The Bee's Nees

Transportation Authority Katherine Nees Shares Her Knowledge of Texas Toll Roads and Highway Funding

By Angelle Bergeron

Katherine "Katie" Nees has never been a prisoner of convention.

As the newly appointed vice president and program manager of the transportation programs division for Fort Worth-based Carter & Burgess Inc., the 44-year-old Nees plans to continue to push the envelope.

One of only two females in a graduating class of 250 from Purdue University's civil engineering program in 1982, Nees defied the acceptable standards for women and insisted on pursuing a career in project construction.

"I interviewed with a lot of contractors and design firms because I knew I wanted to go into construction, but everyone kept encouraging me to do something else," Nees said. "I finally went to the Texas Department of Transportation and they agreed."

Nees worked in various management positions at TxDOT for 17 years and then served as deputy executive director for the North Texas Tollway Authority for more than five years. She has managed numerous complex, multiagency toll projects, including the President George Bush Turnpike, Southwest Parkway and the Dallas North Tollway Extension.

Nees transformed the NTTA into a recognized leader in the toll industry. "When I started with NTTA, it was a small toll agency, with two facilities in 1997," she said. "In less than five years, we brought on four facilities.

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TXC: Do you consider yourself a pioneer in the construction industry?

Nees: I am absolutely a pioneer, especially when you consider how things were 20 years ago when I graduated. I kind of broke the mold. I was the first female engineer in the Dallas District. I became an assistant engineer and area engineer and hired a few more women out in the field, but I don't think the statistics have changed much since then.

TXC: What is your role as vice president and program manager with Carter & Burgess?

Nees: A lot of states are looking at new ways to bring transportation projects online quicker, and they need help with financing. There is simply not enough funding to meet needs in the region. My experience with TxDOT as well as with NTTA gave me a wonderful mix of knowledge of owner services. I clearly know the challenges that come with new RMAs and am familiar with alternative funding methods as well as advisory and program management services.

TXC: What is the biggest challenge facing transportation departments nationwide?

Nees: There just isn't enough funding to meet needs. That is a challenge shared by all states. Another thing certain states have in common is population growth, most notably California, Florida and Texas, which results in congestion in larger urban areas. Those states are also facing right-of-way costs and challenges. When they want to expand, it's very difficult, so they have to look at alternative ways to bring service within the region.

TXC: What are some of those alternatives?

Nees: The Katy Freeway tolled interstate highway, the result of a partnership between TxDOT and HCTRA (the Harris County Toll Road Authority) is a creative, innovative alternative. Another alternative is hot lanes, also called managed lanes or express lanes. This is a new concept to allow users to pay to have an express ride from one point to another.

The George Bush was scheduled to be built around 2015. By using toll revenues, bonding, financing and building as toll facility, we were able to expedite the project and have portions of it opened in 1999, 2000 and 2001. The last segment will open 2006. Currently, between 200,000 and 250,000 motorists use that turnpike every day.

TXC: Innovative financing seems to be the latest buzz phrase at TxDOT. In regards to tolls, what is unique and different about working in the state of Texas and the department's eagerness/willingness to embrace change?

Nees: Texas is one of the leaders in looking at alternative financing and project delivery methods, including CDAs. There are very few states that are doing public/private partnerships. A lot of states are watching Texas. Texas has managed funds, shadow or pass-through toll agreements and toll equity.

TxDOT is progressive in searching for new ways to bring on project delivery. There are a couple other states that are very innovative as well. Colorado and Florida have a lot of the same legislation.

TXC: What effect has the Texas Mobility Fund had on the increase in toll roads?

Nees: It's a fabulous tool. One of the things about toll roads is the user fee and that people can choose to pay or not. The mobility fund gives transportation project managers another tool to bring needs to an area. Another benefit is that once monies start coming in from bonds and additional revenue, they can be reinvested in the region. Those funds can be used for the expansion of current projects or the building of new projects.

TXC: Currently Texas has two county-operated regional mobility authorities. Do you think these have been successful?

Nees: RMAs are another opportunity for each region to meet their transportation needs. It's another tool, once again. I think they have some challenges ahead of them. The Central Texas RMA in Austin is doing a fabulous job of moving forward with the 130 project.

State Highway 130 wouldn't be where it is if the DOT and RMA hadn't decided to do tolling on that project.

TXC: Are you excited to see these projects come to fruition?

Nees: It's very rewarding to see projects get started, financed and actually built. I remember going to public hearings and many people would say, "Not in my lifetime." Then I would see them later and they'd say, "It really happened in my lifetime. I don't believe it."