of The Texas Tribune, writes a regular column for the Tribune.

Texas voters overwhelmingly told the state government to open a $2 billion account to finance water projects this week, a little beam of sunshine for conservative politicians asking their price-sensitive constituents to spend some money.

The supportive numbers for that proposition on financing the projects were healthy, but evidence of voters’ thrift was easy to find: In local elections on the same day, here in the middle of football season, voters that would have converted the once-beloved Astrodome into a convention hub and would have enshrined a district’s football teams — this time in the Katy school district — in a $69.5 million stadium of their own.

Eminent domain abuse in wetlands case in WA

Link to article here.

Zing: Wetlands Expert Sees Huge Flaw In Eminent Domain Case
December 11, 2013
Watchdog Wire.com
By Benjamin Nanke

Watchdog Wire reported back in November that Snohomish County, Washington seized a woman’s property through eminent domain and then sued her to get the money back, leaving Kay Kohler without her land and her compensation for it. Now, Ed Kilduff, a hydrogeologist and expert in wetlands within the state of Washington, has noticed a problem with the wetlands designation the county used to justify their actions. He talked about what the county is doing wrong in an interview with Watchdog Wire.

Kilduff stated that wetland designations are determined by the 1987 Corp of Engineers Manual, however any wetland designation is technically legal until it is challenged. Kilduf alleges that the wetland designation of Kay Kohler’s Snohomish County property was incorrect, citing that the land had never been designated as a wetland in any journal or map of the area and shows no traits of a wetland. However, due to the legal issues, the designation stands.

This, however, poses a significant issue for Snohomish County due to their decision on how to use the land seized by eminent domain.

“There are different types of water,” Kilduff explains, “it’s not all the same water.” Virgin water, or receiving water, is the natural water running in streams. Waste water is any water that flows into the receiving water from an outside source. Snohomish County has transformed Kay Kohler’s seized farmland into a storm water runoff reservoir. Storm water is not considered virgin water, but instead falls under the designation of waste water. Therefore, it can’t be considered receiving water. However, a wetland is considered receiving water.

As the law stands, construction on wetlands is considered illegal. However, the larger issue for Snohomish County lies in the realm of water pollution under the Clean Water Act. Kilduff asserts that Snohomish County paid for the land and then, between the payment to Kay Kohler and the completion of the construction project, reassessed the land as a wetland, challenged the initial cost in a court of law and, Kilduff says, “got a very good deal because of it.”

With the designation of wetland, Snohomish County has violated their permit by dumping waste water into a wetland. “If you take them at their word, that it’s a wetland” Kilduff said, “and then see that they have violated a wetland and filled in a wetland, according to the standard set there would be fine for excavating and working in a wetland that would look something like $10,000 a day.”

Dumping waste water, including storm water, into a wetland is, as Kilduff puts it, a “no go.”

Kilduff says Snohomish County has created a big problem by trying to get a good deal on the property. “They’ve decided that it is a wetland, but then want for it to be a wetland only when they want to get a good price, but not when they’re building stuff on it.”

While Kilduff still doesn’t believe the land is a wetland, he asserted that Snohomish County does, and they need to live within the restrictions. He encourages that citizens put pressure on them, force them to be subject to fines and penalties that citizens are subject to under the Clean Water Act.

While it probably won’t get Kay Kohler her property back, it draws light to the situation and ensures that the county can’t walk away with a good deal in a mess of fraud and abuse.
_______________________________________
Link to article here.

WA: Snohomish County Uses Eminent Domain, Keeps Property And Payment
By Benjamin Nanke
November 6, 2013
Watchdog Wire.com

Following the vein of waste, fraud, and abuse, Watchdog Wire has discovered the story of a woman in Snohomish County who, after an eminent domain agreement beginning in 2008, was subsequently relieved of both her property and, after a lawsuit filed against her, the money intended to compensate her for it.

Our story begins with Kay Kohler and her family’s farm. Kohler inherited the farm, which had been in her family since the 1930′s, and was a largely undeveloped plot of four and a half acres in the midst of increasing development projects within Snohomish County. Despite Kohler and her family attempting to receive the permits to develop the land, the requests were rejected by the county.

It was 2008 when Snohomish County contacted Kay Kohler and informed her of a road expansion in the works and their need to use some of her property. The county determined that the value of the land totaled at $404,000 and offered this amount of money to Kohler in exchange for the land. Kohler accepted, and signed a Possession and Use Agreement to seal the deal. This agreement is important, and we’ll touch on exactly why in a moment. However, for the time being, the agreement proceeded as many other eminent domain agreements do.

It was only when Snohomish County approached Kay Kohler a few months later, demanding the money to be returned, that the situation went awry. The county’s justification for this action was that the land had been inaccurately assessed – Snohomish County claimed that Kohler’s land was actually a wetland, and significantly dropped the land value accordingly. However, Ed Kilduff, a licensed hydrogeologist who frequently deals with wetland designations in the state of Washington, asserts that Kohler’s land has never been considered a wetland, and shows no indication of being a wetland.

“If you look at US Fish and Wildlife maps, the National Wetland Inventory, it’s not shown as a wetland on those maps,” Kilduff says, “so it’s never been a wetland, but they’ve identified it as a wetland and devalued it and gotten a good deal as a result.”

The county’s assessment comes out of the blue.

Snohomish County subsequently filed a lawsuit against Kay Kohler to secure the return of the money paid in compensation for seizure of the property. The county was successful in this suit, with Kohler’s appeal unsuccessful, leaving her required to return most of the money paid in compensation, as well as forfeit her land. The county has since bulldozed most of the property, installing a storm water runoff and retention pond and diverting a large amount of storm water onto the property.

Kohler, on the other hand, has been left both without her land and the supposedly agreed upon $404,000 to her name. With legal fees piled on top of that, and no property to serve as her retirement, Kohler doesn’t know what to do.

“At the end of the day,” she says, “it’s your future that they’re really messing up.”

The key point in this story is the Possession and Use Agreement that Kohler signed with Snohomish County. The document, which Kohler trusted in and signed without legal counsel, established that the “just compensation” for the property would be decided at a later date, and included no further specification or protection for the citizen involved in the agreement. This document allowed Snohomish County to renegotiate the terms of the agreement – and the value of the property – at a later date, permitting them to retract the initially agreed upon compensation.

The lesson to be learned from this story is that legally binding documents from local governments are not to be trusted. It is unknown whether other Washington counties have used this Possession and Use Agreement to pull the same trick on other landowners in similar eminent domain cases, but WatchdogWire advises that any citizen faced with one of these agreements, or any legal document presented by a local government for that matter, be extremely skeptical and consult qualified legal counsel regarding the matter before signing or taking any action.

The Freedom Foundation in Washington State is responsible for uncovering this clear case of government waste, fraud, and abuse, and has produced a video highlighting the details of the case in their Tales of Tyranny series. WatchdogWire will give you updates as we dig further into this case and the nature of Possession and Use Agreements.

Bike caucus chair pushes near doubling of gas tax

Link to article here.

Congressman Pushes $27 Billion Tax Hike On Drivers
Oregon congressman introduces legislation to boost transit programs by nearly doubling the federal gasoline excise tax.
December 4, 2013
TheNewspaper.com

The leading advocate of bicycling in the US Congress wants drivers to pay an extra $27 billion a year at the gas pump. US Representative Earl Blumenauer (D-Oregon) this morning will hold a press conference to unveil his legislative proposal to add 15 cents to the existing 18.4 cent tax on gasoline. The new revenue would be sent to the Highway Trust Fund to back a massive increase in spending on bicycle paths, light rail and related transit programs. In the long term, Blumenauer would like to replace the gas tax with per-mile tax on drivers, and he would spend $150 million to promote the concept.

"In order to fund all economically justified projects, the Department of Transportation estimates that Congress would need to provide $83 billion a year in addition to current funding," Blumenauer explained in a statement on his bill, which he calls the Update Act. "When the current surface transportation authorization ends at the end of Fiscal Year 2014, Trust Fund balances will nearly be exhausted. In order to maintain current funding in the following years, the Highway Trust Fund will need almost $15 billion a year (in addition to current gas tax receipts). If we do not find a way to make the Highway Trust Fund solvent, the continued disinvestment will mean an over 30 percent drop in federal transportation spending by 2024. "

To justify the increased taxes and spending, Blumenauer cites the recommendations of the Simpson-Bowles deficit reduction commission and two surface transportation panels that advocated higher motoring taxes. Representatives from various transportation unions and other prospective recipients of new funding also endorse the concept. Blumenauer cites opinion surveys that support the imposition of a GPS tracking tax on motorists.

"A number of states, including Oregon, Nevada, Minnesota, Iowa, Texas, and New York have tested pilot projects where they charged drivers for the number of miles they traveled rather than the fuel they consumed," a statement from Blumenauer's office explained. "The tests have proved convenient for drivers, demonstrated strong protections for personal privacy, and have been easily administrable."

As chairman of the Congressional Bicycle Caucus, Blumenauer last month introduced HR 3494, which would require the US Department of Transportation to measure the number of injuries and fatalities for pedestrians and cyclists in the same way that the department measures automobile accidents per vehicle mile traveled.

Spanish govt mulls bailout of private toll roads

Link to article here.

Is this what Spanish toll road operator in Texas, Cintra, expects will ultimately happen when its SH 130 and other overpriced toll roads go belly-up? Not as long as Texans draw breath...

Spain to rescue empty toll roads in deal avoiding deficit hit
By Sonya Dowsett and Jose Elías Rodríguez
November 28, 2013
Globalpost.com

MADRID (Reuters) - The Spanish government is nearing a deal with the country's main builders and banks to rescue up to nine bankrupt toll roads and take over debt worth up to 4 billion euros ($5.4 billion), four sources with knowledge of the talks said.

Motorists have preferred to use Spain's free national highways during the recession so traffic on the toll roads has fallen nearly 40 percent in the 5-year economic slump.

Erroneous toll billing by TxDOT

Link to article and to view the video of the story go here.

Incorrectly charged by TxDOT tolls
by ANDY PIERROTTI / KVUE News
November 26, 2013

AUSTIN -- A KVUE Defenders investigation has uncovered thousands of drivers incorrectly charged on toll roads operated by the Texas Department of Transportation over the past several years.

The issues involve tolls only operated by TxDOT, which include parts of Loop 1, State Highway 45, State Highway 130, and SH 45 SE.

Cintra-operated LBJ Express opens in DFW

The Cintra-operated LBJ managed toll lane project in DFW is described as 'impossibly confusing' and a 'monster' in some of the articles that follow. We've suspected all along that this 'innovation' in road building is still a taxpayer rip-off and will make most drivers shy away from using the monstrosity. Not that the opening price goes up to 55 cents a mile but later will go up as high as 95 cents a mile to use it in peak hours!
________________________________
Link to article here.

First foreign-owned toll road opens in Dallas
By Terri Hall
Examiner.com
December 16, 2013

The first foreign-operated toll lanes became fully operational in Dallas over the weekend. Interstate 635 known as the LBJ opened the first 3-mile stretch of the public private partnership toll project to the public on Saturday. The expensive price tag won’t hit commuters immediately, since it opened at a big discount for the first six months as drivers get used to the variable pricing. To use the 3.5-miles of phase one it will cost anywhere from 15 cents up to 95 cents depending on time of day. However, the regular toll rates will cost between 10 cents PER MILE up to 75 PER MILE in peak hours.

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