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[00:00:11]

AVAILABLE IN EACH AGENDA POSTING.

[1.a. Briefing on Light Rail Program Project Development]

UM, OUR FIRST ITEM TODAY IS A DISCUSSION ABOUT THE LIGHT RAIL PROGRAM, PROJECT DEVELOPMENT PROGRESS, WHICH I UNDERSTAND MR. CANALY HAS INVITED VARIOUS SAFETY CONSULTANTS TO JOIN.

SO WE'LL LET HIM KICK OFF THE DISCUSSION AND INTRODUCE THE TEAM HERE TODAY.

SO GOOD MORNING.

GOOD MORNING CHAIR.

THANK YOU.

AND, AND, UM, THANKS EVERYONE FOR BEING HERE IN OUR NEW, UH, KIND OF THEATER IN THE SQUARE, I GUESS, OF OUR CONVERSATION THIS MORNING, BUT THANK YOU ALL.

I DO WANT TO WELCOME EVERYONE TO OUR NEW SPACE.

UM, IT'S, UH, IT'S A BIT UNDER CONSTRUCTION, BUT I THINK THAT'S A FITTING PLACE TO BE.

UM, AS WE BEGIN RAMPING UP TOWARDS OUR FUTURE AND CONTINUING OUR IMPLEMENTATION OF PROJECT CONNECT.

SO IT'S KIND OF A NEAT PLACE TO BE AT THIS MOMENT.

UM, I HAVE TO REALLY STOP AND PAUSE AND THANK A FEW PEOPLE, UM, REALLY MANY PEOPLE, BUT HIGHLIGHT A FEW PEOPLE, CERTAINLY OUTSCALE OR DIRECTOR OF REAL ESTATE WHO HAS IN ADDITION TO THE ENORMOUS TASK AHEAD OF HIM DOWN THE DOWN THE LINE IS, HAS BEEN REALLY WORKING TO MAKE SURE WE CAN BE HERE TODAY, ALONG WITH REBECCA CHLOE TODAY, GETTING US THROUGH, UM, A BIG, GIANT SHOUT OUT TO CAP METRO IT FOR REALLY MAKING THIS POSSIBLE TO BE HERE.

SO DOTTIE, THANK YOU FOR YOU AND YOUR TEAM.

UH, CHANNEL SIX.

SO I THINK I SUPPOSED TO SAY ATX AND I'M DATING MYSELF WHEN I SAY CHANNEL SIX.

UM, SORRY ABOUT THAT.

UM, IT'S JUST OLD HABITS.

UM, AND IN OUR OTHER PARTNERS, CVRE BRIAN AND B CVRE AND GORDON HYLAND ARE GETTING THIS WORK DONE IN A VERY TOUGH SITUATION WITH ALL THE COMMODITY CHANGES AND SUPPLY CHAIN ISSUES.

AND SO WE'RE REALLY EXCITED AND I THINK WHAT IT ACTUALLY DID GETTING THIS BUILDING TOGETHER, GETTING A SENIOR HERE, UM, ACTUALLY IN ITSELF SHOWS HOW WE'RE PARTNERING TO GET THINGS DONE.

IT'S A SMALL THING IN THE SCHEME OF THINGS, BUT HOW WE'RE ALL WORKING TOGETHER, JUST BE HERE TOGETHER, BE ABLE TO GATHER TODAY.

SO I'M SUPER EXCITED ABOUT THAT.

UM, I ALSO THINK IT'S REALLY IMPORTANT THAT AS WE BEGIN TO INHABIT THIS ATP SPACE, IT'S A, IT'S A PERFECT TIME FOR REFLECTING, REFLECTING ON WHERE WE'VE BEEN, THE GREAT ACCOMPLISHMENTS WE'VE HAD IN THE LEAD UP TO THE ELECTION, THE WORK AFTER THE ELECTION, AND ALSO JUST TO ADDRESS OUR, WHERE WE'RE MOVING FORWARD, HOW WE'RE GOING TO CONTINUE MOVING FORWARD.

SO I THINK IT'S A GREAT MOMENT HERE TODAY.

SO I REALLY APPRECIATE, UM, THE BOARD OPPORTUNITY TO LET US HAVE A DISCUSSION WITH YOU THIS MORNING WITH OUR TEAM.

SO I THINK LET'S START THERE.

LET'S GO BACK TO WHERE, UM, WHERE THIS, WHERE, WHY WE'RE HERE, THE VISION THAT AUSTIN VOTERS PUT IN PLACE ON THE NEXT SLIDE.

AND IT'S LIKE, SO WE'RE GOING TO GO THROUGH SOME UPDATES STARTING WITH ONE OF OUR HIGH-TECH CONNECT, I THINK IS VALUABLE FOR EVERYONE TO SEE AND REMIND OURSELVES THAT WHY WE'RE HERE TODAY TO TALK SIGNIFICANTLY ABOUT LIGHT RAIL.

IT IS ONE OF MANY COMPONENTS OF OUR PROJECT CONNECT PROGRAM THAT WE'VE ALREADY HAD.

GREAT SUCCESSES.

SO GOING AHEAD ON THE NEXT SLIDE.

NO, I THINK IT'S VERY IMPORTANT TO REMIND OURSELVES AND OUR, OUR RESIDENTS IS THAT WE HAVE A VISION AND THAT VISION WENT THROUGH A GREAT THOROUGH PROCESS.

IT'S REALLY ABOUT WHO WE WANT TO BE IN THE FUTURE AS AUSTIN AND IT'S, I IT'S, IT'S, IT'S ROOTED IN THE IDEA OF HAVING INTEGRATED TRANSIT SYSTEM.

WE ALREADY HAVE A FANTASTIC SYSTEM THAT KEPT METRO.

THIS IS ABOUT ENHANCING THAT, UM, EASING TRAFFIC JOBS AND REALLY CONNECTING US AS A COMMUNITY NOW AND INTO THE FUTURE.

AND THAT WORKED TO GET TO THAT VISION WAS MANY, MANY PEOPLE THROUGHOUT THE COMMUNITY HAVE HELPED US GET THERE.

AND NOW WE'RE IN THE MOMENT WE GET TO KEEP IMPLEMENTING THAT VISION.

I THINK IT'S REALLY IMPORTANT TO GO THERE.

AND THE NEXT SLIDE, YOU KNOW, JUST GOING BACK TO WHERE WE SAID, WHAT WE, WHAT THE VOTERS APPROVED.

I THINK IT'S ALWAYS ROOT TO WHAT OUR RESIDENTS ASKS FOR WHEN THEY APPROVE THIS VISION OF PROJECT CONNECT.

UM, AND IT'S ABOUT, AGAIN, IT IS ABOUT IMPLEMENTING TRANSIT ALTERNATIVES, BUT IT'S ALSO ABOUT OUR COMMUNITY AND WHO WE WANT TO BE IDEAL OF GETTING EASING OUR CONGESTION, CONNECTING PEOPLE, CREATING JOBS, AND REALLY SETTING UP OUR FUTURE FOR CONTINUED SUCCESS HERE IN BOSTON.

AND WE'RE GOING TO TALK A LOT ABOUT THAT TABLE VISION AND HOW WE CONTINUE TO MOVE FORWARD.

BUT ON THE NEXT SLIDE, I THINK WE SHOULD CELEBRATE SOME OF THE WORK THAT WE'VE DONE AND JUST REMIND WE HAD A VOTE IN NOVEMBER, 2000, THE CITY COUNCIL, AND IN 2020, UM, UH, THAT'S INTERESTING.

I SAID 2000, UH, 2020, UM, THE CITY OF AUSTIN AND CAPITAL METRO CREATED THE AUSTIN TRANSIT PARTNERSHIP SHORTLY THEREAFTER.

UM, AND HERE WE ARE, AND I THINK IT'S REALLY IMPORTANT TO, AGAIN, CELEBRATE SOME OF THE ACCOMPLISHMENTS AND REALLY A SHOUT OUT TO CAP METRO

[00:05:02]

FOR REALLY DOING SOME HEAVY LIFTS OVER THESE LAST 20 MONTHS TO MOVE AHEAD ON SOME SIGNIFICANT INVESTMENTS, STARTING WITH THE CIRCULATOR PICKUP ZONES.

UM, WE KNOW THAT'S REALLY IMPORTANT TO GET OUR PEOPLE MOVING IN CONNECTED TO OUR, OUR, OUR, OUR BUS NETWORK.

UM, GREAT TO GROUNDBREAKINGS ON REALLY KEY METRO RAPID IMPROVEMENTS.

AND I'M REALLY EXCITED THAT THIS AFTERNOON WE'LL HAVE AN ITEM IN FRONT OF THE BOARD TO FORMALIZE ATP'S INVESTMENT IN THAT, IN THOSE PROJECTS, THOSE PROJECTS ARE IN CONSTRUCTION AND WE'LL BE DELIVERING, UH, IN THE NEXT YEAR, SERVE NEW SERVICE TO OUR RESIDENTS.

SO REALLY, UM, DELIVERING ON WHAT THE VOTERS ASKED FOR, AND THEN JUST THE OTHER NIGHT, UM, A FANTASTIC GROUNDBREAKING ON, UM, ENHANCING A CAT METRO'S RED LINE AND, UH, THAT THE COMMUTER RAIL SYSTEM THERE, IN ADDITION TO THE DOUBLE TRACKING THAT CAP METRO STARTED, I THINK IT'S DOTTIE MENTIONED THE OTHER DAY.

THAT WAS ALMOST THE FIRST THING THAT HAPPENED RIGHT AFTER THE ELECTION, BUT TWO NEW STATIONS GOING UP, UH, BY, UH, IN NORTH AUSTIN, IF THEY'RE GOING TO REALLY ADD CONNECTIVITY.

SO A GREAT CELEBRATION FOR AUSTIN.

AND AGAIN, SHOWING THAT WE ARE MOVING FORWARD ON THIS PROGRAM.

WHAT'S SO GREAT ABOUT THAT PICTURE.

YOU SEE UP THERE IS TRUE PARTNERSHIPS, EVERYONE IN THEIR FC SCARFS, WHICH IS GREAT, OR ARE ONTO THE PLAYOFFS FC SQUAD.

UM, AND YOU KNOW, THE PARTNERSHIP, NOT ONLY BETWEEN THE CITY AND AUSTIN TRANS PARTNERSHIP AND CAP METRO, THAT AUSTIN FC WAS ALSO A PARTNER.

THEY ALSO PART OF THAT, UM, USE OF CITY LAND.

THEY CONTRIBUTE TO THAT, AND I THINK THAT'S HOW WE CAN COME TOGETHER AGAIN THROUGHOUT ALL OF THIS COMING TOGETHER TO GET BIG STUFF DONE FOR US.

SO THAT WAS REALLY FANTASTIC STUFF.

IN ADDITION, UM, TO THE CAPITAL PROJECTS THAT WE'VE MOVING ON, THE NEXT SLIDE, I'M GOING TO REMIND YOU OF THE VERT DIVISION THAT WE ALSO HAD, UH, ON THE REALLY THE UNIQUE INVESTMENT THAT THIS COMMUNITY PUT ON THE BALLOT AND APPROVED IN INVESTING IN HOUSING, ALONG OUR TRANSIT CAR DOORS.

UM, WE KNOW AROUND THE COUNTRY AS TRANSIT GETS BUILT, SOMETIMES IT CREATES ISSUES AND DISPLACEMENT AND FOR OUR LEADERS TO SEE THAT AND ADDRESS THAT IN A WAY IN A COMPREHENSIVE WAY WAS REALLY FANTASTIC.

$300 MILLION IS GOING TOWARDS ANTI-DISPLACEMENT.

ONE OF THE FIRST ACTION ITEMS THIS BOARD TOOK, UH, ABOUT 20 MONTHS AGO WAS PUTTING IN PLACE IN AGREEMENT WITH THE CITY ABOUT THOSE FUNDS.

AND I'M PLEASED TO SAY THAT IF YOU COUNT THIS UPCOMING BUDGET HERE, ABOUT TWO MONTHS AWAY, UM, ATP WOULD HAVE FUNDED A HUNDRED MILLION DOLLARS IN ABOUT 20 MONTHS TOWARDS THIS EFFORT.

UM, SO THAT IS A FANTASTIC EARLY INVESTMENT.

I WANT TO GIVE A SHOUT OUT.

I DON'T KNOW THAT DR.

BURNETT IS, IS LISTENING.

I HOPE ON SOME OF THOSE, SHE'S NOT, UM, UH, SHE'S IN HER, UH, BOTANICAL MUSEUM AND ENJOYING OBVIOUSLY STILL ON VACATION ACTUALLY.

UM, BUT SHE REALLY PRESSED US AND PRESSED STAFF TO ACCELERATE THOSE FUNDS BECAUSE WE KNOW THEY'RE REALLY IMPORTANT IN SUPPORTING THE CITY AND THE GREAT WORK THAT THE CITY'S DOING AND IMPLEMENTING A HOUSING BLUEPRINT AND LOOKING AT HOW WAYS THAT WE CAN CONTINUE TO ADVANCE INVESTMENTS IN HOUSING ANTI-DISPLACEMENT INITIATIVES.

SO WE'RE REALLY PROUD OF THE BOARD AND YOUR INVESTMENT IN THAT.

UM, AND THAT WORK CONTINUES VERY COLLABORATIVELY, UM, BETWEEN ALL THE AGENCIES AS THAT WORK IS GOING.

SO AGAIN, REALLY IN 20 MONTHS AND FANTASTIC ACCOMPLISHMENTS ON THE NEXT SLIDE.

UM, AS YOU KNOW, AS I, AS I APPROACH MY NEARLY TWO MONTHS IN THIS ROLE, ONE OF THE THINGS THAT YOU ASKED ME WAS TO ASSESS WHERE WE WERE, WHERE WE WERE IN THE PROGRAM, WHERE WE WERE AS ATP.

AND I WANT TO JUST PROVIDE YOU A HIGHLIGHT OF THAT, AND REALLY THAT'S THE DIALOGUE THAT WE WANT TO HAVE WITH YOU TODAY AROUND THIS TABLE.

I WANT TO GO BACK TO SLIGHTLY AGAIN AND REALLY JUST HIGHLIGHT THE FANTASTIC TRACK RECORD OF PARTNERSHIP.

UH, I SAY THIS A LOT TO THE POINT WHERE PEOPLE PROBABLY AREN'T LISTENING ANYMORE, BUT WE GOT TO NAME OURSELVES, RIGHT.

UM, A NEW GOVERNMENT STARTUP AGENCY.

AND I WANT TO GIVE A SHOUT OUT TO, UM, ASSISTANT CITY MANAGER, UH, FI AND DACA WHO REALLY PUT THAT NAME OUT THERE, THE IDEA OF A PARTNERSHIP.

AND I THINK IT REALLY IS AT THE KIND OF A SOUL OF WHO WE ARE PARTNERING WITH WITH CAP METRO IN THE CITY, PARTNERING WITH OUR COMMUNITY, PARTNERING WITH, UM, ALL THE FOLKS THAT WE'RE GOING TO NEED TO GET THIS WORK DONE.

AND I THINK WE TRY TO LIVE AND BREATHE THAT EVERY DAY.

AND AS YOU CAN SEE, THOSE PARTNERSHIPS HAVE, HAVE, HAVE, UH, BORN OUT IN THESE FIRST 20 MONTHS AFTER AN ELECTION.

SOMETIMES AFTER AN ELECTION, THINGS, PEOPLE GO QUIET AND IT TAKES A

[00:10:01]

WHILE FOR THINGS TO START HAPPENING.

THINGS ARE HAPPENING IN AUSTIN, UM, BECAUSE OF THE ENERGY OF THIS BOARD OF THE CAP METRO BOARD AND THE CITY COUNCIL AND OUR COMMUNITY, WE ARE MOVING FORWARD.

PART OF THE ASSESSMENT ALSO, UM, THAT YOU ASKED ME TO LOOK AT IS, UH, STARTING AGAIN IN MAY, UH, AS I TOOK IN, TOOK ON THIS ROLE IN EARLY APRIL, UH, THERE WAS A MEMO THAT WENT OUT ABOUT THE COST OF OUR LIGHT RAIL PROGRAM.

AND I THINK IT'S IMPORTANT THAT WE, UM, KIND OF HAVE AN HONEST DISCUSSION AND HONEST REFLECTION ABOUT THE REALITIES OF THAT WE ARE, UM, WHAT I CAN SAY VERY CLEARLY, EVEN WITH THOSE COST CHANGES ATP.

AND I KNOW ALL THE PARTNERS ARE 100% COMMITTED TO IMPLEMENTING THE VISION, UM, OF THE VOTERS.

UM, AND I THINK IT'S REALLY IMPORTANT THAT EVERYONE IS ASSURED THAT WE WILL COMPLETE PROJECT CONNECT.

WE WILL COMPLETE IMPLEMENTING PROJECT CONNECT.

UM, AND WE'RE GOING TO DO THAT EVEN IN, EVEN IN THE LIGHT OF RISING PRICES AROUND THE WORLD, AND WE'RE GOING TO DO THAT WITHOUT NEW TAXES.

IT WILL REQUIRE A CONVERSATION ABOUT THE TIMING OF DELIVERY BECAUSE OF THOSE REALITIES.

BUT I THINK WE'RE VERY WELL SET UP TO HAVE THOSE CONVERSATIONS.

AND I THINK IT'S REALLY IMPORTANT THAT WE CONTINUE TO FOCUS ON, WE ARE DRIVING TOWARDS COMPLETION OF PROJECT CONNECT OVER THE YEARS.

SO HOW ARE WE GOING TO DO THAT? I THINK THE THING THAT'S REALLY IMPORTANT IS AS WE WORK TOWARDS AN UPDATED LIGHT RAIL IMPLEMENTATION PLAN, THAT WE'RE GOING TO ENGAGE WITH COMMUNITY ON THAT.

UM, WE'RE GOING TO, AND THE TEAM IN FRONT OF YOU TODAY IS GOING TO WALK THROUGH OUR PROCESSES ABOUT HOW WE'RE GOING TO CONTINUE ADVANCING THE WORK.

UM, BUT I THINK IT'S ALSO, UM, AGAIN, WHAT WE WANTED TO DO AS WE REFLECT ON THE UPDATED LIGHT RAIL IMPLEMENTATION, IS THAT WHY THE ENTIRE VISION IS HAPPENING.

WE'RE GOING TO HAVE DISCUSSIONS ABOUT TRADE OFFS AND PRIORITIES, AND WE'RE GOING TO ROOT THAT IN COMMUNITY, BUT IT'S ALSO GOING TO BE ROOTED IN THE AVAILABLE FUNDING THAT WE HAVE, BUT WE WILL BE MOVING FORWARD ON KEY INVESTMENTS IN LIGHT RAIL, AS WE HAVE, AS WE HAVE COMMITTED TO.

IT REALLY IS A DISCUSSION ABOUT OUR OVERALL TIMING OF THAT.

AND THAT'S THE CONVERSATION WE'RE GOING TO HAVE WITH YOU TODAY.

PART OF THAT IS OUR FOCUS WORK ON, ON COMPLETING THE PROJECT DEVELOPMENT EFFORT THAT WE'RE IN RIGHT NOW.

WE'RE GOING TO COMPLETE THAT EFFORT, KNOWING WHERE WE ARE ON COST, HONESTLY, ADDRESSING THOSE COST ISSUES.

WE'RE GOING TO DO IT WITHIN OUR AVAILABLE FUNDING.

AND WE'RE GOING TO DO ALL THE WORK THAT WE NEED TO DO THE REQUIRED WORK TO GO THROUGH THE FEDERAL TRANSIT ADMINISTRATION PROCESS BECAUSE THEY ARE A PARTNER, THEY'RE AN INVESTOR.

AND I THINK WHAT SETS US UP REALLY WELL FOR THIS EFFORT IS BECAUSE IN NOVEMBER, 2020, OUR VOTERS AND OUR RESIDENTS IMPLEMENTED AN INCREDIBLY UNIQUE FUNDING SOURCE THAT WE CAN BE MOVED FORWARD ON THIS OTHER COMMUNITIES AROUND THE COUNTRY FACING RISING COSTS AND INFRASTRUCTURE, OR HAVING TO PAUSE OR EVEN CANCEL THEIR PROJECTS BECAUSE OF THE FIXED NATURE OF SOME OF THE FUNDING, BUT BECAUSE OF THE AGILE FUNDING SOURCE AND RESILIENT FUNDING STREAM THAT WE HAVE, WE ARE WELL POSITIONED TO GAIN, TO COMPLETE THE IMPLEMENTATION OF PROJECT CONNECT AS WE GO THROUGH DISCUSSIONS ABOUT TRADE-OFFS AND PRIORITIES OVER THESE UPCOMING MONTHS.

SO I'M EXCITED ABOUT THAT.

WE KNOW THERE'S SOME CHALLENGES, BUT THAT'S WHY WE'RE HERE.

ATP WAS CREATED TO SOLELY FOCUS ON THESE ON THE IMPLEMENTATION AND THE WAY WE'VE DONE THAT IS NOT ONLY HIRING A FANTASTIC TEAM OF EXPERTS FROM AROUND THE COUNTRY, BUT ALSO BRINGING IN FOLKS TO HELP US AS WELL ON THAT.

AND AS WE CONTINUE THIS WORK, UM, OUR FOCUS WORK, YOU'RE GOING TO HEAR THAT WORD TODAY, A LOT, THE IDEA OF FOCUS, MAKING SURE THAT WE ARE FOCUSED ON GETTING AND ADVANCING TOWARDS PROJECT DEVELOPMENT SO WE CAN MOVE FORWARD ON IMPLEMENTATION OF LIGHT RAIL, UM, WITHIN THE TIME THAT WE'VE ALREADY SET OUT AND ALSO MAKING SURE THAT THAT WORK AND BRING OF ALL OF OUR PARTNERS ALONG COMMUNITY AND FTA AS WELL.

SO LET ME INTRODUCE QUICKLY, UM, BEFORE WE GO TO THE NEXT SECTION ON OUR LIGHT RAIL ASSESSMENT.

SO SITTING WITH US TODAY AT OUR, AT OUR THEATER HERE, UM, IS, UH, IS A GREAT, A GREAT TEAM OF EXPERTS THAT ARE NOW PART OF OUR TEAM.

AND I WANT TO FIRST SAY WHAT IT DOES IS COMPLIMENT, UH, THE ATP STAFF AND THE CAP METRO STAFF AT THE CITY STAFF THAT ARE ALREADY BEEN WORKING ON ALL OF THESE EFFORTS.

AND WHAT'S NEAT ABOUT OUR, OUR, THE NEW NEWLY CREATED ATP TEAM IS THAT WE HAVE FOLKS FROM ALL OVER.

WE HAVE, UM, I'LL GO THROUGH MY NAME'S JEN AND ALVIN FROM PHOENIX, UM, UH, THE NON FROM NEW YORK,

[00:15:02]

UM, VICKY AND JOHN FROM DALLAS, UH, DAVE FROM LOTS OF GREAT PLACES THAT WE'RE PICKING ALL HIS KNOWLEDGE FROM DC AND HOUSTON AND DAVE, I'M PROBABLY MISSING SOME OTHER PLACES, UM, UH, CALIFORNIA, AND TO COMPLIMENT THAT WITH OUR TEAM IN FRONT OF YOU TODAY.

UM, SO WE HAVE A BUNCH OF FOLKS THAT I WANT TO INTRODUCE.

WE HAVE BRIAN BUCHANAN WITH HDR.

HE IS OUR PMO, OUR, UM, REALLY BEEN WITH THIS TEAM AND EFFORT BEFORE THE, UH, BEFORE THE REFERENDUM, UM, WITH ERNST AND YOUNG TOM AND NICOLE HANEY WHO HAVE REALLY BEEN HELPING THE, OUR SHERPAS AROUND FINANCIAL REALITIES AND HOW WE'RE GOING TO MOVE THROUGH THE FEDERAL PROCESSES, PART OF THEIR TEAMS, CAROLYN FLOWERS.

UM, CAROLYN HAS A FANTASTIC BACKGROUND, UM, NOT ONLY LEADING TRANSIT IN CHARLOTTE, BUT ALSO LEADING TRANSIT FOR THIS COUNTRY AS FORMER FTA ADMINISTRATOR UNDER THE OBAMA ADMINISTRATION AND AN ARJUN GUARD ALSO WITH A, UM, FORMER FTA EXPERIENCE AS A GENERAL COUNSEL FOCUSED ON CIG.

SO WE THINK THIS ASSEMBLED TEAM OF EXPERTS THAT TOGETHER, AND I PROBABLY DON'T HAVE THIS NUMBER, RIGHT THAT TOGETHER HAVE OVER A HUNDRED BILLION DOLLARS OF EXPERIENCE OF DELIVERING CIG AND LIGHT RAIL PROGRAMS FROM EAST TO WEST AND NORTH TO SOUTH AROUND THE COUNTRY ARE GOING TO HERE ARE GOING TO BE WITH US TO HELP US ALONG IN THIS PROCESS.

SO WITH THAT, WE'RE GOING TO STOP, BUT I WOULD LIKE TO PAUSE FOR A MOMENT, CAUSE I KNOW ACCORD MEMBER ELKINS NEEDS TO STEP OUT FOR A MOMENT AND GIVE HIM A CHANCE.

DOES IT WORK? OKAY? SORRY.

I DO HAVE TO STEP OUT.

I JUST WANT TO SAY ONE THING, GREG, BEFORE YOU CONTINUE.

FIRST OF ALL, I HARDLY, UH, APPLIED STAFF, UH, BOTH AT CAP METRO IN ATP AND THE CITY FOR PUTTING ON THIS BRIEFING, UM, BEING INVOLVED IN OTHER TRANSPORTATION PROJECTS AROUND THE COUNTRY.

I SEE OTHER DMTS AND OTHER TRADE AID TRANSIT AGENCIES HAVING THE SAME PHENOMENON WITH ESCALATING COSTS.

SO THERE ARE, THESE TYPES OF MEETINGS ARE NOT JUST HAPPENING IN AUSTIN, THEY'RE HAPPENING AT OTHER PLACES ALL AROUND THE COUNTRY.

SO I THINK IT'S IMPORTANT THAT EVERYBODY UNDERSTAND IT.

I THINK IT'S A NATURAL PHENOMENON OF WHERE WE ARE IN OUR DEVELOPMENT TO HAVE THIS TYPE OF DISCUSSION AND TO HAVE THIS DISCUSSION AT THIS POINT IN TIME.

UH, SO THIS IS NOT SURPRISING TO ME.

I'M GLAD WE'RE DOING IT.

WE HAVE A, UH, SOURCES EQUALS USES ISSUE OF WHICH MANY PEOPLE HAVE RIGHT NOW, OUR SOURCES ARE SOMEWHAT FIXED, BUT THE USES OF WHAT WE'RE TALKING ABOUT, RIGHT? SO I THINK WE NEED TO THINK MAJOR DESIGN ASSUMPTIONS FOR THIS PROGRAM, AS WELL AS TIMING.

UM, EVERYTHING SHOULD BE ON THE TABLE SO THAT WE CAN DELIVER WHAT WE PROMISED THE VOTERS.

UM, AND IN ORDER TO DO THAT, I THINK WE'RE GOING TO NEED TWO THINGS, MAXIMUM INNOVATION AND MAXIMUM COOPERATION FOR EVERYBODY ON THE TABLE, AS WELL AS THE STAKEHOLDERS.

AND I'M CONFIDENT THAT WE'RE GOING TO BE ABLE TO GET THIS PROGRAM WHERE IT NEEDS TO BE.

SO THANK YOU.

THANK YOU, BOARD MEMBER.

UM, AND WE LOOK FORWARD TO HOPEFULLY YOU SNEAKING BACK, UH, FOR THE REST OF THE MEETING.

UM, SO WHAT, BEFORE WE TURN IT OVER TO BRIAN, WHO'S GOING TO KIND OF ACT AS OUR EMCEE FOR THIS.

WE REALLY WANT TO CREATE, EVEN FROM THE SPACE, CREATE A DIALOGUE AND THERE'S GOING TO BE SOME STOPPING POINTS HERE ALONG.

WE'RE NOT GOING TO GO THROUGH THE ENTIRE POWERPOINT.

THERE'S SOME SECTIONS THAT WE REALLY WANT TO PAUSE AND ALLOW THE BOARD TO ENGAGE AND ASK QUESTIONS AND CREATE DIALOGUE, UM, WITH THESE, THESE, YOU KNOW, S UH, SOAK UP THEIR KNOWLEDGE, UM, TODAY AND HELP HELP THAT BY, BY ENGAGING WITH THE CONVERSATION THAT THEY'RE HERE FOR.

UM, SO WE DO HAVE SOME NATURAL STOPPING POINTS TO DO THAT, BUT WITH THAT ALTERNATE OVER TO MR. BUCHANAN, THANK YOU, GREG.

UM, MADAM CHAIR, MEMBERS OF BOARD APPRECIATE THE OPPORTUNITY TO BE IN FRONT OF YOU TODAY AND WORK WITH THE GREAT COLLEAGUES AND STAFF HERE ON DELIVERING THIS PROGRAM.

SO NEXT SLIDE.

SO I THINK BOARD MEMBER ELKINS DID THE ABOUT 20 SLIDES AND ABOUT FOUR BULLET POINTS THERE BECAUSE, UM, TH THAT'S A REALLY GOOD SUMMARY OF WHERE WE'RE GOING TO GO TODAY, BUT, UM, YOU KNOW, EVERY SINGLE DAY, I THINK OVER THE LAST SEVERAL YEARS, WE ARE BEEN DEALING WITH SOME CHANGING COSTS AND SOME CHANGING WORLD EVENTS AND, AND ITEMS LIKE THAT, THAT, UH, WE ALL SEE IN OUR PERSONAL LIVES, BUT THEY ALSO REFLECT INTO OUR INFRASTRUCTURE AND A LOT OF THE WORK THAT WE'RE, UM, TRYING TO CONSTRUCT OUT THERE.

AND, UH, THIS, UH, PHENOMENON IS, IS CONTINUING TO IMPACT, UM, PROJECTS ALL OVER THE WORLD, ALL OVER THE UNITED STATES.

AND AS BOARD MEMBER ELKINS SAID TODAY, UM, YOU KNOW, SOURCES EQUALS USES KIND OF TYPE OF CONVERSATION.

SO HOW DO WE WORK OUR WAY THROUGH THIS, UM, BASED ON WHERE WE ARE TODAY, NEXT SLIDE.

SO, UM, GREG HAD MENTIONED, UH, THE MARCH MEMO ASSOCIATED WITH, WITH OUR PROGRAM COSTS.

UM, YOU KNOW, WE DID SEE, UH, AN INCREASE IN COSTS AT THAT PARTICULAR MOMENT IN TIME, UM, RELATED AROUND DESIGN PROGRESSION AND SCOPE OF ITEMS, JUST WORKING THROUGH THE GENERAL PROCESS OF, UH, TRYING TO FIGURE OUT HOW TO

[00:20:01]

BUILD A LIGHT RAIL SYSTEM IN AUSTIN, TEXAS, AND, AND WORKING OUR WAY THROUGH THOSE DESIGN DESIGN ELEMENTS AND WORK WITH OUR PARTNERS ON THAT, UM, REAL ESTATE.

I THINK YOU ALL, UM, HAVE SEEN THAT WE ARE IMPACTING REAL ESTATE.

SO THEREFORE WE HAVE TO PAY REAL ESTATE COSTS.

AND AS THOSE COSTS GO UP, OUR COSTS GO UP AND THEN INFLATION AND ANYTHING RELATED AROUND SUPPLY CHAIN AND JUST THE UNCERTAINTIES AROUND THAT.

UM, WE ARE NOT SEEING A DOWNWARD TRAJECTORY IN OUR COSTS ASSOCIATED WITH THE PROGRAM.

SO THEREFORE, UM, TODAY'S CONVERSATION AND WHERE WE MOVE FORWARD, UM, FROM THIS IS TO TRY TO ALIGN OUR PROGRAM SCOPE WITH OUR SEQUENCING TO OUR AVAILABLE FUNDING.

AND THAT IS, THAT IS OUR CONVERSATION TODAY.

AND I'M WORKING THROUGH A DIALOGUE WITH YOU ON HOW, HOW WE'RE GOING TO MOVE THROUGH THAT PROCESS.

SO NEXT SLIDE.

OKAY.

SO I'LL JUST REMIND EVERYBODY OF THE GREAT FUNDING SOURCE THIS PROGRAM HAS, UH, RELATED TO PROPERTY REVENUE.

UM, THAT IS A, A FUNDING SOURCE THAT MANY GRANTEES, MANY CITIES ACROSS THE NATION WOULD LOVE TO HAVE.

AND, UH, CONGRATULATIONS ON, ON, ON PASSING THAT, UM, AND IT'S USED FOR A LOT OF THINGS IT'S USED NOT ONLY FOR THE CAPITAL THAT WE'RE, WE'RE TALKING ABOUT TODAY, BUT ALSO O AND M IT'S GOING TO BE USED TO LEVERAGE GRANTS THAT WE WANT TO GET FROM, FROM THE FEDERAL GOVERNMENT.

IT'S GOING TO BE USED FOR VEHICLE REPLACEMENTS.

IT'S, IT'S ONGOING PERPETUAL COSTS.

AND AS WE MOVE THROUGH THE PROGRAM, ALL THAT NEEDS TO BE BALANCED, IT NEEDS TO BE BALANCED IN THE FINANCIAL PLAN.

SO IT WAS ONE THING GOES UP, IT'S GOT TO FIGURE OUT HOW THAT ALL PLAYS INTO THE FINANCIAL SITUATION.

AND JUST TO REMINDER THAT, UH, YOU KNOW, O AND M COSTS, YOU KNOW, THOSE ARE GOING UP TO, YOU KNOW, LABOR AND, AND ALL THAT.

SO I'M NOT SAYING IT'S A PERFECT STORM AND IN A WAY OF THAT, BUT, YOU KNOW, WE, WE, WE GOT SOME, WE GOT SOME THINGS TO WORK THROUGH.

SO NEXT SLIDE.

SO I JUST WANT TO REMIND EVERYBODY THAT, YOU KNOW, WE ARE LOOKING, WE ARE TRYING TO BECOME AN INVESTIBLE PROGRAM AND THE FEDERAL TRANSIT ADMINISTRATION WILL LOOK AT US AND RATE US, AND ALL THE THINGS THAT WE TALK ABOUT CIG PROGRAM CHECKLISTS, THIS AND THAT IS ALL TO PASS THEIR INVESTMENT TEST.

AND THEY WANT TO BE, THEY WANT TO BE AN INVESTOR WITH US, AND THEY'RE GOING TO RUN US THROUGH A LOT OF CHECKLISTS AND LOTS OF THINGS, AND THEY WANT TO MAKE SURE THAT WE'RE INVESTIBLE, AND THOSE ARE THE THINGS THAT WE'RE GOING TO WORK THROUGH, UM, AND TAKE THOSE LOCAL FUNDS AND LEVERAGE THEM WITH FEDERAL FEDERAL FUNDS TO GET THIS PROGRAM DELIVERED.

SO JUST WANT TO REMIND EVERYBODY THAT, UM, THEY ARE A MAJOR PLAYER.

THEY ARE SOMEBODY THAT WE WANT TO MAKE SURE THAT WE ARE WORKING THROUGH THEIR PROGRAM AND THEIR PROCESS AND MAKING THEM HAPPY TO INVEST IN THIS PROGRAM.

SO NEXT SLIDE.

SO WITH THAT, I'M GOING TO THROW IT TO CAROLYN, UM, TO TALK A LITTLE BIT ABOUT SOME OF THE PROJECTS ACROSS THE NATION AND WHAT WE'RE SEEING THERE.

SO BORED.

UM, THERE ARE TWO TAKEAWAYS HERE, AND ONE IS THE AMOUNT THAT FTA HAS INVESTED DURING THIS PERIOD, UM, UH, MAJOR PROJECTS ACROSS THE COUNTRY.

AND, AND AS YOU SEE IN THIS CHART IS RANGED BETWEEN 800 MILLION AND 1 BILLION.

UH, THERE WERE A COUPLE OF OUTLIERS HERE, UM, ONE BEING HONOLULU, AND, AND THIS IS, UM, WHEN, WHERE IT IS A LARGER INVESTMENT AND, AND THAT DETERMINATION WAS PROBABLY MORE POLITICAL, UH, BECAUSE IT WAS THE HOME STATE OF THE PRESIDENT AT THE TIME, PRESIDENT OBAMA AND THEN THE OTHER OUTLIER, UH, THE MEGA MEGA PROJECTS IN NEW YORK.

UM, THERE'S SPECIAL PROJECTS.

THERE ARE COMMITMENTS, UM, UH, THROUGH SEVERAL ADMINISTRATION NOW IN TERMS OF MAKING SURE THAT THE NORTHEAST CORRIDOR IS, UM, IS IN A STATE OF GOOD REPAIR AND THAT, UM, BETWEEN BOSTON AND DC, THERE'S, UH, ADEQUATE, UH, RAIL, UH, INFRASTRUCTURE.

AND THEN OF COURSE, THE SECOND AVENUE SUBWAY IN NEW YORK, WHICH HAS BEEN, I THINK, LONG PROMISED THROUGH, UH, PROBABLY YEARS AND YEARS AND YEARS.

SO THOSE, WE CALL THOSE MEGA MEGA SPECIALS.

AND, UH, AND SO THOSE THAT'S, UH, STOOD OUT.

UM, THE OTHER TAKEAWAY IS THE PERCENTAGE THAT, UH, FTA HAS PROVIDED FOR GRANTS, UH, STATUTORILY.

THEY CAN GO UP TO 60%, BUT YOU WILL SEE HERE ONLY SAN FRANCISCO, UM, RECEIVED A 60% CONTRIBUTION.

AND, YOU KNOW, THESE DECISIONS HAVE BEEN MADE OVER A PERIOD OF TIME.

UH, A LOT OF THEM HAVE BEEN POLICY DRIVEN AND THE OTHER IS BASED ON THE AVAILABILITY OF FRIENDS.

UM, WHEN I WAS AT

[00:25:01]

FTA, THE FEDERAL SHARE RANGED IN THE LOW 40%, BUT, YOU KNOW, IT'S KIND OF A SAUSAGE MAKING PROCESS.

UM, SO THE DECISIONS ARE MADE, UH, ON THESE PERCENTAGES BASED ON FTA CASHFLOW, UH, AND THEY LOOK AT THEIR CON CURRENT CONTRACT OBLIGATIONS, AND THEN THEY SEE WHAT, UH, FUNDS THEY STILL HAVE AVAILABLE.

UM, THE PAYOUT PERIOD, UM, MOST OF THESE, OH, OKAY.

THE PAYOUT PERIOD.

UH, MOST OF THESE, UH, CONTRACTS IS GENERALLY SEVEN TO NINE YEARS.

FTA WANTS TO PAY THEM OFF AND, AND GET THAT, YOU KNOW, FUNDING OUT OF THE WAY.

UM, BUT IT'S BASED ON ANNUAL APPROPRIATIONS AND IT'S OVERLAID, AS I SAID ABOUT, UH, THE CURRENT ADMINISTRATION'S POLICIES, THE LAST ADMINISTRATION WAS REALLY FOCUSED ON, ON A BUS AND HAD LOWER GRANT, UH, PERCENTAGES.

UH, BUT THE CURRENT ADMINISTRATION WOULD, THE HAS PROBABLY MORE AVAILABLE FUNDING IN THE FUTURE.

SO WE HAVE AN OPPORTUNITY HERE, BUT, UM, YOU KNOW, WE NEED TO PURSUE THOSE OPPORTUNITIES, UH, WITH A PROJECT THAT'S READY.

THANK YOU.

WELL, IT'S SO NICE TO MEET ALL OF YOU FINALLY IN PERSON.

SO THANK YOU FOR ALL THE HARD WORK THAT YOU HAVE BEEN DOING, UM, TO GET US TO THIS POINT AND TO COLLABORATE WITH OUR PARTNERS WITH HDR.

SO I KNOW THAT, UM, I WANT TO OPEN IT ALSO FOR THE BOARD.

DO Y'ALL HAVE ANY INITIAL QUESTIONS ON THE FUNDING BOARD MEMBERS STRATTON? NO, THANK YOU.

MADAM CHAIR.

SO DO WE HAVE ANY, I REALIZED THESE ARE SOME OF OUR LARGER, UM, MORE CIG TYPE PROJECTS, CORRECT.

THAT YOU'VE GOT HERE THAT WE'RE LOOKING AT ANY CHANCE THAT I REALIZED, LIKE YOU SAID, IT'S SAUSAGE-MAKING AND A LOT OF THIS IS KIND OF READING THE TEA LEAVES, BUT I ALSO KNOW THAT WE RECENTLY RECEIVED A RATHER LARGE PERCENTAGE WISE GRANT FROM THE FTA AS WE WERE, UH, PUTTING THE, UH, REQUEST IN FOR, FOR THE BRT PROJECT.

ANY CHANCE FROM WHAT YOUR EXPERIENCE IS THAT THAT COULD KIND OF BE A GAUGE AS TO HOW THAT MIGHT PLAY OUT AS WE'RE LOOKING TOWARDS WHAT FEDERAL PERCENTAGES MAY BE FOR THESE LARGER CAPITAL.

WELL, FTA HAS THREE PROGRAMS, UM, AND SMALL STARTS IS WHERE PROBABLY THE BRT FELL IN.

UM, AND SO WITH SMALL STARTS, IT WAS UP TO 300 MILLION FOR THE GRANT AMOUNT AND A HUNDRED MILLION, UH, FOR THE LOCAL SHARE.

I MEAN, THE FEDERAL SHARE UNDER THE IJ, A IT'S NOW BEEN RAISED TO 400 MILLION, UH, FOR THE MAXIMUM GRANT AMOUNT AND 150 MILLION IS THE TOP LEVEL OF THE MAXIMUM CONTRIBUTION FOR THOSE GRANTS.

SO, UM, BUT THAT'S, THAT IS TO SAY UNDER THE , THERE IS A LARGER SHARE OF FUNDING COMING TO TRANSIT IS LIKE THEY'RE SAYING HISTORICAL UNPRECEDENTED.

AND SO I THINK NOW IS THE TIME, UH, TO ACTUALLY LEVERAGE THAT OPPORTUNITY AND ASK FTA FOR A LARGER PERCENTAGE.

UM, I COULD, YOU KNOW, BASED ON AN FDA WILL PROBABLY CONSIDER THAT BASED ON THE INCREASED FUNDING THAT'S COMING INTO THE PROGRAM.

UM, BUT CERTAINLY, UM, I THINK THE ASSUMPTION THAT WAS MADE IN YOUR INITIAL, UM, BUDGET OR PROJECTIONS WAS 45, 40 5%.

YEAH.

I MEAN, ANY INCREASE AT THIS TIME IS GOING TO HELP, HELP THIS.

UM, AS YOU LOOK AT OPPORTUNITIES TO GET MORE FUNDING, I THINK YOU CAN PROBABLY LOOK AT THAT OPPORTUNITY TO, TO, UH, ASK FOR A HIGHER PERCENTAGE SHARE.

THANK YOU.

D DO YOU THINK THAT, UM, I'M JUST LOOKING AT THIS AT THIS GRAPH THAT THIS GRAPHIC HERE, YOU SEE, UM, I'M LOOKING AT SOME OF THE MORE RECENT NUMBERS AROUND THERE, AND WE SEE, UH, AGAIN, TAKING THAT OUTLIER, THE, THE NEW YORK CITY PROJECTS, AND YOU CAN NEW YORK AND JERSEY OUT OF THERE.

I SEE FROM 2021, WE'RE LOOKING AT SEATTLE

[00:30:01]

AND, UM, THEIR LINWOOD PROJECT FOR EXAMPLE, WAS 1.2 BILLION.

AND IT LOOKED LIKE FOR THE TOTAL GRANT AMOUNT AND THAT REPRESENTATIVE FOR THE 36% FEDERAL MATCH, UM, THAT DEFINITELY IS ON THE LOWER END.

THAT IS A MORE RECENT FIGURE, BUT AGAIN, JUST, JUST LOOKING AT A CHART LIKE THIS, THAT DOESN'T TELL US THE WHOLE PICTURE.

SO I KIND OF, THIS CHART IS, YOU KNOW, GOING OVER, UH, NOW THREE ADMINISTRATIONS.

OKAY.

YEAH.

SO YOU HAVE TO LOOK AT THE TIMING THAT THEY PROBABLY ENTERED, UH, INTO THE PROGRAM.

GOTCHA.

AND ALSO, YOU KNOW, UH, SEATTLE, I THINK AT THE TIME WAS PROBABLY THE LARGEST, UM, UH, LOCAL, UH, INITIATIVE OUT THERE.

AND SO AT THE TIME THEY HAD WHAT THEY THOUGHT WERE SUFFICIENT FUNDS, AND NOW THEY'VE ALSO RUN INTO THE SAME ISSUES THAT WE'RE LOOKING AT HERE.

SO, SO BASICALLY FROM WHAT, FROM WHERE Y'ALL ARE STANDING, LOOKING AT THIS AS MORE EXPERTS IN THE TRANSIT INDUSTRY, LOOKING AT THE BIG PICTURE AND SAYING KIND OF THE TRENDS, BOTH WITH PROJECT ESCALATION COSTS ACROSS THE BOARD, BUT THEN ALSO SEEING WHERE THE, THE WEIGHING THAT AGAINST THE FEDERAL UNPRECEDENTED INVESTMENTS ON THE OTHER SIDE OF THINGS.

UM, AND I, I WILL SAY THAT I HAVE SEEN SOME ARTICLES THAT THERE WAS A RECENT ARTICLE AND I, I WANT TO CREDIT, UM, DOTTIE WALK-INS AND GREG AND ALLIE FOR SHARING THIS INFORMATION WITH US NOT TOO LONG AGO, THAT SOME OF THAT FEDERAL MONEY THAT HAS BEEN AVAILABLE IS IN SOME CASES BEEN A WASH FOR SOME OF THESE PROJECTS, BECAUSE, BECAUSE OF THE PROJECT INCREASING COSTS, UM, WHAT WOULD YOU GUYS, AS THE EXPERTS HERE, YOU KNOW, KIND OF SEE, OR BELIEVE THAT OUR FINANCIAL MODEL IS SHOWING YOU BELIEVE THAT, THAT WHAT WE SET WHEN WE WERE LOOKING AT KIND OF, AGAIN, IT'S, IT'S SPITBALLING, IT'S BALLPARKING THIS, DO YOU ALL FEEL LIKE THAT THAT KIND OF 45% IS STILL A REALISTIC GOAL OR REALISTIC OVERALL, UM, APPROXIMATION AS TO WHERE WE'RE PROBABLY GOING TO COME IN AROUND KNOWING THAT OUR COSTS ARE DEFINITELY ESCALATING OR DO WE NOW NEED TO BE A LITTLE BIT MORE REALISTIC AND KIND OF RAMP THAT DOWN BECAUSE 45% OF SEVEN POINT OR OF, UH, YOU KNOW, 7.3 BILLION IS ONE THING, BUT 45% OF, YOU KNOW, 15 BILLION IS A BIGGER DEAL ENTIRELY.

I THINK, YOU KNOW, THERE'S THE PERCENTAGE AND THEN THERE'S THE ACTUAL DOLLAR, RIGHT.

AND THAT'S EXACTLY WHAT THAT'S, WHAT YOU'RE GETTING AT.

SO, UM, I THINK AS WE WORK THROUGH THIS PROGRAM AND THROUGH THIS PROCESS, WE'RE GOING TO HAVE THOSE CONVERSATIONS WITH THE FDA ON WHAT THEY MIGHT WANT TO LOOK AT.

BUT I THINK THAT MY, ONE OF MY TAKEAWAYS, I WISH YOU WOULD TAKE AWAY FROM THIS A LITTLE BIT IS NOT NECESSARILY THE PERCENTAGE, BUT LOOK AT THE DOLLAR AMOUNT AROUND IN WHICH THESE BILLION, BILLION AND A HALF DOLLAR GRANTS AND THINGS LIKE THAT, THAT THERE SEEMS TO BE A LITTLE BIT OF A SWEET SPOT REGARDLESS OF THE PROJECT COSTS AND THE PERCENTAGE JUST PLAYS OUT.

UM, SO THAT MIGHT BE SOMETHING THAT WE WANT TO LOOK AT IN THE FINANCIAL MODEL AS WE MOVE FORWARD IN THE PROGRAM.

UM, SO IT'S NOT JUST THE PERCENTAGE, IT'S THE ACTUAL DOLLAR AMOUNT, UM, RELATED TO THAT.

SO THANK YOU ALL.

I REALLY APPRECIATE IT.

AND THE HARD WORK YOU PUT IN ON THIS, I APPRECIATE IT.

NOT ENOUGH I'M ON THAT OR NOT.

I APPRECIATE THAT WE'RE HAVING THIS CONVERSATION, UH, BECAUSE IT IT'S BEEN APPARENT JUST BY READING THE NEWSPAPER AND SEEING WHAT'S HAPPENING.

THAT IT'S A CONVERSATION THAT NEEDED THAT.

UH, THERE WAS THE MEMO THAT CAME OUT, UH, SIX MONTHS AGO THAT, UH, ALERTED US TO THE FACT THAT, THAT THE COST OF THE PROJECT WAS GOING TO BE HIGHER THAN ANTICIPATED AT THE TIME THAT THAT MEMO CAME OUT ABOUT HALF OF THAT INCREASE WAS, UH, DESIGN ISSUES.

UH, IT WAS THE EXTENT OF THE TUNNEL LENGTHENING FROM THE AMOUNT OF MILES FOR MILES.

AND OBVIOUSLY WE NEED TO DEAL WITH THAT DESIGN ISSUE AND OTHER DESIGN ISSUES.

BUT WHEN YOU TAKE THAT OUT, THE AMOUNT OF ANTICIPATED INCREASED COSTS OR MATERIALS AND SUPPLIES OR LABOR FOR LAND, UH, WAS NOT AS HIGH, UH, OR GRADE IN INCREASE FOR THAT ELEMENT, AS WE HAVE SEEN IN THE NEWSPAPER IN THE MEDIA OVER THE LAST SIX MONTHS.

UH, SO I THINK IT WAS REASONABLE TO ASSUME YOU'D BE HAVING THIS CONVERSATION AS WE TRUED UP TO EVENTS AS THEY WERE, THEY WERE DEVELOPING, AND WE'VE SEEN OTHER CITIES

[00:35:01]

AROUND THE COUNTRY, UH, NOW GRAPPLING WITH THE DECISION.

UH, BUT I WANT TO CONFIRM THAT I UNDERSTOOD WHAT YOU SAID AND TO MAKE SURE THAT THE EXPERTS HERE, UH, UH, CONCUR WITH WHAT I THINK I UNDERSTOOD YOU TO SAY, UH, AND THAT BEGINS WITH, UH, YOU KNOW, THE VOTERS WENT TO THE BALLOT BOX TO APPROVE A PLAN FOR PROJECT CONNECT.

UH, AND GENERALLY THAT PLAN HAD US REACHING, UH, UH, WITH MULTIPLE, UH, PROJECTS, UM, OR SUB-PARTS OF WHAT WAS GENERALLY REFERRED TO AS PROJECT CONNECT, UH, AND THAT INCLUDED, UH, BUS RAPID TRANSIT LINES AND INCLUDED, UH, OTHER TRANSIT PROJECTS.

IT INCLUDED, UH, THE MOST SIGNIFICANT, UH, IN MY, AS PART OF A PROJECT THAT ANY CITY IN THE COUNTRY HAD DONE DIRECTED TOWARD AFFORDABILITY AND, AND PREVENTING DISPLACEMENT ON A PROJECT LIKE THIS.

IT ALSO INCLUDED, UH, TWO, UH, RAIL LINES, UH, THE ORANGE LINE AND THE BLUE LINE, WHICH REACHED FROM NEARLY THE NORTH LIMIT OF THE CITY TO NEARLY THE SOUTHERN LIMIT OF THE CITY.

AND IT WENT FROM DOWNTOWN OUT TO THE, TO THE AIRPORT.

IT ACTUALLY STARTED ON A LOT OF THOSE PROJECTS AND NEVER RECEIVED FUNDING FOR THEM.

AND WE'RE ACTUALLY AHEAD OF THE PACE ON MAYBE OF THOSE PROJECTS, BUT TO CONFIRM WHAT I HEARD YOU SAY, UH, WAS EVEN WITH, UH, THE INCREASE IN COSTS BECAUSE OF THE FUNDING MECHANISM THAT WE HAVE, IT SHOULD STILL BE THIS COMMUNITY'S EXPECTATION THAT WE CAN DELIVER THE PROJECT CONNECT PLAN, UH, UH, GENERALLY AS IT WINS TO THE VOTERS AND WAS APPROVED BY THE VOTERS, BECAUSE I UNDERSTAND THAT CORRECTLY.

YES, MA'AM, THAT'S IT RIGHT? WE'RE THIS IS ATP'S WORK, AND WE'RE COMMITTED TO GETTING THAT DONE.

AND BECAUSE OF THAT REVENUE SOURCE, THAT PROPERTY THAT BRIAN SAID, WE'RE WELL-POSITIONED TO DO THAT EVEN, EVEN IN LIGHT OF THESE WORLDWIDE COSTS, UM, PUSHES ON US AGAIN, AS WE SAID, IT BEGINS ABOUT DIALOGUE, ABOUT TIMING DRIVING FORWARD ON GETTING TO ARE GETTING, SO THAT WOULD BE THEN THE NEXT ELEMENT OF THAT YET WE STILL PLAN ON COMMUNITY CAN STILL PLAN ON DELIVERING THIS PROJECT.

UH, BUT OBVIOUSLY THE COST GOING UP MORE DRAMATICALLY THAN ANYTHING THAT I CAN SEE, UH, SOMETHING'S GOING TO HAVE TO GET.

AND I GUESS THAT IS THE KIND OF DECISIONS THAT WE AS A COMMUNITY COLLECTIVELY ARE GOING TO HAVE TO MAKE.

WHAT ARE THOSE SPECIFIC DESIGN CHOICES THAT WE MAKE IN ACHIEVING THAT, THAT, THAT RESULT, WHAT IS THE EVALUATION HEARING WE DO? WHAT ARE THE PRIORITIES THAT WE SET, BUT MOST IMPORTANTLY, WHAT I'M HEARING THAT HAS THE GREATEST IMPACT.

AND I WANT TO CONFIRM THIS AGAIN, IS, IS THE SEQUENCING, WHAT DO WE BUILD WHEN OVER WHAT PERIOD OF TIMING RECOGNIZING THAT PROJECT CONNECT IS A SERIES OF, OF, OF, OF SMALLER ELEMENTS OR, OR, OR, OR, OR PROJECTS MANY OF WHICH THEY'RE ALREADY STARTED, BUT IT'S THAT SEQUENCING PLAN, UH, THAT WE'RE GOING TO HAVE TO NOW TAKE A LOOK AT AND SEE WHAT CHANGES TO THAT SEQUENCING PLAN WILL BE NECESSARY FOR US TO BE ABLE TO ACHIEVE THE OVERALL PRICE.

DO I UNDERSTAND THAT CORRECTLY, YOU HAVE MEREDITH OFFENDER.

THAT IS EXACTLY IT.

AND THE WORK AHEAD OF US THAT YOU'LL HEAR HERE IS HOW TO GET TO THAT.

WE WANT TO MAKE SURE IT'S A VERY WELL-DESIGNED PROCESS COMMUNITY RICH TO HAVE THOSE THAT HAVE THAT DIALOGUE, BUT ADVANCE A HUNDRED PERCENT.

AND THAT SEEMS REASONABLE TO ME, UH, AND APPROPRIATE TO ME, UH, BECAUSE WHEN THE VOTERS WENT TO THE BALLOT BOX AND VOTED TO APPROVE PROJECT, AND THAT, UH, THEY APPROVED A SEQUENCING PLAN AND THEY APPROVED THE ELEMENTS OF THE PROJECT PERTAINING TO VOTERS TODAY, WHAT I HEAR YOU SAYING IS, HEY, WE'RE STILL GOING TO DO THE PROJECT WITH THE SEQUENCING PLAN MIGHT NEED TO BE AMENDED.

UH, BUT WHEN THE VOTERS WENT TO THE POLLS, THEY, THEY, THE CONTRACT WITH THE VOTERS SPECIFICALLY SAID THAT THE SEQUENCING PLAN COULD CHANGE.

BUT IN ORDER FOR THE SEQUENCING PLAN TO CHANGE, IT WAS GOING TO REQUIRE A VOTE OF THE CITY COUNCIL AND A VOTE OF THE BOARD OF DIRECTORS,

[00:40:01]

OF CAP METRO, BUT BUILT INTO THE CONTRACT WITH THE VOTERS WAS THAT, THAT VEHICLE FOR CHANGING THE SEQUENCING.

SO WHAT I UNDERSTAND IS WE'RE ENTERING INTO A PROCESS THAT COULD RESULT IN GOING BACK TO THOSE TWO BODIES, UH, FOR THOSE TWO BODIES, WITH THE COMMUNITY INPUT AND COMMUNITY PARTICIPATION ON, UH, POTENTIALLY, UH, CHANGING THE SEQUENCING PLAN SO THAT WE CAN STILL PROJECT.

I UNDERSTAND THAT, CORRECT.

I THINK THAT'S HIDDEN THERE.

I THINK THAT THE FOCUS ON THAT IS, AND THERE WILL BE A DELIVERED PROJECT, RIGHT? AND, AND, AND THAT I THINK HAS CONSISTENTLY, WE HAVE, I KNOW, THANK GOODNESS WE PROVED THE FINANCING OF THIS PROJECT, THE WAY THAT WE DID, UH, BECAUSE THAT GAVE US THIS FLEXIBILITY.

WE TALKED ABOUT THAT DURING THE, DURING THE ELECTION THAT WE HAD NOW WITH RESPECT TO THIS CHART THAT WE HAVE, AND THE DOLLARS THAT WE HAVE, AND YOU HAD A SLIDE THAT TALKED ABOUT THE FEDERAL GOVERNMENT WANTING TO INVEST IN AN INVESTIBLE PROJECT.

UM, WE'VE NEVER ENVISIONED GOING INTO THE FEDERAL GOVERNMENT WITH ONE PROJECT CONNECT PROJECT AND SAYING, INVEST IN PROJECT CONNECT.

THAT'S NOT AS A PRACTICAL MATTER HOW THIS WORKS, VERY MULTIPLE GRANTS, MULTIPLE INVESTMENTS BY THE FEDERAL GOVERNMENT IN EACH ONE OF THOSE MULTIPLE INVESTMENTS NEEDS TO BE INDEPENDENTLY STAND ALONE, ALL THE TESTS INDIVIDUALLY.

THAT'S CORRECT.

RIGHT.

AND EACH OF THOSE PROJECTS AND GETS EVALUATED AND I'VE SEEN THE LOS ANGELES PROBABLY IS THE, IS THE MOST COMPARABLE EXAMPLE ON THE, ON THE CHART WHERE THEY WENT TO THE FENCE WITH FOUR PROJECTS, UH, YOU KNOW, LOOKING AT, UH, A BILLION DOLLARS AVERAGING FOR EACH OF THE, OF THE PROJECTS.

SO WHEN WE LOOK AT GOING AFTER FEDERAL FUNDING, DO I UNDERSTAND CORRECTLY THAT IT'S OUR ANTICIPATION AND OUR EXPECTATION THAT AT THIS POINT, THAT WE'RE NOT LOOKING AT A BILLION DOLLARS TOTAL ACROSS ALL THE PROJECTS, BUT OUR HOPE IS, IS THAT WE'RE GOING TO BE ABLE TO HAVE PROJECTS THAT EACH INDIVIDUALLY COMPETE CONSISTENT WITH THE STANDARDS AND THE PERCENTAGES AND THE TOTAL DOLLAR AMOUNTS THAT YOU'RE TALKING ABOUT.

YEAH.

ONE OF THE EXERCISES IS TO MAXIMIZE THE GRANT POTENTIAL, RIGHT.

SO HOW DO THOSE PROJECTS STACK UP? HOW CAN WE GET THEM TO BE INDEPENDENT UTILITIES? WHAT THEY CALL IT, AND CAN WE GO AFTER A GRANT FOR EACH ONE OF THOSE TO MAKE UP THE WHOLE ENTIRE SYSTEM? SO TO ANSWER YOUR QUESTION THERE, YEAH.

OUR INTENT IS TO MAXIMIZE THE GRANT OPPORTUNITIES ON, AND THAT IS PART OF THE NEXT THAT'S CORRECT ELEMENT OF THE PROCESS, CORRECT.

AND FIGURE OUT HOW WE PRESENT THIS TO THE FANS AS A SERIES OF PROJECTS TO MAXIMIZE WHAT THE OVERALL CONTRIBUTION IS ACROSS A SERIES OF PROJECTS, TO BE ABLE TO DELIVER THE PROJECT.

AND IF I MAY JUST ON THAT GRANT PIECE, UM, IT'S THE PROGRAM AS A WHOLE, OBVIOUSLY HAS MULTIPLE GRANTS SENATE.

WE ARE ONE ATP BOARD VOTE TODAY AWAY FROM THE LAST PIECE OF PAPERWORK NECESSARY TO GET TWO DIFFERENT GRANTS FOR THE METRO RAPID PROJECTS.

AND THOSE ARE IN THE FEDERAL NEWS, SMALL STARTS PROGRAM AS TWO SEPARATE GRANTS, THE, UM, EXTRA GRANT AND THE PV GRANT WE CURRENTLY HAVE IN THE FEDERAL PROCESS, THE A AND R IN PROJECT DEVELOPMENT FOR TWO DIFFERENT LIGHT RAIL GRANTS, A BLUE LINE GRANT AND ORANGE LINE GRANT.

SO WE'VE ALREADY ENVISIONED IT THAT WAY.

THE FTA ALREADY UNDERSTANDS THAT THIS IS A, A SERIES OF PROJECTS AND IN THIS PROCESS, AND I KNOW I'M SKIPPING AHEAD, CAUSE PROJECT DEVELOPMENTS, THE NEXT SLIDE, BUT IN THIS PROCESS OF PROJECT DEVELOPMENT, WE'RE DEFINING EXACTLY WHAT THAT LOOKS LIKE.

SO IT'S NOT TO SAY THAT WE'RE GOING TO IN THE FUTURE, ENGAGE THE FEDERAL GOVERNMENT ON THIS.

I JUST WANTED TO MAKE THE POINT THAT THE FTA IS ALREADY A PARTNER AT THE TABLE AND HAS ALREADY ACCEPTED US INTO THE PROCESS BECAUSE THEY SEE THE VALUE IN THE PROJECTS THAT GOT IT.

SO THE NEXT QUESTION THAT I HAVE, PROBABLY THE LAST QUESTION, AND THIS IS PROBABLY A QUESTION YOU CAN'T ANSWER, BUT IS THE QUESTION I HAVE ON, I IMAGINE MOST OF THE PEOPLE OF THE CITY WOULD HAVE RELATIVE TO THIS AS WELL.

THEN HOW LONG WILL IT TAKE, WHAT IS THE TIMING? UH, AND I WOULD THEN GATHER FROM THE ANSWERS THAT YOU'VE GIVEN TO THE OTHER QUESTIONS, THE ANSWER TO THAT IS THAT'S WHAT WE NEED TO LOOK AT.

THAT'S CORRECTLY, NOT ENTIRELY SATISFYING.

I'D LIKE, I'D LIKE YOU TO TELL ME NOW WITH THE CONCLUSION OF YOUR WORK OVER THE NEXT THREE OR FOUR MONTHS, OR HOWEVER LONG IT TAKES TO BE ABLE TO DO THAT WORK.

AND I HOPE THAT AS PART OF THIS CONVERSATION THAT WE HAVE HERE, UH, GREG, YOU GIVE US A FEEL FOR WHEN YOU THINK YOU'RE GOING TO BE ABLE TO COME BACK TO, TO US

[00:45:01]

AND THE COMMUNITY WITH, UH, HELPING US UNDERSTAND, UH, WHAT THE, UH, CHANGES IN SEQUENCING THAT THE COUNCIL AND, UH, CAP METRO BOARD ARE GOING TO HAVE TO CONSIDER, UH, THAT THE COMMUNITY GENERALLY IS GOING TO HAVE TO CONSIDER SO THAT WE LEAVE HERE TODAY WITH KIND OF A FEEL FOR WHAT THOSE STEPS ARE.

UM, UM, BUT I'LL TELL YOU THAT I KNOW THIS COMMUNITY HAS FALLEN IN LOVE WITH THIS PROJECT, UH, ON FOR LOTS OF REASONS.

UM, THIS PROJECT IS THE WAY THAT WE CONTRIBUTE TO OUR RESPONSIBILITIES FOR CLIMATE CHANGE MITIGATION.

THIS IS HOW OUR COMMUNITY, UH, MEET OUR EQUITY AND JUSTICE REQUIREMENTS IN OUR COMMUNITY TO PROVIDE ACCESS, UH, MOBILITY, UH, UH, JUSTICE THROUGHOUT OUR COMMUNITY.

THIS IS THE PROJECT THAT WILL HELP US WITH, UH, URBAN PLANNING IN OUR COMMUNITY TO HELP BUILD, UH, DENSITY ON OUR CORRIDORS AND IN A WALKABLE CITY.

UM, THAT ADDS TO THE QUALITY OF LIFE.

PEOPLE HAVE FALLEN IN LOVE WITH THIS PROJECT, UH, AND I'M ENCOURAGED THAT WE'RE SAYING AS A COMMUNITY, WE'RE STILL GOING TO DELIVER THAT PROJECT.

UM, BUT I AM ALSO REAL SUPPORTIVE OF US MAKING SURE THAT WE ARE PROPER STEWARDS OF THE PUBLIC'S DOLLARS.

AND I DON'T WANT US TO PULL THE STRING AND SAY, GO DO THIS UNTIL WE ARE SURE THAT WE CAN DO THIS, UH, THAT WE'RE NOT HIDING FROM THE REALITY OF THE MOMENT THAT WE'RE INCORPORATING THAT.

AND WE'LL IN FACT, DELIVER A PROJECT TO THE COMMUNITY THAT CAN BE DONE IN THE WAY THAT WE SAY THAT WE'RE GOING TO DO IT.

SO I APPRECIATE THAT.

AND I'LL WAIT FOR THE REST OF THE PACKAGE FOR THOSE ADDITIONAL ANSWERS.

THANK YOU, MAYOR.

UM, I'LL WAIT FOR MY NEXT COMMENTS.

I THINK WE'RE GOING TO TOUCH ON THEM, BUT MY QUESTION BASICALLY IS RELATED.

AND LET ME KNOW IF IT'S GOING TO COME UP LATER, BUT HOW DO WE DEFINE THE DIFFERENT BUCKETS? I MEAN, WE'VE BEEN USING THE CONCEPT OF BUCKETS, UM, IN THE PROGRAM OVERALL, UM, ELEMENTS, DEPENDING ON EACH PART OF TOWN, BUT ONE OF THE THINGS THAT HAS RECENT AS A COMMUNITY, IT'S AN INTEREST OR WHAT WE'RE CALLING A ADDITIONAL SCOPE ADDED TO THE PROJECT IS THAT AS WE TEAR DOWN OUR STREETS TO PUT IN TRANSIT, NOW WE WANT TO HAVE COMPLETE STREETS AND BIKE LANES AND SHADED SIDEWALKS.

WHAT IF THOSE ELEMENTS HAVE IMPACTED THE COST ANALYSIS OF THE PROGRAM, BECAUSE WE WANT TO BE ABLE TO DELIVER SOMETHING THAT IS ROBUST, THAT IS REALLY GOING TO ADDRESS MOBILITY FOR, FOR OUR CITY.

UM, I'M STARTING TO STEAL THE QUOTE FROM MAYOR ADLER WHEN HE SAYS, YOU KNOW, THE CITY OF AUSTIN IS ENTERING, UH, THE GOLDEN AGE OF MOBILITY, BECAUSE I THINK WE'RE STARTING TO ADDRESS ACTIVE MOBILITY, ALL OTHER OPTIONS BEYOND THE CAR AND FOR US TO ENTICE PEOPLE AND INVITE PEOPLE TO TAKE TRANSIT INCLUDES HOW DO THEY START THEIR JOURNEY AND ENTER JOURNEY BY FOOT, BY BIKE, BY OTHER MODES BESIDES THE CAR.

SO IT'S A, IT'S A LONG STAIRWAY TO SAY, I WANT TO UNDERSTAND IF THE FEDERAL GOVERNMENT WILL ALSO BE ABLE TO SUPPORT US IN FUNDING, SOME OF THE OTHER ELEMENTS OF ACTIVE MOBILITY WITHIN THIS TRANSIT CORRIDORS.

AND IF THERE'S A, IF YOU DON'T HAVE THE ANSWER NOW, OR IF WE'RE GOING TO TALK ABOUT IT LATER, BUT I JUST WANT TO HAVE MORE CLARITY OF, DO WE HAVE TO DEFINE THE COST BASED ON TRANSIT CORRIDOR ONLY WITH LIGHT RAIL IN THIS PARTICULAR CASE, OR, YOU KNOW, BETTER MINTS FORCE BETTERMENTS, AND YOU KNOW, SO WE'RE GOING TO TOUCH ON THAT LATER AND IF THAT'S OKAY, LET ME KNOW IF WE JUST, I JUST LIKE TO ADD THAT ALSO UNDER THERE ARE OTHER GRANT PROGRAMS THAT ARE AVAILABLE FOR ACTIVE TRANSPORTATION.

IN FACT, FH TWA AND FTA HAVE BEEN PARTNERING, AND THERE'S ACTUALLY A GRANT NOW, UM, THAT IS OPEN AND I THINK IT'S NOW GOING TO BE AVAILABLE ON AN ANNUAL BASIS.

SO THERE ARE OTHER SOURCES, NOT JUST THE CIG PROGRAM FOR GRANTS THAT YOU CAN USE IN THIS PROGRAM.

SO MORE, MORE GRANTS TO APPLY IN HOW WE GRANT'S FALLING FROM THE SKY.

THANK YOU.

UM, YES, THE SLIDE DECK.

SO I JUST WANT TO RECOGNIZE THAT WE ALSO HAVE ASSISTANT CITY MANAGER, GINA WHO'S

[00:50:01]

ALSO ON OUR BOARD ATTENDING REMOTELY.

SO SHE'S LISTENING IN, SO NEXT SLIDE.

SO I JUST WANT TO MAYBE GROUND EVERYBODY WHERE WE'RE AT IN THE PROGRAM RIGHT NOW, YOU KNOW, WE WE'RE IN WHAT'S CALLED PROJECT DEVELOPMENT.

AND THE CONVERSATIONS THAT WE'RE HAVING TODAY THAT WE'VE HAD OVER THE LAST YEAR IS EXACTLY WHAT THE FEDERAL GOVERNMENT ANTICIPATES TO HAPPEN DURING THIS PART OF THE PART OF THE PROGRAM.

SO THIS IS WHERE YOU DEFINE YOUR PROJECT.

THIS IS WHERE YOU HAVE THESE CONVERSATIONS.

THIS IS WHERE YOU WORK WITH THE COMMUNITY ON WHAT YOU WANT TO DELIVER AND BRING FORWARD.

SO WE ARE DOING WHAT EXACTLY THE FEDERAL PROGRAM THAT WE'RE TRYING TO GET INTO IS, OR THAT WE ARE INTO IS, IS SET UP FOR, AND THIS INCLUDES, YOU KNOW, FROM PRELIMINARY ENGINEERING, THE ENGINEERING WORK WE'VE DONE TO DATE, IT'S BEEN VERY INFORMATIVE OF GETTING US TO WHERE WE ARE AND HAVING THIS DISCUSSION TODAY AND ALL THAT.

THIS IS ALL AN ANTICIPATION OF MOVING THROUGH THIS PROCESS.

SO NEXT SLIDE.

SO THEY HAVE A SERIES OF GUIDELINES THAT WE AS CONSULTANTS AND STAFF, WE ALL FOLLOW.

YOU KNOW, WE'RE NOT THE FIRST ONES THAT HAVE BEEN THROUGH THIS PROGRAM BEFORE, BUT THEY'VE, THEY'VE WRITTEN A COUPLE OF THINGS AROUND, AROUND PROJECT DEVELOPMENT, HOW IMPORTANT IT IS AS A STEP IN THE PROGRAM.

AND, UM, THEY REALLY WANT A GRANTEE TO TAKE THEIR TIME AND WORK THROUGH THIS PART OF THE PROGRAM, BECAUSE THIS IS THE TIME IN THE PROGRAM THAT YOU CAN MAKE THE MOST CHANGES.

THEY WILL BE THE CHEAPEST CHANGES YOU WILL MAKE AS PART OF THE PROGRAM.

AND IT HELPS YOU MOVE THROUGH THE PROCESS MORE QUICKLY AS YOU MOVE INTO THE PROCESS.

SO THE OPPORTUNITY TO DO THOROUGH PROJECT DEVELOPMENT IS CRITICAL AT THIS POINT.

AND THAT'S, I'M OVER HAVING THE DISCUSSION WITH YOU TODAY ABOUT NEXT SLIDE.

SO THE NEXT PHASE AFTER, YOU KNOW, PROJECT DEVELOPMENT IS ENGINEERING.

SO THAT'S THE, THE, THE GOAL THAT WE'RE TRYING TO MOVE INTO, WE'RE TRYING TO PREPARE OURSELVES FOR MOVE INTO, AND THERE'S SOME CHECKLISTS ASSOCIATED WITH WHEN THEY REVIEW THE GRANTEE AND THINGS THAT THEY WANT TO LOOK FOR THAT, YOU KNOW, HAVE THEY THOUGHT ABOUT THIS, THOUGHT ABOUT THAT? ARE THERE TECHNICAL CAPACITY OUT THERE? THEY HAVE THEIR RAGS AND THEIR POLICIES AND PROCEDURES IN PLACE, BUT THEY ALSO LOOK AT CIVIL ITEMS AND STRUCTURAL ITEMS, YOU KNOW, AND YOU CAN SEE SOME ON THERE THAT, UM, WE NEED TO STILL HAVE SOME DISCUSSION ABOUT, SO, YOU KNOW, TUNNELS, TRACK GUIDEWAY, STUFF LIKE THAT, THAT, UH, AS WE MOVE LATER INTO THIS PRESENTATION, WE'RE GONNA HAVE, WE'RE GONNA HAVE SOME CONVERSATION ABOUT THAT.

SO THIS, ONCE AGAIN, I JUST WANT TO REITERATE THAT THIS IS THE TIME TO BE HAVING THESE CONVERSATIONS.

SO NEXT SLIDE.

AND THEN FINALLY, UH, JUST WANT TO REMIND EVERYBODY THAT, UM, THERE IS A TIME WHEN WE WILL LOCK IN THAT CIG AMOUNT.

UM, AND IT IS AN AMOUNT, NOT NECESSARILY A PERCENTAGE, SO IT IS A DOLLAR FIGURE.

SO THE MORE YOU KNOW ABOUT YOUR PROJECT, THE BETTER CERTAINTY YOU HAVE ON YOUR COSTS AND YOUR, AND YOUR PROJECT DEFINITION, THE BETTER YOU ARE IN NEGOTIATING ON THAT.

AND, AND HOPEFULLY, UM, NOT HAVING MAJOR SURPRISES AFTER YOU'VE LOCKED IN THAT AMOUNT, BECAUSE ANY SURPRISES AFTER YOU LOCK IN THAT AMOUNT ARE ON THE LOCAL ENTITY.

SO JUST WANT TO REMIND EVERYBODY AS WE WORK THROUGH THIS, THAT'S WHAT WE WANT TO DO.

YEAH.

SORRY, JUST QUICK QUESTION, JUST TO GET IT BACK WITH LINGO IS ON THIS SLIDE RIGHT HERE.

WHEN YOU'RE JUST TALKING ABOUT YOUR, IS THAT WHAT WE REFER TO AS THE FULL FUNDING GRANT AGREEMENT? IT IS THE BEGINNING OF THE FULL FUNDING.

THAT'S WHEN WE, THAT THAT'S IT GET US BACK AND STEP US BACK TO THE PROJECT TIMELINE THAT WE HAD UP TO NOW BEEN WORKING ON THE VOTE THAT WE ORIGINALLY WERE GOING TO BE TAKING A WEEK.

WE THINK WE MAY OR MAY NOT NOW GIVEN WHAT WE'RE LOOKING AT HERE.

THE LAST QUOTE, UNQUOTE TIMELINE THAT WE LOOKED AT, WE WERE CONSIDERING A DECEMBER VOTE OF THIS YEAR, IS THAT THE EQUIVALENT OF THIS, THAT WE GOT TO 30% OFF THE TRY PARTIES, WE'RE GOING TO HAVE A VOTE THAT WAS GOING TO VOTE, BE THE VOTE WHERE WE WERE LOCKING IT DOWN, GIVING IT TO YOU TO PUT A BOW ON IT AND SEND IT TO THE FTA AND SAY, HEY, WE'RE READY ON OUR END.

WHAT DO YOU GUYS THINK? ALMOST? SO THE, THE VOTE IN DECEMBER WAS TO BASICALLY TIE DOWN ALL THE NEPA PROCESS WE HAVE GONE THROUGH DURING THE SUMMER, GET ALL THE COMMENTS BACK AND SAY, THIS IS OUR PROJECT.

AND THEN START WORKING WITH THE FEDERAL GOVERNMENT ON ENTRY AND ENGINEERING FINALIZING OUR COST ESTIMATES AND THINGS LIKE THAT.

SO THE VOTE YOU WERE TAKING POSSIBLY IN DECEMBER WAS TO BASICALLY SAY, HERE'S THE FIRST IMPLEMENTABLE, AND THIS IS WHAT WE'RE GOING TO MOVE FORWARD.

AND THAT'S WHAT WE'RE HERE TODAY.

WE'RE GOING TO NEED A LITTLE BIT MORE TIME TO TALK.

OKAY, DIDN'T WANT TO GET TOO MUCH AHEAD, BUT I WANTED TO KIND OF LIKE RELATE IT TO WHAT WE'VE ALREADY DISCUSSED AND THE LANGUAGE AND LINGO WE'VE BEEN USING TO THIS POINT, BUT FOR MY PURPOSES AND FOR THE PUBLIC, THAT'S PROBABLY LISTENING OUT THERE.

YEAH, THAT'S CORRECT.

SO NEXT SLIDE.

I'M GOING TO TURN IT OVER TO NICOLE, I GUESS, AS, AS FOLKS HAVE BEEN SAYING, UM, ATP IS REALLY AT THE FAR LEFT PORTION

[00:55:01]

OF THIS CHART.

ATP IS IN PROJECT DEVELOPMENT.

UM, WHILE THE PRO THE PROGRAM IS FACED WITH UNPRECEDENTED CHALLENGES THAT WERE DISCUSSED EARLIER AROUND COSTS AND INFLATION AND THINGS LIKE THAT, THIS REALLY IS THE BEST TIME IN THE DEVELOPMENT PROCESS FOR THE PROJECT TO BE HAVING THESE CONVERSATIONS.

THIS IS THE TIME WHERE, UM, IT'S THE LOWEST COST OF MAKING CHANGES AND REALLY THE HIGHEST POTENTIAL TO ULTIMATELY IMPACT, UH, THE PROGRAM THROUGH SOME STRATEGIC DECISIONS AROUND TRADE-OFFS AND CHOICES AT THIS POINT IN THE DEVELOPMENT PROCESS.

NEXT SLIDE.

OKAY.

AS OTHER AGENCIES AROUND THE COUNTRY HAVE THOUGHT THROUGH SIMILAR SITUATIONS, AS THEY'VE SEEN SIMILAR INCREASES IN COSTS AROUND THEIR PROGRAMS, THESE ARE SOME OF THE LEVERS THAT FOLKS HAVE INCORPORATED INTO THEIR DECISION-MAKING GOING FORWARD, UM, SCOPING AND DESIGN CHANGES.

SO, UM, YOU KNOW, UH, LOOKING AT CERTAIN REDUCTIONS OR CHANGES TO THE SCOPE THAT PERHAPS ARE MORE COST-EFFECTIVE, UH, PHASING AND SEGMENTING IS A TOOL THAT MANY OTHER AGENCIES HAVE USED AND CONTINUE TO USE AS THEY BUILD OUT THOSE PROGRAMS, UH, SERVICE PLAN AND TECHNOLOGY, AS BRIAN SAID, O AND M COSTS ARE ALSO SEEING INCREASES.

AND ARE THERE WAYS TO THINK ABOUT USE OF TECHNOLOGY IN OPERATIONS CHANGES TO THE OPERATING PLAN THAT CAN HELP KEEP ATP LIVING WITHIN ITS MEANS? UH, SOURCES OF FUNDING IS ONE THAT THE BOARD CHAIR ASKED ABOUT ALREADY, BUT FINDING OTHER GRANT PROGRAMS, OTHER REVENUE SOURCES, UH, ON THE SIDE OF THE PROJECT, TRANSIT ORIENTED DEVELOPMENT, ET CETERA, ET CETERA.

AND CAN THAT BE A PART OF THE SOLUTION TO HELP OPTIMIZE THE OVERALL PROGRAM? AND FINALLY, ARE THERE OPPORTUNITIES TO THINK ABOUT RISK MANAGEMENT, ALTERNATIVE DELIVERY, WAYS OF GETTING THE PROGRAM IN PLACE THAT CAN HELP MANAGE THE FINANCIAL ENVELOPE, REDUCE RISK AND ACCELERATE CERTAIN ELEMENTS OF THE PROGRAM OVER TIME.

SO WITH THAT, UM, I'D LIKE TO OPEN IT UP TO, UH, MY COLLEAGUES ON THE PANEL HERE TO TALK A LITTLE BIT ABOUT PLACES WHERE THEY'VE USED SOME OF THESE LEVERS OR OTHER LEVERS TO HELP THINK THROUGH PROGRAMS ELSEWHERE IN THE COUNTRY.

I THINK WE HAVE SOME PICTURES ON THE NEXT PAGE.

SO BRIAN, WOULD YOU LIKE TO SPEAK TO? YEAH, SO I'LL TALK A LITTLE BIT.

I SPENT 10 YEARS OF MY PREVIOUS CAREER IN PHOENIX AND WAS PART OF THAT PROGRAM THAT INITIAL 20 MILES OF LIGHT RAIL THAT THEY BUILT AND THEN WAS THERE FOR THE ENVIRONMENTAL ALL THE WAY TO THE, TO THE RIBBON CUTTING.

AND, UM, YOU KNOW, A LOT OF THE THINGS RELATED AROUND SCOPE AND PHASING OF THE PROGRAM WAS EXACTLY WHAT WE WENT THROUGH IN PHOENIX.

IF YOU LOOK AT THE PHOENIX IMPLEMENTATION PLAN THAT THEY HAVE DONE TO DATE, THEY STARTED WITH 20 MILES AND THEN THEY DID A LITTLE, ANOTHER TWO MILE FEDERAL PROJECT, ANOTHER TWO MILE FEDERAL PROJECT.

AND BEFORE I KNOW IT THROUGH UP TO 28, 29, 29 MILES A DAY.

SO THEY, THEY USE THE SAME EXACT PROCESS THERE THAT KIND OF DESCRIBED.

THEY TOOK A PROGRAM AND THEN BROKE IT UP INTO DIFFERENT PROJECTS THAT BECAME FEDERALLY FUNDED AND MOVE FORWARD.

AND THEN I'LL GIVE YOU AN EXAMPLE OF A SCOPE CHANGE THAT, UM, WE ALL, WE ALL GO THROUGH.

UM, WE HAD, UH, A STATE UNIVERSITY IN PHOENIX, TEMPE AREA CALLED ARIZONA STATE UNIVERSITY, SIMILAR TO UT.

AND, UM, AT THE VERY LAST SECOND IN OUR ENVIRONMENTAL DOCUMENT, WE RAN INTO AN ISSUE RELATED AROUND SOME ELECTROMAGNETIC INTERFERENCE WITH THE MICROSCOPE.

AND, UM, WE ACTUALLY HAD TO CHANGE THE WHOLE ALIGNMENT OF ABOUT A MILE OF THE LIBRARY OFF IN ORDER TO CHANGE IT AT THE LAST SECOND.

SO I'M HERE TO SAY NOTHING SURPRISES ME ANYMORE ABOUT THESE PROGRAMS. SO I JUST THINK THAT, YOU KNOW, I HOPE NOBODY EVER GETS DISCOURAGED ABOUT SOME OF THESE TOUGH CONVERSATIONS WE NEED TO HAVE, BECAUSE EVERYBODY HAS HAD THESE TYPES OF CONVERSATIONS AS WE GO THROUGH THE PROGRAM.

AND TODAY, YOU KNOW, PHOENIX IS RUNNING A GREAT SYSTEM, THEY WORKED THROUGH IT, THEY GOT THROUGH THE PROCESS.

THEY, THEY WORKED THE WAY THROUGH IT WITH FDA, WITH EVERYBODY.

AND EVERYTHING'S YEAH, SURE.

I MEAN, I THINK JUST ECHOING, UM, BOARD MEMBER ELKINS, EARLIER COMMENTS AS TO WHERE YOU ARE AS TO WHERE YOU ARE RIGHT NOW, RELATIVE TO OTHER AGENCIES, YOU THINK ABOUT IT IN SOME RESPECTS, THAT MAKES SENSE.

THE THERE'S UNDERSTANDABLY A HIGH LEVEL OF PLANNING THAT GOES ON, UH, WHEN YOU'RE TAKING A, UH, A TRANSIT TO THE BALLOT.

UM, AND AS WE ALL KNOW, IT TAKES A LONG TIME TO ACTUALLY DEVELOP A PROJECT IN ORDER TO PUT A SHOVEL IN THE GROUND.

AND, AND AS WE'VE EXPERIENCED, AS YOU DEVELOP THOSE PROGRAMS, THE DESIGN, UM, UH, THE DESIGN ADVANCES COSTS INCREASE MORE LOT MORE PRECISION AROUND THE COST OF A PROGRAM, BUT ALSO A LOT OF THINGS HAPPEN OVER THAT TIME.

HERE YOU GET, YOU HAVE POTENTIALLY UNDER-PERFORMANCE OF YOUR TAX REVENUE.

UM, LUCKILY HERE YOU, YOU KNOW, AS OPPOSED TO MOST TRANSIT AGENCIES THAT ARE FUNDED FROM SALES TAXES, THAT SHOULD BE VERY

[01:00:01]

VOLATILE.

YOU HAVE A MUCH MORE STABLE AND, AND STEADILY GROWING TAX REVENUE BASE.

SO YOU ARE INSULATED A BIT FROM THE DOWNSIDES.

WHAT YOU LACK IS THE POTENTIAL UPSIDES AS WELL THAT MAYBE SOME, UH, SALES TAX FUND TO TRANSIT AGENCIES HAVE, UM, YOU KNOW, AND THEN YOU HAVE JUST GENERAL COST INFLATION.

SO IN THE MID TWO THOUSANDS DENVER, AND THERE'S FAST TRACKS PROGRAM THAT WAS PASSED IN THE EARLY TWO THOUSANDS, FOUND THEMSELVES IN A POSITION WHERE SALES TAXES WERE UNDERPERFORMING, UM, COSTS WERE HIGHER