DALLAS — The North Texas Tollway Authority is seeking two financial advisors after opening up its bidding process under new board policies.
In addition to a financial advisor for general municipal bond issues, the board is seeking a separate advisor for public-private partnerships.
The general municipal financial advisory services and P3 and project financing advisory services procurements use the NTTA’s new RFQ template, a direct response to recommendations made in the Independent Financial and Performance Review conducted in 2011, officials said.
The move comes after two years of controversy over the NTTA’s use of so-called legacy contractors who have been working for the board without facing competition. At the same time, the NTTA board is facing a federal investigation of board procedures that may have involved conflicts of interest.
For long-time NTTA financial advisor RBC Capital Markets, the prospect of turning over the business comes after most of the authority’s bond issuance has been completed. After the current projects are finished, there are no major proposals under consideration.
The NTTA has tripled its debt to $7.8 billion in the past five years as it undertook highway toll projects that were approved by the Texas Transportation Commission.
“The authority has a limited ability to incur additional parity senior debt at the current rating,” analysts at Standard & Poor’s noted last November, referring to the NTTA’s A-minus senior-lien and BBB-plus secondary-lien ratings. Moody’s Investors Service rates the NTTA’s senior debt A2.
At its December 2011 board meeting, the NTTA approved a plan and timeline for the procurement of major consultants. The procurements use a new RFQ template created to ensure consistency and standardization.
“This action further demonstrates our commitment to meeting the procurement schedule set by the board in December,” said NTTA chairman Kenneth Barr. “This is part of the NTTA’s effort to ensure complete transparency.”
Earlier this month, Texas Gov. Rick Perry named William Elliott to the NTTA board to replace Robert Shepard. Shepard resigned as an NTTA board member to accept an appointment to the Texas Historical Commission.
Under NTTA bylaws, the governor appoints one board member from a county adjacent to the NTTA’s four-county service area. Elliott is a resident of Ravenna in Fannin County. He is an attorney in private practice.
