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UH, GOOD AFTERNOON,

[00:00:01]

EVERYONE.

WE'LL NOW START OUR PUBLIC HEARING.

TODAY'S MONDAY, JANUARY THE 25TH, AND THE TIME IS 1203.

UH, THIS HEARING WILL BE ON THE RESULTS OF THE RECENT

[I. Presentations: Quadrennial Review]

CAP, METRO QUADRENNIAL REVIEW.

AND WE HAVE CONSULTANTS HERE FROM WEAVER, UH, TO GIVE US A PRESENTATION OF THOSE RESULTS.

UH, TERRY FORMER, WOULD YOU LIKE TO INTRODUCE OUR GUESTS TODAY AND THEN GET US STARTED? YES.

THANK YOU, CHAIRMAN.

GOOD AFTERNOON.

BOARD MEMBERS, PRESIDENT CLARK.

MY NAME IS TERRY FULMER ON THE VICE-PRESIDENT INTERNAL AUDIT.

UH, TODAY'S PURPOSE OF THE, UH, PUBLIC HEARING IS TO SHARE WITH YOU THE RESULTS THAT REQUIRE A QUADRENNIAL PERFORMANCE AUDIT.

WE REFORMED THE, UH, TEXAS TRANSPORTATION CODE REQUIRES PUBLIC TRANSIT AGENCIES TO DO A PERFORMANCE AUDIT EVERY FOUR YEARS.

AND IT HAS TO BE CONTRACTED OUT WITH A THIRD PARTY BACK IN JULY, THE BOARD AND MANAGEMENT AWARDED A CONTRACT TO WE'VE RENTED WELL TO PERFORM THIS YEAR'S QUADRENNIAL PERFORMANCE AUDIT WITH THAT AS KIND OF A BACKDROP, I WILL TURN THIS STAGE OVER TO LISA MARTIN, WHO IS THE PARTNER AT THE WEAVER AND TIBBLE ACCOUNTING FIRM.

HELLO, THANK YOU VERY MUCH, TERRY.

AND, UM, THANK YOU BOARD FOR ALLOWING US TO PRESENT OUR RESULTS AND, UM, DISCUSS WITH YOU THE QUADRENNIAL PERFORMANCE REVIEW.

FIRST, I WANT TO ACKNOWLEDGE THAT WEAVER WAS AWARDED THE PERFORMANCE REVIEW WITH THE PARTNERSHIP OF GOODMAN CORPORATION.

THE GOODMAN CORPORATION BROUGHT TO THE TABLE, SOME VERY DEEP TECHNICAL TRANSPORTATION EXPERIENCE.

AND, UH, THE, SO THIS WAS A PARTNERSHIP AND A JOINT EFFORT.

YOU HAVE MYSELF, LISA MARTIN, THE PARTNER AT BEAMER, ALONG WITH BRANDON TANNIS IS THE ENGAGEMENT LEAD FOR THE ENTIRE QUADRANT.

NO REVIEW.

WE ALSO HAVE ADAM JONES WHO WORKED WITH ME ON THE ORGANIZATIONAL ASSESSMENT COMPONENT AND SUSAN CLAY FROM THE GOODMAN CORPORATION WHO FOCUSED ON THE PERFORMANCE MEASURES.

YOU WILL HEAR FROM ALL OF US TODAY, AS WE WALKED THROUGH THE HIGH LEVEL OF RESULTS FOR THIS QUADRENNIAL PERFORMANCE REVIEW, AS TERRY MENTIONED AT RANDOM, WHAT YOU GET BEFORE WAS, AS TERRY MENTIONED, WE NEED TRANSPORTATION CODE SECTION FOUR 51, FOUR 54 REQUIRES A QUARTERLY PERFORMANCE REVIEW EACH EVERY FOUR YEARS.

AND, UM, THERE ARE REQUIREMENTS AND SOME ACTIVITY WITHIN THIS REVIEW OF THE PURPOSE OF THE PORTFOLIO PERFORMANCE REVIEW IS TO PROVIDE AN EVALUATION AND THE RESULTS IN FOR THE STATE AND LOCAL OVERSIGHT FOR GROUPS TO BE ABLE TO PROVIDE INFORMATION ON CAP METRO AND EVALUATE THE ACHIEVEMENT OF COMPLIANCE AS WELL AS PERFORMANCE OF THE OPERATING OBJECTIVES ON AN ONGOING BASIS, SO THAT YOU EVALUATION RE EVALUATE BOTH COMPLIANCE AND EFFICIENCY AND EFFECTIVENESS FOR THIS PARTICULAR PERIOD.

WE EVALUATED THE FYI 16 TO FYI 19 PERIOD, WHICH MEANS WE STARTED AT ACTIVITIES ALL THE WAY BACK TO OCTOBER 1ST OF 2015.

AND WE DID THE PERIOD THROUGH SEPTEMBER 30TH OF 2019.

SO THIS IS A HINDSIGHT EVALUATION.

AND, UM, I WANTED TO JUST PAUSE FOR A MOMENT AND SAY THE LEADERSHIP TEAM ACROSS CAPITAL METRO, INCLUDING ALL OF THE DIRECTORS AND MANAGEMENT STAFF WITHIN THE VARIOUS AREAS FROM BEING BOTH OPEN.

AND DURING THIS PROCESS, WE REALLY WERE ABLE TO DO A VERY THOROUGH EVALUATION AND WORK WITHIN CAPITAL METRO'S TEAMS. UM, AND, AND WE APPRECIATE THE, THE COLLABORATION, THE OPENNESS THROUGHOUT THE EVALUATE CAPSULE METRIC TEST THREE HAD THREE PARTICULAR AREAS TO EVALUATE.

THE FIRST IS A ROTATING AREA.

UM, HAVE A METRO SELECTED THE ADMINISTRATION AND MANAGEMENT OF THE AUTHORITY THAT WAS TASK.

THE SECOND TWO TASKS ARE REQUIRED AS PART OF EVERY MODERATING GOAL, WHICH IS COMPLIANCE WITH SECTION OR CHAPTER FOUR 50, ONE OF TRANSPORTATION CODE OF OTHER APPLICABLE STATE STATUTES.

AND THEN THE COLLECTION TASK THREE IS THE COLLECTION OF BASED STATISTICS AND MEASURES AND VALIDATION THAT THOSE STATE MANDATED PERFORMANCE MEASURES ARE ACCURATE.

SO GOING INTO THE SPECIFIC RESULTS, I DO WANT TO ADD, I'M HAPPY TO REPORT THAT OUR EVALUATION CONCLUDED WITH NO FINDINGS.

SO NO FINDINGS OF NONCOMPLIANCE WERE IDENTIFIED ACROSS ANY OF THE THREE TASKS.

[00:05:01]

AND I'M GOING TO TURN IT OVER TO TANIS SO THAT BRANDON COULD WALK THROUGH THE HIGH LEVEL RESULTS BECAUSE WE DO OF COURSE HAVE SOME RECOMMENDATIONS FOR CONTEMPLATION OF MANAGEMENT.

OKAY, THANK YOU, ALISA.

DEFINITELY HAPPY TO RESULT IN OUR EVALUATION OF THESE THREE TASKS, UH, THAT THERE WAS NO INSTANCES OF NON-COMPLIANCE.

SO AS ALYSSA MENTIONED IN THE THREE TASK AREA, THE FIRST AND FOREMOST ADMINISTRATION AND MANAGEMENT OF THE AUTHORITY, WE DID HAVE NO INSTANCES OF NONCOMPLIANCE IDENTIFIED REALLY IN THAT MANAGING OF THE AUTHORITY AND THOSE AREAS ADMINISTER.

AND WE'RE GOING TO WALK THROUGH AND LAYER IN THESE SLIDES, THE DETAILS OF THE PROCEDURES PERFORMED AND HOW THAT WAS EVALUATED.

WE DID FIND IT IDENTIFY TWO RECOMMENDATIONS FOR MANAGEMENT TO ENHANCE THE INTERNAL CONTROLS PROCESSES IS EFFICIENCIES, WHICH WE'LL COVER FURTHER IN THIS PRESENTATION IN CHAPTER TWO COURSE, THE CHAPTER FOUR 31 STATUTORY COMPLIANCE.

THERE IS NO INSTANCES OF NON-COMPLIANCE, BUT WE DID IDENTIFY FOUR RECOMMENDATIONS, REALLY DATE AND CENTRAL CONTROLS PROCESSES EFFICIENCIES TO ENSURE YOUR CONTINUED BIASES AND THEN TASK THREE, OUR PERFORMANCE INDICATOR REVIEW, OF COURSE, NO INSTANCES OF NONCOMPLIANCE IDENTIFIED, UH, BUT TWO RECOMMENDATIONS FOR REALLY THE REAL CONTROLS PROCESSES AND EFFICIENCIES.

ALSO INTO, AS, AS STATED, UH, YOU KNOW, THERE WAS NO AREAS FOR IDENTIFIED OF NONCOMPLIANCE WITH CHAPTER FOUR 51 OR LACK OF EFFECTIVE CONTROLS AND OVERSIGHT OVER PERFORMANCE DID NOT MEET ESTABLISHED EXPECTATIONS.

UH, FROM OUR EVALUATION CAP, METRO IS EFFECTIVELY MANAGED AND RUN, UH, AND WE WERE ABLE TO, UH, YOU KNOW, FORM OUR PROCEDURES PRETTY EFFICIENTLY AND EFFECTIVELY.

UM, WE DID IDENTIFY OF COURSE, EIGHT OVERALL RECOMMENDATIONS FOR MANAGEMENT.

UM, WHERE DID THE IN APPLIED FOR MANAGEMENT CONSIDERATION, THESE ARE NOT CONSIDERED FINDINGS AND THEREFORE, UH, DO NOT REQUIRE MANAGEMENT RESPONSES, BUT WHAT IS REALLY THE DIFFERENCE BETWEEN THOSE? AND SO WE IDENTIFIED AND DEFINED FINDINGS AS AREAS TO BE CONSIDERED FOR EXCEPTIONS IN WHICH COMPLIANCE WITH CHAPTER FOUR 51 WERE NOT MET, WHERE THERE WAS A LACK OF EFFECTIVE CONTROLS AND OVERSIGHT OVER PERFORMANCE WAS NOT MEETING ESTABLISHED EXPECTATIONS.

AND OF COURSE, THROUGH OUR EVALUATION, WE DID NOT IDENTIFY IN FINDING RECOMMENDATIONS FOR MANAGEMENT, HOWEVER, ARE CONSIDERED TO BE ENHANCEMENTS TO EXISTING INTERNAL CONTROLS, PROCESSES, PROCEDURES, EFFICIENCY, AND EFFECTIVENESS OF OPERATIONS OR IMPROVEMENTS TO THOSE OF MANAGEMENT PRIOR TO MOVING ON TO THE SPECIFIC RESULTS OF THOSE TASKS.

ANY QUESTIONS AS SOON AS ANYONE JUST PAID IT JUST MADE IT ON, UH, SORRY.

I WAS RUNNING A LITTLE LATE.

WELCOME COMMISSIONER.

THANK YOU, BRANDON.

SO WE DO, SORRY.

OKAY.

SO WE WILL MOVE FORWARD WITH THE RESULTS OF EACH SPECIFIC TASK.

GOOD MORNING.

UH, MR. CHAIRMAN AND BOARD MEMBERS, MY NAME'S ADAM JONES.

I AM THE ORGANIZATIONAL ASSESSMENT PRACTICE LEAD FOR WEAVER.

I'D LIKE TO TALK ABOUT TASK ONE, THE ADMINISTRATION AND MANAGEMENT OF THE AUTHORITY.

UH, THE PURPOSE HERE.

AND THE QUESTION WE ASK IS, DOES CAB METRO'S ADMINISTRATION AND MANAGEMENT RISE TO A COMPETENT LEVEL? WAS THE AUTHORITY MANAGED, UH, WELL IN ACCORDANCE TO YOUR GOALS AND OBJECTIVES OVER THE FOUR YEAR PERIOD? THE ANSWER TO THAT QUESTION WAS YES, WE FOUND NO FINDINGS OF NONCOMPLIANCE.

ALTHOUGH WE DID HAVE A COUPLE OF RECOMMENDATIONS TO IMPROVE EFFICIENCY AT THE END.

UH, I WANT TO TALK A LITTLE BIT ABOUT THOSE PROCEDURES.

WE TOOK A PRIORITY BASED APPROACH AND WE COLLABORATED WITH, UH, MR. FULLMER AND, UH, THE MANAGEMENT AND LEADERSHIP OR THE AUTHORITY TO TALK ABOUT THE DEPARTMENTS WE REALLY WANTED TO DELVE INTO ON THIS TASK.

AND WE HIT UPON SORT OF THE, THE, SOME OF THE FUNDAMENTAL MISSION, CRITICAL FUNCTIONS, THOSE HIGHLY RELIED ON THIRD PARTY SERVICE PROVIDERS WITH COMPLEX OPERATIONS AND WITH THE SIGNIFICANT IMPACT ON YOUR AUTHORITIES, GOALS AND OBJECTIVES AND INCLUDING YOUR REPUTATIONAL RISK.

SO WE LOOKED VERY CLOSELY AT BEST CONTRACT OPERATIONS, DEMAND, RESPONSE, OVERSIGHT, MAINTENANCE, PARATRANSIT, BOTH ADMINISTRATION ELIGIBILITY, THE PARATRANSIT RESERVATIONS AND CONTROL CENTER, AND THE RAIL FUNCTIONS, BOTH THE COMPUTER COMMUTER OPERATIONS, PARDON ME, AND FREIGHT MANAGEMENT.

AND WE LOOKED AT STAFFING LEVELS IN THE ORGANIZATION OF EACH OF THOSE LIKED AND DEPARTMENTS, THE ORGANIZATIONAL CHART, WHETHER THE FUNCTIONAL ORGANIZATION MADE SENSE HOW THE ORGANIZATIONS WERE STAFFED, WERE THEY STAFFED APPROPRIATELY? DID THEY HAVE

[00:10:01]

DEPTH OF STAFF WHERE THOSE STAFF QUALIFIED? WE LOOKED AT THE COST ELEMENTS OF EACH DEPARTMENT AND HOW THOSE VARIANCES OF COST WERE ESTABLISHED.

AND THROUGHOUT THIS, WE LOOKED ALSO AT CENTRAL ADMINISTRATION AT CAP METRO.

AND BY THAT, I MEAN, ARE YOUR OPERATIONS SUPPORTED BY STRONG CFO PROCEDURES, STRONG HR PROCEDURES.

AND WE FOUND IN BOTH CASES THAT INDEED YOUR OPERATIONALS SUPPORT EXISTS FROM THE FINANCE AND HR PERSPECTIVE, CERTAINLY, UM, WITH BEST PRACTICES, BUT THOSE FUNCTIONAL AREAS, I TOLD YOU THE RESULTS WERE GENERALLY POSITIVE AND, UH, MET OUR EXPECTATIONS.

UH, YOU WERE ADEQUATELY STAFFED ACROSS DEPARTMENTS, UH, MAINTAINED A STABLE LEVEL OF PERSONNEL.

WE DELVED INTO THAT PERSONNEL TO LOOK AT JOB QUALIFICATIONS, RESPONSIBILITIES, AND HOW'S PERSONNEL ALIGNED.

WE FOUND NO INSTANCE OF A UNEMPLOYED UNQUALIFIED TO DO THAT JOB.

AND THE SAMPLE WE LOOKED AT, UM, THEY HAD ADEQUATE CREDENTIALS AND QUALIFICATIONS AND THOSE CREDENTIALS AND QUALIFICATIONS WERE TEASED OUT IN, UM, BOTH A RECRUITMENT AND JOB DESCRIPTION PROCESS AND, UM, AUGMENTED BY AN HR STANDARD, UH, ANNUAL EVALUATION PROCESS.

YOU MAINTAIN EFFECTIVE BUDGETING MONITORING PROCESS THROUGH COLLABORATIVE EFFORTS, UH, VARIANCES AND BUDGET MONITORING ARE ADEQUATELY REPORTED TO THE BOARD.

UM, SO YOU MET YOUR GOALS AND OBJECTIVES ON EACH PART OF THE REVIEW.

WE HAD A COUPLE OF RECOMMENDATIONS.

WE DO BELIEVE, UM, AN ARGUMENT AT MANAGEMENT SYSTEM.

DO YOU UNIFORMLY MONITOR AND MANAGE PERFORMANCE AND FINANCIAL STATUS OF KEY CONTRACTS? GIVEN THE DEPENDENCE ON THIRD-PARTY CONTRACTING AT CAP, METRO WOULD BE A BEST PRACTICE TO ENHANCE THE EFFICIENCY AND EFFECTIVENESS OF THE OPERATIONS.

WE ALSO WANTED TO MAKE SURE THAT YOU REVIEWED CREDENTIALS AND QUALIFICATIONS, PARTICULARLY OF YOUR MAINTENANCE STAFF AND ENSURE FILES ARE REFLECTIVE OF EXPERIENCE GAINED THROUGH ON THE JOB TRAINING IN PLAIN LANGUAGE.

WHAT WE MEAN BY THAT IS YOU HAVE QUALIFIED STAFF AND OPERATES AND MAINTENANCE.

WE FOUND NO EVIDENCE THAT STAFF WERE UNQUALIFIED, BUT WE WANTED TO MAKE SURE THOSE STAFF WERE GIVEN CREDIT FOR THEIR GROWTH WITHIN THEIR OPPORTUNITIES AT CAP METRO.

AND THAT THAT EXPERIENCE WAS ADEQUATELY DOCUMENTED.

UH, BRANDON, IF THERE ARE NO QUESTIONS HERE, I BELIEVE WE CAN MOVE TO TASKS ACTUALLY.

UH, I HAVE A COUPLE OF QUESTIONS ABOUT A CONTRACT MANAGEMENT SYSTEM IF I'M BACK.

YES, SIR.

OKAY.

UH, THERE WERE, THERE WERE A COUPLE OF THINGS.

UM, UH, I UNDERSTAND THAT, THAT WHEN YOU SAY CONTRACT MANAGEMENT SYSTEM, YOU'RE LOOKING AT YOUR SYSTEM AS A WHOLE, AND I UNDERSTAND THAT I AM WONDERING, UH, HOW THE, UH, DBE PROGRAM WAS ANALYZED AND ASSESSED AS IT RELATED TO THE ENTIRE CONTRACT MANAGEMENT SYSTEM TO GET THAT, ADAM.

YES, PLEASE GO AHEAD.

SO, SO DEFINITELY WE UNDERSTAND THAT THERE IS A SUB-SECTOR OF CONTRACTS THAT ARE MANAGED THROUGH THE DBE PROCESS AND THE COMPLIANCE WITH THOSE OBLIGATIONS, AS WELL AS UTILIZATION METRICS ARE MET, ARE MANAGED.

UM, THOSE ARE CERTAINLY PERFORMANCE MEASURES AND FINANCIAL STATISTICS, BUT ONLY ON A SUBSET OF SPECIFIC CLIENT OR A CONTRACTOR OBLIGATIONS.

AND SO WE LOOKED AT IT MORE HOLISTICALLY ACROSS ALL OF THE CONTRACTS FOR THE AUTHORITY.

UM, THAT PARTICULAR EFFORT FOR THE DBE PROCESS IS NOT IN OUR VIEW, SCALABLE TO APPLY TO ALL CONTRACTS FOR ALL REQUIREMENTS.

JEFF, ARE YOU STILL THERE? SO POTENTIALLY HE DID HEAR MY RESPONSE.

I APOLOGIZE.

YOU LOOK LIKE YOU FROZE, HUH? WHILE WE'RE WAITING FOR HIM.

CAN I, MR. CHAIRMAN, I JUMPED IN WITH CUP WITH A QUESTION, PLEASE.

UM, JUST TO, UH, ON Y'ALL'S RECOMMENDATION VARIOUS.

OKAY.

[00:15:02]

WELCOME BACK.

ALL RIGHT.

WE DIDN'T LIKE THAT QUESTION COMMISSIONER.

SO WE JUST BOOTED YOU OFF THE PATH.

LET'S TRY ANOTHER ONE.

I KNEW IT WAS SOMETHING.

WELL, DID YOU HEAR MS. MARTIN'S RESPONSE? UH, NO, ACTUALLY, UH, I, AS SOON AS I ASKED THE QUESTION THAT DROPPED ME.

OKAY.

ELISA.

OKAY.

TH TH I DID RESPOND AND I DID LET YOU KNOW, WE DID CONSIDER THE, THE PROCESS TO MANAGE THE FINANCIAL AND UTILIZATION METRICS FOR DBE AND THAT THAT SYSTEM IS WORKING FOR THAT PARTICULAR INSTANCE.

UM, HOWEVER, IT IS NOT SCALABLE ENOUGH TO EXPAND, TO BE ALL CONTRACT MANAGEMENT, TO UNIFORMALLY MONITOR OR MANAGE ACROSS THE AUTHORITY.

THAT WAS THE GRIEF OF MY ANSWER.

I SEE, BECAUSE MY BASIC CONCERN IS THAT IN ORDER TO HAVE AN EFFECTIVE DBE PROGRAM, UH, WE HAVE TO, UM, TO PARTICIPATE WITH, WITH A DISPARITY STUDY, UH, PERIODICALLY AND SEVERAL LOCAL JURISDICTIONS ARE PARTICIPATING IN A DISPARITY STUDY, ARE PREPARING TO PARTICIPATE IN ONE.

AND I WAS WONDERING WHETHER WE FELT THAT THE DATA THAT WE USE TO OPERATE OUR DBE PROGRAM CURRENTLY IS ROBUST AND REFRESHED ENOUGH TO MEET THE STANDARDS OF, UH, FEDERAL DBE EXPECTATIONS.

AND, AND UNFORTUNATELY WE DID NOT TEST FOR THAT SPECIFIC ATTRIBUTES.

SO I DON'T, I CANNOT GIVE YOU ANY SPECIFIC INFORMATION AS TO THE NARROWNESS OF THE, OF THE DBE, UM, RESULTS AND ACTIVITIES.

OKAY.

UM, I'M JUST WONDERING HOW, UM, HOW WE INTEGRATE THAT VERY IMPORTANT TOOL INTO A CONTRACT MANAGEMENT SYSTEM, AS WE, AS WE GO INTO A SIGNIFICANT PERIOD OF BUILDING AN EXPANSION WELL, AND I'M HAPPY TO, TO ALSO PROVIDE SOME ADDITIONAL INFORMATION WHEN WE'RE EVALUATING, YOU KNOW, YOUR PRIMARY, THIRD PARTIES THAT ARE BEING MANAGED, UM, YOU KNOW, HERZOG AND SO FORTH.

YOU KNOW, EACH ONE OF THOSE GROUPS HAS THEIR OWN PROJECT, UH, YOU KNOW, CONTRACT MANAGER OR ALONG WITH THEIR QAR PROCESS.

I MEAN, EACH ONE OF THOSE DEPARTMENTS DOES, YOU KNOW, THEIR OWN MANAGEMENT A LITTLE DIFFERENTLY.

UM, THEY'RE ALL MONITORING AND MANAGING THEIR CONTRACTS.

UM, BUT HAVING ONE SYSTEM THAT CAN GO IN AND ACTUALLY HAVE DASHBOARDS, SO YOU CAN EASILY GO IN TO SEE WHAT THE DATA IS IN REAL TIME.

UM, THIS IS ALSO VERY SIMILAR TO THE CAPITAL ASSET, UM, UH, SYSTEM THAT'S BEING USED TO MANAGE THOSE CAPITAL ASSETS.

THERE'S A LOT OF DASHBOARDS, REAL TIME DATA.

UM, YOU'RE LEVERAGING A SIMILAR TYPE SYSTEM TO BE ABLE TO HAVE, YOU KNOW, YOUR CONTRACT MANAGEMENT PERSONNEL TO, TO LEVERAGE A SYSTEM WHERE THEY CAN GO IN AND HAVE THOSE DASHBOARDS THAT CAN BE REVIEWED BY SUPERVISORS AND SO FORTH.

UM, WE LOOKED REALLY, AS LISA MENTIONED, A HOLISTIC VIEW OF CONTRACT MANAGEMENT.

SO HOW ARE WE MANAGING EACH ONE OF THESE CONTRACTS, UH, WITH YOUR PRIMARY? YOU KNOW, WHEN WE TALKED ABOUT ADMINISTRATION MANAGEMENT AUTHORITY, LOOKING AT THE PRIMARY FUNCTIONS, YOU KNOW, FROM YOUR BUS CONTRACTOR, IF YOU'RE RAIL CONTRACTORS, UM, IF YOU HAVE DEMAND RESPONSE TO HOW ARE WE ENSURING THAT OUR VEHICLES ARE BEING MAINTAINED, THAT THOSE CONTRACTORS ARE MEETING ALL THE PERFORMANCE INCENTIVES AND THOSE GOALS AND PERFORMANCE GOALS AND SO FORTH.

UM, SO THIS WAS A MORE NARROW VIEW ON SPECIFIC, YOU KNOW, REALLY HAVE A BROADER APPROACH TO CONTRACT MANAGEMENT WHILE LOOKING AT YOUR EXISTING SYSTEMS. UH, THAT'S USED FOR CAPITAL ASSETS.

I SEE, OKAY.

IF THIS IS NOT THE APPROPRIATE PLACE FOR THAT QUESTION, THEN I, AND I UNDERSTAND THAT WHAT I'M INTERESTED IN AS WE GO FORWARD IS AN INTERNAL ASSESSMENT OF, UH, OF, OF OUR, UM, OF OUR DBE PROGRAM AND CAPACITY, AND THEN AN EXTERNAL ASSESSMENT AS, AS TO, UM, AS TO HOW WE, UH, NOT, NOT OWN WELL, A, WHETHER WE ARE, UH, WORKING, UH, DIRECTLY WITH, UH, FEDERAL AUTHORITIES TO, TO MAKE SURE THAT WE UNDERSTAND THEIR EXPECTATIONS.

UH, AND, AND THAT WE ARE, ARE BUILDING A SYSTEM THAT SPEAKS TO THE NEEDS AND OPPORTUNITIES OF, OF A BUSINESS COMMUNITY.

THAT'S BEEN ASKING US TO WORK WITH THEM FOR A PERIOD OF TIME.

THANK YOU.

AND THAT MAY BE A CONVERSATION WE NEED TO HAVE WITH, UH, UH, TERRY FULLMER SEPARATELY.

I'VE TAKEN A NOTE, MR. TREVELYAN, I'LL GET TOGETHER WITH YOU TO DISCUSS FURTHER.

WE DO HAVE ON OUR

[00:20:01]

PROPOSED PLAN FOR THIS YEAR.

I LOOK AT THE DBE PROGRAM, BUT I WILL GET WITH YOU TO TALK WITH THAT IN MORE DETAIL.

EXCELLENT.

EXCELLENT.

THANK YOU, CHAIR.

IF I COULD JUST MAKE A QUICK COMMENT ON THAT, PLEASE PRESENT CLEAR IN OUR REGULAR BOARD MEETING, THAT'S STARTING IN A LITTLE BIT, UH, DONNA SIMMONS WILL BE PRESENTING AN ENTIRE TOPIC ON OUR DIVERSITY INCLUSION PROGRAM, AND WE'LL BE GOING OVER THE NUMBERS RELATED TO GDP HERE IN THE LAST COMPARISON.

AND SHE'LL BE TALKING ABOUT HOW, UH, ONE OF THE BIG EFFORTS WE ARE MOVING FORWARD WITH IS TO DETERMINE WE STILL GOT TO WORK WITH FTA, BUT DETERMINED US AND THE ATP COLLABORATIVELY, HOW WE WERE GOING TO BUILD OUT A MUCH LARGER, UH, DB PROGRAM AND MAYBE SOME TYPE OF INCUBATOR OR ACCELERATOR PROGRAM TO EDUCATE OUR COMMUNITY AND KIND OF SET UP A MULTI-YEAR FRAMEWORK OF OPPORTUNITY, BECAUSE OBVIOUSLY IT IS A, IT'S A, IT'S A GENERATIONAL PRO UH, PROGRAM THAT WE'RE, UH, JUST EMBARKING ON TODAY.

UH, THOSE, THOSE ARE THE TYPES OF THINGS THAT I WAS LOOKING FOR MR. PRESIDENT.

SO, UM, I'LL LOOK FORWARD TO SITTING DOWN WITH YOU AND GOING THROUGH THAT REPORT AGAIN.

I THOUGHT IT WAS A REALLY, REALLY GOOD STOCK.

THANK YOU.

THANK YOU, COMMISSIONER.

THANK YOU, PRESIDENT CLARK AND MEMBER STRATTON.

I THINK YOU HAD A QUESTION.

YES.

THANKS FOR FIRST OF ALL, I WILL JUST ECHO AND SAY DITTO TO WHAT, UM, UH, MY, MY COLLEAGUE, UH, BOARD MEMBER, UH, TREVELYAN HAS SAID, UM, UH, RANDY AND, UM, AND, UH, TERRY, IF, IF YOU'LL KEEP ME LOOPED IN ON THAT AS WELL, ESPECIALLY RANDY, SOMETIMES I'M REPRESENTING US ON ATP BOARD.

I'M, I'M VERY MUCH INTERESTED IN THOSE CONVERSATIONS AS WELL.

UM, I HAD, UH, TWO QUESTIONS, FIRST OF ALL, JUST KIND OF A CLARIFIER WITH THAT POINT TO REC THE RECOMMENDATION TO ABOUT, UM, UH, KEEPING A, UH, UH, TRACKING OF THE STAFF WITHIN OPERATIONS AND MAINTENANCE FOR THEIR CREDENTIAL AND QUALIFICATION IS ANOTHER WAY OF SAYING THIS IS JUST KIND OF LIKE, UH, DOING BETTER ABOUT KEEPING TRACK OF A SORT OF CAREER LADDER INTERNALLY.

THIS IS MORE, THIS IS MORE OF THE ACTUAL CERTIFICATIONS AND THE REQUIRED EDUCATION, UM, AND MEMORIALIZING THE INFORMATION THAT IS KNOWN IN ONE CENTRAL PLACE.

ADAM, DID YOU WANT TO ADD TO THAT? OKAY.

NO, THAT'S A GOOD EXPLANATION.

WE, WE JUST WANT A FAIR DOCUMENTATION OF, OF SKILLS AND CREDENTIALS ACQUIRED AMONG THAT SPOUSE, PARTICULARLY IN OMO, WHERE THERE IS A LOT OF GROWTH WITH THE UN, UH, PHYSICIANS DURING THE COURSE OF SOMEONE'S CAREER.

UM, WE HAD A VERY GOOD DISCUSSION WITH THE HR DEPARTMENT ABOUT MAKING SURE THOSE CREDENTIALS QUALIFICATIONS SKILL DEVELOPMENT IS UP TO DATE.

SO WE ARE DOING IT.

IT'S JUST THAT THERE'S NOT A WAY THAT IT IS IT'S NOT AS, UM, IT COULD BE MORE, MORE EFFICIENT, MORE EFFECTIVE.

THERE COULD BE A MORE, UH, EFFECTIVE WAY OF DOING IT, PUTTING IT IN SOME SORT OF, UH, YOUR RECOMMENDATION WOULD BE SOME SORT OF MAYBE CENTRALIZED REPOSITORY VERSUS KIND OF PIECEMEALING IT OUT.

UM, BUT THAT INFORMATION IS CURRENTLY BEING TRACKED.

THAT'S NOT AN ISSUE, CORRECT? THAT'S CORRECT.

YOU WOULD GIVE, IT WOULD GIVE A BROADER VISIBILITY AND KNOWLEDGE OF THE COMBINED INFORMATION IF IT WAS ALL TOGETHER AND CENTRALIZED, UM, AND DOCUMENTED CONSISTENTLY SO THAT THE ACTUAL PERFORMANCE EXISTS.

SO THAT'S WHY THIS IS NOT A FINDING, IT'S JUST AN ENHANCEMENT TO THE DOCUMENTATION EFFORT.

OKAY.

MR. CHAIR, DO YOU MIND IF I MAKE A COMMENT ON THAT AS WELL, PLEASE? THANK YOU.

UM, YOU ALL, THE BOARD ACTUALLY RECEIVED A MEMO FROM ME EARLIER TODAY, UH, TALKING ABOUT, UH, ORGANIZATIONAL REALIGNMENT AND ONE OF THE ASPECTS THAT OBVIOUSLY A BIG BRANCH IN THE ROAD FOR THIS WAS, UH, THE VOTERS APPROVING PROJECT CONNECT IN NOVEMBER.

AND ONE OF THE KEY POSITIONS WE'LL BE HIRING AS THE DIRECTOR OF WORKFORCE PLANNING AND DEVELOPMENT.

AND WE REALLY NEED TO SCALE OUR ORGANIZATION TO BE ADVANCED AND CONCURRENT WITH IT.

AND IN SOME PARTS OF CONCURRENT WITH IT'S LIKE, WELL, IF ANY INFRASTRUCTURE THAT WE WILL HAVE, AND PART OF THIS IS CREDENTIALING TRAINING PROGRAMS, UH, LADDERS OF OPPORTUNITY AND SUCCESSION PLANNING.

AND SO WE WILL BE DEVELOPING NOT ONLY THE HUMAN CAPACITY, BUT THE SYSTEM'S CAPACITY TO TRACK AND ADVANCED PEOPLE AS THAT AS WELL.

SO IT'S A GREAT COMMENT AND IT'S SOMETHING TO MANAGE A TEAM, UH, CERTAINLY UNDERSTANDS FULLY.

AND WE REALLY HAD TO WAIT ON SOME OF THESE DECISION POINTS TO SEE IN NOVEMBER, WE'RE GOING TO BE, ARE WE GOING TO BE A, ARE WE GOING TO BE, BE IN THE FUTURE? AND, UH, SO I APPRECIATE THE AUDIT TEAMS KIND OF REINFORCING SOME OF THE, UH, THE ASPECTS THAT THE MANAGEMENT TEAM KNOWS WE HAVE TO GROW INTO AS A FOLLOW UP AS A FOLLOWUP TO THAT.

UH, AND, AND I DON'T KNOW IF THIS, THIS IS MORE APPROPRIATE FOR THE AUDIT TEAM OR FOR, FOR PRESIDENT OF CLARK.

UM, HOW DO WE TRACK SUCH INFORMATION FOR OUR, UH, FOR OUR CONTRACTOR SPECIFICALLY FOR THE, THE, OUR, OUR, OUR BUS OPERATOR, OUR DEMAND RESPONSE OPERATOR AND, AND

[00:25:01]

OUR, UM, THE, THE TRAIN OPERATIONS.

IS THAT, IS THAT SOMETHING THAT THEY DO FOR THEIR, FOR OUR, UH, FOR OUR OPERATORS INTERNALLY? OR DO WE, ARE WE ULTIMATELY RESPONSIBLE FOR THAT AS THE AGENCY THAT IS HIRED THEM THROUGH CONTRACTS? NO, I WAS JUST, I CAN POP IN, SORRY, SORRY, MR. CLERK.

UM, IF I MAY, I'M DANNY WATKINS, UM, CHIEF CUSTOMER OFFICER AND CHIEF OPERATING OFFICER, OUR, UM, SERVICE PROVIDERS KEEP TRACK OF THOSE RECORDS OF THEIR EMPLOYEES.

AND AS PART OF OUR CONTRACT MANAGEMENT PROCESS, WE DO PERIODIC FILE AUDITS WHERE WE RANDOMLY AUDIT FILES TO MAKE SURE THAT THEY'RE KEEPING ADEQUATE RECORDS.

AND THAT, THAT SEGUES NICELY INTO MY FINAL QUESTION ABOUT THE CONTRACT MANAGEMENT SYSTEM.

UM, AGAIN, WE'RE TO THE POINT OF Y'ALL'S AUDIT WE'RE, WOULD YOU SAY THAT WE ARE DOING THESE FUNCTIONS RIGHT NOW, BUT, BUT YOUR POINT IS YOU, YOU WOULD RECOMMEND THAT WE HAVE THAT, THAT THERE WOULD BE A WAY WE COULD TAKE KIND OF THE, THE NEXT STEP UP TO HAVE A MORE ROBUST, UH, CONTRACT MANAGEMENT SYSTEM THAT WE COULD INSTALL AND OVERSEE THIS TO, TO DO THINGS LIKE, LIKE THESE, THESE PERIODIC AUDITS TRACKING, THESE THINGS THAT, THAT, UM, MS. WATKINS REFERS TO THAT'S REALLY WHAT YOU'RE RECOMMENDING IS JUST HAVING SOMETHING THAT'S MORE, SOME SORT OF, UH, OF, OF, UM, UH, UH, WEBSITE SYSTEM DASHBOARD WAY THAT WE COULD, THAT, THAT ALL THE VARIOUS PARTIES ACROSS CAP METRO COULD LOOK AT AND FIGURE OUT WHAT'S GOING ON WITH ALL THE DIFFERENT KINDS OF CONTRACTS AND WHAT'S NECESSARY, WHAT THE TIME POINTS ARE, HOW THEY'RE DOING, HOW THE METRICS ARE, IS THAT REALLY WHAT, WHAT THAT RECOMMENDATION ONE IS GETTING AT.

AND LET ME SAY THAT ALL OF THE PARTY CONTRACTS ARE BEING MANAGED AT A VERY DETAILED LEVELS AT VARIOUS LEVEL LAYERS OF, UH, PERFORMANCE INDICATORS AND REQUIREMENTS BECAUSE OF THEIR IMPORTANCE.

SO THERE'S, THAT, THAT IS VERY CLEAR, UM, HOWEVER, TO HAVE BROADER VISIBILITY AND TO UNDERSTAND WHAT ACCOUNTABILITY IS IN PLACE, AND TO BE ABLE TO REPORT OFF OF THAT ACCOUNTABILITY SYSTEM, THAT THEN IS UNIFORM HAS MORE UNIFORMITY TO, IT WOULD ENHANCE THE PROCESS.

SO SIMPLY VERY MUCH CORE MEMBER, I GUESS, I THINK THE MOST LAY PERSON WAY WE CAN PUT IT IS WE DON'T HAVE ONE CENTRALIZED DATABASE OF ALL OF OUR PEOPLE, BECAUSE NOT ALL THOSE INDIVIDUALS ARE METRO EMPLOYEES.

AND SO THAT IS THE CHALLENGE OF A, OF A CONTRACTED MODEL, WHICH WE'VE HAD OTHER DISCUSSIONS ABOUT.

AND WE'LL DEFINITELY HAVE SOME IN THE FUTURE, AS WE DETERMINE THE TYPE OF AGENCY WE ARE GOING TO BE OVER THE NEXT DECADE, BRANDON, I BELIEVE BASED ON OUR TIME, WE MIGHT GO TO TASK TWO.

THANK YOU.

AND SO TASK TWO IS REALLY VALIDATING CAP.

METRO'S COMPLIANCE WITH CHAPTER 41 OF THE TEXAS TRANSPORTATION CODE ALONG WITH OTHER APPLICABLE STATE LAWS, WHICH ALSO INCLUDED TEXAS LOCAL GOVERNMENT CODE, TEXAS PROPERTY CODES TO HEALTH AND SAFETY CODE PENAL CODE ALONG WITH RELEVANT LEGISLATION AS ADOPTED BY THE 85TH OF 86 TEXAS LEGISLATURES.

SO PART OF OUR PROCEDURES WAS AN IN-DEPTH, UH, IDENTIFICATION AND CATALOGUING OF THE 194 UNIQUE COMPLIANCE REQUIREMENTS.

AND APTIBLE UPDATE TO TEXAS LEGISLATION.

THESE 194 ARE UNIQUE, UH, TO CAP METRO THAT ARE REQUIRED.

UM, I WILL MENTION THERE IS A CATALOG CLOSE TO 300, UM, BUT WHEN YOU LOOK, WE HAD TO EVALUATE DEFINITELY THE ORGANIZATION AND, UH, WHAT IS APPLICABLE ACCORDING TO STATE STATUTE TO CAP METRO AND CAME UP WITH 194.

UH, WE DID PERFORM INTERVIEWS WITH PROCESS OWNERS AND VALIDATED THE APPLICABILITY OF EACH COMPLIANCE REQUIREMENT, AND OF COURSE, REVIEWED RELEVANT WEBSITE CONTENT, DATA, AND DOCUMENTS TO VALIDATE THE AUTHORITIES COMPLIANCE WITH EACH OF THOSE REQUIREMENTS.

AND FROM THAT EVALUATION, WE DETERMINED THAT CAP METRO ACHIEVED COMPLIANCE WITH ALL OF THOSE APPLICABLE STATE LAWS AS PRESCRIBED IN CHAPTER FOUR 51.

UH, WE ALSO VALIDATE THAT CAB METRO IMPLEMENTED ALL STATUTORY RECOMMENDATIONS FROM THE SUNSET REVIEW, UH, THAT WAS STATED BY THE STATE AUDITOR'S OFFICE AS ISSUED IN THE REPORT DATED NOVEMBER 5TH OF 2015.

UM, SINCE THAT REPORT OCCURRED DURING OUR SCOPE PERIOD, WE DID VALIDATE THAT THOSE RECOMMENDATIONS WERE IN PLACE.

OH, I THINK OUR PRESENTATION ENDED, LET ME READ.

IT LOOKS LIKE WE LOST THE PRESENTATION.

OKAY.

CAN YOU ALL SEE THAT? YEP.

THERE WE GO.

OKAY.

SORRY ABOUT THAT.

UM, AND SO WE DID VALIDATE THAT IT WAS COMPLIANT, UH, WAS ACHIEVED FOR ALL OF THOSE STATUTORY, IF WE DID IDENTIFY RECOMMENDATIONS FOR MANAGEMENT.

SO AGAIN, THESE WERE NOT FINDINGS OR NONCOMPLIANCE WITH AREAS WHERE THERE COULD BE SOME IMPROVEMENT IN THE DOCUMENTATION, ALSO EFFICIENCY AND EFFECTIVENESS

[00:30:01]

AS A REVIEWING AS A COMPLIANCE STANDPOINT FOR, SO FOR THE FIRST ONE, UH, WAS BOARD MEETING QUORUM.

SO WE DID IDENTIFY THAT QUORUMS ARE OCCURRING, UM, WHEN THIS CONVENING WITH, BUT WITHIN THE MEETING MINUTES, UM, WE DID NOT IDENTIFY THAT THAT WAS ACTUALLY DOCUMENTED OR COMMUNICATED IN THE MINUTES, UH, OF A QUORUM BEING MET BEFORE GOING INTO CLOSED SESSION.

UM, THE SECOND ONE WAS A DISPOSITIONS AND DESTRUCTION CENTRAL TRACKER.

SO THIS WAS TO DEVELOP AND MAINTAIN A CENTRAL TRACKER FOR COMPILING LIST OF DISPOSITIONS AND DESTRUCTION OF DOCUMENTS.

UM, RIGHT NOW THIS IS A MANUAL PROCESS THAT'S BEING DONE.

UH, BUT ALSO IS THERE ANOTHER AVENUE THAT CAN BE DONE THROUGH A MORE CENTRALIZED TRACKER? UM, AND THEN WE HAVE OUR TRAINING REQUIREMENT.

SO, UM, THERE IS A TRAINING REQUIREMENT FOR FAIR ENFORCEMENT OFFICERS.

UM, THIS IS DONE BY YOUR THIRD PARTY, UM, BUT THERE IS A RECOMMENDATION, UH, TO UPDATE THE RECORD RETENTION PROCEDURES WITHIN CAP METRO, INCLUDING MAINTAIN A FILE OF THAT TRAINING DOCUMENTATION TO STRENGTHEN ITS COMPLIANCE WITH THE STATUTE, REALLY.

SO THAT CAP METRO CAN VALIDATE THAT THAT IS OCCURRING SO THAT THEY CAN MAKE SURE THAT THEY'RE MEETING THESE COMPLIANCE REQUIREMENT AND THEN QUADRENNIAL REPORT DELIVERY.

SO WE LOOKED ALSO AT THE LAST BUDGET, RENEWAL REPORTS DELIVERY, UM, AND HAVE A RECOMMENDATION TO IMPLEMENT A RETENTION OF RECEIPTS OR WHAT WE CALL A PROOF OF SUBMISSION FOR THE DELIVERY OF THAT QUADRANT A REPORT, UH, TO THE APPLICABLE RECIPIENTS IN ACCORDANCE WITH THE STATUTE.

SO WE WERE ABLE TO VALIDATE, OF COURSE, AT THAT ROUTE, THE PREVIOUS BUDGET OR REPORT WAS PERFORMED AND DELIVER TIMELY.

UH, THIS IS AN INTERNAL DOCUMENTATION PROCEDURE, UM, TO HAVE THAT PROOF OF SUBMISSION.

I'M GONNA PAUSE THERE, IF THERE'S ANY SPECIFIC QUESTIONS ON COMPLIANCE BEFORE MOVING TO OUR FINAL TASK QUESTIONS HERE, LET'S KEEP MOVING.

THANK YOU.

OH, SORRY.

WAS THAT ONE? YEAH.

WELL, CAN YOU HEAR ME? MY NAME IS LISA.

I'M SORRY.

UH, LISA, THIS WOULD BE QUESTIONS FOR BOARD MEMBERS IF WE'RE NOT IN THE BOARD MEETING AND WE'RE STILL IN THE PUBLIC COMMENTARY, UH, FOR OUR QUADRENNIAL.

SO BOARD MEMBERS, ANY QUESTIONS FOR MR. TENNIS? OKAY.

THANK YOU.

ALL RIGHT, LET'S KEEP ROLLING.

THANK YOU.

UM, GOOD AFTERNOON.

MY NAME IS SUSAN MCCLAY.

I WORK WITH A GOOD CORPORATION AND, UM, WAS WORKING WITH THE WEAVER TEAM ON THE PERFORMANCE INDICATOR PORTION OF THE QUADRENNIAL AUDITS.

UM, HANG ON, HEAR ME.

OKAY.

I WANT TO MAKE SURE I'VE HAD A LITTLE BIT OF AN UNSTABLE SITUATION HERE.

THE PERFORMANCE INDICATORS, UM, THERE ARE NINE.

UM, THEY ARE DEFINED IN STATUTE OUT OF THOSE NINE TO BY STATUTE DO NOT APPLY TO CAPITAL METRO BECAUSE ALL OF YOUR SERVICE IS CONTRACTED.

ALL OF IT IS PURCHASED TRANSPORTATION.

AND SO THE TWO THAT DO NOT APPLY WOULD BE RELATED TO ACCIDENTS.

SO THE NUMBER OF ACCIDENTS PER A HUNDRED THOUSAND MILES, AND ALSO TO, UH, UM, SERVICE RELY, I MEAN, SERVICE RELIABILITY.

YES.

AND THAT WOULD BE THE MILES BETWEEN ROAD CALLS.

THAT BEING SAID, THE TEAM DID COLLECT THE DATA AND CALCULATED THE VALUE OR THESE PERFORMANCE INDICATORS, AND THEY ARE PROVIDED OR MANAGEMENT'S REFERENCE, UM, THE PRISON SEIZURES THAT WE FOLLOWED.

SO, UM, CAPITAL METRO, ALONG WITH EVERY OTHER AGENCY THAT RECEIVES FEDERAL FUNDING, UM, REPORTS TO THE NATIONAL TRANSIT DATABASE EVERY YEAR WITH ITS DATA.

AND THAT DATA IS USED TO GENERATE IT'S IT'S IT'S FUNDING.

UM, GIVEN THAT IT IS TIED TO FUNDING THE NATIONAL DATA TRANSIT BASE DOES ATTEMPT TO, UM, NOT AUDIT, BUT CHECK DATA TO MAKE SURE IT IS INTERNALLY CONSISTENT WITH THE AGENCY, BOTH WITHIN THAT REPORTING YEAR AND WAS PRIOR YEARS.

SO WE USED NTD DATA WHEN AVAILABLE, UM, THE DATA THAT WAS NOT AVAILABLE THROUGH NTD HAD TO DO WITH ON-TIME PERFORMANCE.

AND WE COLLECTED THAT FROM CAPITOL METRO.

UM, ONCE WE HAVE THAT DATA, WE ALSO TOOK A SAMPLE FOR A SPECIFIC YEAR, AND WE COMPARED THE DATA THAT WAS PROVIDED TO US FROM CAPITOL AND METRO TO WHAT HAD BEEN REPORTED TO NTD AND MADE SURE THAT IT WAS VALIDATED.

AND THAT WAS THE CASE FOR, UM, ALL THE DATA SAMPLES WE LOOKED AT, EXCEPT FOR ONE IN A VERY SMALL WAY, WHICH I WILL CIRCLE BACK TO LATER.

UM, LET'S SEE.

OH, AND THEN THE FIRST THING IN THE PROCESS AND THE PROCESS WAS, UM, REALLY TRYING TO PUT HALF OF METRO'S PERFORMANCE IN CONTEXT WITH BOTH THE TIME AND THE ENVIRONMENT.

SO, UM, THERE WERE CHANGES ACROSS, UH, THE TRANSIT

[00:35:01]

INDUSTRY FROM 2016 TO 2019, AND THOSE CHANGES CAN BE SEEN IN THE PERFORMANCE.

AND I'LL, I'LL TAKE SOME OF THOSE LATER, UM, OTHER, UH, ANOTHER ISSUE THAT HAD TO DO WITH, UM, UH, THE PROCESS THAT WE WENT INTO WAS THAT A COUPLE OF METRO MOVED TO AN ENTIRELY PURCHASED TRANSPORTATION OR CONTRACTED, UM, SERVICE STARTING IN 2016.

AND YOU MOVED TO A SINGLE CONTRACTOR AND BE AT REALLY THE END OF THE PERFORMING PERIOD.

THE RESULTS OF THAT SINGLE CONTRACTOR WILL BE MORE EVIDENT REALLY THE NEXT ROUND, WHEN Y'ALL, WE KNOW DO THIS AGAIN IN FOUR MORE YEARS.

SO I'M LOOKING AT WHAT, THE RESULTS THAT WE HAD.

SO I KIND OF GROUPED THE PERFORMANCE INDICATORS INTO THREE CATEGORIES, THE FIRST ONE BEING SERVICE RELIABILITY, AND THAT IS CONSISTS OF YOUR ON-TIME PERFORMANCE, YOUR ACCIDENT RATES AND YOUR MECHANICAL ROAD CALLS, UM, ON-TIME PERFORMANCE IMPROVED ACROSS THE AUDIT PERIOD.

METRO RAPID PERFORMED THE BEST OUT OF THE FIXED ROUTE MODES THAT YOU HAD.

SO YOU HAVE YOUR EXPRESS, YOU HAVE YOUR LOCAL, AND YOU HAVE YOUR METRO RAPID METRO RAPID HAD AN AVERAGE OF 85% ON TIME PERFORMANCE, WHICH IS GREAT ACROSS ALL MODES HYBRID RAIL, OR WHAT IS METRO RAIL? DID THE NTD REFERS TO THIS HYBRID RAIL, UM, PERFORMED THE BEST 97% ON AVERAGE RUNS ON TIME, UM, SEEING THESE PERFORMANCE IMPROVED OVER THE PERIOD.

UH, SO THEY WERE AT ABOUT 77%.

THEY MOVED TO 81% BY THE END OF THE REVIEW PERIOD.

UM, DR.

DEMAND RESPONSE TO YOUR METRO ACCESS PERFORMED THE POOREST DECLINING SLIGHTLY OVER THIS PERIOD.

UM, BUT IT'S STILL EXCEEDED 90% AT THE END OF THE PERIOD.

SERVICE RELIABILITY ALSO INCLUDES ACCIDENT RATES AS MENTIONED.

THIS IS NOT A PERFORMANCE INDICATOR THAT IS REQUIRED TO BE REPORTED TO THE STATE BECAUSE YOU ARE ALL, UH, PURCHASE TRANSPORTATION AND THEY ONLY REQUIRE IT FOR DIRECT DIRECTLY OPERA GRADED SERVICES.

UM, ACCIDENT RATES DECREASED AT AN ANNUAL RATE OF OVER 4% FOR MB AND OVER 2% FOR YOUR, YOUR DEMAND RESPONSE.

UM, AND THEN YOUR RAIL, YOUR ACCIDENT RATE FELL ALMOST 50%.

SO, UM, ACCIDENT RATES DOING REALLY WELL.

UM, AND THEN LASTLY, FOR MORE MILES BETWEEN ROAD CALLS, I MEAN, FOR ALL THE MOST, WITH THE EXCEPTION OF DR WHICH DECLINED JUST SLIGHTLY, UM, YOU WERE, UH, HAD BETTER RESURFACE SERVICE, RELIABILITY AS RELATES TO YOUR ROAD CALLS, UM, INTERNAL COST AND SERVICE EFFICIENCY MEASURES.

SO THIS IS, UM, UH, THIS IS A COST EFFICIENCY.

SO IT'S A MEASURE THE MEASURE OF HOW WELL THE COST IS CONTAINED REGARDLESS OF HOW MUCH SERVICES CONSUMED.

SO THIS IS YOUR COST PER HOUR AND YOUR COST PER MILE, UM, THROUGHOUT THE PERIOD, UH, M B, WHICH IS REALLY, YOU KNOW, THE, THE, THE BIG HORSE, THE GRILL IN THE ROOM, UH, COST MAINTAINED VERY WELL.

IT WAS FLAT, DR.

WAS FLAT, UM, YOUR RAIL DECREASED SLIGHTLY, AND, BUT YOU DID SEE AN INCREASE IN YOUR COST IN YOUR COMMUTER BUS.

UM, BUT AS I SAY, SINCE, YOU KNOW, YOUR FIXED ROUTE IS THE REALLY SUCH THE BULK OF THE SERVICES CROSS REALLY WORK CONTAINED RELATIVELY WELL DURING THAT FOUR YEAR PERIOD.

UM, THE COST EFFECTIVENESS IS A LITTLE DIFFERENT BECAUSE NOW WE'RE LOOKING AT, UH, IT'S A MEASURE OF A CAPITAL METRO'S CORE FUNCTION.

HOW WELL DO YOU TRANSPORT PEOPLE IN A COST-EFFECTIVE MANNER? UM, AND THIS WAS A TRICKY ONE FOR THIS PARTICULAR AUDIT PERIOD, BECAUSE THERE WERE SO MANY THINGS GOING ON.

UM, FIRST NATIONALLY, WE SAW A DECLINE IN THE METRO AREAS IN TRANSIT RIDERSHIP.

UM, AND SO THERE ARE NUMBERS OF REASONS WHY THIS COULD HAPPEN.

UM, SOME PEOPLE SAID, UH, YOU KNOW, IT MAY, IT COULD BE LOWER FUEL PRICES, HIGHER LEVELS OF AUTO OWNERSHIP.

AND THEN LASTLY, SOME, UH, RESEARCHERS ARE ACCORDING TO THE RISE OF THE TMCS.

THESE ARE YOUR LIFTS AND YOUR UBER'S.

UM, SO FROM 2015 TO 2018, WE REALLY SAW RIDERSHIP START TO DECLINE NOW, CAPITAL METRO, UM, AND PASSED, UH, CAPRI MAP AND JUNE, 2019, YOU KNOW, AND ELIMINATED YOUR UNPRODUCTIVE ROUTES, ADDED 10 NEW ROUTES, INCREASED FREQUENCY.

AND SINCE THEN THIS TREND HAS BEEN REVERSED AND WE HAVE SEEN GROWTH IN RIDERSHIP.

SO, UM, BETWEEN, UH, FYI 2018 AND FYI 2019, WE SAW RIDERSHIP GROW BY AN AVERAGE OF ABOUT A HUNDRED THOUSAND TRIPS PER MONTH.

SO, UM, I THINK THAT'S, YOU KNOW, THAT AT THE BEGINNING OF THE PERIOD, UM, CAPITAL METRO WAS REALLY, UM, UH, UM,

[00:40:01]

BEING AFFECTED BY THESE NATIONAL TRENDS.

BUT I THINK TOWARDS THE END OF THE PERIOD, WE CAN REALLY SEE WHAT THE LOCAL EFFORTS HAVE DONE TO, UM, IMPROVE THE, THE, UM, PROCTOR EFFECTIVENESS OF THE SERVICE, UM, RECOMMENDATIONS FOR MANAGEMENT.

UH, FIRST ONE IS, UH, RELATED TO FAIRS.

NOW A PEER REVIEW WAS NOT REQUIRED FOR THIS REPORT, BUT WE DID DO ONE, UM, JUST TO TAKE A LOOK AT HOW YOU WERE DOING, UH, TO COMPARE TO YOUR PEERS.

UM, CAPITAL METRO FAIR RECOVERY IS REALLY LOW COMPARED TO ITS PEERS AT A PRACTICE APPROXIMATELY 10% OF ITS COSTS.

UM, PEER AVERAGE FOR YOUR FIXED ROUTE IS ABOUT 18%.

YOUR DEMAND RESPONSE.

IT'S ABOUT 7%.

YOU GUYS ARE GETTING ABOUT 2%.

UM, YOUR COMMUNITY YOU'RE CAPTURING ABOUT 13% OF YOUR OPERATING COSTS FROM YOUR FARES.

YOUR PEER AVERAGE IS CLOSER TO 25%.

UM, RAIL, YOU RECOVERING A LITTLE BIT OVER 8%.

YOUR PEER AVERAGE IS 26%.

SO THERE IS OBVIOUS, THERE IS AN OBVIOUS NEED TO LOOK AT YOUR FARE STRUCTURE AND TO CONSIDER, UM, HOW FAIRS SHOULD BE, UH, SET IN THE FUTURE TO ENSURE THE FINANCIAL SUSTAINABILITY OF THE AGENCY.

UM, LAST RECOMMENDATION FOR MANAGEMENT, UM, MENTIONED THIS AT THE BEGINNING OF MY REPORT, UM, A SMALL MATTER OF DATA REPORTING AND VALIDATION, UM, IN THE D R UM, THE DEMAND RESPONSE DEPARTMENT THERE WAS MANAGED, I MEAN, NOT MANAGEMENT, THERE WAS A, UM, PERSONNEL TURNOVER.

AND WHEN THAT PERSONNEL TURNED OVER, THERE WAS A LOSS TO SOME INSTITUTIONAL KNOWLEDGE THAT RESULTED IN SOME DISCREPANCIES OF THE DATA, THE IT DIDN'T MATERIALLY AFFECT OUR, UM, ANALYSIS AND OUR CONCLUSIONS, BUT WE DO HAVE A RECOMMENDATION THAT, THAT PROCESS BE FORMALIZED AND DOCUMENTED, UM, FOR THE FUTURE.

THAT'S ALL WE GOT.

THANK YOU QUESTIONS REGARDING THE PERFORMANCE MEASURES FOR SUSAN MCCLAY.

GOOD.

THAT WAS REALLY GOOD INFORMATION AND GOOD FOR US TO HEAR NONE OF IT, UH, NEW NEWS NECESSARILY, BUT OBVIOUSLY, UH, NICE TO HEAR WE'RE BUCKING THE NATIONAL TRENDS ON, PARTICULARLY ON THE RIDER, SIP.

ANY OTHER QUESTIONS FOR MEMBERS? I HAVE A QUESTION.

CAN YOU SEE ME CHAIR? UH, GO AHEAD.

UH, MY QUESTION JUST RELATES TO THE FAIR RECOVERY AND JUST, UM, IF YOU COULD SPEAK TO, UH, THE EXTENT TO WHICH, OR IF EVEN, UM, THE, THE, UM, ANALYSIS TOOK INTO ACCOUNT, UH, WE DID HAVE A DIP DURING COVID, ALTHOUGH I UNDERSTAND WE'RE IMPROVING NOW.

SO COULD YOU SPEAK TO WHETHER THAT HAD ANY IMPACT ON THE ANALYSIS AT THIS STAGE? IT DID NOT BECAUSE THIS, UM, AUDIT PERIOD ENDED BEFORE COVID REALLY STARTED.

SO, UM, IT WOULD NOT BE REFLECTED IN THIS DATA.

OKAY.

I THINK YOU SAID THAT, BUT CAN YOU REMIND ME THE, UM, THE DATE THROUGH WHICH THE DATA WAS REVIEWED? IT WAS REVIEWED, UM, FROM, UH, SO IT'S FISCAL YEARS IN 2016 AND 2019.

SO OCTOBER ONE, 2015 THROUGH SEPTEMBER 30TH, 2019.

OKAY.

OKAY.

AND DO YOU FEEL AT THIS POINT, WE WERE ABLE TO, UM, YOU KNOW, THERE WERE SIGNIFICANT, UM, WELL, I THINK SIGNIFICANT, WE'VE TALKED ABOUT AN INCREASE DUE TO CAP REMAP.

SO I'M WONDERING, GIVEN THAT SPAN THE EXTENT TO WHICH I, I UNDERSTAND AS THE CHAIR HAS SAID, WE'VE TALKED FOR AWHILE ABOUT CA UH, FAIR RECOVERY.

I'M JUST WONDERING IF, YOU KNOW, THE EXTENT TO WHICH THESE, THE ANALYSIS ACCOUNTS FOR THINGS LIKE THE, UH, THE INCREASE THAT WE HAD AFTER CAP REMAP, FOR EXAMPLE, AND, UM, AND THE, THE WEIGHTING OF THAT ANALYSIS, I DON'T KNOW EXACTLY HOW YOU DID THE ANALYSIS, SO THAT, DO YOU SEE WHAT I'M ASKING? YEAH.

UM, SO SHE SAID THE DATA THAT WE USED WAS NTD DATA.

AND WHEN WE BEGAN THIS, THE NTD GOES THROUGH ITS VETTING BEFORE IT ACTUALLY PUBLISHES IT.

SO I HAD TO RELY ON 2018 DATA SINCE THIS PEER REVIEW IS KIND OF OUTSIDE OF WHAT THE STATE REQUIRES.

SO I JUST TOOK THAT SNAPSHOT OF 2018.

THAT BEING SAID, I THINK IT'S A REAL INTERESTING QUESTION.

AND IT'S ONE THAT, THAT I WOULD LOOK AT TO SEE, UM, YOU KNOW, GIVEN THAT NINETEENS CLOSED.

NOW WE SHOULD BE ABLE TO COLLECT THE DATA AND SEE WHERE YOU ARE WITH YOUR FAIR RECOVERY.

WELL,

[00:45:01]

THAT WOULD JUST BE INTERESTING FROM MY PERSPECTIVE.

I DON'T KNOW HOW THE BOARD FEELS ABOUT IT OR OUR, UM, OUR PRESIDENT, BUT, UM, I WOULD JUST BE CURIOUS BECAUSE I KNOW THAT, YOU KNOW, ONE OF OUR GOALS AROUND CAP REMAP RELATED TO, UH, INCREASE RIDERSHIP, AND I KNOW WE'VE HAD SOME INCREASED RIDERSHIP, AND I'M JUST WANTING TO UNDERSTAND THE IMPACT OF THAT UPON, UM, OUR FAIR RECOVERY ANALYSIS.

AND I DEFINITELY THINK TO TOUCH ON THAT, UM, WHEN WE WENT THROUGH WITH THIS ANALYSIS AND PRESENTED IT TO MANAGEMENT AND EVALUATED, UM, THERE WAS A LOT OF THINGS THAT WERE IMPACTING CAFFREY MAP, UM, THE DOWNTOWN STATION BEING REBUILT, UM, AND, YOU KNOW, TAKING THOSE INTO ACCOUNT, UM, AND LOOKING AT KIND OF HOW THAT AFFECTED THE NUMBERS.

I THINK, UM, AT THE END OF IMPLEMENTING CAPRI MAP, YOU DEFINITELY SEE THE REVERSAL IN TREND BECAUSE A POSITIVE, UH, AND I DEFINITELY THINK THAT SOME OF THOSE DECLINES THAT, THAT SUSAN MENTIONED ARE DEFINITELY SOMETHING TO SEE NATIONALLY, UH, AND TO BE ABLE TO SEE AMONG PEERS, OF COURSE, UH, AND WHAT WAS HAPPENING IN AUSTIN CHAIR? I COULD, UH, MAKE A QUICK COMMENT IF THAT'S OKAY, PLEASE.

PRESIDENT CLERK.

GREAT.

THANK YOU.

A COUPLE, A COUPLE OF COMMENTS, ONE, UH, I THINK BOARD MEMBER KITCHEN YOU'RE RIGHT.

OR I WOULD ALWAYS SAY IN OUR WORLD AND OUR TRANSIT INDUSTRY WORLD, UM, WHEN YOU COMPARE YOURSELF TO ANOTHER TRANSIT AGENCY, WE ALWAYS HAVE TO BE EYES WIDE OPEN THAT THERE ARE NO COMPARABLE TRANSIT AGENCIES TO EACH OTHER.

IF YOU'RE IN OUR WORLD, WE SAY, IF YOU'VE BEEN TO A TRANSIT AGENCY, YOU'VE BEEN TO ONE TRANSIT AGENCY.

SO DURING THAT PERIOD OF TIME, WE'VE HAD DRAMATIC CHANGES AND SOME OF OUR PEERS HAVE HAD DRAMATIC CHANGES.

SO THE, UH, THE APPLE IS NEVER AN APPLE PER SE.

SO A GOOD EXAMPLE WOULD, UH, WOULD BE STUDENTS RIDE FREE PROGRAM.

AND WHEN WE INSTITUTED THAT PROGRAM, THAT WOULD HAVE DROPPED FAIR REVENUE DOWN, BUT ACTUALLY INCREASED RIDERSHIP.

SO WHILE THAT MAY LOOK NEGATIVE ON THAT METRIC FROM A COMMUNITY GOOD, IT WAS INCREDIBLY POSITIVE.

UH, AND AS, AS I THINK BRANDON MENTIONED, ARE WE DELIBERATELY SHUT DOWN PART OF OUR RAIL LINE TO MAKE OUR CONSTRUCTION PROGRAM GO FASTER, TO GET THE LINE BACK IN SERVICE.

SO THAT WOULD HAVE HAD AN IMPACT.

SO, UM, THESE THINGS KIND OF, UH, AND AS SOME OF OUR PEERS WOULD HAVE HAD NEW LINES PUT IN AT THE SAME OVER THIS PERIOD OF TIME, WHICH COULD, UH, SIGNIFICANTLY GO RIDERSHIP.

UH, OUR RAIL IS REALLY NOT COMPARABLE TO ANY OTHER RAIL IN THE COUNTRY BECAUSE IT'S, UH, IT'S A LITTLE BIT OF A SMALL COMMUTER RAIL LINE THAT TRIES TO LIKE A LIGHT RAIL LINE.

UH, SO IT'S VERY HARD TO COMPARE.

SO, UH, I DO WHAT I REALLY APPRECIATE THOUGH.

I THINK OF THE AUDIT FINDINGS WAS, UH, THE DEEPER METRICS RELATED TO ON-TIME PERFORMANCE, UH, HOW WE ARE MANAGING THE OVERALL SYSTEM.

AND BASICALLY THE REPORT OUTS SUGGEST THAT ALL OF OUR MANAGEMENT FUNCTIONS AROUND THE SYSTEM ARE GOING IN THE RIGHT DIRECTION.

AND THAT IS WHAT I THINK THAT TO ME, THE KEY TAKEAWAY IS, AND I, AND I APPRECIATE HOW HARD THE STAFF HAS WORKED TO INCREASE, UH, OUR, UM, OUR, OUR TRENDS ON THAT WAY.

THEN OUR LONGTERM FINANCIAL MODEL, IT DOES CALL FOR A FAIR INCREASE.

COVID IS OBVIOUSLY, UH, PUSHED THAT BACK.

CAUSE WE WERE GOING TO TRY TO POTENTIALLY BRING THAT IN 21.

UH, WE OBVIOUSLY DID NOT DO THAT IN THIS YEAR'S BUDGET, BUT AT SOME POINT WE WILL PROBABLY HAVE TO COME TO THE BOARD AND MAKE, UH, SOME TYPE OF A DECISION ON THAT WITH ACKNOWLEDGING THAT I THINK ONE OF THE BIG VALUES THAT WE DO PROVIDE THIS COMMUNITY IS INCREDIBLY LOW COST TRANSPORTATION AND, AND THE VALUE OF THAT IN THE COMMUNITY.

AND THAT WILL ULTIMATELY THE BOARD, UH, HAVING TO KIND OF WORK THROUGH THOSE, UH, THE BALANCE OF THAT.

AND SO WITH, WITH THAT, THIS CONCLUDES WEAVER AND GOODMANS PRESENTATION OF THE QUADRENNIAL RESULTS.

THE QUADRENNIAL PERFORMANCE REVIEW AS WAS MENTIONED, DID CONCLUDE AS OF SEPTEMBER 30, 2019.

AND, UM, THE LOOK BACK WAS VERY EFFECTIVE FOR ALL THREE OF THE TASKS THAT WERE EVALUATED.

UM, WHAT YOU DON'T HAVE HERE FROM WEAVER'S REPORT TO THE BOARD IS MANAGEMENT'S RESPONSE TO EACH OF THOSE RECOMMENDATIONS FOR THEIR CONSIDERATION.

UM, WE HAVE OBTAINED MANAGEMENT RESPONSES, THEY WERE ALL TAKEN VERY SERIOUSLY.

AND AS YOU COULD TELL FROM THE COMMENTARY, UM, MANY OF WHICH HAVE ALREADY BEEN ACTED ON OR WERE IN PLAY, UH, TO CONTINUE TO IMPROVE THE MANAGEMENT OF THE AUTHORITY.

SO THAT CONCLUDES OUR COMMENTS, UNLESS THERE'S ANY OTHER QUESTION, BOARD MEMBERS, OTHER QUESTIONS FOR WEAVER.

OKAY.

I DON'T HEAR ANY, UH, ALYSSA, THANK YOU, UH, TO YOU AND BRANDON AND ADAM AND SUSAN FOR THIS, A GOOD REPORT.

AND, UH, WE APPRECIATE ALL THE HARD WORK.

AND THEN, UH, TO OUR STAFF, UH, I WOULD SAY, UH, UH, THIS IS CONFIRMATION OF WHAT I'VE LONG THOUGHT.

YOU GUYS ARE DOING A GREAT JOB AND, UH, AND, UH, PAYING ATTENTION TO THE THINGS THAT MATTER AND, UH, AND BEEN WILLING TO LOOK AT THINGS THAT WE CAN DO BETTER.

BUT, UH, I THINK THIS, UH,

[00:50:01]

REPORT REALLY, UM, AT LEAST TO MY MIND, THAT INDICATES, UH, WHAT WE'VE ALL FELT, WHICH IS, UH, WE'RE HEADED IN THE RIGHT DIRECTION.

AND, AND OUR STAFF IN PARTICULAR IS DOING A VERY GOOD JOB OF DRIVING US IN THE RIGHT DIRECTION.

SO THANK YOU ALL.

UH, NORMALLY WE WOULD HAVE PUBLIC COMMENT OR THIS WOULD BE THE TIME TO HAVE PUBLIC COMMENT.

I DON'T KNOW, WHAT'S NORMAL WITH RESPECT TO QUADRENNIAL REVIEWS, UH, BUT WE DON'T HAVE ANYBODY.

SO, UH, THERE'S UH, ANY, UH, ANYTHING ELSE THAT WE NEED TO TAKE UP AT THIS TIME? WE WILL, UH, STAND ADJOURNED AND THEN A MEMBER KITCHEN WAY.

SORRY, LET ME JUST BE CLEAR.

UH, WE'RE ABOUT TO START WITH A BRIEF INTERLUDE, OUR REGULAR BOARD MEETING, AND WE'LL BE HAPPY TO HAVE PUBLIC COMMENT AT A BOARD MEETING FOR THOSE WHO'VE SIGNED UP FOR PUBLIC COMMENT BOARD MEETING.

WE DIDN'T HAVE ANYBODY SIGN UP FOR THIS PARTICULAR SESSION.

UH, CHAIR, I THINK YOU ANSWERED MY QUESTION.

I HAD HEARD SOMEONE WANTING TO ASK A QUESTION EARLIER, BUT PERHAPS THAT PERSON HAS SIGNED UP FOR COMMENT DURING THE REGULAR BOARD MEETING.

YES.

APARTMENT CONFIRMED, BUT I DON'T THINK WE HAD ANYBODY SIGN UP FOR THE PUBLIC HEARING FOR TRANSPORTATION.

PRETTY GOOD.

SO WE'LL STAND THE PUBLIC WILL ADJOURN THE PUBLIC HEARING AND THEN RECONVENE IN ABOUT FIVE MINUTES WITH OUR REGULAR BOARD MEETING ON THIS SAME, UH, ON THE SAME CALL.

COULD YOU PLEASE SHARE COOPER? UH, OUR TIME IS 1255.

THANK YOU.

* This transcript was compiled from uncorrected Speech-to-Text.