TITLE 43.TRANSPORTATION

Part 2. TEXAS TURNPIKE AUTHORITY DIVISION OF THE TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 50. MANAGEMENT

Subchapter B. GOVERNANCE OF THE AUTHORITY

43 TAC §50.28

The Board of Directors (the "Board") of the Texas Turnpike Authority Division of the Texas Department of Transportation (the "authority") adopts the amendment to §50.28, concerning the authorization of the director of TTA authority to execute contracts, contract supplements and contract change orders, without changes to the proposed text as published in the August 13, 1999, issue of the Texas Register (24 TexReg 6275).

Senate Bill 370, 75th Legislature, 1997, created the Texas Turnpike Authority Division of the Texas Department of Transportation, to be governed by a board of directors appointed by the Governor. Transportation Code, §361.042, requires the authority to adopt rules for the regulation of its affairs and the conduct of its business. In compliance with that statutory requirement the authority previously adopted rules concerning governance of the authority's management and its day-to-day operations.

One of those rules, §50.28, provides that the director may execute contracts, contract supplements, and contract change orders not exceeding $100,000, except as otherwise authorized by a Board resolution. Experience has shown that this limit is too low. Turnpike project planning and development involves engineering contracts and change orders and supplements to such contracts for which it is not unusual to exceed the $100,000 level. Although the Board has generally been meeting on a monthly basis since its inception, it has recently begun meeting less frequently. Given that the time between meetings may be extended, it will become more difficult for the authority to conduct its business without experiencing detrimental delays in work by having to wait on scheduled Board meetings for approval of routine contracts, contract supplements and contract change orders. Therefore, the Board adopts an amendment to §50.28 so as to authorize the director to execute contracts, contract supplements and contract change orders up to amounts authorized from time-to-time in Board resolutions. By allowing the Board to set this limit in resolutions it can periodically consider circumstances such as ongoing and/or anticipated projects, the magnitude of the projects, and the frequency of Board meetings in determining appropriate limits. Of course, contracts, contract supplements and contract change orders which exceed the limits identified in a Board resolution must be presented to the Board for specific approval. The Board will continue to receive regular reports on contracting matters.

No oral or written comments were received on the proposed rule amendment.

The amendment is adopted under Transportation Code, §361.042, which requires the Board to adopt rules for the regulation of its affairs and the conduct of its business.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 19, 2000.

TRD-200000355

Phillip E. Russell

Director

Texas Turnpike Authority Division of the Texas Department of Transportation

Effective date: February 8, 2000

Proposal publication date: August 13, 1999

For further information, please call: (512) 936-0903