82R2725 VOO-D

By: Cook H.B. No. 3755

A BILL TO BE ENTITLED

AN ACT

relating to management of certain metropolitan rapid transit authorities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 451, Transportation Code, is amended by adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1. ADDITIONAL MANAGEMENT PROVISIONS FOR CERTAIN

AUTHORITIES

Sec. 451.131. APPLICABILITY. This subchapter applies only to an authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 850,000.

Sec. 451.132. BUDGET. (a) The board shall include in the budget adopted under Section 451.102:

(1) operating expenses and capital expenditures; and

(2) amounts budgeted and sources of funding for each major department of the authority.

(b) Before adoption of a budget the board shall consider detailed information from each major department of the authority on capital improvement projects proposed for the applicable fiscal year and budget needs for those projects. The considered information must include:

(1) project purposes;

(2) project benefits;

(3) project funding sources;

(4) project implementation costs; and

(5) any operational costs resulting from a project.

Sec. 451.133. FIVE-YEAR CAPITAL IMPROVEMENT PLAN. (a) The board shall adopt a five-year plan for capital improvement projects that supports the strategic goals outlined in Section 451.137 and that:

(1) describes planned projects, including type and scope;

(2) prioritizes the projects;

(3) addresses proposed project financing, including any effect a project may have on ongoing operational costs;

(4) identifies sources of funding for projects, including local and federal funds; and

(5) establishes policies for projects, including policies on:

(A) planning;

(B) approval;

(C) cost estimation;

(D) project reports; and

(E) expense tracking.

(b) The board shall hold a public meeting on a proposed capital improvement plan before adopting the plan and must make the proposed plan available to the public for review and comment.

(c) The board shall annually reevaluate and, if necessary, amend the capital improvement plan to ensure compliance with this section.

(d) The capital improvement plan should, as appropriate, align with the long-range transportation plan of the metropolitan planning organization that serves the area of the authority.

Sec. 451.134. OPERATING EXPENSES AND CAPITAL EXPENDITURES. (a) An authority may not spend for capital improvements money in excess of the total amount allocated for major capital expenditures in the annual budget.

(b) The board shall adopt rules requiring each major department of the authority to report quarterly on operating expenses and capital expenditures of the department. A report must include status information on:

(1) any completions of capital improvement projects;

(2) work completed on capital improvement projects in relation to money spent on those projects; and

(3) problems or concerns regarding contract management for capital improvement projects.

(c) The board shall establish a system for tracking the progress of the authority's capital improvement projects, including:

(1) baseline budgets;

(2) contract awards;

(3) contract changes; and

(4) expenditures to date.

Sec. 451.135. OPERATING RESERVE ACCOUNT. (a) The board shall establish, in an account separate from other funds, a reserve account in an amount that is not less than an amount equal to budgeted operating expenses for two months.

(b) Except as provided by Subsection (c), the board must maintain in the reserve account a balance that is not less than the amount in the account at the beginning of the fiscal year.

(c) The board may make an expenditure from the reserve account that causes the balance in the account to be less than the amount required under Subsection (b) only if the board considers the expense necessary to address emergency circumstances that could not have been planned for or anticipated. The board shall adopt criteria for emergency expenditures under this subsection.

(d) If reserve funds are spent under Subsection (c), the board shall, as soon as practicable, restore the balance of the reserve account to at least the amount in the account at the beginning of the fiscal year in which the emergency spending occurred.

(e) The board shall maintain, update, and post on the authority's Internet website accounting records of the reserve account's:

(1) balance at the end of the fiscal year;

(2) deposits;

(3) expenditures; and

(4) interest income.

Sec. 451.136. GENERAL MANAGER PERFORMANCE EVALUATION. (a) The board shall adopt a policy of regular evaluation of the general manager's performance. In accordance with Section 551.074, Government Code, the board may discuss an evaluation of the general manager's performance in a closed meeting.

(b) The board shall adopt a policy regarding discussion of general manager compensation at public meetings. The board must vote on proposed changes in the general manager's compensation, including raises and bonuses, in a public meeting.

Sec. 451.137. FIVE-YEAR STRATEGIC PLAN. (a) The board shall adopt a strategic five-year plan that establishes the authority's mission and goals and summarizes planned activities to achieve the mission and goals.

(b) The plan must set policies and service priorities to guide the authority in developing a budget and allocating resources.

(c) The plan should, as appropriate, align with the long-range transportation plan of the metropolitan planning organization that serves the area of the authority.

(d) The board shall annually reevaluate and, if necessary, amend the plan to ensure compliance with this section.

Sec. 451.138. RAIL DIRECTOR. (a) The board shall employ a rail director to oversee and be accountable for all rail system development, operations, maintenance, and safety. The rail director shall:

(1) oversee all personnel and contractors responsible for operating and maintaining commuter rail and freight rail systems and equipment;

(2) oversee rail safety activities, including testing to ensure a safe and effective signal system and operations and control center;

(3) develop a plan that specifies a division of rail system responsibilities between rail capital improvement project activities and rail maintenance activities and that ensures the safety of railroad bridges;

(4) ensure compliance with any applicable federal, state, and local rail safety regulations or requirements;

(5) coordinate with the authority's engineering and construction department or equivalent department to design and construct any new rail projects; and

(6) report to the general manager and board on the rail system's safety, performance, and financial status.

(b) The rail director may stop rail operations at any time if the rail director believes the stop is necessary to protect public safety.

Sec. 451.139. RAIL SAFETY PLAN AND REPORTS. (a) The board shall adopt and implement a rail safety plan in accordance with federal and industry standards for all authority rail activities, including commuter and freight rail activities.

(b) The plan must address and emphasize ongoing maintenance and safety of the authority's railroad bridges.

(c) To ensure that contractor services on the authority's rail system meet safety obligations, the plan must include specifics regarding monitoring of contractors for safety-related performance, including regular:

(1) hazard analyses;

(2) risk assessments; and

(3) safety audits.

(d) The rail director shall report quarterly to the board on the safety of the authority's rail system. The authority shall report quarterly to the Texas Department of Transportation on the safety of the authority's rail system and shall report on any aspect of the safety of the rail system on request from that department.

Sec. 451.140. COMPETITIVE BIDS FOR AND PURCHASE OF TRANSIT SERVICES. (a) Except as provided by Subsection (f), after providing notice of a proposal, a board must submit to competitive bids a contract for and must purchase transit services that:

(1) include:

(A) administration of motor bus or sedan transit services;

(B) motor bus or sedan driving, maintenance, or repair;

(C) transit services for persons who have disabilities, including through a program established under Section 451.254; or

(D) rail transit services; and

(2) are not provided wholly by an employee of the authority who is directly paid by the authority and works under the daily supervision of the authority's general manager.

(b) For the purposes of Subsection (a)(2), services are not provided wholly by an employee of the authority if the person is an employee of an entity incorporated as a state nonprofit by the board of the authority and with which the authority contracts for transit or employee services.

(c) Notice under Subsection (a) must be published in a newspaper of general circulation in the area in which the authority is located at least once each week for two consecutive weeks before the date set for receiving the bids. The first notice must be published at least 15 days before the date set for receiving bids.

(d) A contract let under this section must include:

(1) performance control measures;

(2) incentives for performance;

(3) penalties for noncompliance; and

(4) a contract termination date.

(e) The board shall adopt rules on:

(1) the taking of bids;

(2) the awarding of contracts; and

(3) the waiver of the competitive bidding requirement if there is:

(A) an emergency; or

(B) only one source for the service or purchase.

(f) Subsection (a) does not apply to a contract or purchase:

(1) in an amount of $25,000 or less;

(2) for personal or professional services; or

(3) for the acquisition of an existing transit system.

Sec. 451.141. PUBLIC INVOLVEMENT POLICY. (a) The board shall adopt a policy of involving the public in board decisions regarding authority policies. The policy must:

(1) ensure that the public has an opportunity to comment on board matters before a vote on the matters;

(2) ensure that any consent agenda or expedition of consideration of board matters at board meetings is used only for routine, noncontroversial matters;

(3) establish a time frame and mechanism for the board to obtain public input throughout the year, including input on:

(A) strategic planning;

(B) budgeting;

(C) capital improvement project planning;

(D) transit initiatives; and

(E) service changes; and

(4) plan for dissemination of information on how the public can be involved in board matters.

(b) The board shall post the policy adopted under this section on the authority's Internet website.

SECTION 2. Sections 451.132 and 451.134(a), Transportation Code, as added by this Act, apply only to a budget adopted on or after September 1, 2012.

SECTION 3. Not later than September 1, 2014, a metropolitan rapid transit authority required to establish a reserve account under Section 451.135, Transportation Code, as added by this Act, shall establish the account.

SECTION 4. Not later than September 30, 2012, a metropolitan rapid transit authority required by Sections 451.133, 451.134(c), 451.136, 451.137, 451.139, and 451.141, Transportation Code, as added by this Act, to establish a five-year capital improvement plan, a capital improvement projects tracking system, general manager policies, a five-year strategic plan, a rail safety plan, and a public involvement policy, respectively, shall develop the plans, policies, and system.

SECTION 5. Not later than September 1, 2012, individuals providing for a metropolitan rapid transit authority transit services described by Section 451.140, Transportation Code, as added by this Act, must be providing those services as employees of the authority or under a contract or agreement that complies with the competitive bidding and purchase requirements of that section.

SECTION 6. Not later than September 30, 2012, a metropolitan rapid transit authority required to hire a rail director under Section 451.138, Transportation Code, as added by this Act, shall hire that director.

SECTION 7. Not later than September 30, 2012, a metropolitan rapid transit authority required to adopt rules under Section 451.134(b), Transportation Code, as added by this Act, shall adopt those rules.

SECTION 8. This Act takes effect September 1, 2011.