[00:00:01]
THAT'S ALL YOU NEED, RIGHT? THAT'S RIGHT.
[I. Call to Order]
WELL, GOOD, GOOD.IT WILL BE AFTERNOON IN A MOMENT, BUT, UH, JUST WANT TO, UH, TO WELCOME YOU ALL FOR JO, UH, FOR JOINING US AT THE JULY 22ND MEETING, MEETING OF THE CAP METRO BOARD OF DIRECTORS.
UH, WE ARE HERE AT THE CAP METRO BOARDROOM.
I'M WAITING FOR 12, BUT, UH, 1159.
AND, UM, AND I GUESS WHAT WE'LL DO IS WE'LL CALL THE ORDER AND THEN WE WILL ASK FOR OUR
[II. Safety Briefing]
SAFETY BRIEFING.SO, ITEM NUMBER TWO IS A SAFETY BRIEFING.
UH, UH, MR. TABONE, WOULD YOU, UH, PLEASE, UH, LEAD US SAFELY TO THE PROMISED LAND? GOOD AFTERNOON EVERYONE.
I SERVE AS CAPITAL METRO'S EXECUTIVE VICE PRESIDENT SYSTEM-WIDE ACCESSIBILITY AND CHIEF SAFETY OFFICER.
YOU ARE LOCATED HERE AT 29 10 EAST FIFTH STREET IN OUR ROSA PARKS, UH, BOARDROOM.
IN THE UNLIKELY EVENT OF AN EMERGENCY, OUR STAFF AND OR SECURITY OFFICERS OUTSIDE, UH, AT OUR MAIN ENTRANCE, WE'LL CALL 9 1 1.
ALSO, THERE ARE, THERE'S AN EXTERNAL, AN A ED, LOCATED RIGHT BY, UH, THE ELEVATOR, SHOULD ONE BE NEEDED.
ALSO, UH, IN THE UNLIKELY EVENT OF THE EVACUATION, PLEASE USE EITHER OF THE EXITS DEPENDING ON WHERE THE EMERGENCY IS.
AND IF YOU HAVE MOBILITY ISSUES AND ARE, ARE ASKED TO LEAVE FROM THIS EXIT TO MY RIGHT, UH, PLEASE WAIT RIGHT AT THE TOP OF THE STAIRS AND YOU WILL BE ASSISTED DOWN THE STAIRS.
UM, ALSO, UH, THAT CONCLUDES OUR BRIEFING AT THIS TIME.
UH, BEFORE WE MOVE TO OUR PUBLIC COMMENTS TODAY, I UNDERSTAND THAT OUR PRESIDENT AND CEO WOULD LIKE TO TAKE A MOMENT, MAKE A QUICK ANNOUNCEMENT.
I JUST WANTED TO TAKE A QUICK MOMENT TO EXPRESS MY APPRECIATION FOR THE ENTIRE BOARD AS ALWAYS, BUT ESPECIALLY FOR THE FREE BOARD MEMBERS WHO HAVE DECIDED TO STICK WITH US IN THEIR PUBLIC SERVICE AS BOARD MEMBERS.
UM, BOARD MEMBERS, HARRIS AND ROSS WERE RECENTLY REAPPOINTED TO THE BOARD, AS WAS CHAIR JEFF ILIAN.
UM, THANK YOU ALL TO MANY, OUR MANY PARTNERS WHO HELPED US MAKE THAT HAPPEN.
FROM THE SMALL MEMBER CITIES, CAMPO AND TRAVIS COUNTY, UM, FOR CONTINUING TO SUPPORT YOUR TERMS AS BOARD MEMBERS.
AND THANK YOU FOR, UM, PUTTING UP WITH US AND A AND AGREEING TO PUT UP WITH US FOR A LITTLE BIT LONGER.
WE ARE EXCITED TO CONTINUE WORKING WITH ALL THREE OF YOU, UM, AND AGAIN, UM, THE ENTIRE BOARD AS WE LOOK FORWARD TO MAKING GREAT THINGS HAPPEN FOR OUR REGION.
WE WILL NOW MOVE INTO OUR PUBLIC
[III. Public Comment]
COMMENTS.I UNDERSTAND THAT WE HAVE SEVERAL SPEAKERS WHO HAVE SIGNED UP IN ADVANCE.
SO WHEN, WHEN I CALL YOUR NAME, IF YOU PLEASE COME FORWARD TO THE PODIUM.
UM, AND IF YOU'RE JOINING US REMOTELY, IF YOU'LL UNMUTE YOURSELF, UH, THEN, UH, EACH SPEAKER WILL HAVE THREE MINUTES, UNLESS THEY'RE SPEAKING ON TWO AGENDA ITEMS OR REPRESENTING A GROUP WITH, UH, MORE THAN ONE PERSON IN THE ROOM, IN WHICH CASE THEY'LL HAVE FIVE MINUTES.
SO OUR FIRST SPEAKER IS THOMAS WOODWARD.
MR. WOODWARD, YOU IN THREE MINUTES.
UM, I HAVE OVER A DECADE EXPERIENCE IN, UH, PLASTIC ENGINEERING IN THE AUTOMOTIVE AND THE DETROIT AUTOMOTIVE INDUSTRY, AND OVER 40 YEARS IN AUDIO PRODUCTION.
I APPEAR HERE BEFORE YOU TODAY BECAUSE A LOUD AUDIO THAT'S BEEN GOING ON ON OUR BUSES, UH, WHICH HAS EXTENDED OVER A MONTH SINCE JUNE 20TH.
I HAVE 50 COMPLAINTS ON THIS ISSUE, AND THERE'S BEEN, UH, CONFLICTING INFORMATION, UH, BEING GIVEN BACK TO ME.
I HAVE UP TO OVER OVER 85 COMPLAINTS OVER THE LAST YEAR WITH CAP METRO.
THE LACK OF QUALIFIED AUDIO MEASURING EQUIPMENT AND SUFFICIENT TRAINED PERSONNEL, I THINK IS THE REASON WHY WE HAVE THIS, UH, THE CAUSE ALLOWED AUDIO FOR THE REASONS THAT A DA DOES NOT APPLY AS DIGITAL MARQUEES ON EVERY BUS FOR THE HEARING IMPAIRED.
AND INDIVIDUALS WITH AUTISM THAT ARE, AND INDIVIDUALS THAT ARE BLIND AND CHILDREN ARE SENSITIVE TO AUDIO.
SO THIS IS INCONSIDERATE TO THOSE INDIVIDUALS.
WHAT IS THE COMPETING SOUND SOURCE ON CAT METRO BUSES? THE POOR CONDITION OF THE CITY OF AUSTIN ROADS, THESE BUS FIXTURES ARE, ARE JUST RATTLING.
SO, I MEAN, I, I'VE GOT TONS OF VIDEOS OF, OF ALL TYPES OF THINGS, UH, MATTER OF FACT, UH, SOME OF THE CONFLICTING INFORMATION IS THAT DRIVERS DO HAVE AND DON'T HAVE CONTROL OF THIS AUDIO.
[00:05:01]
AND I HAD A GENTLEMAN, UH, ORB STAR IS THE NAME OF THE CONTROL PANEL, AND A GENTLEMAN WAS KIND ENOUGH TO SHOW ME HE WENT INTO THE ORB STAR.UH, HE MADE THE ADJUSTMENT, IT WAS OVERRIDDEN AND WENT RIGHT BACK UP.
UM, AUDIO FATIGUE, THAT IS WHAT YOU, CAUSE.
UH, THERE'S AN IRRITATION FACTOR THAT, SO SOMEBODY GETS UP IN THE MORNING AND THEY GO TO WORK, UH, WHERE THEY NORMALLY HAVE A GOOD DAY.
UH, THEY COULD HAVE A BAD DAY BY AUDIO FATIGUE ON THE BUS IRRITATION AND NOT EVEN KNOW WHERE IT COMES FROM.
UH, DRIVERS TOLERATE THIS LOT AUDIO, AUDIO BECAUSE OF THE, UH, COVID ERA, ERA COCKPIT DOOR SHIELDS.
SO THE AUDIOS, THEY'RE, THEY'RE SHIELDED FROM ALL OF THAT.
UM, I DO HAVE A DEPARTMENT OF HOMELAND SECURITY CASE ON THIS CR 0 1 3 5 2 8.
AND I WOULD LIKE TO CLOSE WITH THIS, UH, COMMENT AN A SIMULATION PSYCHOLOGY TACTIC INTO THE UNIVERSAL REEDUCATION INDOCTRINATION AND REMOVING THE IDEA OF, OF EXCEPTIONALISM.
IT REMOVES THE MERIT BASE RECOGNITION IN AN ATTEMPT TO SUPPRESS THE HUMAN SPIRIT.
THAT IS WHAT DIVERSITY, EQUALITY, AND INCLUSION IS.
AND WHERE ELSE IS EVERYBODY EXACTLY THE SAME.
I'LL TAKE ANY QUESTIONS IF ANYBODY HAS IT.
BOARD MEMBERS, ANY QUESTIONS? OKAY.
THANK YOU FOR TAKING THE TIME TO, UH, PRESENT TO THE BOARD.
DO WE, UH, DO WE HAVE ANYONE ELSE WHO WOULD LIKE TO, UH, ADDRESS THE BOARD BUT HAS NOT HAD AN OPPORTUNITY TO SIGN UP YET? ANYONE ELSE LIKE TO ADDRESS THE BOARD? ANYONE ELSE? HEARING NONE.
[IV. Advisory Committee Updates:]
MOVE ON THEN TO, UM, TO OUR BOARD ADVISORY COMMITTEE UPDATES.UM, ARE YOU HERE TO SUPPORT US IN THOSE TODAY? I SURE AM.
GOOD AFTERNOON, CHAIR ILIAN, VICE CHAIR POOL PRESIDENT, AND CEO WATKINS AND MEMBERS OF THE BOARD.
I'M A SENIOR COMMUNITY ENGAGEMENT COORDINATOR AND STAFF LIAISON FOR THE ADVISORY COMMITTEES FOR CAP METRO.
AND I'M HERE TO PROVIDE JULY'S COMMITTEE UPDATES FOR JULY ACCESS, CSAC AND PSAC.
WERE ACTUALLY ON RECESS AND OUR COMMITTEE MEETINGS WILL RESUME IN AUGUST.
WE DID HOLD ANOTHER ROUND OF OUR PROGRAM STRATEGIES AND POLICIES SUBCOMMITTEE MEETING, WHICH ARE NOW REGULARLY SCHEDULED FOR THE THIRD THURSDAYS OF EACH MONTH.
AND THIS TOOK PLACE ON JULY 18TH.
DURING THE RECESS, WE HAVE BEEN WORKING ON LAUNCHING A RECRUITMENT CAMPAIGN FOR ANY VACANCIES REMAINING ON THE COMMITTEES.
WE WILL BE WORKING WITH MR. EASTON TO REACH OUT TO ANY BOARD MEMBERS WITH VACANCIES AND PROVIDE ANY STAFF AND BOARD RECOMMENDATIONS ONCE WE HAVE A POOL OF CANDIDATES.
THAT CONCLUDES OUR REPORT FOR TODAY.
WE LOOK FORWARD TO RESUMING ALL COMMITTEE MEETINGS STARTING IN AUGUST.
AND I AM HERE IF YOU HAVE ANY QUESTIONS.
ANY QUESTIONS? ANY QUESTIONS? ANY QUESTIONS? HEARING NONE.
THAT MIGHT HAVE BEEN THE MOST EFFICIENT REPORT EVER.
SO, SO, SO THANK YOU VERY MUCH.
[V. Board Committee Updates]
UP ARE OUR REGULAR BOARD COMMITTEE UPDATES, AND IT LOOKS LIKE OPERATIONS DID NOT MEET, FINANCE, DID NOT MEET, UH, CAMPO, DID NOT MEET IN JUNE.MIGHT, WE MIGHT BE VERY EFFICIENT TODAY.
UH, WE, UH, WE DID HAVE A MEETING OF THE AUSTIN TRANSIT PARTNERSHIP, AND I'LL GIVE THE UPDATE ON THAT ONE.
UH, THE UH, PARTNERSHIP BOARD MET ON JULY 17TH.
UH, IT STARTED WITH AN EXECUTIVE SESSION, UH, AND, UM, THE BOARD MEETING INCLUDED AN UPDATE ON FEDERAL PROCESS AND PROJECT CONNECT AND THE STATUS OF THE PROJECT AS A WHOLE.
THE ACTION ITEMS INCLUDED APPOINTING A MEMBER OF THE PROJECT, UH, CONNECT CAC, AN ACTION ITEM TO RESTRUCTURE THE A TP BOARD, UH, AND IT'S, UH, OR THE BOARD'S TECHNICAL ADVISORY COMMITTEES.
UH, WE AMENDED THE A TP ETHICS POLICY AND WE AMENDED THE A TP, UM, PROCUREMENT POLICY AND PROCEDURES.
UH, WE WENT FURTHER, HAD TO DISCUSSION ITEMS AND UPDATE ON THE A TP AUDIT PLAN PRESENTATION FROM THE, UH, CHIEF FINANCIAL OFFICER WHO, UH, WHO PROPOSED THE FISCAL 2025 BUDGET.
UH, THE A TP BOARD, UH, MEETS NEXT FOR A BUDGET WORK SESSION ON AUGUST 7TH, AND OUR NEXT REGULAR MEETING IS AUGUST 21ST, 2025.
ANY QUESTIONS, COLLEAGUES? ANY QUESTIONS? HEARING NONE, UH, WE WILL MOVE
[VI.1. Approval of minutes from the June 24, 2024 board meeting.]
NOW TO ACTION ITEMS. UH, WE ARE POSTED FOR NINE ITEMS TODAY.FIRST OF WHICH WILL BE THE APPROVAL OF THE MINUTES FROM OUR, UH, JUNE 24TH MEETING.
UM, CHAIR WILL ENTERTAIN A MOTION TO, UH, TO ACCEPT THE, UH, MINUTES FROM JUNE 24TH, 2024.
[00:10:01]
BOARD MEMBER HARRIS, WITH THE MOTION, DID I SEE YOU BOARD MEMBERIT'S, IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE THE MINUTES FROM THE JUNE 24TH, 2024 BOARD MEETING.
ARE THERE ANY QUESTIONS, ANY FURTHER DISCUSSION QUESTIONS OR FURTHER DISCUSSION QUESTIONS OR FURTHER DISCUSSION? HEARING NONE, UH, PLEASE LET IT BE KNOWN BY SAYING AYE, IF YOU SUPPORT THE APPROVAL OF THE MINUTES.
AND I, I SEE, UH, MS. ROSS IN THE BACK.
IF YOU, UH, IF YOU, UH, DO NOT APPROVE OF THE MINUTES, HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.
[VI.2. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with MTM, Inc. for contracted Demand Response Pickup and CapMetro Access Services for a base period of five (5) years, plus one (1) three (3) year option, and two (2) one (1) year options totaling ten (10) years potential contract length, for a total cost including 5% contingency in an amount not to exceed $731,510,509. Memo: Internal Audit Department Review of Demand Response Contract RFP and Vendor Selection Process (July 1, 2024)]
TWO, UH, LET ME READ IT INTO THE RECORD.APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH MTM INC.
FOR CONTRACTED DEMAND RESPONSE, PICKUP AND CAP METRO ACCESS SERVICES FOR A BASE PERIOD OF FIVE YEARS PLUS ONE THREE YEAR OPTION, AND TWO ONE YEAR OPTIONS TOTALING UP TO 10 YEARS POTENTIALLY FOR CONTRACT LENGTH, FOR TOTAL COST, INCLUDING 5% CONTINGENCY IN AN AMOUNT NOT TO EXCEED $731,510,509.
UM, LET'S SEE, ANDY, ART AND MOHAMMED ARE, ARE MAKING THE PRESENTATION THIS MORNING.
UH, GOOD MORNING BOARD MEMBERS, UH, CEO WATKINS, UH, CHAIR IAN.
I'M THE EXECUTIVE VICE PRESIDENT, CHIEF OPERATING OFFICER HERE AT CAP METRO.
WE'RE GONNA DO A JOINT PRESENTATION TODAY.
I'M MOSTLY HERE FOR ANSWER QUESTIONS.
UH, MOHAMED AND ART WILL KIND OF DRIVE, SO WE'LL LET THEM DO THAT.
GOOD AFTERNOON, CHAIR IAN, VICE CHAIR POOL BOARD MEMBERS PRESIDENT, CEO MS. WATKINS.
I'M MOHAMED ABDULLAH, UM, VP OF PROCUREMENT AND CHIEF CONTRACTING OFFICER.
WE'RE HERE TO REQUEST BOARD FOR AN APPROVAL OF DEMAND RESPONSE, PICKUP AND CAPITAL METRO METRO ACCESS SERVICES.
WE HAVE A BRIEF PRESENTATION FOR THE BOARD.
UH, WE'LL BE COVERING, UH, ROLES OF CAP METRO AND OUR SERVICE PROVIDER AND, UH, WHAT PROCESS WE FOLLOWED HERE, WHO PROPOSED WHAT WERE THE FACTORS AND ULTIMATELY THE RECOMMENDATION TO THE FIRM.
SO FIRST ONE IS ROLE OF CAP METRO AND OUR SERVICE PROVIDER, OR YES.
AS WE GET STARTED, UH, I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK THE BOARD, UH, THE CEO, UH, DOTIE WATKINS, UH, ANDY SKALSKI FOR THEIR WORK IN GIVING US CLEAR DIRECTION AS TO WHAT YOU WANTED TO SEE OUT OF THE SERVICES FOR ACCESS AND PICKUP.
AND I'D LIKE TO THANK MY, MY CO-PRESENTER, MOHAMED, AND, UH, HIS TEAM FOR THE WORK THAT THEY DID ON THIS PROJECT.
UH, IT'S, UH, A MODEL VERY SIMILAR TO WHAT WE DID ON THE, UH, FIXED ROUTE SERVICE CAP METRO WILL BE PROVIDING.
THE KEY COMPONENTS WILL BE PROVIDING THE FACILITIES, THE, UH, VEHICLES, UH, THE FUEL ASSOCIATED WITH THE CONTRACT.
IT WILL BE A COLLABORATIVE, COLLABORATIVE EFFORT.
UH, OUR SERVICE PROVIDER WILL BE RESPONSIBLE FOR, UH, PROVIDING THE DRIVERS, UH, THE MECHANICS, THE MAINTENANCE OF OUR VEHICLES, SUPERVISORS, A MANAGEMENT TEAM WORKING WITH THE, UH, UNION, UH, ON NEGOTIATING A COLLECTIVE BARGAINING AGREEMENT.
SO AGAIN, IT WILL BE A COLLABORATIVE EFFORT.
ONE OF THE DIFFERENCES WILL BE THAT THE, UH, SERVICE PROVIDER WILL PLAY A MORE OF A LEAD ROLE AS FAR AS THE RECRUITING AND HIRING OF THE, UH, THE DRIVERS.
BUT AGAIN, THIS WILL, UH, WE BELIEVE THAT THIS MODEL WILL YIELD THE BEST, UH, RESULTS FOR OUR CUSTOMERS AND FOR THE TAXPAYERS.
SO, JUST A BRIEF PROCUREMENT PROCESS.
THIS RFP, UH, IT'S PRETTY MASSIVE.
WE STARTED OUR EXPRESSION OF INTEREST RESEARCH ABOUT A YEAR AGO.
THEN IN FEBRUARY OF THIS YEAR, WE, UH, RELEASED OUR RFP AND WE WENT THROUGH A LONGER PROCESS OF ABOUT SIX MONTHS.
AND WE ARE HERE IN JULY REQUESTING BOARD FOR APPROVAL TODAY.
IN BETWEEN, WE HAD SEVERAL MEETINGS, AND I'D LIKE TO MENTION THE BOARD HERE THAT WE HAD ALSO REQUESTED.
TERRY FULMER WANTED TO THANK YOU FOR HIS TIME TO JOIN, TO JOIN THE PROCESS AND, AND HAVE SIT IN THE ROOM WITH US AND HAD ACCESS TO ALL THE
[00:15:01]
DOCUMENTS.AND HE WAS, UH, ABLE TO ASK ANY PROPOSALS, ANY QUESTION HE WANTED, AND, UH, AS ASSUME YOU ALL HAD SEEN THE MEMO HE HAD SUBMITTED AS WELL TOO.
SO WE RECEIVED THREE PROPOSALS.
OLAS, AS YOU MAY KNOW, THEY ARE OUR SERVICE PROVIDER FOR FIXED ROUTE SERVICES.
UM, AND MTM, WHO IS OUR CURRENT PROVIDER FOR THE DEMAND RESPONSE SERVICES.
AND MV, WHO USED TO HAVE THE SERVICES ABOUT 10 YEARS OR SO AGO, UM, ALSO WANT TO LET BOARD KNOW THAT PRIOR TO TODAY'S MEETING, UH, ALL THREE WERE INFORMED ABOUT THE OUTCOME, ESPECIALLY KEYLESS AND MV.
THEY WERE VERY GRACIOUS IN GETTING THE NEWS.
THEY WERE DISAPPOINTED THEY DIDN'T GET, UH, THIS RECOMMENDATION, BUT THEY WERE VERY GRACIOUS IN, IN TAKING THE NEWS.
SO I WANTED TO THANK ALL THREE OF THEM BECAUSE SOMETHING LIKE THIS TAKES A LOT OF MONEY AND TIME TO PUT TOGETHER.
SO THANKS GIL, MTM AND VY, AND M-T-M-C-E-O, MS. ELENA, SHE'S HERE IN THE AUDIENCE WITH US TODAY, ALONG WITH HER OTHER TEAM MEMBERS, IN CASE THESE WERE THE FIVE EVALUATION FACTORS.
THEY WERE IN OUR RFP AND ALL PROPOSERS WERE VIEWED BY THESE FACTORS.
AND ULTIMATELY, MTM GOT AN EXCELLENT RATING.
WE ALSO, IN OUR TEAM OF 20 PLUS FOLKS FROM CAP METRO, WE HAD AN EXTERNAL CONSULTANT, NANCY EDMONDSON.
SHE WAS A CROSSED IN PRICE ANALYST.
THIS WAS THE BEST VALUE PROCUREMENT.
AND AS THE TECHNICAL TEAM WAS EVALUATING THE PROPOSALS, PRICING TEAM WAS SEPARATELY VIEWING THE PRICING.
AND THE EVALUATION TEAM WOULD NOT SEE THE PRICE TILL THEY WERE DONE WITH THE TECHNICAL EVALUATION.
AND NANCY, UH, REALLY DID A GOOD JOB.
AND SHE WAS ALSO THE CONSULTANT IN THE FIXED ROUTE AS WELL, TOO, IS THE RECOMMENDATION OF THE FIRM.
WITH, WITH THAT SAID, STAFF IS RECOMMENDING THAT MTM BE AWARDED THE, UH, THE CONTRACT TO OPERATE OUR ACCESS AND PICK UP SERVICES.
AS MOHAMED SAID, IT IS A, IT WAS A BEST VALUE, UH, SOLICITATION.
IT SO HAPPENS THAT, UH, MTM DID HAVE THE, UH, BEST PRICING, BUT WE BELIEVE THAT THEY, UH, HAVE THE EXPERTISE AND, UH, WHEREWITHAL TO CONTINUE TO DELIVER GREAT SERVICES TO OUR RIDERS.
UH, THEY HAVE BEEN ENDORSED BY THE, UH, UNION, UH, THE UNION PRESIDENT ALONG WITH THE, UH, THE OTHER, UH, MEMBERS OF THE, UH, THE LEADERSHIP TEAM WITH THE, THE UNION.
UM, THEY ARE, AGAIN, CURRENTLY PROVIDING EXCELLENT SERVICE FOR US.
UH, THEY UNDERSTAND, UH, OUR GOALS AND OUR MISSION AND, UH, ARE QUAL WELL QUALIFIED TO DELIVER THOSE SERVICES.
UH, THEY HAVE BEEN WITH US, UH, SINCE 2014, AND, UH, AGAIN, WE ARE EXCITED TO MAKE THIS RECOMMENDATION TO THE, UH, TO THE BOARD MALA, THEY, THEY OBVIOUSLY HAVE A PEOPLE FIRST APPROACH AND THEY'VE DEMONSTRATED A COMMITMENT TO THE COMMUNITY.
UM, AND AGAIN, THEY NOT ONLY OPERATE SERVICES HERE IN AUSTIN, BUT, UH, ACROSS THE NATION AND ARE DOING, UH, AN EXCELLENT JOB.
NOW WE'LL KIND SHARE WITH YOU SOME OF THE, THE PRICING INFORMATION.
SO THIS IS THE INITIAL AND THE FINAL PRICING.
AND, AND HERE, MOHAMMED, IF I MAY, I'D LIKE TO COMMEND THE, UH, STAFF AND THE CONTRACTOR.
YOU CAN SEE THEIR INITIAL PRICING AND YOU CAN SEE THEIR BEST AND FINAL, UH, THE BEST AND FINAL DEMONSTRATES, NOT ONLY, UH, THE, THE COLLABORATIVE APPROACH BETWEEN STAFF AND THE CONTRACTOR, THE SERVICE PROVIDER, IN LOOKING AT WAYS TO, UH, REDUCE THOSE COSTS.
AND SO, AGAIN, WE BELIEVE THAT, UH, REDUCING THE, UH, FINAL COST BY ALMOST $40 MILLION WAS, IS SIGNIFICANT.
IT'S OPERATES, UH, TWO FACILITIES SEVEN DAYS A WEEK.
UM, SO IT'S A, A SUBSTANTIAL CONTRACT.
AND AGAIN, WE'RE PLEASED TO MAKE THIS RECOMMENDATION TO THE BOARD.
I WILL HAPPY TO TAKE ANY QUESTIONS THE BOARD MAY HAVE, UM, BOARD MEMBERS.
ANY QUESTIONS, ANY QUESTIONS ABOUT THE CONTRACT? I'LL ASK A THIRD TIME.
ANY QUESTIONS? UM, LET, LET ME, UM, LET ME JUST ASK ONE THING AND THAT IS, UM, UH, I, I KNOW THAT WE'VE GONE THROUGH A PROCESS OF SELECTION AND, AND, UH, AND THAT'S IMPORTANT.
I'M WONDERING, UH, HOW WE ARE PREPARING, UH, TO EDUCATE THE PUBLIC ABOUT, UM, ABOUT A, A NEW VENDOR AND, AND, UM, ABOUT THE PRODUCTS THEMSELVES.
[00:20:01]
ASK ME, HOW DO I USE PICKUP? OR HOW DO I USE METRO ACCESS? HOW DO WE, UM, YOU KNOW, DO WE INVITE PEOPLE IN? UH, DO WE HAVE VIRTUAL, UH, CALLS THAT PEOPLE CAN PARTICIPATE WITH? HOW DO WE EDUCATE THE COMMUNITY ABOUT THE TOOLS WE HAVE? THANK, THANK YOU CHAIR ONE.ONE OF THE, UH, THE OPPORTUNITIES THAT WE HAVE, AGAIN, WE WENT THROUGH A VERY ROBUST, UH, PROCUREMENT PROCESS HERE.
IT HAPPENS THAT MTM WAS IS CURRENTLY THE INCUMBENT.
SO WE WON'T HAVE A, UH, A TRANSITION HERE.
THEY WILL REMAIN, UH, THE CONTRACTOR, CONTINUE TO DELIVER, UH, GREAT SERVICES TO OUR RIDERS.
SO OUR RIDERS WON'T SEE ANY TYPE OF, UH, DIFFERENCE.
BUT WE WILL CONTINUE TO GO OUT TO THE, UH, PUBLIC, SARAH SANFORD AND HER TEAM WILL GO OUT TO THE, UH, PUBLIC, HAVE OUTREACH MEETINGS AND TALK ABOUT HOW TO USE THE SERVICES AS WE INTRODUCE NEW PICKUP ZONES.
WE'LL GO OUT WITH THE, UH, WITH THE PUBLIC ENGAGEMENT TEAM AND WE'LL TALK ABOUT HOW THOSE SERVICES WILL BE AVAILABLE.
IF, IF THE BOARD KNOWS OF GROUPS OR ORGANIZATIONS THAT YOU WOULD LIKE FOR US TO VISIT, WE'LL BE HAPPY TO GO OUT AND VISIT WITH THOSE GROUPS.
BUT THIS WILL BE A VERY SEAMLESS TRANSITION.
AND MTM HAS IN THE PAST JOINED US.
AND THOSE, WHEN WE GO OUT TO THE COMMUNITY, THEY'RE VERY, UM, FORWARD.
THEY'RE VERY, UH, THEY'RE GOOD PARTNERS WHEN IT COMES TO THAT.
SO, AND, AND WE EXPECT THEM TO CONTINUE THAT.
ANY OTHER QUESTIONS? BOARD MEMBERS? OH YES.
CAN I HAVE YOU MAKE A MOTION? OKAY.
UH, CHAIR WILL ENTERTAIN A MOTION TO ACCEPT, UH, TO APPROVE AND FOR THIS CONTRACT AS IS LISTED IN THIS AGENDA.
BOARD MEMBER POOL MAKES A MOTION.
AND, ALRIGHT, IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.
ALL IN SUPPORT OF APPROVING ACTION ITEM TWO, PLEASE LET IT BE KNOWN BY SAYING AYE.
AND OPPOSED SAME, UH, THE SAME SIGN.
HEARING NONE, THE BOARD CHAIR WILL MAKE IT UNANIMOUS.
AND STRATTON WAS SECOND, RIGHT? YES.
I, I HAVE IT IN MY NOTES AND I'LL SHARE IT WITH IT WITH ED.
OR, OR ACTUALLY THEY PROBABLY TELL ME MORE THAN I SHARE MY NOTES.
[VI.3. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Cubic Transportation Systems, Inc. to replace CapMetro’s existing fare systems with the Umo Mobility Platform with a one (1) year base period and four (4) one-year option periods, with 10% contingency, in an amount not to exceed $6,360,761.]
NUMBER THREE.LET ME READ IT INTO THE RECORD.
APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH CUBIC TRANSPORTATION SYSTEMS INC.
TO REPLACE CAP METRO'S EXISTING FAIR SYSTEMS WITH THE UMO MOBILITY, UH, PLATFORM WITH A ONE YEAR BASE PERIOD AND FOUR ONE YEAR OPTION PERIODS WITH 10% FOR 10 CONTINGENCY, UH, IN AN AMOUNT NOT TO EXCEED $6,360,761.
AND I THINK MR. TANZER IS GONNA WALK US THROUGH HERE.
UH, GOOD AFTERNOON, CHAIR PAVILION PRESIDENT, CEO WATKINS, MEMBERS OF THE BOARD.
I'M THE, UH, DIRECTOR OF PRODUCT MANAGEMENT WITH CAP METRO INFORMATION TECHNOLOGY DEPARTMENT.
AND THIS ITEM IS TO, UH, PROVIDE A FAIR SYSTEM REPLACEMENT OF, UH, WHAT POWERS OUR CAP METRO APP AND THE AMP PROGRAM TODAY WITH A SOLUTION PROVIDED BY, UM, THROUGH CUBIC TRANSPORTATION, WHICH, UM, POWERS A LOT OF MAJOR TRANSIT AGENCIES SUCH AS THE BAY AREA, LA METRO, LA MATA, NEW YORK, UH, WITH THEIR SOLUTION
AND WHAT THIS WILL GIVE US IS, UM, A THE SAME WAY FOR CUSTOMERS TO PAY FOR THEIR FARES, UH, THROUGH DIFFERENT OPTIONS, WHETHER IT'S THEIR PHONE, UM, WILL INCLUDE THE ABILITY TO PAY WITH THEIR CONTACTLESS BANK CARD, CREDIT CARD, AND, UM, ALSO, UH, GIVE OPTIONS FOR, TO SUPPORT OUR NUMEROUS, UM, SPECIAL, UH, FAIR PROGRAMS LIKE EQU FAIR AND, AND, UM, THE IN-HOUSE, UH, PROGRAM.
UH, SO THIS IS, UM, MEANT TO BE A, UM, REPLACEMENT SYSTEM.
AND REASON WE, UH, CHOSE THIS IMO MOBILITY PLATFORM IS THEIR ABILITY TO, UM, BOTH EXECUTE WITH, UH, AGENCIES IN A, A PRETTY QUICK TIMEFRAME.
UH, WE'RE, UM, LOOKING TO GET HIT THE GROUND RUNNING AND HAVE THIS, UH, READY KIND OF IN THE WINTER, LATE WINTER OF 2025, UH, SEASON.
SO, UM, YOU KNOW, WITHIN THE LESS THAN NINE ONE TIMEFRAME HAVE THIS, UH, STOOD UP.
ANY QUESTIONS, BOARD MEMBERS, ANY QUESTIONS, BOARD MEMBERS, ANY QUESTIONS? I'LL LOOK IN THE BACK AS WELL.
ANY QUESTIONS? BOARD MEMBER? OKAY.
UH, HEARING NONE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION.
[00:25:01]
ITEM NUMBER THREE, UH, BOARD MEMBER VE UH, BOARD MEMBER ELLIS, THE CITY HAS JOINED THE RANKS.UM, OKAY, IT'S BEEN, UM, MOVED AND PROPERLY SECONDED AND WE APPROVE ACTION ITEM NUMBER THREE.
IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.
ALL IN FAVOR? LET IT BE KNOWN BY SAYING AYE.
THE CHAIR WILL MAKE IT UNANIMOUS.
ALRIGHT, MR. RA TANZA, I THINK WE ARE GONNA, WE'VE, UH, GOT YOU UP HERE FOR A COUPLE MORE.
[VI.4. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Message Point Media LLC for Dynamic Message Signs (DMS) Retrofit and additional signs for a base period of one (1) year and four (4) one-year option periods in an amount not to exceed $4,139,452.]
I ACTION ITEM NUMBER FOUR INTO THE RECORD.APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH, UH, MESSAGE POINT MEDIA LLC FOR DYNAMIC MESSAGE SIGNS, UH, RETROFIT AND ADDITIONAL SIGNS FOR A BASE PERIOD OF ONE YEAR AND FOUR ONE YEAR OPTION PERIODS IN AN AMOUNT NOT TO EXCEED $4,139,452.
SO THIS ITEM IS FOR OUR, UH, EPAPER SIGN DYNAMIC MESSAGE SIGNS THAT CUSTOMERS SEE AT ALL OF OUR METRO RAIL STATIONS, OUR METRO RAPIDS, UH, STOPS, AND, UH, A HIGH FREQUENCY STATIONS.
SO WE HAVE A LITTLE OVER 200 SIGNS THROUGH OUR SERVICE AND THEN THEY'LL EXPAND AS WE, UM, ADD THE ADDITIONAL RAIL STATION AND THE METRO RAPID STATIONS THAT ARE COMING ALONG.
AND SO, UM, WHAT THIS IS, IS WE, UM, HAVE A VENDOR WHO, UM, WILL BE UPDATING THE, UM, HARDWARE WITH ALL, ALL THE SIGNS TO, UH, WANT A WAY FOR THEM TO CONTROL WHAT'S DISPLAYED ON 'EM TO, UM, FOR A BETTER SYSTEM, UM, THAT INCLUDES A BETTER BACKEND AND THEN A BETTER WAY FOR US TO DISPLAY A REALTIME INFORMATION TO CUSTOMERS.
AND SO WE'RE GOING WITH A MESSAGE POINT MEDIA TO, UM, BOTH INSTALL THIS NEW HARDWARE, PROVIDE THE, UM, WAY OF MANAGING, UM, WHAT'S DISPLAYED ON THE, UH, SIGNS FOR NEXT DEPARTURE.
AND THEN, UM, THIS CONTRACT ALSO INCLUDES THE ABILITY TO PURCHASE ADDITIONAL SIGNS.
SO AS WE EXPAND OVER THE NEXT FIVE YEARS, UH, WE HAD SOME ESTIMATE A NUMBER OF SIGNS, UM, TO ADD OVER THOSE NEXT FIVE YEARS FROM THIS COMPANY.
ANY QUESTIONS? ALRIGHT, BOARD MEMBERS, ANY QUESTIONS? ANY QUESTIONS? LOOKING ALL THE WAY IN THE BACK? ANY QUESTIONS? OKAY, HEARING NONE, UH, CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER FOUR.
BOARD MEMBER STRATTON, IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.
ALL IN FAVOR? LET IT BE KNOWN BY SAYING AYE.
WELL LET ME MAKE SURE THAT, THAT, UH, BOARD MEMBER ROSS WAS SAYING, AYE.
ALRIGHT, JUST, JUST MAKING SURE.
I, UH, THE BOARD, UH, CHAIR WILL MAKE THAT UNANIMOUS THEN.
AND ACTION ITEM FOUR HAS BEEN APPROVED.
[VI.5. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with CDW Government LLC. for demand response operator tablets and mounting hardware for a period of three (3) months in a total amount not to exceed $234,313.]
ME READ ACTION ITEM FIVE INTO THE RECORD.APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH CDW GOVERNMENT, LLC, UH, FOR DEMAND RESPONSE OPERATOR, UH, TABLETS AND MOUNTING HARDWARE FOR A PERIOD OF THREE MONTHS IN A TOTAL AMOUNT NOT TO EXCEED $234,313.
OKAY, UM, SO FOR THIS ITEM IT'S TO SUPPORT THE EARLIER, UM, ACTION ITEM NUMBER TWO FOR THE MTM SERVICE PROVIDER CONTRACT FOR DEMAND RESPONSE.
UH, AS PART OF THAT MODEL THAT THEY, UM, THAT ART WENT THROUGH, UH, WE ARE, UM, AS CHEMISTRY IT AND ON OPERATIONS, WE ARE PROVIDING, UM, TABLETS TO THE VEHICLES THAT WAS PREVIOUSLY PROVIDED BY MTM.
UH, BUT THIS WOULD BE PROVIDED BY US AND, AND MANAGED BY, UM, CAP METRO FOR THE OPERATIONS FOR DEMAND RESPONSE, UH, BOTH FOR, UM, THE CAP METRO ACCESS AND PICKUP SERVICE.
AND SO THIS IS JUST A CONTRACT TO PURCHASE THE TABLETS, UH, FOR ALL THOSE VEHICLES AND ALSO THE HARDWARE TO MOUNT THEM WITHIN THE, THE VEHICLE.
UM, BOARD MEMBERS, ANY QUESTIONS? ANY QUESTIONS? MAKE SURE I'M LOOKING IN THE BACK.
ANY QUESTIONS? BOARD MEMBER ROSS.
ALRIGHT, UH, HEARING NONE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER FIVE.
AND BOARD MEMBER STRATTON IS THE SECOND.
UH, I, I, FIRST TIME I HEARD ABOUT USING TABLETS AND TRANSPORTATION, IT WAS THE FLINTSTONES
[00:30:01]
SO COME, COME A LONG WAY FROM THAT.
UH, IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.
UM, PLEASE LET IT BE KNOWN BY SAYING AYE IF YOU ARE IN SUPPORT.
UM, AND, UM, LET'S SEE IF YOU ARE NOT IN SUPPORT OF, PLEASE LET IT BE KNOWN BY SAYING, AYE.
NOW HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.
ALL RIGHT, WE'VE, WE'VE, UM, LET'S SEE.
[VI.6. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Cap-A-Bus Inc. to purchase services for bus accident repair and painting for a period of one (1) year from Notice to Proceed with four (4) one-year option periods for a total amount not to exceed $6,528,500.]
ITEM NUMBER SIX, WHICH I WILL READ INTO THE RECORD, AND I THINK ANDREW MURPHY'S GONNA MAKE THE PRESENTATION FOR US, BUT IT READS APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH, UH, CAP, UH, CAPA BUS INC.TO PURCHASE SERVICES FOR BUS ACCIDENT REPAIR AND PAINTING FOR A PERIOD OF ONE YEAR.
UH, FROM NOTICE TO PROCEED WITH FOUR ONE YEAR OPTION PERIODS IN A TOTAL AMOUNT NOT TO EXCEED $6,528,500.
MR. MURPHY, GOOD AFTERNOON, CHAIR PAVILION BOARD MEMBERS, PRESIDENT WATKINS.
GOOD AFTERNOON, CHAIR PAVILION BOARD MEMBERS, PRESIDENT WATKINS.
I'M THE SENIOR DIRECTOR OF VEHICLE MAINTENANCE FOR BUS PARA TRANSIT SERVICES.
UH, THIS, UH, THE SPORT ITEM TODAY IS, UH, IN THE COURSE OF OPERATING BUSES.
UH, WE DO HAVE ACCIDENTS WHICH REQUIRE ACCIDENT, REPAIR, PAINTING AND FABRICATION SERVICES.
UH, AT TIMES THAT EXCEEDS OUR CAPACITY TO DO THAT WITHIN OUR OWN IN-BODY WORKSHOP.
THIS WILL ALLOW US TO SEND THESE BUSES OFFSITE TO CAPITAL BUS TO GET THE REPAIRS, RETURNING THEM TO SERVICE QUICKLY OR QUICKER AT LEAST.
UM, AND, UH, KEEP THE FLEET IN A STATE OF GOOD REPAIR, UH, FUNDING IS AVAILABLE IN THE, UH, 2024 OPERATING BUDGET, AND THIS ALIGNS WITH OUR STRATEGIC OBJECTIVE OF MAINTAINING OUR FLEET IN A STATE OF GOOD REPAIR.
I WILL BE HAPPY TO ANSWER ANY QUESTIONS.
BOARD MEMBERS, BOARD MEMBER OF A, JUST, UH, WHAT IS THE CURRENT DIVISION BETWEEN HOW MUCH WE DO IN-HOUSE AND, AND HOW MUCH WE, I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD.
UM, OUR, OUR, WE, WE'VE BEEN, I'LL SAY THIS, IN THE LAST SIX MONTHS, WE'VE HIRED SEVEN ADDITIONAL BODY TECHS.
WE'RE STILL SHORT ONE, UH, BUT EVEN ONE THAT THERE'S STILL TIMES YOU WANT TO SEND STUFF OUT OF HOUSE BECAUSE, YOU KNOW, ACCIDENTS DON'T HAPPEN AT A REGULAR RATE.
THEY, THEY TEND TO COME IN RASHES.
I COULD CERTAINLY FIND OUT WHAT THAT BREAKDOWN WOULD BE.
UM, I WOULD STILL SAY MOST WORK, IF THAT'S A QUANTIFIABLE TERM, IS DONE IN HOUSE.
AND THEN THE, THE CONTRACT IS KIND OF A, PROVIDES FLEXIBILITY AND AGAIN, JUST KIND OF TIME SAVINGS IN TERMS OF CORRECT.
YEAH, IT'S APPROXIMATELY BETWEEN 1.1 AND $1.5 MILLION PER YEAR, BUT THAT'S ONLY IF WE NEED IT.
SO CERTAINLY AS WE STAFF UP OR, YOU KNOW, UH, BRING OUR ACCIDENT COUNT DOWN, RIGHT.
THEN UH, WE, WE WON'T, WE WON'T SEND IT OUT AS MUCH.
GOT, WELL, THANK YOU VERY MUCH.
I WOULD APPRECIATE, UH, THAT, UH, INFORMATION, UH, LATER DOWN THE ROAD.
BOARD MEMBERS, ANY ADDITIONAL QUESTIONS? ANY ADDITIONAL QUESTIONS? OKAY, HEARING NONE, UH, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER SIX.
IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? FURTHER DISCUSSION? HEARING NONE.
UM, ALL IN FAVOR, PLEASE LET IT BE KNOWN BY SAYING AYE.
HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.
[VI.7. Approval of a resolution authorizing the President & CEO, or her designee, is authorized to finalize and execute a contract with JobSite Diesel Repair, LLC to purchase services for Bus Maintenance over a period of one (1) year from Notice to Proceed with four (4) one-year option periods in a total amount not to exceed $13,036,950.]
ME READ ITEM NUMBER, ACTION ITEM NUMBER SEVEN INTO THE RECORD, AND I THINK MR. MURPHY WILL BE STAYING WITH US APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH JOB SITE DIESEL REPAIR, LLC TO PURCHASE SERVICES FOR BUS MAINTENANCE OVER A PERIOD OF ONE YEAR, UM, ONE YEAR FROM NOTICE TO PROCEED WITH FOUR ONE YEAR OPTIONAL PERIODS, UH, IN A TOTAL AMOUNT NOT TO EXCEED 13 MILLION, UH, $36,950.MR. MURPHY, UH, THANK YOU AGAIN.
UH, ACTUALLY SIMILAR TO THE LAST ITEM, UH, BUSES REQUIRE ROUTINE AND AD AD HOC MAINTENANCE, UH, CAMPAIGNS, UH, AS WELL.
UM, UH, THE, THIS CONTRACT WILL ALLOW US TO SEND SOME OF THOSE BUSES AT TIMES WHEN, WHEN WE GET BUSIER, UH, TO A THIRD PARTY AND HAVE
[00:35:01]
THEM REPAIR IT.UH, AGAIN, RETURNING THE VEHICLE BACK TO REVENUE SERVICE QUICKER.
UH, IMPROVING BUS AVAILABILITY.
UH, FUNDING IS AVAILABLE IN THE 2024 OPERATING BUDGET AND DOES ALIGN WITH THE SAME STRATEGIC GOAL OF MAINTAINING OUR FLEET IN A STATE OF GOOD REPAIR.
UH, BOARD MEMBERS, UH, BOARD MEMBER, MAYOR, AND SAME QUESTION.
AND, AND, AND I ASK, UH, AGAIN IN JUST FOR, FOR CLARITY, THE QUESTION WOULD BE WHAT PROPORTION OF THE, THE, UH, MECHANICAL REPAIRS WE DO IN-HOUSE VERSUS WHAT WE CONTRACT OUT? AND I ASK, THIS IS A COMMON SITUATION.
WE SEE THIS IN THE CITY A LOT WHERE, YOU KNOW, WE DO OUR OWN IN-HOUSE WORK, BUT THEN THAT LAST, IT, IT, IT'S BETTER TO HAVE THE FLEXIBILITY.
AND I'M JUST TRYING TO AGAIN, UNDERSTAND FOR KIND OF MY OWN PURPOSES AND, AND OBVIOUSLY MY, MY DUTIES AS THE, THE COUNCIL MEMBER AND, AND, AND BOARD MEMBER, WHAT THE KIND OF THAT BEST DIVISION IS.
YOU KNOW, WHERE'S THAT BEST KIND OF RATIO.
UH, AND AGAIN, CERTAINLY IF YOU DON'T HAVE THE INFORMATION, IT WOULD BE GREAT TO GET IT.
ANY ADDITIONAL QUESTIONS? BOARD MEMBERS, ANY ADDITIONAL QUESTIONS? OKAY.
LOOKING IN THE BACK, HEARING, HEARING NO ADDITIONAL QUESTIONS, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER SEVEN.
BOARD MEMBER, UH, VELA IS, IS, UH, THE SECOND ON THIS ONE.
IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.
UM, IF YOU ARE IN FAVOR OF THE APPROVAL OF ACTION ITEM NUMBER SEVEN, PLEASE LET IT BE KNOWN BY SAYING AYE.
THE CHAIR WILL MAKE IT UNANIMOUS.
[VI.8. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Silsbee Ford Inc. to purchase twenty (20) CapMetro security and transit police teams in a total amount not to exceed $1,306,667.]
EIGHT.LET ME READ IT INTO THE RECORD.
LOOKS, LOOKS LIKE YOU, UH, YOU DREW THE INSIDE STRAIGHT
UM, ACTION ITEM EIGHT, APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH SILSBY FORD INC.
TO PURCHASE 20 CAP METRO SECURITY AND TRANSIT POLICE VEHICLES IN A TOTAL AMOUNT, NOT TO EXCEED $1,306,667.
THIS BOARD ITEM, UH, WILL ALLOW US TO BUY THESE 20, UH, PATROL VEHICLES.
UH, CAPITAL METRO NEEDS TO PURCHASE, UH, THESE VEHICLES TO SUPPORT THE AGENCY'S COMPREHENSIVE APPROACH TO PUBLIC SAFETY.
UH, CAPITAL METRO CURRENTLY RELIES ON OFF-DUTY, UH, OFFICERS THAT SERVE AS CAP METRO SECURITY.
THE TEAM USES, UH, A FLEET OF VEHICLES THAT WE HAVE RIGHT NOW.
THEY'RE, UH, SECURITY PATROL VEHICLES THAT LOOK LIKE, UH, BLACK AND WHITE CARS.
SIX OF THOSE HAVE REACHED THE END OF THEIR NORMAL LIFE AND NEED TO BE REPLACED.
UM, AND THEN IN 2025, CAPITOL METRO WILL HAVE ITS OWN TRANSIT POLICE DEPARTMENT, UH, IN OPERATION AND SWORN PERSONNEL.
THERE WILL REQUIRE, UH, POLICE INTERCEPTOR PATROL VEHICLES.
UH, THIS AGENDA ITEM FOR 20 TOTAL VEHICLES WILL REPLACE THOSE SIX THAT ARE AT END OF LIFE AND ADD AN ADDITIONAL 14 VEHICLES TO OUR FLEET.
UH, THE, TO SUPPORT THE FUTURE CAPITAL METRO, UH, TRANSIT, POLICE DEPARTMENT OPERATIONS.
UM, AND, UH, JUST AS A NOTE, DUE TO THE LONG LEAD TIMES WE'RE SEEING IN VEHICLES, WE'RE ACTUALLY, UH, UH, ORDERING BOTH THE 2025 AND 2026 VEHICLES NOW SO THAT THE VEHICLES IN 26 CAN GET HERE AT THE BEGINNING OF 26, NOT THE END OF 26, WHICH IS WHEN WE NEED 'EM.
SO WE'RE KIND OF DOUBLING UP THIS YEAR, BUT GOING FORWARD THAT THAT WOULDN'T BE THE CASE.
SO, ALRIGHT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS ABOUT THOSE.
ANY QUESTIONS? ANY QUESTIONS? BOARD MEMBER, BOARD MEMBER STRATTON.
JUST TO CLARIFY THEN, IS THIS, UM, ARE THESE FUNDS, WERE THESE FUNDS GONNA BE, UH, UH, ALLOCATED TO BUDGET WISE THEN IF WE'RE DOING IT UP FOR, FOR BOTH BUD? BOTH, UH, BUDGET YEARS, SINCE WE'RE PURCHASING UP IN ADVANCE, THEY UM, HMM.
THEY'RE GONNA BE PART OF THE, THE TRANSIT POLICE DEPARTMENT BUDGET.
UM, I'LL, I'LL BAIL YOU OUT ON THIS ANSWER.
UM, BECAUSE WE'RE PURCHASING FOR FUTURE FISCAL YEARS, THESE FUNDS ARE ACTUALLY ACCOUNTED FOR IN THE BOARD OF ADOPTED FIVE YEAR CAPITAL IMPROVEMENT PLAN UNDER THE CURRENT 24 BUDGET AND WILL BE REPROGRAMMED IN, UM, IN THE UPCOMING FIVE YEAR CAPITAL PLAN.
SO YEAH, IN THE CAPITAL IMPROVEMENT, THAT'S WHAT I WAS GETTING AT.
ANY ADDITIONAL QUESTIONS? ANY ADDITIONAL QUESTIONS? UH, HEARING NONE, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION.
BOARD MEMBER BENGAL MAKES THE MOTION.
UM, BOARD MEMBER ELLIS MAKES THE SECOND.
IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
ANY FURTHER DISCUSSION? FURTHER DISCUSSION, FURTHER DISCUSSION.
UH, ALL IN FAVOR OF, OF ACTION.
[00:40:01]
NUMBER EIGHT, BEING APPROVED.LET IT BE KNOWN BY SAYING AYE.
THE CHAIR WILL MAKE IT UNANIMOUS.
[VI.9. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a commercial lease and termination lease agreements with Omega Media Properties, LP, a Texas limited partnership for 32,000 rentable square feet of office building spaces at 817 W. Howard Lane, Austin, Travis County, TX 78728 for a base period of three (3) years, with three (3), 1-year renewal options, for a total amount not to exceed $4,360,157.]
ITEM NUMBER NINE.UM, APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR DESIGNEE TO FINALIZE AND EXECUTE A COMMERCIAL LEASE AND TERMIN AND TERMIN AND TERMINATION LEASE AGREEMENTS WITH OMEGA MEDIA PROPERTIES.
LP, A TEXAS LIMITED PARTNERSHIP FOR 32,000 RENTABLE SQUARE FEET OF OFFICE BUILDING SPACE AT 8 1 7 WEST HOWARD LANE, AUSTIN, TEXAS, TRAVIS COUNTY, TEXAS 7 8 7 2 8 FOR A BASE PERIOD OF THREE YEARS WITH THREE ONE YEAR RENEWAL OPTIONS IN AN AMOUNT NOT TO EXCEED $4,360,157.
MR. CARRA, GOOD AFTERNOON, CHAIR.
I'M KEN CARRA, VICE PRESIDENT OF CONSTRUCTION AND FACILITIES, AND AS THE BOARD JUST VOTED TO APPROVE THE NEW, UH, DEMAND RESPONSE CONTRACT, UH, WITH MTM, AS MR. JACKSON MENTIONED, MTM IS ALSO THE CURRENT INCUMBENT.
THEY HOLD THE CURRENT CONTRACT FOR DEMAND RESPONSE SERVICES.
THAT CONTRACT LASTS UNTIL THE END OF THIS CALENDAR YEAR AND THE, UH, NEW CONTRACT WILL TAKE EFFECT IN JANUARY OF 2025.
HOWEVER, UNDER THE EXISTING CONTRACT, MTM IS RESPONSIBLE FOR PROVIDING THIS NORTH OPERATION, UH, OPERATING FACILITY, UH, LOCATED AT EIGHT 17 WEST HOWARD LANE.
HOWEVER, UNDER THE NEW CONTRACT CAP METRO WILL NOW BE RESPONSIBLE FOR PROVIDING THE OPERATING FACILITY TO, UH, SUPPORT, UH, THE DEMAND RES RESPONSE OPERATIONS.
SO WE, UH, WERE ABLE TO WORK WITH THE CURRENT, THE, UH, CURRENT, UM, UH, CONTRACT HOLDER, MTM AND THE LANDOWNER, THE FACILITY OWNER TO SECURE THE, UH, LEASE GOING FORWARD FOR THE SAME FACILITY TO OPERATE FOR THAT BASE PERIOD OF THREE YEARS WITH THREE, UH, ONE YEAR OPTIONS.
THE REASON FOR THE THREE YEAR, UH, BASE PERIOD IS THAT COINCIDES WITH THE TIME WHEN WE EXPECT TO COMPLETE OUR NEW DAN, UH, DEMAND RESPONSE IN NORTH BASE SO THAT, UH, FACILITY IS SUPPOSED, UH, EXPECTED TO BE COMPLETED BY THE END OF 2027.
AND TO COINCIDE WITH THE TERMINATION OF THIS BASE PERIOD, WE WOULD THEN MOVE IN TO THAT NEW FACILITY AND HOPEFULLY NOT HAVE TO EXERCISE ANY OF THE OPTION YEARS.
HOWEVER, WE WANTED THAT JUST AS A SAFEGUARD IN CASE THERE ARE ANY DELAYS WITH THAT CURRENT PROJECT.
THE, UH, FUNDS FOR THIS, UM, ARE INCLUDED.
IT WILL BE INCLUDED IN EACH YEAR'S OPERATING BUDGET.
UH, BUT WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE REGARDING THIS PROPOSED LEASE AGREEMENT BOARD MEMBERS.
ANY QUESTIONS? ANY QUESTIONS? LOOKING IN THE BACK? ANY QUESTIONS? BOARD MEMBER ROSS? OKAY.
CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER NINE, BOARD MEMBER ELLIS WITH THE MOTION.
SECOND BOARD MEMBER BENGAL WITH THE SECOND.
IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.
IS THERE ANY FURTHER DISCUSSION? IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? I HEARING NONE.
ALL IN FAVOR? LET IT BE KNOWN BY SAYING AYE.
AYE, UH, HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.
ALRIGHT, UH, THANK YOU BOARD MEMBERS.
THAT CONCLUDES OUR, UH, ACTION ITEMS FOR TODAY.
[VII.1. Semi-Annual Diversity, Equity and Inclusion Update]
ITEMS LEFT, UH, STARTING WITH OUR SEMI-ANNUAL DIVERSITY, EQUITY AND INCLUSION UPDATE, UH, FROM MS. EVANS AND MS. EVANS.I PROMISE THAT WE WILL NOT TREAT YOU LIKE YOU'RE IN CHINA OR RUSSIA.
OKAY, WELL, GOOD AFTERNOON, CHAIR PAVILION, BOARD MEMBERS, PRESIDENT AND CEO.
AGAIN, MY NAME IS JACQUELINE EVANS.
I'M THE DIRECTOR OF DIVERSITY, EQUITY AND INCLUSION FOR CAP METRO, AND I AM GOING TO GIVE YOU A DIVERSITY, EQUITY AND INCLUSION SEMI-ANNUAL UPDATE TODAY.
UH, FIRST I'D LIKE TO START OFF WITH, UH, WHY CAP METRO CONTINUES WITH DIVERSITY, EQUITY, AND INCLUSION HERE AT CAP METRO.
UH, WE CARE ABOUT THE IMPACT WE HAVE ON OUR COMMUNITY, OUR CUSTOMERS, AND OUR EMPLOYEES.
WE'RE A DIVERSE COMPANY AND ORGANIZATION, UM, JUST LIKE OUR CUSTOMERS.
WE CARE ABOUT OUR CUSTOMERS AND QUITE FRANKLY, IT MAKES US BETTER AS AN ORGANIZATION.
INCLUSION LEADS TO BETTER SOLUTIONS.
UM, AND, AND FOR IT, IT HELPS TO MAKE SURE THAT OUR EMPLOYEES THRIVE.
[00:45:01]
PART OF OUR VISION, UM, HERE AT CAT METRO AND IT'S PART OF OUR CORE VALUES AS WELL.AGAIN, WE'LL GIVE AN UPDATE, WE'LL TALK ABOUT OUR ACCOMPLISHMENTS, GIVE AN OVER, PROVIDE AN OVERVIEW OF OUR WORKFORCE AND SUPPLIER DIVERSITY.
AND WE'LL LOOK AHEAD CAP METRO'S VISION, UM, TO EMPOWER, ENHANCE, AND SERVE THE REGION AND ITS COMMUNITIES THROUGH THE RESPONSIBLE DELIVERY OF HIGH QUALITY PUBLIC TRANSPORTATION.
AS THE BOARD, UM, CREATED A POLICY STATEMENT, A DEI POLICY STATEMENT, UM, THAT CAP METRO IS COMMITTED TO DIVERSITY, EQUITY, AND INCLUSION AND THE DELIVERY OF OUR PROGRAMS, PROJECTS AND SERVICES, AND INTO DEMONSTRATING OUR COMMITMENT THROUGH TRANSPARENCY AND ACCOUNTABILITY.
SO WE CONTINUE WITH THAT, UM, POLICY STATEMENT.
WE ALSO HAVE DEFINED DIVERSITY, EQUITY, AND INCLUSION, UH, THAT CONTINUES ON.
THOSE DEFINITIONS CONTINUE ON.
SO YOU'VE SEEN THAT DEFINITION, THOSE DEFINITIONS, AND THEY ARE IN OUR BOARD PACKET, IN YOUR BOARD PACKETS AND ON OUR WEBSITE.
SO OUR STRATEGIC OBJECTIVES TO JUST DEMONSTRATE LEADERSHIP COMMITMENT, CONTINUE THAT TO BUILD EMPLOYEE UNDERSTANDING AND COMMITMENT, CONSIDER EQUITY AND DECISION DECISIONS AND DELIVERY, MAINTAINING AND ENHANCING OUR WORKFORCE, BECOMING A LEADER IN SUPPLIER DIVERSITY AND BUILD ACCOUNTABILITY.
SO WE'LL GO OVER A FEW OF THOSE OBJECTIVES TODAY.
THAT LEADERSHIP, UH, COMMITMENT.
UH, ONE OF THE THINGS THAT WE HAVE DONE IS WE'VE IDENTIFIED, UM, EQUITY AS A CORE VALUE IN OUR STRATEGIC PLAN.
WE LOOK AT EXTERNAL SPONSORSHIPS AND, AND, UH, COMMUNITY EVENTS.
WE'VE COLLABORATED WITH KEOLIS, MTM, AND HERZOG IN CAREER FAIRS THROUGH EMPLOYEE UNDERSTANDING AND COMMITMENT.
DEI HAS RECOGNIZ IS RECOGNIZED AS A TOPIC OF INTEREST THROUGHOUT THE ORGANIZATION.
WE HAVE A FUNDAMENTALS OF THE WEEK AND, UM, WHAT THOSE ARE.
AS CAT METRO'S FUNDAMENTALS OF THE WEEK PROMOTE MEANINGFUL DECISION DISCUSSIONS AROUND, UH, OUR CORE VALUES.
THEY'RE A GUIDING RESOURCE, UH, FOR OUR DAILY BEHAVIOR TO FOSTER PERSONAL SUCCESS AND GROWTH WHILE HELPING TO CREATE STRONGER TEAMS. UH, THE ONE I'VE HIGHLIGHTED IS, UM, ANDY SKALSKI, UH, TALKING ABOUT HOW HIS TEAM IS INCLUSIVE WITHIN HIS, UH, ORGANIZATION OR HIS DEPARTMENT.
WE ARE A LEADER IN SUPPLIER DIVERSITY, OR WE STRIVE TO BE A LEADER IN SUPPLIER DIVERSITY.
WE PARTNERED WITH IC SQUARED, AS YOU ALL KNOW.
UM, I WANNA GO UP JUST A LITTLE BIT HERE AND THEN WE'LL GO BACK.
WE'LL CIRCLE BACK TO SHARE WITH YOU SOME OF THE, ONE OF THE SUCCESSES THAT WE'VE HAD WITH IC SQUARED.
UH, WE'VE THROUGH THAT PARTNERSHIP, UH, WITHIN THE LAST SIX MONTHS.
UH, UM, THIS IS FROM MARCH AS OF MARCH 31ST.
UH, WE WORKED WITH IC SQUARED WITH A COUPLE OF THEIR TRAINING PROGRAMS. WE'VE HAD TWO, UH, EVENTS AND CAP METRO WAS ONE OF SIX OF THE PARTNERS THAT THEY'VE HAD.
UM, AND WE'VE HAD OVER 60 ONE-ON-ONES WITH SMALL BUSINESSES THROUGH JUST THROUGH THAT ONE PROGRAM.
SO IT HAS BEEN A SUCCESS FOR CAT METRO THROUGH EQUITY AND SERVICE DECISIONS AND DELIVERY.
WE'VE UPDATED OUR LANGUAGE ASSISTANCE PROGRAM.
WE'VE UPDATED THE TITLE SIX PROGRAM, REVIEWED AND MONITORED TRANSIT SERVICES FOR EQUITY AND COMPLIANCE.
I SOUND LIKE I'M BRAGGING, BUT YES, I AM.
THROUGH OUR WORKFORCE DIVERSITY, UM, OUR RECRUITMENT WITH PARTNERS THROUGH OUR SER WITH OUR SERVICE PROVIDERS, OLAS AND MTM, AGAIN, WE'VE HAD A COUPLE OF CAREER FAIRS THAT WERE SUCCESSFUL.
UH, WE'VE MADE SEVERAL OFFERS, OVER
[00:50:01]
A HUNDRED OFFERS WITH BOTH KEOLIS AND UM, MTM.THROUGH THAT PARTNERSHIP, WE'VE HAD PROGRESS AT OUR MAINTENANCE TECHNICIAN APPRENTICESHIP PROGRAM.
THROUGH ACCOUNTABILITY, WE'VE COMPLETED AND UPDATED OUR EEO PROGRAM PLAN.
UPDATED THE EEO TRAINING AND COLLABORATION WITH PNC.
THAT'S HOW WE SHOWED SOME, UH, GREAT ACCOUNTABILITY.
NOW GOING TO OUR WORKFORCE AND SUPPLIER DIVERSITY VERY QUICKLY WANNA SHOW.
THE BIG THING HERE IS THAT WE MONITOR OUR HIRING AND WORKFORCE AVAILABILITY THROUGH OUR AVAIL THE WORKFORCE AVAILABILITY VERY CLOSELY.
UH, WE ALSO MONITOR OUR PROMOTIONS TO ENSURE EQUITY.
THESE NUMBERS ARE ALSO PART OF YOUR PACKET.
WE'LL GO ON TO OUR CONTRACTOR AND VENDOR DIVERSITY.
WE'VE DONE EXCEPTIONALLY WELL, UH, WITH OUR DBE PROGRAM AS OF MARCH 31ST.
UH, OUR ATTAINMENT, WE WE'RE AT 53%.
OUR GOAL IS 22.5% THROUGH OUR AWARDS AND CONTRACTS.
OUR COMMITMENTS, UM, OVER $10 MILLION.
ECONOMIC CONTRIBUTIONS TO OUR DBE AND SBE TRACTORS.
AND AGAIN HERE, YEAR BY YEAR FY 22 FY 23, WE'VE BEEN REMAINING STABLE.
UH, THIS, AGAIN, THIS IS SEMI-ANNUAL.
WE'RE AT $10 MILLION, UH, WITH OUR PAYMENTS TO OUR CONTRACTORS BY ETHNICITY.
IF WE CONTINUE ON THAT TRACK, WE WILL CONTINUE TO REMAIN STABLE, UM, WITH OUR PAYMENTS.
THIS CHART HERE SHOWS YOU A THREE YEAR COMPARISON, UM, WITH OUR ATTAINMENT FOR OUR DBE COMPARISONS.
AND THIS JUST SIMPLY HIGHLIGHTS, LIKE I SAID, THE DBE COMPONENT, WHICH IS FOR OUR FEDERALLY FUNDED CONTRACTS.
I AM GONNA SKIP THIS, UM, SLIDE BECAUSE IT IS JUST RECAPS OUR PAYMENTS.
IT'S JUST A LITTLE BIT PRETTIER, UM, THAN THE SLIDE THE COUPLE SLIDES BEFORE.
UM, AUGUST 8TH, WE WILL HAVE TRANSIT DAY.
UH, WE'RE REALLY EXCITED ABOUT THAT.
WHAT TRANSIT DAY IS, IS IT ALLOWS FOR SOME OF OUR SMALL BUSINESSES WITHIN THE COMMUNITY TO INTERFACE WITH A LARGER ORG, LARGER BUSINESSES, UH, SO THAT THEY HAVE AN OPPORTUNITY TO MEET EACH OTHER, UM, AND ALSO LEARN A LITTLE BIT MORE ABOUT CAP METRO, HOW TO WORK WITH CAT METRO INTERFACE WITH OUR CHAIR.
SOME OF YOU ALL WERE INVITED AS WELL.
WE'D LOVE FOR YOU TO COME OUT AND PARTICIPATE.
I'M REALLY PROUD TO SAY IN TERMS OF THE VENDORS THAT ARE COMING TO MEET WITH US.
WE'LL BE AT THE AUSTIN PUBLIC LIBRARY.
IT'S REALLY GOING TO BE A GREAT OPPORTUNITY FOR OUR SMALL BUSINESSES SO THAT WE CAN REALLY INCREASE THOSE NUMBERS AND CONTINUE TO BE SUSTAINABLE.
WITH THAT, I'LL SAY THANK YOU AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
UM, BOARD MEMBERS, ANY QUESTIONS, BOARD MEMBERS, ANY QUESTIONS? I'M LOOKING FOR MS. ROSS.
UH, ALRIGHT, SO I DON'T SEE HER, BUT I DON'T SEE ANY QUESTIONS.
I'LL ONLY SAY THAT, THAT, UM, I APPRECIATE THE WORK THAT YOU'VE DONE.
I APPRECIATE YOUR WILLINGNESS TO WORK WITH ALL OF THE OTHER POLITICAL JURISDICTIONS.
APPRECIATE YOUR WILLINGNESS TO, UH, TO GO ONTO UT'S CAMPUS AND HELP BUILD SOMETHING THAT PROVIDES ACTUAL TRAINING AND COUNSELING FOR PEOPLE WHO WANT TO DO BUSINESS WITH GAP METRO.
A LOT OF PEOPLE WANT TO DO BUSINESS AND THEY'VE WORKED FOR 25 YEARS AND, AND THEY'RE EXCELLENT ARTISANS, BUT HAVE NEVER, UH, PUT A BID TOGETHER, HAVE NEVER DONE ALL OF THE THINGS THAT ARE NECESSARY, UH, TO, UH, TO BID ON A PROJECT.
SO FINDING A PLACE WHERE PEOPLE CAN LEARN THOSE SKILLS IS REALLY
[00:55:01]
IMPORTANT.AND A A LOT OF PEOPLE SAY, WELL, YOU KNOW, YOU, YOU WANT EVERYBODY TO BE EXACTLY EQUAL.
AND, AND I DON'T EVEN THINK THAT'S HUMANLY POSSIBLE.
UH, BUT AT THE END OF THE DAY, UH, WE SHOULD BE ABLE TO HAVE CLEAR PROCESSES.
PEOPLE SHOULD BE ABLE TO ACCESS THEM THROUGH PUBLIC INFORMATION.
AND HOPEFULLY, UH, THEY CAN LEARN HOW TO PROVIDE SERVICES THAT WE NEED.
BECAUSE LOCAL PUBLIC DOLLARS SHOULD CREATE LOCAL PUBLIC JOBS.
SO THANK YOU FOR THE WORK THAT YOU DO AND, AND I JUST WANT YOU TO KNOW, UH, I SEE YOU WORKING ALL THE TIME AND YOU DO A WONDERFUL JOB.
[VII.2. Update on CapMetro Childcare and Learning Center]
OUR NEXT REPORT IS GOING TO BE AN UPDATE ON OUR CAP METRO CHILDCARE AND LEARNING CENTER, AND I THINK DOTTIE SIMMONS IS GONNA MAKE THAT REPORT FOR US.GOOD AFTERNOON, CHAIR REBELLION, BOARD MEMBERS, PRESIDENTS.
THE E WATKINS I SERVE AS MAKER.
I SAID DOTTIE, BUT I MET DONNA.
I KNOW THAT HAPPENS FREQUENTLY.
UM, SO, UM, I'M, I SERVE AS CUP MEMBERS, JERSEY VP OF ADMINISTRATION AND DIVERSITY, EQUITY AND INCLUSION OFFICER.
UM, AS YOU ALL PROBABLY RECALL, BACK IN MARCH WHEN WE CAME TO THE BOARD WITH THE AWARD OF THE CONTRACT WITH BRIGHT HORIZONS TO OPERATE CAP METRO'S CHILDCARE AND LEARNING CENTER, WHICH IS ACROSS THE STREET AT 6 24 PLEASANT VALLEY.
UH, WE COMMITTED AT THAT TIME TO COME BACK TO YOU NO LATER THAN JULY AND GIVE YOU AN UPDATE ON THE WORK THAT WE'VE BEEN DOING.
UM, I WANNA SHARE WITH YOU TODAY SOME OF THE OUTCOME OF THAT WORK.
UM, HOW WE ARE GOING TO BE PROPOSING TO PROVIDE BROADER SUPPORT FOR CHILDCARE NEEDS FOR OUR CAP METRO AND SERVER SERVICE PROVIDER EMPLOYEES.
UM, AND THEN MENTIONED SOME EXCITING POTENTIAL PARTNERSHIPS, UM, ON THE CURRENT CHILDCARE CENTER.
SO THE WORK WE'VE DONE, WE'VE SPENT A LOT OF TIME, UM, ENGAGING WITH PARENTS, UM, AND EMPLOYEES, UM, BOTH COMMUNITY PARENTS AND PARENTS HERE AT CAP METRO WHO ARE UTILIZING, UM, THE CURRENT CAP METRO CHILDCARE CENTER.
WE HAVE COMPLETED AN EMPLOYEE SURVEY, AND I'LL SHARE THE FINDINGS OF THAT WITH YOU.
UM, WE'VE ALSO DONE SOME ENGAGEMENT WITH OUR SERVICE PROVIDER, UH, LEADERSHIP AND EMPLOYEES TO GET OUT THERE AND LET THEM KNOW ABOUT THE, THE CHILDCARE BENEFITS AND ALSO TO GET THEM TO RESPOND TO THE CHILDCARE SURVEY.
WE'VE DONE SOME WORK TO IDENTIFY COST AND NEEDS, UH, WAYS THAT WE CAN REDUCE THE CURRENT SUBSIDY, LOOKING AT EMPLOYEE DEMOGRAPHICS SO WE CAN GET A PICTURE OF WHAT THE POTENTIAL MAXIMUM NEED IS FOR CHILDCARE OF OUR EMPLOYEES.
AND WE'VE BEEN WORKING ON OUR FY 25 BUDGET PROPOSAL.
I'LL SHARE SOME INFORMATION WITH YOU ABOUT THAT.
UM, WE HAVE CERTAINLY BEEN FOLLOWING COMMUNITY INITIATIVES ON CHILDCARE.
WE'RE PURSUING A COUPLE OF PROMISING PARTNERSHIPS, UM, THAT I'LL GIVE YOU SOME INFORMATION ABOUT.
AND, AND WE JUST CONTINUED ALSO RESEARCH ON PROGRAMS THAT ARE HAPPENING THROUGHOUT THE COMMUNITY AND WITH OTHER TRANSIT SYSTEMS TO SUPPORT CHILDCARE NEEDS.
OOPS, I'M NOT GONNA SPEND A TON OF TIME ON THIS BECAUSE I THINK MOST PEOPLE REALLY KNOW AND RECOGNIZE THIS, BUT, UM, THERE'S AN ORGANIZATION IN AUSTIN CALLED EARLY MATTERS GREATER AUSTIN, WHICH WAS FORMED BY THE UNITED WAY A FEW YEARS AGO, UM, TO GATHER INFORMATION ABOUT THE IMPORTANCE OF CHILDCARE NEEDS AND HOW IT BENEFITS BOTH EMPLOYERS AND EMPLOYEES.
UM, SO JUST A COUPLE OF SNIPPETS FROM THERE.
A VAST MAJORITY OF WORKING PARENTS SAY THAT BETTER CHILDCARE HELPS THEM TO BE MORE PRODUCTIVE AT WORK.
UM, THEY ALSO SAY THAT IT HAS A VERY POSITIVE IMPACT ON, UM, ON THEIR, UM, DECISIONS TO STAY WITH AN EMPLOYER.
AND FROM EMPLOYER PERSPECTIVES, A VERY LARGE MAJORITY SAY THAT, UM, CHILDCARE BENEFITS HAVE A POSITIVE IMPACT ON RECRUITMENT AND RETENTION.
UH, WE CERTAINLY WILL BELIEVE THAT HERE AT CAP METRO, WHICH IS, IS WHY WE WANT TO CONTINUE OUR SUPPORT FOR, UM, SUPPORTING CHILDCARE FOR OUR EMPLOYEES.
FOR EMPLOYEES, ANYBODY WHO'S BEEN IN THE WORKFORCE AND, AND HAD A CHILD AT THE SAME TIME THAT NEEDED CHILDCARE PROBABLY KNOWS ALL THESE THINGS.
BUT IT, UM, IT CERTAINLY, UM, HELPS TO PROMOTE AN EMPLOYEE'S ABILITY TO BALANCE WORK AND FAMILY AND FOCUS ON THEIR WORK KNOWING THAT THEIR CHILDREN ARE IN A SAFE PLACE.
THIS IS THE PICTURE OF WHAT WE BELIEVE POTENTIALLY THE LARGEST NEED IS.
SO THIS DATA COMES FROM, UH, GATHERING INFORMATION ON THE NUMBERS OF DEPENDENTS WHO ARE ENROLLED IN OUR HEALTHCARE PLANS, EITHER WITH CAP METRO OR, OR EACH OF OUR SERVICE PROVIDERS.
SO BASED ON THAT, WE BELIEVE THAT THE, THERE ARE ABOUT 158 CHILDREN, UM, WHO, UM, ARE DEPENDENTS OF OUR EMPLOYEES WHO NEED FULL-TIME CARE, MEANING THEY'RE BETWEEN THE AGES OF ZERO AND FOUR, UM, AND ABOUT ANOTHER 392 WHO PROBABLY NEED PART-TIME CARE, UM, AFTERSCHOOL CARE AND SUMMER CARE TYPE PROGRAMS. UM, AGAIN, THIS MAY NOT BE 100% ACCURATE BECAUSE IT COMES FROM, UM, ENROLLMENT IN OUR HEALTHCARE
[01:00:01]
PLANS, BUT WE BELIEVE IT'S A PRETTY CLOSE PICTURE OF WHAT THE NEED IS.WE ALSO WANTED TO HEAR FROM EMPLOYEES WHAT THEY SAY THEIR NEEDS ARE.
SO WE CONDUCTED A SURVEY IN MAY OF 2024.
UM, WE RECEIVED ABOUT A 17.5% RESPONSE RATE.
UM, WE HAD LAST YEAR ABOUT THIS TIME ALSO HAD DONE A CHILDCARE SURVEY WHERE THE RESPONSE RATE WAS A LOT LESS.
SO WE'RE GLAD WE GOT MORE PARTICIPATION THIS TIME.
WE SPENT A LOT OF TIME REMINDING PEOPLE THE PLACE AND OUT FILL OUT THEIR SURVEY.
WE WENT TO TOWN HALL MEETINGS.
WE CAME EARLY IN THE MORNING WHEN BUS OPERATORS WERE COMING IN, UM, TO REPORT TO ENCOURAGE THEM TO COMPLETE THE SURVEY AND LET US KNOW WHAT THEIR CHILDCARE NEEDS ARE.
HERE ARE SOME OF OUR KEY FINDINGS.
UM, THE MAJORITY OF THOSE WHO RESPONDED TO THE SURVEY SAY THEY PREFER CHILDCARE NEAR WHERE THEY LIVE.
THEY 27% SAID THEY PREFER CHILDCARE NEAR WHERE THEY WORK.
UM, 18 OR SO PERCENT SAID THEY REALLY DIDN'T, UM, HAVE A PREFERENCE AS LONG AS THERE WAS CHILDCARE TO SUPPORT THEM.
AND, UM, A SMALL PERCENTAGE DIDN'T RESPOND TO THAT QUESTION.
I WOULD SAY THAT WE'RE NOT SURPRISED, I THINK BY THE, UM, THE PREFERENCE FOR CHILDCARE NEAR HOME AND OTHER SURVEYS THAT YOU READ, EITHER BOTH LOCALLY AND NATIONALLY.
THAT'S WHERE THAT'S WHAT WHAT WE FIND AS WELL FROM, FROM LOOKING AT THAT RESEARCH.
WE ALSO ASKED HOW CAN WE BEST SUPPORT YOU THROUGH CHILDCARE BENEFITS.
UM, THE LARGEST MAJORITY SAID OF STIPEND FOR CHILDCARE OF THEIR CHOICE, WHETHER IT BE NEAR THEIR WORK, NEAR THEIR HOME, MAYBE EVEN, UM, IN SOMEONE ELSE'S HOME.
UM, ANOTHER LARGE PERCENTAGE SAID WHAT'S HELPFUL IS FLEXIBLE WORK LOCATIONS AND GRADUAL RETURN TO WORK.
UM, A LOT OF FOLKS WHO SAID THEY NEED ACCESS TO AFTERSCHOOL AND SUMMER CARE PROGRAMS FOR SCHOOL AGED CHILDREN, UM, AND THEN A LITTLE OVER 60% SAID AC ACCESS TO BACKUP CARE WOULD BE IMPORTANT.
SO BASED ON THAT, WE'VE BEEN DOING A LOT OF WORK, UM, ON IMPLEMENTING A STIPEND PROGRAM TO SUPPORT EMPLOYEES TO, UM, HELP TO PAY FOR WHATEVER THEIR CHILDCARE CHOICE IS TO BEST MEET THEIR NEEDS.
SO THERE'S A COUPLE OF WAYS THAT WE COULD GO THERE, UM, THAT WE'RE STILL EXPLORING.
UM, ONE IS THROUGH A DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT WHERE WE WOULD MAKE CONTRIBUTIONS TO A DEPENDENT CARE FSA, UM, AND THEN THE EMPLOYEE WOULD BE RESPONSIBLE FOR DETERMINING HOW THEY SPEND THOSE DOLLARS IN ACCORDANCE WITH IRS RULES,
UM, UNDER THAT SCENARIO, THOSE CONTRIBUTIONS ARE NOT TAXABLE.
UM, THERE'S SOME, ANOTHER APPROACH THAT SOME EMPLOYERS HAVE TAKEN, WHICH IS A PROGRAM THAT MAKES THE PAYMENTS DIRECTLY TO THE PROVIDER ON THE EMPLOYEE'S BEHALF.
UM, AND UNDER THAT SCENARIO, THE PAYMENTS CAN BE TAXABLE TO THE EMPLOYEE BECAUSE IT'S NOT UNDER A PRE-TAX PROGRAM.
FOR BOTH OF THOSE PROGRAMS, UH, WE ARE CONSIDERING WHETHER OR NOT TO MAKE THAT STIPEND, UM, IN SOME WAY BASED ON INCOME.
UM, SO THAT WE ARE PROVIDING A LARGER BENEFIT PERHAPS TO THOSE WHO NEED IT THE MOST TO SUPPORT THEIR CHILDCARE NEEDS.
WE COULD POTENTIALLY CORRELATE THAT TO THE FAMILY SIZE, UM, OF THE EMPLOYEE.
UM, AND WE WOULD NEED TO DEVELOP A, A REALLY GOOD PROCESS AROUND REVIEWING APPLICATIONS AND DETERMINING ELIGIBILITY.
AS IT RELATES TO THE SUSTAINABILITY OF THE CURRENT CHILDCARE CENTER ACROSS THE STREET, WE'VE BEEN WORKING ON A COUPLE OF THINGS.
UM, WE ARE PLANNING TO IMPLEMENT A TUITION INCREASE IN SEPTEMBER THAT WILL REDUCE THE SUBSIDY, UM, IN THE CONTRACT THAT WE NOW HAVE WITH BRIGHT HORIZONS.
UH, WE ALSO RECENTLY, UH, LEARNED THAT THERE'S A POTENTIAL PARTNERSHIP WITH ANOTHER EMPLOYER, UM, THAT MIGHT WANT TO PARTNER WITH CAP METRO, UM, RELATED TO OPERATION OF THAT CENTER THAT WOULD FURTHER REDUCE THE SUBSIDY.
UH, WE'VE ALSO BEEN EXPLORING THE POTENTIAL OF A LEASE AGREEMENT TYPE OF APPROACH WITH A NONPROFIT CHILDCARE CENTER, WHICH WOULD PROBABLY LOOK SOMETHING LIKE A FIVE YEAR LEASE PERIOD WITH AN OPTION OF ANOTHER FIVE YEARS.
SO THAT IT'S A LONG-TERM SOLUTION.
UM, IT WOULD REQUIRE PRIORITY ENROLLMENT FOR CAP METRO AND SERVICE PROVIDER EMPLOYEES, UM, IN THAT RELATIONSHIP.
UM, AS WE DO NOW, CAP METRO WOULD CONTINUE TO PROVIDE FOR THE UTILITY SECURITY AND BUILDING MAINTENANCE.
UM, THERE IS THE POTENTIAL OF THE NEED FOR, UM, AN ADMINISTRATIVE SUPPORT, UM, FOR A NONPROFIT CENTER IN ORDER FOR THEM TO AT LEAST BREAK EVEN.
WE HAVE BEEN WORKING ON THE BUDGET AS I SAID.
UM, I APOLOGIZE FOR THIS BEING KIND OF SMALL, BUT, UM, SO WE'VE COMPARED WHAT OUR FY 24 BUDGET IS TO WHAT WE WILL BE PROPOSING IN THE FY 25 BUDGET.
AND UNDER THE, UNDER THE SCENARIOS THAT I COVERED RELATED TO TUITION INCREASES, UM, AND PARTNERSHIPS TO CON CONTINUE THE CURRENT CHILDCARE
[01:05:01]
CENTER OPERATIONS, WE BELIEVE THAT WE CAN, UM, ACTUALLY, UM, PROPOSE LESS IN THE FY 25 BUDGET THAN IS IN OUR FY 24 BUDGET.SO 668,000 ANNUALLY COMPARED TO 570,000 ANNUALLY.
AND THAT INCLUDES, UM, A STIPEND YOU'LL SEE UP THERE, IT SAYS FOR HALF A YEAR, BECAUSE WE BELIEVE THAT WE WOULD WANT TO BUDGET ABOUT $600,000 ANNUALLY FOR THE STIPEND PROGRAM.
SO WITH ALL OF THAT WORK BEHIND US, WE'RE STILL NOT QUITE THERE, BUT WE'RE GETTING CLOSE TO THE FINISH LINE ON IT.
SO A FEW MORE THINGS THAT WE'LL BE WORKING ON.
UM, WE NEED TO DETERMINE WHICH PARTNERSHIP OPTION TO PURSUE AND PROPOSE TO THE BOARD, UM, DETERMINE WHAT THE APPROPRIATE CONTRACTUAL MECHANISM WOULD BE FOR THAT.
WORK ON ALL THOSE DETAILS ON THE STIPEND PROGRAM THAT I MENTIONED.
UM, THEN IN SEPTEMBER WHEN THE BOARD ADOPTS THE BUDGET, YOU'LL SEE THAT BUDGET LINE ITEM, UH, IN THE BUDGET FOR, UH, FOR THE CHILDCARE DEPARTMENT.
IN OCTOBER IS WHEN WE WOULD PLAN TO COME BACK TO THE BOARD FOR ACTION ON THE CHILDCARE CENTER PARTNERSHIP, WHETHER IT BE THROUGH THE NONPROFIT OR THROUGH, UM, ANOTHER EMPLOYER PARTNERSHIP.
UM, AND THEN THAT'LL GIVE US SOME TIME BETWEEN NOVEMBER AND MARCH WHEN THE CURRENT CONTRACT WITH BRIGHT HORIZONS EXPIRES, UH, TO IMPLEMENT WHATEVER CHANGES, UM, THE BOARD APPROVES.
AND THEN IN APRIL IS WHEN WE WOULD EXPECT TO INITIATE THE CHILDCARE STIPEND PROGRAM.
AND WITH THAT, I'LL BE VERY HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.
BOARD MEMBERS, UH, DO WE HAVE ANY QUESTIONS? BOARD MEMBER AVAILABLE? JUST MORE OF A, HONESTLY, A COMMENT THAN A QUESTION.
JUST IN THE CITY'S BUDGET PROCESS, THE CITY HAD ESTABLISHED HELLO, AND I'M WORKING FROM MEMORY HERE, BUT I WANNA SAY ABOUT A $1 MILLION, UH, BUDGET LINE ITEM FOR A CHILDCARE STIPEND FOR CITY EMPLOYEES.
UH, THAT I THINK IN THE FIRST YEAR, $200,000 GOT TAPPED, UH, ONCE IT WAS BETTER PROMOTED AND WORD GOT OUT.
UH, AND AGAIN, I, I DON'T WANNA MISQUOTE, BUT WE ARE GOING TO 2 MILLION OR MAYBE $3 MILLION THIS IN THIS YEAR'S BUDGET FOR THE CHILDCARE STIPEND.
SO JUST TO GIVE YOU A SENSE OF THE CITY'S EXPERIENCE OVER THE LAST FEW YEARS WITH REGARD TO THE CHILDCARE STIPEND, ONCE UH, EMPLOYEES UNDERSTOOD EXACTLY WHAT IT MEANT AND WHAT IT WHAT IS INVOLVED, THEY QUICKLY, UH, TOOK, UH, ADVANTAGE OF IT.
DID, NOW, DID I HEAR YOU SAYING THAT THE CITY WAS PROVIDING A, A STIPEND FOR, FOR CAPTAIN METRO
AND, AND I JUST ADD TO THAT AND SAY THAT THE CITY'S STAFFING NUMBERS ARE A LOT HIGHER, UH, OF COURSE, THAN CAT METROS.
SO, UM, WHATEVER WE WERE SPENDING AT THE CITY WOULD LIKELY, UH, DWARF WHAT WOULD BE SPENT HERE.
I I WAS GOING FOR HIS CHECKBOOK AND YOU JUST PUT THE CHECK BACK.
I APPRECIATE BOTH THOSE COMMENTS.
AND MY QUESTION WAS, UH, WHAT ASSUMPTIONS WERE YOU MAKING WITH THAT 600,000 AS FAR AS WHAT NUMBERS? I KNOW IT'S A BRAND NEW PROGRAM, SO YOU DON'T KNOW HOW MANY WILL PARTICIPATE, BUT WHAT ASSUMPTIONS WERE YOU MAKING? RIGHT, THAT'S, THAT'S A REALLY GOOD QUESTION.
SO WE, UM, WE LOOKED AT THOSE DEMOGRAPHICS THAT I SHARED WITH YOU MM-HMM.
BUT, UM, WE HAVEN'T COMPLETELY SETTLED ON ON THAT BECAUSE LIKE, I, LIKE I SAID EARLIER, ONE OF THE THINGS THAT WE'RE LOOKING AT IS WHETHER OR NOT WE SPREAD THAT PEANUT BUTTER AMONGST EVERYBODY OR IF WE, UM, MAKE IT IN SOME WAY INCOME-BASED AND PROVIDE MORE OF A, MORE OF A BENEFIT TO THOSE WHO, UM, WHO HAVE MORE OF A NEED BASED ON INCOME.
UH, I APPRECIATE THE APPROACH YOU'RE TAKING WITH THE STIPEND.
I APPRECIATE THE RESEARCH YOU'VE DONE AND FOCUSING ON WHAT THE EMPLOYEES REALLY NEED.
UM, WITH THE STIPEND PROGRAM, AS YOU'RE FLESHING OUT THE DETAILS, I, I BELIEVE A GUIDE SHOULD BE BEING COMPETITIVE WITH SOME OF THE GOVERNMENT AGENCIES.
AND MY, I KNOW THAT MY PREFERENCE FOR WANTING TO SUPPORT CAP METRO'S RETENTION AND RECRUITMENT POLICY WOULD BE TO BE BOLD WITH THE CHILDCARE BENEFITS THAT WE DO PROVIDE AS LONG AS THEY'RE COMPETITIVE WITH OTHER GROUPS, BECAUSE THAT IS WHAT WE'RE TRYING TO DO IS HELP CAP METRO MAINTAIN ITS GREAT WORKFORCE.
SO I WOULD BE, UH, I WOULD LIKE TO SEE WHAT THOSE NUMBERS ARE WITH MORE COMPETITIVE, I KNOW, I MEAN, IT'S, IT'S PUBLIC.
WE KNOW THE CITY PROVIDES A $5,000 A YEAR ANNUAL BENEFIT FOR THEIR EMPLOYEES, AND I'D LIKE TO SEE SOME OF THOSE NUMBERS OF COURSE THAT WE PUT FORWARD.
BOARD MEMBER ELLIS, CAN YOU TELL ME HOW THE FLEX SPENDING ACCOUNT WORKS FOR FOLKS THAT MAY WANT TO USE THAT
[01:10:01]
STIPEND TO PAY FOR NEIGHBORS TO TAKE CARE OF THEIR KIDS? OR, PART OF THIS CONVERSATION HAS BEEN NOT JUST YOUR LICENSED FACILITIES, BUT OTHER METHODS THAT PEOPLE USE TO TAKE CARE OF YOUNG ONES.CAN YOU TELL ME HOW THAT CONVERSATION'S BEEN ADDRESSED? THAT'S RIGHT.
YOU'RE, YOU'RE, YOU'RE CORRECT IN, UM, ASKING THAT QUESTION BECAUSE I THINK WE DO REALIZE THAT ESPECIALLY FOR A LOT OF OUR FRONTLINE EMPLOYEES WHO WORK NON-TRADITIONAL HOURS, THAT THAT MAY BE THEIR CHILDCARE SOLUTION.
SO WITH THE FLEXIBLE SPENDING ACCOUNT APPROACH, IT REALLY IS UP TO THE EMPLOYEE TO DOCUMENT THAT THEY ARE USING THE DOLLARS PROVIDED TO THEM FOR AN IRS ACCEPTABLE DEPENDENT CARE, UM, COST.
UM, SO THAT IS ONE OF THE BENEFITS OF THAT KIND OF PROGRAM ACTUALLY, IS THAT IT, IT'S NOT REALLY, UM, INCUMBENT UPON CAP METRO TO, UM, AUDIT THAT ALL THE TIME.
IT'S UP TO THE EMPLOYEE TO ENSURE THAT, UM, THAT THEY ARE ONLY USING THOSE DOLLARS FOR ACCEPTABLE REASONS, KIND OF LIKE WITH A, A HEALTHCARE SPENDING ACCOUNT THAT YOU CAN ONLY USE IT FOR, UM, BONAFIDE, UH, MEDICAL CARE.
AND, AND I WOULD SAY SIMILAR TO THAT, I'VE HAD TIMES WHERE, UH, I WAS, I, I WENT TO THE PHARMACY FOR EXAMPLE, AND, AND WAS, UH, DIDN'T HAVE MY BENNY CARD WITH ME.
SO WHAT I HAD TO DO WAS TAKE MY RECEIPTS, TAKE 'EM TO HR, FILL OUT THE PAPERWORK, AND, AND THEN GET, AND THEN GET THEM REIMBURSED.
SO, UH, SO I HAVE SEEN A WAY TO DO THAT.
NOW, HOW THAT WORKS EXACTLY IN, IN, UH, CHILDCARE AND WHETHER IT WILL WORK EXACTLY THE SAME AS HEALTHCARE.
UH, NOT SURE, BUT I'VE SEEN A PRO, I'VE SEEN THE PROCESS WHERE, UH, YOU CAN FILL OUT YOUR DOCUMENTATION, HAVE YOUR RECEIPTS AND, AND BE REIMBURSED FOR WHAT YOU SPEND.
AND SO THERE SHOULD BE THAT SAME TAX BENEFIT WHERE FOLKS ARE BEING ABLE TO UTILIZE THOSE DOLLARS WITHOUT IT AFFECTING THE TAXES THAT THEY OWE.
RIGHT? IT'S A, WITH A FLEXIBLE SPENDING ACCOUNT, UM, IT'S CONSIDERED PRE-TAX DOLLARS.
SO IT'S, IT'S CONSIDERED NON-TAXABLE INCOME TO THE EMPLOYEE.
UM, WE ALSO, UM, DEPENDING ON HOW MUCH WE DECIDE THAT WE'RE GOING TO CONTRIBUTE, THE MAXIMUM THAT CAN BE CONTRIBUTED TO A CHILDCARE FLEXIBLE SPENDING ACCOUNT IS $5,000.
SO LET'S SAY WE WERE CONTRIBUTING 2,500, THE EMPLOYEE COULD STILL CONTRIBUTE ANOTHER 2,500, UM, TO MAKE UP THE DIFFERENCE IF THEY, IF THEY FELT LIKE THEY WANTED TO DO THAT, AND THEY WOULD JUST HAVE TO WORK WITH CAT METRO HUMAN RESOURCES TO SAY, I WANT THAT COMING OUT OF MY PAYCHECK BEFORE, BEFORE PAYDAY.
UH, MS, MR CHAIR, IF I CAN JUST THROW, THROW IN HERE ON THIS CONVERSATION.
I, I JUST, I JUST PULLED IT OUT.
I JUST GOOGLED IT ON MY PHONE.
AND ONE OF THE, ONE OF THE ISSUES IT SAYS ON THE SFSA IS BABYSITTING BY YOUR RELATIVE, WHO IS NOT A TAX DEPENDENT FOR WORK-RELATED PURPOSES, IS AN ACCEPTABLE USE FOR THE FSA.
SO WE, WE COULD, NOW AGAIN, WE, THE ADVANTAGE IS WE AS, AS CAP METRO WOULDN'T HAVE TO AUDIT THAT, BUT YES, THAT, I THINK THAT'S A REALLY GOOD QUESTION BECAUSE IT, IT, IT GOES BACK TO THE ROOT ISSUE OF, OKAY, GREAT, WE DON'T HAVE TO AUDIT IT, BUT CAN THEY USE IT? WHAT GOOD IS IT FOR US TO GIVE THEM THE BENEFIT IF IT TURNS OUT THAT IT IS NOT ALLOWABLE AS AN EXPENSE ITEM, BUT ACCORDING TO THIS, THEY, THEY CAN ACTUALLY USE THAT.
SO THEY COULD GET, YOU KNOW, A, A, A GRANDMOTHER, AUNT, UNCLE, UH, EVEN AN A, A, AN OLDER CHILD WHO'S NOT A TAX DEPENDENT, LIKE A, YOU KNOW, 21-YEAR-OLD, 22-YEAR-OLD, SOMETHING LIKE THAT TO SERVE AS THE CAREGIVER DURING THAT TIME WHILE THEY ARE OUT WORKING.
'CAUSE I WANNA MAKE SURE FOLKS AREN'T MISSING OUT SIMPLY BECAUSE THEY CHOOSE ONE OPTION.
I HOPE THOSE, THANK YOU FOR HELPING WITH THAT RESEARCH BOARD,
I HOPE THOSE ARE TEXAS RULES INSTEAD OF NEW YORK
SORRY, ANY, ANY ADDITIONAL QUESTIONS? ANY ADDITIONAL, GO AHEAD.
NO, I, I JUST WANT TO JUST WANNA ADD, DONNA, THANK YOU SO MUCH.
THIS WAS A HEAVY LIFT ON A VERY SHORT PERIOD OF TIME, UM, BOTH ON, ON PUTTING TOGETHER THE INFORMATION ON THE BENEFIT ON BENEFITS FOR OUR EMPLOYEES AS A WHOLE, BUT ALSO THAT OTHER ISSUE ASSOCIATED WITH THE CHILDCARE FACILITY ITSELF.
UM, IT SOUNDS LIKE THAT, THAT YOU'VE GIVEN US SOME THAT, THAT Y'ALL ARE LOOKING AT SOME REALLY GOOD POSSIBILITIES AND OPPORTUNITIES AND OPTIONS.
UM, YOU KNOW, I, I THINK WE'VE TALKED ABOUT HERE, AND I, I'VE, I'VE HEARD THIS SAID FROM THE DIOCESE AND, AND I MYSELF FEEL THIS WAY, YOU KNOW, WE, WE'VE, WE'VE GOTTA LOOK AT THIS FROM THE PERSPECTIVE OF WHAT OUR CORE MISSION IS.
AS BOARD MEMBER, UH, MLE SAID, WE'VE GOTTA, YOU KNOW, LOOK AT THIS, WHAT, WHAT'S BEST FOR US TO BE COMPETITIVE AND TO TAKE CARE OF OUR PEOPLE SO THAT THEY CAN CONTINUE TO TAKE CARE OF OUR COMMUNITY.
UM, BUT, BUT WE CANNOT OVERLOOK, FROM MY PERSPECTIVE, WE CANNOT OVERLOOK THE FACT THAT THIS CHILDCARE CENTER HAS OVER TIME EVOLVED TO BECOME A, AN INTEGRAL PART OF THIS COMMUNITY AROUND CAP METRO AND TRYING TO FIGURE OUT WHAT WE CAN DO WITH IT.
I DON'T KNOW WHAT THE ANSWER IS.
THAT'S WHAT A PART OF THE ISSUE THAT WE TASKED Y'ALL WITH AS STAFF.
AND I APPRECIATE THAT, THAT IT LOOKS LIKE, AND SOUNDS LIKE THERE'S AT LEAST SOME POSSIBILITY, MAYBE SOME INNOVATIVE SOLUTIONS AND IDEAS THAT ARE MOVING.
[01:15:01]
LOOK FORWARD TO SOME ADDITIONAL INFORMATION COMING DOWN THE PIKE FROM, FROM YOU AND YOUR TEAM TO DISCUSS THAT OTHER PIECE OF THE, UH, THE PUZZLE ON THE EQUATION, WHICH IS NOT JUST FOR OUR EMPLOYEES AS A WHOLE THROUGH, YOU KNOW, THE HUMAN RESOURCES SIDE AND WHAT WE DO WITH THAT BENEFIT FOR ALL OF OUR EMPLOYEES, BUT ALSO SPECIFICALLY FOR THAT PIECE, WHICH IS THE, UM, THE ACTUAL FACILITY ITSELF.ALRIGHT, BOARD MEMBERS, ANY ADDITIONAL QUESTIONS? ANY QUESTIONS? HEARING NONE, UH, THANK YOU VERY MUCH, DONNA.
THANK YOU
[VII.3. FY2025 Budget Proposal]
LOOKS LIKE, UH, ITEM NUMBER THREE AND OUR FINAL ITEM BEFORE WE GO INTO EXECUTIVE SESSION IS A BRIEFING ON OUR FFY 2025 BUDGET PROPOSAL, UH, MR. CONLAND? YES.GOOD AFTERNOON, CHAIR PAVILION, BOARD MEMBERS PRESIDENT AND CEO WATKINS.
I'M THE DEPUTY CFO FOR CAP METRO, AND IT'S FANTASTIC TO BE BACK ANOTHER YEAR TO GIVE THE FISCAL YEAR 2025 BUDGET PROPOSAL TO THE BOARD.
OUR FISCAL YEAR 2024 SPANS FROM OCTOBER OF THIS CURRENT YEAR IN 2024 THROUGH SEPTEMBER OF 2025.
SO TODAY I'LL BE WALKING THROUGH OUR BUDGET DEVELOPMENT CALENDAR OR GIVE A BRIEF OVERVIEW OF THE BUDGET, COVER OUR OPERATING BUDGET HIGHLIGHTS, AND THEN ALSO GIVE A UPDATE ON OUR CAPITAL IMPROVEMENT PLAN.
SO OUR BUDGET PROCESS STARTED BACK IN FEBRUARY WITH OUR KICKOFF IN APRIL.
WE RECEIVED ALL OF OUR OPERATING AND CAPITAL REQUESTS FROM OUR DEPARTMENTS.
WE'VE BEEN THROUGH PROBABLY MORE REVIEWS THIS YEAR THAN ANY YEAR THAT I'VE BEEN HERE OVER THE EIGHT YEARS IN TRYING TO GET BALANCE AND BRING THE PROPOSAL TO THE BOARD IN JUNE, IN MAY AND JUNE, I WAS AT COMMITTEES TO GO OVER THE CALENDAR AND JUST AN INITIAL REVIEW OF THE BUDGET WITH BOTH COMMITTEES.
AND DURING THOSE MONTHS, WE'VE ALSO BEEN TO ALL THREE ADVISORY COMMITTEES IN JUNE AS WELL TO GIVE THEM A, A BRIEFING ON OUR BUDGET.
ALSO IN AUGUST, WE'LL CONTINUE OUR COMMUNITY ENGAGEMENT.
WE'LL PRESENT THIS BUDGET PROPOSAL TO THE ACCESS ADVISORY COMMITTEE, BOTH CSAC AND PSAC AS WELL.
WE'LL HAVE OUR BUDGET DOCUMENT POSTED ONLINE BY AUGUST 23RD.
THE LAST WEEK OF AUGUST, WE'LL HOLD PUBLIC OUTREACH AT OUR BUSIEST TRANSIT CENTERS AND RAIL CENTERS, RAIL STATIONS ACROSS THE CITY.
AND THEN IN SEPTEMBER, I'LL BE BACK ON THE 11TH FOR A PUBLIC HEARING ON OUR PROPOSED BUDGET AND CAPITAL IMPROVEMENT PLAN.
AND THEN FINALLY, WE'LL ASK THE FULL BOARD OF DIRECTORS AT THE SEPTEMBER MEETING TO CONSIDER ADOPTION AND APPROVAL OF BUDGET.
SO OUR PROPOSED BUDGET IS STRUCTURALLY SOUND AND BALANCED.
WE DO HAVE ONGOING REVENUE SUFFICIENT TO FUND ALL OF OUR OPERATIONS AND CAPITAL NEEDS.
WE'RE MEETING ALL OF OUR OPERATING RESERVE REQUIREMENTS, INCLUDING FULLY FUNDED STATUTORY OPERATING AND BUDGET STABILIZATION RESERVES.
WE'RE PROJECTING A SALES TAX GROWTH OF 3% OVER OUR CURRENT FISCAL YEAR 2024 FORECAST.
THIS IS LOWER THAN WE HAVE BEEN HISTORICALLY DUE TO DECLINING GROWTH DURING THIS CURRENT FISCAL YEAR.
AND I'LL COVER THAT IN A SLIDE IN JUST A FEW MINUTES.
OUR SERVICE FUNDING IS BASED ON OUR AUGUST SERVICE PLAN CHANGES, WHICH THE BOARD HAS BEEN BRIEFED ON.
AND OF COURSE, WE ALWAYS LOOK AT CUSTOMER FOCUSED TRANSIT INFRASTRUCTURE PROJECTS IN OUR BUDGET DEVELOPMENT.
THIS IS A SUMMARY OF OUR OPERATING BUDGET.
ON THE LEFT HAND SIDE, YOU CAN SEE THAT WE'VE PROJECTED $513.5 MILLION IN REVENUE, OF WHICH 78% IS SALES TAX.
SO WE'RE HEAVILY DEPENDENT ON SALES TAX AND GRANTS IN OUR ANNUAL FUNDING.
OUR GRANTS INCLUDE OUR 53 53 0 7 FORMULA FUNDS AND OUR OPERATING CONTRIBUTIONS FROM THE AT AUSTIN TRANSIT PARTNERSHIP FOR PROJECT CONNECT.
ON THE RIGHT HAND SIDE, WE'RE PROJECTING $448.5 MILLION OF OPERATING EXPENSE.
YOU CAN SEE FROM THE PIE CHART THAT MOST OF THAT IS FOR PURCHASE TRANSPORTATION, UM, BUT WE ALSO DO HAVE OUR ADMIN PERSONNEL EXPENSE SERVICES AND OTHER LINE ITEM AND THEN FUEL, WHICH I'LL COVER IN A MINUTE ALSO.
SO, SO OUR OPERATING COSTS, AS I SAID, IT'S BASED ON OUR AUG, OUR AUGUST SERVICE PLAN.
OUR FIELD PRICES WILL REMAIN STABLE INTO THE NEXT YEAR.
WITH OUR HEDGING PROGRAM IN PLACE, WE'RE ESTIMATING $2 AND 75 CENTS PER GALLON FOR DIESEL.
IT'S INCLUSIVE OF TAX AND NET OVER HEDGING ACTIVITIES.
SO WE'RE ABOUT 56% HEDGED FOR THE PROJECTED FUEL USAGE FOR NEXT YEAR.
AND THE GOOD NEWS ALSO LAST THREE YEARS PLUS NEXT YEAR, WE'RE OVER $13 MILLION OF REALIZE AND UNREALIZED GAINS IN OUR HEDGING PROGRAM.
SO WE'VE DONE VERY WELL THERE.
WE DO HAVE FUNDING TO CONTINUE AND A POSSIBLE ONE ZONE EXPANSION OF OUR PICKUP AND AVAILABLE
[01:20:01]
MOBILITY PROGRAM.WE HAVE AN ANNUALIZED PAY INCREASE FOR ADMINISTRATIVE EMPLOYEES, WHICH IS PERFORMANCE BASE.
AND OF COURSE WE DO USE OUR STRATEGIC PLAN WHEN WE DO OUR BUDGET PREPARATION.
THIS IS JUST A CHART OF OUR OPERATING EXPENSE COMPARISON.
AND THE FIRST COLUMN IS OUR ACTUAL RESULTS FROM LAST FISCAL YEAR IN 23.
WE'VE ALSO DETAILED OUR CURRENT FISCAL 24 FORECAST AND BUDGET.
AND THEN IN THE FOURTH COLUMN IS OUR PROPOSED 2025 OPERATING EXPENSE BUDGET ITEMS AS WELL FOR SALARIES AND BENEFITS INCLUDES, UM, INCREASES FOR MERIT PENSION AND BENEFITS.
PROFESSIONAL SERVICES HAVE DECLINED SLIGHTLY.
AND THEN THE MA MAJORITY OF THE SHARE OF OUR INCREASE IS IN PURCHASE TRANSPORTATION, WHICH INCLUDES THE PASS THROUGH EXPENSE OF BUS AND DEMAND RESPONSE, WHICH YOU GUYS APPROVED TODAY.
AND ADDITIONAL CAP METRO RAPID HOURS, WHICH WILL BE THE BEGINNING OF REVENUE SERVICE FOR OUR EXPO IN PLEASANT VALLEY LINES IN CALENDAR YEAR 2025 AND SLIGHT INCREASE IN CAP, METRO BUS AND CAP METRO ACCESS HOURS AS WELL.
SO HERE'S OUR DETAIL OF OUR SERVICE LEVELS.
WE PROVIDED FUNDING FOR 2.3 MILLION HOURS OF FUNDING NEXT YEAR.
WE'RE BUDGETED THIS YEAR, JUST SLIGHTLY BELOW THAT AT 2.23 MILLION IN THE CURRENT YEAR.
WE'LL PROBABLY COME A LITTLE SHORT OF THAT.
WE'LL BE PROBABLY JUST SLIGHTLY OVER 2 MILLION HOURS AGAIN, AS WE HISTORICALLY HAVE BEEN IN FISCAL YEARS 21, 2, AND THREE FOR REVENUES OR FAIR REVENUES BASED ON A CONTINUING RETURN OF RIDERSHIP NEXT YEAR.
AND I'LL CHART THAT OUT IN JUST A MOMENT.
OUR FEDERAL GRANTS HAVE APPROXIMATELY $44.2 MILLION IN OUR SECTION 53 0 7 FUNDS.
AND THEN WE'RE ON TARGET NOW ON OUR FREIGHT RAILROAD REVENUE SIDE OF THE FENCE ALSO.
SO THIS IS THE SAME DEPICTION FOR OUR REVENUE COMPARISON.
WE HAVE OUR ACTUAL 2023 REVENUE VERSUS 24 FORECAST AND BUDGET, AND THEN OUR PROPOSAL FOR NEXT YEAR'S BUDGET AT JUST OVER $601 MILLION.
AS I MENTIONED BEFORE, WE'RE PROJECTING 3% INCREASE IN SALES TAX.
OUR OPERATING GRANTS LINE ITEM INCLUDES THE 53 0 7 FUNDING AND OUR OPERATING CONTRIBUTIONS FROM A TP FOR THE PROJECT CONNECT SEQUENCE PLAN.
AND THEN OUR CAPITAL GRANTS AND CONTRIBUTIONS INCLUDE THE SMALL START GRANTS FOR EXPO AND PLEASANT VALLEY, OUR RED LINE DOUBLE TRACKING RAISE GRANT, OUR DEMAND RESPONSE BUS AND BUS FACILITIES GRANT, AND THEN 53 39 A AND 53 37 FORMULA FUNDS AS WELL.
HERE'S A GRAPH OF OUR SALES TAX AND HOW WE'VE PERFORMED SINCE FISCAL YEAR 2020.
OF COURSE, THE PANDEMIC REALLY, UM, SLOWED DOWN AND STAGGERED OUR SALES TAX COMING OUT OF 2020.
WE DID HAVE A NICE INCREASE THROUGH 22 AND WE'RE PROJECTING OUR SALES TAX TO BE ABOUT SIX TO $7 MILLION BELOW OUR CURRENT FISCAL YEAR 2024 BUDGET AND OUR FORECAST, UM, WHICH DOES SLOW DOWN OUR BUDGET YEAR FOR 2025.
AND THAT'S WHY IT WAS SO NECESSARY THIS YEAR TO, YOU KNOW, CURTAIL AND BRING OUR OPERATING EXPENSES BACK IN LINE TO MATCH THAT.
THIS IS A RIDERSHIP SUMMARY FROM 2021 FOR THREE ACTUAL YEARS, OUR CURRENT YEAR BUDGET AND NEXT YEAR'S, UM, BUDGET AND FORECAST AS WELL.
SO WE'RE GETTING BACK, UM, OUR LOSSES IN RIDERSHIP THAT HAPPENED SINCE THE PANDEMIC.
WE'RE BUDGETING ALMOST 28 MILLION RIGHTS NEXT YEAR.
SO THAT'S GOOD NEWS ON OUR CAPITAL BUDGET.
SOME OF OUR HIGHLIGHTS, WE DO HAVE OUR NORTH BASED DEMAND RESPONSE OPERATIONS AND MAINTENANCE FACILITY, WHICH IS BEING BUILT.
OUR BROADMOOR RAIL STATION, WE HAVE NUMEROUS BUS STOP ENHANCEMENTS AND IMPROVEMENTS, WHICH THE BOARD HAS BEEN BRIEFED ON.
WE'RE GONNA BUILD OUT OUR NEW HEADQUARTERS RIGHT NEXT DOOR HERE TO 29 10.
AND OF COURSE, WE'RE PARTNERING WITH THE CITY OF AUSTIN FOR CAP METRO BIKE SHARE SYSTEM REPLACEMENT AND EXPANSION OVER THE NEXT FEW YEARS AS WELL FOR PROJECT CONNECT, I MENTIONED OUR TWO METRO RAPID LINES EXPO AND PV.
WE HAVE FUNDING FOR VEHICLE STATIONS AND ELECTRIC CHARGING.
WE HAVE A SOUTH BASED DEMAND RESPONSE OPERATIONS AND MAINTENANCE FACILITY FUNDING INSIDE THE CAPITAL PLAN.
CONTINUED IN NEW PICKUP ZONES.
OUR MASTER FACILITY PLAN EXPANSION RIGHT NOW WE'RE, YOU KNOW, WE'RE GETTING READY TO, FOR THOSE TWO LINES TO GO INTO REVENUE SERVICE.
SO OF COURSE WE NEED TO GET READY FOR THAT THROUGH ORGANIZATIONAL DEVELOPMENT, OPERATIONAL READINESS.
AND THEN WE HAVE A NUMBER OF ILAS STILL TO, UM, SIGN AND AGREE UPON WITH AUSTIN TRANSIT PARTNERSHIP FOR THE PROJECT CONNECT SEQUENCE PLAN.
HERE'S OUR CAPITAL, UM, PLAN FOR THE NEXT FIVE YEARS.
ALL OF THE DIFFERENT CATEGORIES ARE IN THE ROWS,
[01:25:01]
OR FIVE FISCAL YEARS ARE IN THE COLUMN.SO WE'RE PROJECTING $229.8 MILLION FOR NEXT YEAR, A FIVE YEAR TOTAL OF ALMOST $730 MILLION FOR OUR CAPITAL PLAN.
AND THEN WE'VE BROKEN IT DOWN IN THE MIDDLE FOR LOCAL FUNDING GRANTS AND CONTRIBUTIONS.
SO THE LOCAL FUNDING'S ABOUT 65% OF THE PLAN.
AND THEN AT THE BOTTOM WE'VE BROKEN IT DOWN BY ENHANCEMENT OR STATE OF GOOD REPAIR.
SO WE'RE, YOU KNOW, WE'RE HEAVY INTO A HIT ENHANCEMENT NOW.
IT USED TO BE FLIPPED AROUND, BUT WE HAVE A NUMBER OF PROJECT CONNECT PROJECTS, WHICH ARE ENHANCEMENTS ALONG WITH OUR FACILITIES, WHICH OF COURSE COST A LOT OF MONEY.
AND JUST TO SUMMARIZE THE BUDGET FOR OUR FUND BALANCE, WE'RE PROJECTING TO BEGIN THE YEAR JUST OVER $393 MILLION WHEN YOU ADD IN THE REVENUE TAKE AWAY WHEN OPERATING EXPENSES OR CAPITAL PLAN FOR NEXT YEAR.
WE HAVE AN ANNUAL CONTRIBUTION TO THE PROJECT CONNECT SEQUENCE PLAN OF 21.2 MILLION.
AND THEN OUR INTERLOCAL AGREEMENTS, WHICH IS MAINLY COMPRISED OF, YOU KNOW, CITY OF AUSTIN QUARTER CENT AND THE SMALL CITY'S INFRASTRUCTURE FUND, WE'RE PROJECTING TO END THE YEAR JUST SHY OF $290 MILLION.
SO WE'RE, WE'RE IN VERY GOOD FINANCIAL HEALTH, BUT YOU KNOW, WITH RISING OPERATING COSTS, DIMINISHING SALES TAX, WE NEED TO BE VERY PRUDENT, VERY CAREFUL STEPPING INTO THE FUTURE.
AND THEN ON THE RIGHT HAND SIDE IN THE DONUT CHART, WE'VE BROKEN DOWN THE $289.7 MILLION.
AND THEN A REMAINDER OF JUST OVER $138 MILLION DEDICATED TO THE NEXT FOUR YEARS OF OUR CAPITAL PLAN.
JUST TO REMIND THE BOARD THAT WE DO USE A LONG RANGE FINANCIAL PLAN, UM, FOR FINANCIAL PLANNING FOR THE AGENCY, WE DO HAVE A ONE-TIME ACCUMULATED FUNDING AVAILABLE FOR CAPITAL INVESTMENTS.
AND THE CHART, ALL THE BLUE BARS ARE THE OPERATING EXPENSE PROJECTED FOR THE NEXT 10 YEARS.
ORANGE BAR IS CAPITAL PROJECTS NET OF GRANT REVENUE.
YELLOW IS OUR ANNUAL CONTRIBUTION TO THE PROJECT CONNECT SEQUENCE PLAN.
AND THEN THE GREEN LINE WOULD BE OUR REVENUES THAT WE'RE PROJECTING FOR 10 YEARS.
SO WE DO HAVE ONGOING REVENUE ASSUMPTION SUFFICIENT TO FUND OUR OPERATIONS FOR THE NEXT THREE YEARS THROUGH FISCAL YEAR 2027.
OF COURSE, WE RE-LOOK AT THAT EVERY YEAR AND TRY TO EXTEND THAT OUT.
WE DO HAVE SIGNIFICANT BUDGET RISK IF SALES TAX GROWTH DOESN'T DEVELOP AS WE PROJECT THOUGH.
AND THEN JUST THE NEXT STEPS OF OUR BUDGET CYCLE, WE'LL REVIEW THE SAME BUDGET PROPOSAL WITH ALL THREE BOARD ADVISORY COMMITTEES IN AUGUST.
WE'LL PUBLISH OUR DRAFT BUDGET BUDGET DOCUMENT ONLINE BY THE 23RD OF AUGUST.
WE'LL HOLD OUR PUBLIC OUTREACH ACROSS THE SERVICE PLUS PROVIDE A VIRTUAL OPTION.
WE'LL GIVE UPDATES TO THE COMMITTEE IN AUGUST AND SEPTEMBER IF NECESSARY, WE'LL HOLD OUR PUBLIC HEARING IN SEPTEMBER FOR THE BUDGET AND CAPITAL IMPROVEMENT PLAN, AND THEN ASK THE BOARD IN SEPTEMBER FOR FINAL APPROVAL.
AND THEN OUR CFO WILL BE BACK LATER IN THE CALENDAR YEAR TO GIVE AN UPDATE TO THE BOARD ON THE LONG RANGE FINANCIAL PLAN AS WELL.
AND THAT'S GONNA CONCLUDE MY PRESENTATION, BUT I'D BE HAPPY TO ANSWER ANY QUESTIONS.
TAKE ANY COMMENTS THOUGH, BOARD MEMBERS? GO AHEAD.
BOARD MEMBER THE, UH, SALES TAX PROJECTIONS, YOU'RE PROJECTING A 3%, UH, SALES TAX, UH, GROWTH BE FOR THIS COMING BUDGET YEAR, RIGHT? FOR THE YEAR STARTING IN OCTOBER, WE'RE PROJECTING 3% GROWTH OVER OUR CURRENT FISCAL YEAR.
RIGHT NOW, RIGHT NOW WE'RE DOWN ABOUT $5 MILLION IN THE CURRENT FISCAL YEAR THROUGH MAY OF 24.
AND REMIND ME, WHAT WAS THE PROJECTION PROJECTION LAST YEAR? THIS CURRENT YEAR WE PROJECTED 4.5%.
AND WHAT IS IT COMING IN AT ABOUT? WE'RE SITTING AT 2.48% AT THE MOMENT.
WE HAD REALLY, WE HAD THREE REALLY GOOD MONTHS IN FEBRUARY, MARCH, AND APRIL, AND THEN WE HAD A MAY RECEIPT THAT WAS WELL BELOW OUR BUDGET THOUGH.
BOARD MEMBERS, ANY ADDITIONAL QUESTIONS? ANY ADDITIONAL QUESTIONS? OKAY.
UM, CERTAINLY LOOK FORWARD TO, UM, TO HOW WE MOVE FORWARD AS AN ORGANIZATION.
I, MR. CHAIR, I I THINK I DO HAVE ONE QUESTION.
UM, SO BASED ON THAT LAST CHART, THE, UH, LONG RANGE FINANCIAL MODEL, UM, Y YOU MENTIONED IN THERE THAT, UH, UH, WHERE OUR OPERATIONS OF CAPITAL LEADS ARE, WELL, PRETTY WELL FUNDED THROUGH FY 27, UM, UH, UNDER CURRENT ASSUMPTIONS, WHAT HAPPENS AFTER THAT? IS IT, AT THAT POINT, DO WE, WHAT TENDS TO BE THE FIRST THING THAT WE'D WANT TO DO IF WE'RE STARTING TO LOOK AT SOME, SOME CHANGES IN BELL TIGHTENING? IS THAT WHERE WE WOULD BE FIRST JIGG OUR, UM, UH, LIKE OUR CAPITAL, OUR OUR, UM, CAPITAL PROJECTS? OR WOULD WE BE LOOKING AT, UM, CUTTING BACK SOME OF THE OPERATION EXPENSES? WHAT TYPICALLY, THE REASON I ASK THESE,
[01:30:01]
THIS, THESE KIND OF QUESTIONS IS BECAUSE UP TILL NOW IN, IN MY, WHAT IS IT NOW, SIX YEARS ALMOST ON THE BOARD, WE, WE'VE NOT BEEN HAVING THESE KINDS OF CONVERSATIONS OR EVEN KIND OF PUTTING A, A LITTLE ASTERISK ERA OF, HEY, FYI, THIS COULD BE HAPPENING AT SOME POINT.'CAUSE WE'VE HAD, YOU KNOW, MORE ROBUST WITH THE EXCEPTION OF, OF COVID, WHICH, AND AGAIN, WAS MANMADE.
WE ALL KNEW AND WE KNEW THAT IT WAS GONNA BE KIND OF POTENTIALLY SHORT-LIVED AND WE'D REBOUND.
RIGHT NOW, WE ACTUALLY MONITOR EVERY MONTH.
SO WE'RE NOT WAITING TILL 27 OF COURSE, TO TAKE ACTION ON IT.
WE TOOK, UM, WE'VE PROBABLY DONE, YOU KNOW, 10 ROUNDS OF CUTS THIS YEAR IN THE BUDGET PROCESS INVOLVING EVERYBODY UP TO DOTIE ON THOSE CUTS.
SO WE'VE ACTUALLY CUT A LOT OF THE OPERATING EX EXPENSE.
WE'RE BASICALLY FLAT OTHER THAN DIRECT OPERATIONS, YOU KNOW, PAYING OUR OPERATORS, PAYING OUR MECHANICS, ET CETERA.
SO WE'RE BASICALLY FLAT YEAR OVER YEAR IN A BUDGET.
THAT WAS ONE STEP IS TO GET THE OPERATING EXPENSE CUT BACK DOWN.
WE DID NUMEROUS CUTS IN OUR CAPITAL PROGRAM.
NOT TO SAY THAT WE CUT OUT PROJECTS, BUT WE, YOU KNOW, MADE A MORE REALISTIC FOR EACH AND EVERY PROJECT.
WHAT WILL WE ACTUALLY SPEND NEXT YEAR IN 2025? WHAT WILL WE ACTUALLY SPEND OVER THE FIVE YEAR CAPITAL PROGRAM? SO THAT, YOU KNOW, WAS A HUGE EFFORT THIS YEAR AS WELL.
UM, WE UPDATE OUR MODEL PROBABLY 50 TIMES A YEAR, SO WE'RE CONSTANTLY MONITORING OUR SALES TAX ON A MONTHLY BASIS.
WE GO TO THE SENIOR EXECUTIVE TEAM MONTHLY ALSO WITH RESULTS, UM, JUST LIKE IN COVID IF WE NEED TO, IF SALES TAX CONTINUES TO DIMINISH OR IF IT DIMINISHES MORE.
NOW THE GOOD NEWS, WE'RE NOT DOWN, WE'RE STILL UP 2.48%.
SO THAT'S, YOU KNOW, IT'S NOT ALL DOOM AND GLOOM, RIGHT? WE'RE STILL UP, BUT WE WILL TAKE ACTION THROUGHOUT THE FISCAL YEAR IF WE NEED TO IN CUTTING BACK BOTH, YOU KNOW, NOT SERVICE BUT OPERATING AN EXPENSE WHERE WE CAN AND CAPITAL PROGRAMS. WE COULD POTENTIALLY PLACE THOSE ON HOLD AND THEN A YEAR FROM NOW, WE'LL ACTUALLY FEBRUARY JUST AROUND THE CORNER, WE'LL BE ADDED AGAIN.
SO OF COURSE WHEN WE'RE AT AGAIN FOR THE 26TH CYCLE, WE'RE GONNA ALSO TRY TO EXTEND OUT PAST 27 TO BE BALANCED AS WELL.
APPRECIATE THE UPDATE AND ALL THE HARD WORK.
ALRIGHT, ANY ADDITIONAL QUESTIONS? BOARD MEMBERS? ANY QUESTIONS? OKAY, HEARING NONE, UH, IT LOOKS LIKE WE'VE GOT ONE
[VIII.1. President & CEO Monthly Update - July 2024]
FINAL ITEM BEFORE WE GO INTO EXECUTIVE SESSION AND THAT WILL BE OUR MONTHLY REPORT FROM OUR PRESIDENT AND CEO, UH, CEO WATKINS, PLEASE.JUST A, A FEW THINGS TO HIGHLIGHT.
UM, THIS MONTH IT'S BEEN, UM, A NICE HOT SUMMER, BUT IT HASN'T SLOWED US DOWN MUCH AT ALL.
UM, FIRST OFF, UM, WE'D LIKE TO, UM, RECOGNIZE OUR FRONTLINE EMPLOYEES THIS MONTH.
WE WELCOME OVER 175 FRONTLINE TEAM MEMBERS.
UM, THAT INCLUDES BUS OPERATORS, DEMAND RESPONSE TEAM MEMBERS, MECHANICS, RAIL CONDUCTORS, PUBLIC SAFETY AMBASSADORS, AND CUSTOMER CARE TEAM MEMBERS.
UM, WE LOVE TO CELEBRATE OUR FRONTLINE GRADS BECAUSE WE KNOW THAT THE WORK THAT, THAT THEY REALLY DO THE TRUE WORK OF CAP METRO AND THAT THEY ARE, UM, LITERALLY THE EYES, EARS, HANDS AND FEET OF, OF PROVIDING SERVICE TO THIS COMMUNITY.
AND SO, UM, WE ARE VERY EXCITED TO WELCOME THEM ABOARD, UM, AND SHOW THERE A FEW PICTURES OF NOT JUST THE GRADUATES THEMSELVES, BUT ALSO OUR, OUR TOKEN.
WE, UM, AWARD EACH OF THEM WITH A MEDAL, UM, WELCOMING THEM TO THE CATME FAMILY THAT HOPEFULLY, UM, THEY'LL HOLD ONTO FOR THE NEXT 30, 40 YEARS AS THEY WORK OUT THEIR CAREERS WITH US.
UM, HINT, HINT, UM, HIT THE WRONG BUTTON THERE.
UM, IN TERMS OF APTA, THE AMERICAN PUBLIC TRANSPORTATION ASSOCIATION HELD THIS MONTH, UM, IT REALLY JUST LAST WEEKEND, IT FEELS LIKE IT WAS LONGER AGO THAN THAT.
UM, THE TRANSIT BOARD MEMBERS AND TRANSIT BOARD ADMINISTRATORS CONFERENCE IN SAN JOSE, CALIFORNIA.
UM, I WAS HONORED TO BE JOINED BY OUR CHAIR JEFF TIAN ON A PANEL, UM, WITH THREE OTHER TRANSIT SYSTEMS, CEOS AND BOARD MEMBERS TO TALK ABOUT, UM, THAT CRITICAL RELATIONSHIP BETWEEN TRANSIT CEOS AND THEIR BOARD MEMBERS.
THIS IS A SEMINAR ATTENDED BY TRANSIT BOARD MEMBERS FROM THROUGHOUT THE COUNTRY, UM, TO LEARN HOW TO BE BETTER BOARD MEMBERS TO UNDERSTAND THE INTRICACIES OF TRANSIT.
UM, JUST LIKE THIS BOARD, THE VAST MAJORITY OF BOARD MEMBERS, UM, IN THE TRANSIT INDUSTRY SPACE ARE NOT PUBLIC TRANSPORTATION EXPERTS.
THEY ARE, UM, ELECTED AND APPOINTED EXPERTS FROM OTHER FIELDS THROUGHOUT THEIR COMMUNITIES.
UM, AND SO IT WAS A GREAT OPPORTUNITY TO, TO SHARE WITH THEM.
I ALSO WANT TO HIGHLIGHT THAT OUR VERY OWN CAP METRO BOARD MANAGER, ED EASTON, UM, CO-PRESENTED A SESSION WITH HIS COUNTERPART FROM THE ROCHESTER REGIONAL TRANSIT SERVICE ON KEY ASPECTS FOR ESTABLISHING A SUCCESSFUL BOARD.
SO AS EVIDENCED BY THE GREAT WORK OF THIS BOARD, WE KNOW THAT THEY WERE GETTING TOP NOTCH INFORMATION FROM MR. EASTON AND I CAN SAY THAT WE HAD, UH, THE BEST CEO AND ADMINISTRATIVE TEAM THERE.
[01:35:01]
ON MAY 23RD, CAP METRO WAS GRANTED THE OFFICIAL AUTHORITY TO CREATE OUR OWN TRANSIT POLICE DEPARTMENT, PROVIDED THAT WE APPOINT THE CHIEF OF POLICE, UM, TO THE TEXAS COMMISSION ON LAW ENFORCEMENT T COLE.
I WAS LIKE, DID I SAY THAT RIGHT? I ALWAYS JUST SAY T COLE.
UM, AFTER COMPLETING A DETAILED BACKGROUND INVESTIGATION IN VARIOUS EXAMINATIONS, I AM PLEASED TO ANNOUNCE THAT T COLE HAS APPROVED ERIC ROBBINS AS OUR FIRST CHIEF OF POLICE.
UM, UNFORTUNATELY MR. ROBBINS IS NOT ABLE TO BE HERE WITH US TODAY.
CHIEF ROBBINS, AS WE ALL IMMEDIATELY BEGAN CALLING HIM, UM, HAD ANOTHER COMMITMENT IN THE COMMUNITY.
UM, BUT WE LOOK FORWARD, UM, IN THE NEAR FUTURE TO HAVE A FORMAL SWEARING IN CEREMONY, UM, FOR HIM AND THE TWO OTHER INDIVIDUALS WHICH ARE CURRENTLY EMPLOYED AS ADMINISTRATIVE STAFF THAT WILL, UM, SOON BECOME OUR SECOND AND THIRD, UM, OFFICERS WITHIN THE ORGAN, THE OUR POLICE DEPARTMENT.
SO, UM, AS WE'VE, WE'VE SPOKEN TO THIS BOARD ABOUT MANY TIMES, THE TRANSIT POLICE DEPARTMENT CREATION IS THE THIRD IN A THREE-LEGGED STOOL OF APPROACHES TO MANAGING PUBLIC SAFETY AND, UM, PUBLIC SAFETY CONCERNS ON OUR SYSTEM.
AND SO, UM, WE'RE VERY EXCITED ABOUT THIS MILESTONE, UM, AND LOOK FORWARD TO ADDING, UM, HAVING A COMPLETE STOOL.
IT'LL BE A LITTLE LESS WOBBLY WITH THE THIRD LEG, UM, THAN IT IS TODAY.
UM, NEXT UP WE HAVE STATION D INSTALLATION.
NOT ALWAYS SOMETHING WE GET SUPER EXCITED ABOUT, BUT WE ARE VERY EXCITED ABOUT THIS ONE.
OUR TEAMS HAVE BEEN HARD AT WORK, DALLING METRO BIKE STATIONS AND PREPARING TO I, UM, IMPLEMENT OUR CAP METRO BIKE SHARE STATIONS.
UM, WE ARE EXCITED TO BE BRINGING NEW STATIONS AND NEW BIKES THROUGHOUT THE COMMUNITY AS WE UPGRADE THE BIKE SHARE PROGRAM.
WE CLOSED METRO BIKE SERVICE ON JULY 1ST TO ALLOW FOR THIS.
UM, THERE'S A LOT OF PHYSICAL REMOVAL OF ALL THE THINGS IN THE STREET HAVE TO COME OUT SO THAT NEW THINGS CAN GO IN THE STREETS SO THAT FANCY NEW BIKES CAN CONNECT TO THE NEW THINGS.
UM, THAT'S THE TECHNICAL DESCRIPTION OF THE WHOLE PROCESS.
UM, WE ARE INSTALLING THOSE UPGRADED STATIONS AS WE SPEAK.
UM, THE, THE EASILY ONE OF THE BEST FEATURES OF THE NEW BIKES IS THAT THE ENTIRE FLEET WILL BE THE ELECTRIC ASSIST BIKES, WHICH MAKE THEM MUCH MORE CONDUCIVE FOR THE CASUAL RIDER, UM, AND MUCH MORE APPROPRIATE FOR THE HILLY, UM, DOWNTOWN AUSTIN AND CENTRAL AUSTIN AREAS.
UM, WE'LL ALSO BE ROLLING OUT A NEW CAT METRO BIKESHARE APP, UM, THROUGHOUT THE REST OF THE SUMMER AND, UM, EARLY FALL WE WILL, UM, BE, UH, HAVE A KIND OF SLOW ROLLING OUT OF THE NEW STATIONS AS THE NEW STATIONS COME ONLINE, UM, WITH THE EXPECTATION OF HAVING ALL OF THEM INSTALLED, UM, BY THE END OF SEPTEMBER.
UM, AND THEN WE WILL BEGIN IN THE ANALYSIS AND CONTINUE OUR EFFORTS ON EXPANDING THE PLAN, UM, AS WE HAVE BEEN TALKING ABOUT WITH OUR PARTNERS AT THE CITY OF AUSTIN WHO SECURED A GRANT TO HELP EXPAND THE PROGRAM, UM, GOING FORWARD.
SO WE'RE VERY EXCITED ABOUT THAT.
SO APOLOGIES TO ALL THE CYCLISTS OUT THERE IN THE WORLD THAT WE DON'T HAVE A BIKE SHARE PROGRAM AVAILABLE TO YOU TODAY.
IT'S KIND OF HOT FOR THAT ANYWAY.
YOU CAN RIDE 24 7, 7 DAYS A WEEK
UM, BUT WE ARE WORKING AND WE'LL HAVE, UM, THOSE COMING BACK ONLINE VERY SOON.
AND THEN JUST A FEW NOTES OF ITEMS, UM, TO BE LOOKING AHEAD, UM, FOR, AND THINGS THAT WE ARE CURRENTLY TALKING TO OUR COMMUNITY ABOUT.
UM, THE FIRST THERE IN THE TOP RIGHT HAND CORNER, YOU'LL SEE A RENDERING OF OUR NORTH BASED DEMAND RESPONSE FACILITY IN CENTRAL WAREHOUSE, AS WAS, UH, MENTIONED BY OUR VICE PRESIDENT KEN CARTWRIGHT WHEN HE PRESENTED THE LEASE ITEM EARLIER TODAY.
THIS WILL BE THE FUTURE PERMANENT HOME OF OUR NORTH DEMAND RESPONSE OPERATIONS.
UM, CAPITAL METRO HAS NEVER HAD A PERMANENT NORTH DEMAND RESPONSE OPERATION, UM, SINCE WE'VE HAD THE SEPARATE FACILITIES, IT'S ALWAYS BEEN LEASED.
AND SO ONE OF OUR GOALS IN OUR FACILITY MASTER PLAN IS TO BE ABLE TO, UM, UPGRADE THE FACILITIES THAT WE USE AND ALSO, UM, HAVE MORE SUSTAINABLE AND RELIABLE FACILITIES BY OWNING THE FACILITIES OURSELF.
UM, SO WE ARE CONSTRUCTING A LEAD CERTIFIED SUSTAINABLY BUILT, UM, AND THOUGHTFULLY DESIGNED FACILITY.
UM, IT WILL INCLUDE THE NORTH DEMAND RESPONSE FACILITY AS WELL AS THE PERMANENT LOCATION OF OUR CENTRAL WAREHOUSE FOR MAINTENANCE PARTS AND OTHER GADGETS AND DO HICKEYS THAT WE NEED TO STORE.
UM, THIS DEVELOPMENT NOT ONLY CREATES WORKFORCE OPPORTUNITIES, BUT IS INTENDED TO SUPPORT THE LOCAL COMMUNITY, UM, AND IS PARTIALLY FUNDED BY A GRANT FROM THE FEDERAL TRANSIT ADMINISTRATION.
UM, WE HAVE BEEN DOING PUBLIC OUTREACH AND RECEIVE FEEDBACK ON THIS FACILITY, UM, AND FUTURE PROJECT COMMUNICATIONS FROM OUR COMMUNITY AS RECENTLY AS THIS LAST WEEK.
UM, ANOTHER THING THAT WE ARE VERY EXCITED ABOUT COMING UP IN THE UPCOMING FISCAL YEAR AS WE LOOK TO LAUNCH PICKUP DECKER, UM, THE DECKER ZONE, UM, OUT NEAR, UM, THE TRAVIS COUNTY EXPO CENTER, UM, HAS BEEN ON THE, UM, PLANNING MAPS FOR A GOOD WHILE AND THIS SUMMER WE HAVE KICKED OFF OUR, UM, PUBLIC
[01:40:01]
ENGAGEMENT TO UNDERSTAND HOW THAT COMMUNITY AND THOSE NEIGHBORS GET AROUND TO MAKE SURE THAT WHAT WE HAVE SEEN ON THE MAP AS WHAT WE THINK TO BE A GOOD ZONE INCORPORATES THE COMMON ORIGINS AND DESTINATIONS THAT THEY WILL BE, UM, LOOKING TO TO SERVE.WE DO HAVE AN IN-PERSON OPEN HOUSE ON JULY 25TH, UM, AT 6:00 PM AT THE UNIVERSITY HILLS AUSTIN PUBLIC LIBRARY IN A VIRTUAL OPEN HOUSE ON JULY 31ST AT 6:00 PM I CAN FEEL THE CHAIR WANTING TO SAY SOMETHING ABOUT THAT.
DID YOU WANNA SAY SOMETHING ABOUT THAT? WELL, UM, NO, I'M JUST HAPPY THAT THINGS ARE, ARE MOVING FORWARD.
UH, IT'S, IT'S AN AREA WHERE RIGHT NOW THERE'S A LARGE HEADWAY AND HOPEFULLY, UM, AS, AS WE SEE A PARK AND RIDE COMING AS, UH, WE SEE THE ABILITY TO WORK NOT ONLY WITH, UM, WITH DECKER LANE, WHICH HAS A MAINOR ISD SCHOOLS, WE'LL WE'LL STILL BE LOOKING AT COLONY PARK, WHICH HAS A ISD SCHOOLS.
SO HOW DO WE MAKE SURE THAT, THAT WE ARE SERVING THOSE AREAS WELL? SO I'M VERY EXCITED ABOUT THE POSSIBILITIES.
WE ARE EXCITED ABOUT YOUR EXCITEMENT, SO THAT'S A GOOD THING.
AND THEN LASTLY, WE ARE CURRENTLY WORKING ON TRANSIT PLAN 2035, WHICH IS OUR, UM, STEP-BY-STEP RECOMMENDATION FOR IMPROVING OUR SERVICES.
IT WILL INCLUDE A FIVE AND 10 YEAR LOOK AT WHAT OUR TRANSIT SERVICES NEED TO LOOK LIKE.
UM, WE'VE REALLY JUST LAUNCHED THIS EFFORT AND ONE OF THE FIRST THINGS WE NEED TO DO IS FIND COMMUNITY MEMBERS TO HELP US CREATE THIS TRANSIT PLAN AND CONNECT WITH THEIR NEIGHBORS AND THEIR COMMUNITIES, UM, TO HELP FOSTER A COMMUNITY LED DECISION MAKING PROCESS.
UM, TO DO THAT WE'LL BE, UM, WE ARE LOOKING FOR COMMUNITY CONNECTORS.
UM, THIS IS A PROGRAM WE'VE USED UNDER PREVIOUS PLANNING EFFORTS WHERE WE LOOK FOR FOLKS THROUGHOUT THE REGION, UM, WHO CAN HELP US GET THE RIGHT TALK TO THE RIGHT FOLKS WHO CAN TALK TO THEIR NEIGHBORS AND NEIGHBORHOOD ASSOCIATIONS ON OUR BEHALF, UM, WHO ARE WELL INFORMED AND WHO ARE PAID FOR THEIR TIME.
AND SO IF YOU KNOW OF ANYONE WHO YOU THINK, UM, HAS A GREAT NETWORK AND WOULD BE HAS THE HEART OF A PUBLIC SERVANT, WE WOULD LOVE TO HAVE THEM ENGAGED IN THIS EFFORT.
WE ARE CURRENTLY ACCEPTING THOSE APPLICATIONS, UM, THROUGH THE FIRST WEEK OF AUGUST.
UM, AND THAT'S ON BOARD ON OUR, ON OUR WEBSITE.
UM, WE LOOK FORWARD TO HAVING OUR FIRST ROUND OF PUBLIC ENGAGEMENT, UM, IN MID-SEPTEMBER.
UM, AND THEN LASTLY, UM, ONE, NOT IN THE REPORT ITEM, I JUST WANT TO SAY, AND ENORMOUS THANK YOU TO OUR IT TEAMS AND ALL OF THE CATME STAFF THAT HELPED US RECOVER FROM, UM, THE MICROSOFT ISSUES.
UM, WE LIKE MANY, MANY GREAT ENTITIES AROUND US, UM, RELY ON THE LOCAL, UM, CROWDSTRIKE, UM, ENTITY TO HELP US PROVIDE CYBERSECURITY.
UM, WE HAD THE GOOD FORTUNE OF BEING A 24 7 OPERATION, SO WE KNEW LONG BEFORE MANY OTHER ORGANIZATIONS HAD GOTTEN OUT OF BED THAT WE HAD A PROBLEM.
IT DID TAKE US ABOUT FIVE HOURS TO RECOVER THE SYSTEM.
UM, BUT WE WERE BACK IN BUSINESS RIGHT AROUND THE TIME THE RUSH HOUR STARTED, UM, AND WERE ABLE TO, UM, MANUALLY DEPLOY OUR FLEET AND THEN GET EVERYTHING BACK UP AND RUNNING.
UM, TOO MANY NAMES TO OFF TO TO TRY AND OFFER THEM UP, BUT I JUST WANNA SAY THANK YOU TO THE MANY, MANY OPERATIONS IT, UM, AND SUPPORT PROFESSIONALS WHO GOT UP IN THE MIDDLE OF THE NIGHT TO MAKE SURE THAT WE WERE READY TO SERVE OUR COMMUNITY THE NEXT DAY.
UM, THAT STUFF DOESN'T JUST HAPPEN BY ACCIDENT, IT HAPPENS BECAUSE WE HIRE GREAT FOLKS AND WE HAVE GOOD PLANS FOR, UM, INCIDENTS LIKE THAT.
AND SO AS MUCH AS NOBODY LIKES TO SEE THOSE DAYS, I WAS QUITE PROUD OF HOW THE TEAM RESPONDED.
UM, AND THAT CONCLUDES MY PRESIDENT'S REPORT.
[IX. Executive Session ]
NOW GO INTO EXECUTIVE SESSION AND WE'LL GO UNDER SECTION 5 5, 1 0.071 FOR CON UH, FOR CONSULTATION WITH OUR ATTORNEY REGARDING LEGAL ISSUES INCLUDING POTENTIAL OR CONTEMPLATED LITIGATION, UH, RELATED TO A CONTRACT WITH A VENDOR.AFTER OUR EXECUTIVE SESSION IS COMPLETE, WE WILL TAKE NO FURTHER ACTION EXCEPT TO ADJOURN.
THE BOARD HAS NOW CONCLUDED OUR EXECUTIVE SESSION.
UNLESS THERE'S, IF, UNLESS THERE'S ANYTHING ELSE WITH NO FURTHER BUSINESS BEFORE US TODAY, WE WILL STAND ADJOURNED AT TWO 15.