Jan 31, 2025 Cap Metro

[00:00:08]

ALL RIGHT.

[I. Call to Order]

TODAY IS MONDAY, JANUARY 27TH, AND WE'RE HERE IN THE CAP METRO BOARDROOM, AND THE TIME IS 1231 ALL AFTER CALLING US TO ORDER THE FIRST ITEM

[II. Safety Briefing]

I WON'T SAY TABONE.

UH, MR. GARDNER.

TABBAN IS HERE.

YOU MAY SAY TABONE.

OKAY.

ALRIGHT.

THANK YOU SIR.

ALL RIGHT, .

GOOD AFTERNOON EVERYONE.

UH, MY NAME IS GARDNER BAN.

I SERVE AS CAPITAL METRO'S EXECUTIVE VICE PRESIDENT, SYSTEM-WIDE ACCESSIBILITY AND CHIEF SAFETY OFFICER.

I'M HERE TODAY TO GIVE YOU YOUR SAFETY BRIEFING.

THANK YOU, ED.

APPRECIATE YOU BRINGING UP THIS SLIDE.

YOU ARE LOCATED HERE AT 29 10 EAST FIFTH STREET.

IN EVENT OF AN EMERGENCY, UH, CAPITAL METRO STAFF OR SECURITY WILL CALL 9 1 1 RALLYING POINT, UH, FOR THIS GROUP WILL BE ACROSS THE STREET, FIFTH STREET AND LINDEN, RIGHT BY THE OLD SCHOOL THERE FOR THOSE WHO MAY HAVE MOBILITY CHALLENGES.

AND WE ARE ASKED TO LEAVE OUT OF THAT EXIT RIGHT THERE, THE GLASS DOOR.

UH, WE'RE ASKING THAT YOU WAIT RIGHT THERE ON THE PLATFORM AND SOMEONE WILL BE, UH, ALONG SHORTLY TO ESCORT YOU DOWN THE STAIRS AND PERHAPS, UH, DIRECT YOU ACROSS THE STREET AS WELL.

AEDS OR AUTOMATIC EXTERNAL DEFIBRILLATORS ARE LOCATED TO THE LEFT OF, UH, I APPRECIATE THAT.

I APPRECIATE THAT, .

IF SOMETHING HAPPENS TO ME, I NEED TO KNOW WHERE THEY ARE.

THANK YOU KIND, SIR.

ALRIGHT.

, I LOCATED RIGHT DOWN THE HALLWAY, UH, NEXT TO THE ELEVATOR.

LIKEWISE THE FIRE EXTINGUISHER AND RIGHT ON TIME, MY WONDERFUL THANK YOU KIND SIR.

, WE DO HAVE A, A, A, A FIRE EXTINGUISHER IF, IF NEEDED IN THIS ROOM.

AND SO THAT CONCLUDES YOUR SAFETY BRIEFING.

THANK YOU.

THANK YOU FOR ALWAYS HAVING AN ENTERTAINING SAFETY BRIEFING.

I TRY, SIR.

AND, AND, ALRIGHT.

AND YOU, YOU AS WELL.

THANK YOU, .

[III. Public Comment]

I UNDERSTAND THAT WE HAVE AT LEAST ONE SPEAKER WHO HAS SIGNED UP WITH US IN ADVANCE.

SO WHEN WE CALL YOUR NAME, IF YOU WOULD, UH, COME FORWARD TO THE PODIUM.

EACH SPEAKER WILL HAVE THREE MINUTES, UNLESS THERE'S SPEAKING ON TWO AGENDA ITEMS OR REPRESENTING A GROUP WITH MORE THAN ONE PERSON IN THE ROOM AND, AND, UH, AND IN WHICH THEY ARE ACTUALLY IN THE ROOM.

AND IN THAT CASE, I'LL HAVE FIVE MINUTES.

OUR FIRST SPEAKER TODAY IS GOING TO BE MS. SHERRY TAYLOR.

UH, MS. TAYLOR, YOU'VE GOT THREE MINUTES TODAY, AND I LOVE THAT ATTITUDE ONCE AGAIN.

WELL, WE WON'T START COUNTING UNTIL YOU GET THERE.

HOW Y'ALL DOING? DOING WELL.

AND YOU UI.

ALL RIGHT.

ALL RIGHT.

OH, CELEBRATING WOULD'VE BEEN 90 ON THE 8TH OF JANUARY.

SO MY, OKAY.

GIVE HIM HIS PROPER.

AND, UM, THANK Y'ALL FOR ALLOWING ME TO SPEAK.

UH, I ALSO HAPPEN TO BE A HUNDRED PERCENT DISABLED VETERAN, AND ON THE 5TH OF FEBRUARY, THERE WILL BE A RETIRED LIEUTENANT GENERAL, UH, THAT WILL BE SPEAKING OUT OF THE VA, AND THEY'LL HAVE FREE REFRESHMENTS.

I HOPE YOU'LL GO OUT AND HEAR A PERSPECTIVE OF A PERSON WHO ACCOMPLISHED SOMETHING TO DEFEND THIS AMERICA.

AND, UH, THE GROUP I'M SPEAKING TODAY, UH, REGARDING SENIORS AND DISABLED PERSONS, I THINK THAT I WAS WITH THE GROUP THAT CAME AND HAD POSTERS AND FLYERS, UH, FOLKS WHO HAD DISABILITY, COULDN'T GET TO THEIR DOCTOR'S APPOINTMENTS.

AND YOU GUYS, THREE YEARS AGO, I THINK, GAVE TWO YEAR BUS PASSES FOR THE BLUE FIXED ROUTE AND THE RED FIXED ROUTES.

BUT THERE WERE NO FREE TICKETS FOR THOSE WHO RIDE THE METRO ACCESS VANS.

AND THOSE FOLKS, YOU'LL NEED TO GET WHERE THEY NEED TO GO CURB TO CURB, BUT THEY DON'T HAVE THE, THE HEALTH TO BE OUT IN THE WEATHER OR SOMETIMES TO TRAVEL FROM THE BUS STOP INTO THEIR APARTMENT OR INTO THEIR HOSPITAL OR WHEREVER THEY'RE GOING.

SO I, I WOULD, I WOULD LIKE TO APPEAL TO YOU TO NOT FORGET THAT TWO YEARS AGO OR HOWEVER LONG AGO IT WAS, THAT THOSE FIXED ROUTES

[00:05:01]

PLEASE GO BACK AND LOOK AT ISSUING BOOK TICKETS FOR PEOPLE WHO RIDE THE VANS.

AND LAST BUT NOT LEAST, UH, ROUTE 3 35, WE MEAN BUSINESS.

WE MEAN BUSINESS.

WE ARE IN MUELLER.

AND RIGHT NOW THE BUS GOES DOWN FROM MAINOR TO 51ST STREET.

THAT'S IT.

IT'S A LOT MORE STREETS IN MUELLER THAN BERKMAN.

AND WE WOULD LIKE TO PROPOSE THAT WHEN, UH, THEY WERE PUTTING THE STOPS IN FOR THE RED EXPRESS BUSES ON BERKMAN, IF YOU HAVE NOW TWO EXPRESS BUSES ON BERKMAN, AND YOU LEAVE THE BLUE BUS STILL COMING ON BERKMAN, THERE'S NOT GONNA BE A LOT OF EXPRESS BECAUSE YOU GOT THREE BUSES ON THAT ONE THOROUGHFARE.

AND THEN IT'S, AND THEN THE BUS, THE BLUE BUS SITS DOWN THERE FOR 25 MINUTES AT THE HEB.

SO I'M PROPOSING THAT POLICE, POLICE HAVE BEEN TALKING ABOUT THIS FOR FOUR YEARS.

LET THE BLUE BUS GO DOWN TO TILLMAN, OR TILLEY, EXCUSE ME, AND IT CAN TAKE A LEFT.

AND THEN WHEN Y'ALL START THIS RED BUS SERVICES, IT CAN BE EXPRESSED, UH, IN BERKMAN AND GO ON THROUGH MUELLER AND GO WHERE IT NEEDS TO GO.

BUT IF YOU PUT THE BLUE BUS GOING DOWN, TILLY, IT CAN SERVICE THE CHILDREN AND PARENTS WHO ARE TRYING TO GO TO MARSHALL.

'CAUSE THERE USED TO BE NOTHING OVER THERE BUT FIELD.

BUT NOW IT'S CHANGED.

SO WE WANT TO DO THAT.

AND THEN TURN LEFT ON PHILOMENA, TAKE PHILOMENA ALL THE WAY TO MUELLER.

PEOPLE CAN GET OFF THERE AND GO TO THE PACK AND GO TO THE, UH, HOSPITAL.

AND THEN WHEN THEY TURN RIGHT ON MUELLER AND THEN GO LEFT ALL THE WAY TO HOS TO THE HIGHWAY, PEOPLE CAN GO SHOP AT CHRISTMAS AT BA AT BEST BUY AND THE BANK.

BUT RIGHT NOW IT JUST TURNS ON BARBARA JORDAN, AND THEN AT MUELLER, IT TURNS RIGHT AGAIN AND IT GOES BACK AND SITS FOR 25 MINUTES.

AND THAT, THAT'S NOT SERVICING, UH, THE NEIGHBORHOOD.

IT'S SERVICING ONE STREET AND EVERYBODY DOESN'T LIVE ON ONE STREET.

AND IF EVERYBODY CAME OVER THERE AND PARKED ON THAT ONE STREET TRYING TO RIDE THAT BUS, THAT WOULD BE A PROBLEM.

SO I'M, I'M BEGGING YOU TO PLEASE BEFORE THE RED EXPRESS BUSES START ON BERKMAN, GET THE BLUE BUS OFF OF BERKMAN AND LET IT GO DOWN.

TILLY, AND THANK YOU VERY MUCH.

WE'LL MAKE SURE THAT WE GET THAT REQUEST TO THE PROPER PERSONNEL AND WE'LL FULLY VET IT.

THANK YOU VERY MUCH, MUCH HAVING ANY FOR MAKING TIME TO COME AND, UH, SPEAK TO THE BOARD.

I THOUGHT YOU WERE GONNA ASK ME TO SING AGAIN, BUT YOU KNOW, CHAIR, UH, YES.

UH, BOARD MEMBER, UH, VELA, I JUST WANTED TO, UH, EXTEND MY CONGRATULATIONS TO MS. TAYLOR ON, UH, HER RECENT ELECTION WIN AND THEIR SERVICE ON THE A CC BOARD OF, UH, TRUSTEES.

WELL, THANK YOU.

THEY, THEY HAVE ME PRETTY BUSY.

I FEEL LIKE I CHANGED NATIONALITIES.

I'M RUSHING HERE AND RUSHING THERE TO GO TO ALL THESE WITH ME.

, YOU HAVE A WONDERFUL DAY.

ALRIGHT.

UM, UM, MR. EASTON, DO WE HAVE ANYONE ELSE THAT WOULD LIKE TO ADDRESS THE BOARD? I DO NOT BELIEVE SO, MR. CHAIR.

OKAY.

UH, LET'S SEE.

ANYONE IN THE AUDIENCE THAT WOULD LIKE TO ADDRESS THE BOARD, ANYONE IN THE AUDIENCE HEARING NONE, UH, WE WILL, WE WILL CALL, UH, THE, THE, UH, PUBLIC COMMENT PERIOD CLOSED.

ALRIGHT.

UH, LET'S SEE.

ITEM NUMBER FOUR.

UH, LET'S SEE.

UM, LET'S SEE.

NEXT, WE'LL

[IV. Advisory Committee Updates]

THANK YOU VERY MUCH.

THANK YOU.

GOOD AFTERNOON, CHAIR TIAN, PRESIDENT AND CEO WATKINSON, MEMBERS OF THE BOARD.

MY NAME IS PETER BRETTON, I'M A COMMUNITY ENGAGEMENT COORDINATOR AND I'M TAKING OVER THE ROLE OF STAFF LIAISON FOR OUR ADVISORY COMMITTEES FROM KELSEY LEMI, THANKS TO HER FOR HER WORK THAT SHE'S BEEN DOING OVER THE PAST YEAR.

I WILL BE PROVIDING THE MONTHLY UPDATES MOVING FORWARD.

AND SINCE OUR LAST UPDATE, OUR ACCESS AND CUSTOMER SATISFACTION ADVISORY COMMITTEES HAVE MET.

SO WE'LL OFFICIALLY ADD YOU TO OUR PRAYER LIST.

, I NEED IT.

THANK YOU.

OUR ACCESS AND CUSTOMER SATISFACTION ADVISORY COMMITTEES MET JOINTLY IN JANUARY AND RECEIVED PRESENTATIONS FROM OUR CHIEF OPERATING OFFICER, ANDREW S KOWSKI ON OUR ZERO EMISSIONS FLEET.

AND FROM BRANDY MOELLER, OUR DIRECTOR OF REVENUE AND FARES ON OUR FAIR PAYMENT SYSTEM CHANGES.

MANY THANKS TO BOTH OF THEM FOR THE WORK THAT THEY'VE BEEN DOING, THE PRESENTATIONS AND ANSWERING QUESTIONS FOR OUR ADVISORY COMMITTEE MEMBERS.

ADDITIONALLY, ON JANUARY 23RD, THIS PAST THURSDAY, WE HAD A PROGRAM STRATEGIES AND POLICIES SUBCOMMITTEE MEETING WHERE WE DISCUSSED THE 10TH ROUND OF POLICE DEPARTMENT POLICIES.

ALL MATERIALS FOR OUR SUBCOMMITTEE MEETINGS ARE AVAILABLE ONLINE ON OUR PUBLIC INPUT WEBPAGE.

IT'S PUBLIC INPUT.COM/CAP, METRO PUBLIC SAFETY, ALL ONE WORD.

WE WILL CONTINUE TO UPDATE THE PAGE WITH MEETING INFORMATION AND FEEDBACK OPPORTUNITIES THROUGHOUT THE YEAR.

I BELIEVE THAT IS ALL THAT I HAVE FOR THIS

[00:10:01]

PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS.

AND THANK YOU BOARD MEMBERS.

DO WE HAVE ANY QUESTIONS? ANY QUESTIONS? ANY QUESTIONS? HEARING NONE, I WILL SAY THANK YOU FOR THE UPDATES.

WELCOME.

THANK YOU, UH, TO YOUR NEW ROLE AND RESPONSIBILITIES.

I'M EXCITED AND WE'LL LOOK FORWARD TO WORKING WITH YOU.

I AM TOO.

ALRIGHT.

[V. Board Committee Updates]

UH, NEXT WE'LL HAVE OUR REGULAR BOARD COMMITTEE MEETING UPDATES.

UH, WE DID NOT HOLD OUR OPERATIONS PLANNING AND SAFETY COMMITTEE MEETING THIS MONTH.

SO, UH, COMMITTEE, VICE CHAIR, BENGAL, CAN YOU, UH, START US OFF WITH OUR FINANCE COMMITTEE UPDATE? YES.

THANK YOU CHAIR.

THE FINANCE AUDIT AND ADMINISTRATION COMMITTEE MET ON WEDNESDAY, JANUARY 15TH.

THERE WERE TWO ACTION ITEMS. THE COMMITTEE APPROVED THE MINUTES FROM THE PRIOR MEETING.

THE SECOND ITEM ON THE TITLE SIX FAIR EQUITY ANALYSIS OF CAP METRO'S FAIR POLICY.

THE COMMITTEE VOTED JUST TO PUSH THAT FORWARD WITH NO RECOMMENDATION TO THIS MEETING FOR THE BOARD.

AND THAT'S ACTION ITEM TWO.

UH, THERE WERE SEVERAL PRESENTATIONS INCLUDING ON THE UT INTERN AUDIT PROJECTS AND AUDIT REPORT ON MCCALL STATION.

CAPITAL PROJECT CONTROLS AN UPDATE ON THE AUDIT PLAN STATUS FOR FISCAL YEAR 2025.

AND WE ALSO RECEIVED A MONTHLY UPDATE FROM CATHERINE WALKER AND DONNA SIMMONS AND THE MEETING ADJOURNED AT 10:53 AM ALRIGHT, THANK YOU VERY MUCH.

BOARD MEMBERS, DO WE HAVE ANY QUESTIONS? ANY QUESTIONS? ANY QUESTIONS? HEARING NONE, I WILL, UH, THANK, UH, VICE CHAIR BENGAL FOR THE PRESENTATION.

UM, THE NEXT ITEM WILL BE A CAMPO UPDATE.

UH, BOARD MEMBER HARRIS, ARE YOU, UH, AVAILABLE AND READY TO MAKE THIS PRESENTATION? UH, CHAIR, I, FORGIVE ME, I'M NOT SURE IF, UH, CAMPO HAS NOT MET SINCE THE LAST, SINCE OUR LAST UPDATE, SO I THINK I DON'T HAVE ANYTHING TO REPORT.

ALRIGHT.

ALL RIGHT.

THAT MIGHT BE THE EASIEST REPORT YOU'VE EVER MADE.

ALL RIGHT.

ALRIGHT.

SO, UH, THAT ENDS, THAT, UM, ENDS UP OUR CAMPO REPORT AND I WILL MAKE, UH, THE AUSTIN TRANSIT PARTNERSHIP BOARD, UH, REPORT.

UH, THE BOARD MET ON DECEMBER 18TH.

THERE WERE THREE ACTION ITEMS, UH, TWO CONTRACTS FOR IT SERVICES, AND AN ACTION AUTHORIZING A CONTRACT WITH AECOM FOR THE DELIVERY OF PARTNER SERVICES IN SUPPORT OF AUSTIN LIGHT RAIL.

THAT'S ONE OF THE MORE IMPORTANT CONTRACTS TO DELIVER, RIGHT? UH, LIGHT RAIL IV.

THE DELIVERY PARTNER WILL SUPPORT A TP THROUGH THE ONGOING ENVIRONMENTAL PROCESS, FINAL DESIGN COORDINATION WITH FTA AND OTHERS.

ADDITIONALLY, UH, A TP HAS PUBLISHED THE, THE DRAFT ENVIRONMENTAL IMPACT STATEMENT FOR AUSTIN LIGHT RAIL AND HAS INITIATED THE PUBLIC COMMENT CAP METRO BOARD WILL, UM, WILL RECEIVE A PRESENTATION ON THIS IN FEBRUARY.

UH, THE NEXT SCHEDULED A TP BOARD MEETING, UH, WILL BE WEDNESDAY, JANUARY 29TH.

OKAY.

UH, ANY QUESTIONS ABOUT THE, UH, THE A TP REPORT? ANY QUESTIONS? ANY QUESTIONS? UH, HEARING NONE.

UM, LET'S SEE.

WE WILL MOVE INTO OUR, UH, ACTION ITEMS FOR THE

[VI.1. Approval of minutes from the December 9, 2024 board work session and December 16, 2024 board meeting.]

WE ARE POSTED FOR ACTION ON FIVE ITEMS, STARTING WITH THE APPROVAL OF MINUTES FROM OUR DECEMBER 9TH WORK SESSION AND OUR DECEMBER 16TH BOARD MEETING, UH, CHAIR WILL ENTERTAIN A MOTION TO, UH, TO APPROVE, UM, THOSE ITEMS. OKAY.

UM, BOARD MEMBER ROSS WITH THE MOTION BOARD MEMBER BANGAL WITH A SECOND.

UH, LET'S GO IN ORDER.

UM, I, ACTION ITEM NUMBER ONE, WHICH IS THE APPROVAL OF MINUTES FROM THE DECEMBER 9TH, 2024 BOARD WORK SESSION AND THE 20, UH, DECEMBER 16TH, 2024 BOARD MEETING.

OKAY.

IS THERE ANY DISCUSSION ABOUT THESE ITEMS? ANY FURTHER DISCUSSION ABOUT THESE ITEMS? ANY FURTHER DISCUSSION? HEARING NONE.

ALL IN FAVOR, PLEASE LET IT BE KNOWN BY SAYING AYE.

AYE.

OPPOSED? SAME SIGN.

AYE.

OKAY.

ALRIGHT.

WE OKAY? UH, ARE YOU APPROVING OR NOT? APPROVING? APPROVING.

OKAY.

JUST, JUST WANTED TO MAKE SURE.

OKAY.

SO, UH, THE CHAIR WILL MAKE IT UNANIMOUS.

UM, ALRIGHT, SO ACTION ITEM ONE HAS BEEN PASSED NOW,

[VI.2. Approval of a resolution adopting amendments to CapMetro’s Fare Policy, and approving the Title VI Fare Equity Analysis related to proposed changes to CapMetro’s Fare Payment Systems.]

ACTION ITEM TWO AND I'LL READ IT IN APPROVAL OF A RESOLUTION ADOPTING AMENDMENTS TO CAP METRO'S FAIR POLICY AND APPROVING THE TITLE SIX FAIR EQUITY ANALYSIS RELATED TO PROPOSED CHANGES TO CAP METRO'S FAIR PAYMENT SYSTEMS. AND I THINK BRANDI MOLER WILL MAKE THE PRESENTATION FOR US.

PLEASE GO AHEAD.

GOOD AFTERNOON, CHAIR TIAN, LADIES AND GENTLEMEN OF THE BOARD PRESIDENT AND CEO DONNIE WATKINS, I AM EXCITED

[00:15:01]

EXCUSE ME.

SO TODAY, UM, I COME TO YOU TO TALK ABOUT THE TITLE SIX ANALYSIS AND ASK FOR YOUR APPROVAL THEREOF.

I AM, FOR THOSE OF YOU WHO HAVEN'T MET ME, I AM BRANDY MOELLER, THE DIRECTOR OF REVENUE AND FAIR.

SORRY, A COUPLE OF WEEKS AGO WE CAME TO YOU AND WE TALKED ABOUT, WE HAD A HUGE, UM, HEARING AND WE TALKED ABOUT ALL OF THE FEATURES THAT WE ARE IMPLEMENTING WITH THE NEW FAIR COLLECTION SYSTEM.

TODAY WE ARE SIMPLY HERE TO TALK ABOUT THE TITLE SIX STUDY THAT HAPPENED AS A RESULT OF THOSE, THOSE CHANGES.

UM, AND I WOULD LOVE TO PRESENT WHAT, UH, WAS FOUND DURING THE, THE TITLE SIX STUDY.

YOU CAN SEE, UM, WE, WE WENT OVER THE BOARD TIMELINE PREVIOUSLY, BUT WE'RE ARRIVING AT TODAY TALKING ABOUT THOSE, THOSE FINAL FINDINGS.

TITLE SIX REPORT.

WE TALKED A COUPLE WEEKS AGO ABOUT WHY WE NEED TO DO A TITLE SIX REPORT.

AND THAT IS FTA AND CAP METRO POLICIES, UM, DICTATE THAT WE WILL DO THIS.

HOWEVER, WE ALSO DO THIS AS, UM, JUST TO MAKE SURE THAT WE ARE DOING THE RIGHT THING AND THAT WE HAVE, UH, MITIGATED ANY DISPARATE IMPACT AND OR DISPROPORTIONATE BURDENS THAT MAY ARISE AS OF THESE CHANGES, WHAT IS TRIGGERING? AND, UH, THE TITLE SIX ANALYSIS AT THIS POINT IS THE SEVEN AND 31 DAY PASSES RETIREMENT.

WE ARE PLANNING ON RETIRING THOSE.

WE STILL HAVE TONS OF PAPER PASSES IN THE BACK THAT WE'RE GOING TO ROLL THROUGH FIRST, HOWEVER, WE ARE PLANNING TO RETIRE THE SEVEN AND 31 DAY PASSES FOR, UM, IN FAVOR OF DOING FAIR CAPPING AND STREAMLINING ALL OF OUR, UM, OUR, OUR MEDIA AND OR PASSES THAT WE OFFER.

UM, COUPLE WEEKS AGO I TALKED ABOUT HOW WE OFFER 98 DIFFERENT PASSES.

WE WILL BE DOWN BY 18 TODAY OR AS OF THE TIME THAT WE GO THROUGH, UM, IMPLEMENTING THIS FAIR CAPPING, UH, EXCUSE ME, IMPLEMENTING THE FAIR COLLECTION SYSTEM FOR TRANSPARENCY AS WELL.

WE, WE ALSO NEED TO SAY THAT, UM, WE DID DO A LOT OF CHANGES.

WE DID HAVE THE TAP TO PAY.

WE GOT A NEW FAIR COLLECTION CARD.

WE DID A LOT OF THINGS.

SO THOSE WERE ALSO INCLUDED IN THE, THE TITLE SIX STUDY.

AND YOU CAN READ THOSE IN, IN YOUR PACKETS.

UM, BUT WE'RE JUST GONNA GO OVER THE SEVEN AND 31 DAY PASSES TODAY.

WHAT WERE THE FINDINGS? THERE WERE NO DISPARATE IMPACT AND DISPROPORTIONATE BURDENS.

UM, IT WAS WELL UNDER THE THRESHOLD OF THE 2% POLICY THRESHOLD.

UM, THE DISPARITY IMPACT BETWEEN MINORITY AND NON-MINORITY WAS POINT LESS THAN 0.1%.

UH, THE DIFFERENCE IN PERCENTAGE BETWEEN LOW INCOME AND NON LOW INCOME WAS 1.53%.

AND IN FACT, BOTH OF THOSE DIFFERENCES LEANED TOWARDS NOT AFFECTING THE LOW INCOME AND MINORITY POPULATIONS AND RIDERS THAN IT DID, UM, THE NON LOW INCOME AND NON-MINORITY POPULATIONS.

THERE WE GO.

TO GIVE YOU AN IDEA, AS PART OF OUR POLICY, WE DO GO OUT AND WE HAVE CONVERSATIONS WITH THE COMMUNITY ENGAGEMENT.

AS YOU HEARD MR. PETER BRITTON SAY.

UM, WE HAVE GONE OUT AND WE HAVE TALKED TO THE COMMUNITY IN A VARIETY OF WAYS, AS YOU CAN SEE HERE.

SO JUST LETTING YOU KNOW THAT WE DID HAVE THOSE CONVERSATIONS IN ORDER TO TELL EVERYBODY WHAT THE FINDINGS WERE AND TO, UH, TO TELL THEM OF ANY MITIGATION STUDIES THAT WE NEEDED.

UM, ONE POINT I MEANT TO TELL YOU IS THAT SINCE THE, UH, WE WERE UNDER THE THRESHOLD, WE ARE NOT SEEKING ANY, UM, MITIGATIONS AT THIS TIME.

SO LAST WEEK, OR EXCUSE ME, TWO WEEKS AGO, WE CAME AND WE HAD THAT BIG PUBLIC HEARING.

UM, YOU HEARD ALL ABOUT THOSE GREAT CHANGES.

YOU GOT THAT BIG JOLT OF ENERGY FROM ME TODAY.

WE'RE JUST SEEKING THE FAIR STRUCTURE CHANGE IN THE BOARD AUTHORIZATION OF SUCH.

THANK YOU.

I WILL TAKE ANY QUESTIONS THAT YOU HAVE BOARD MEMBERS.

DO WE HAVE ANY QUESTIONS? ANY QUESTIONS? UM, YES.

BOARD MEMBER ALICE, NO QUESTION.

I JUST WANTED TO THANK THE STAFF FOR COMING AND BRIEFING ME INDIVIDUALLY.

I WAS ABLE TO WATCH THE PUBLIC HEARING THAT THAT HAPPENED PREVIOUSLY, BUT UM, ALSO GOT A CHANCE TO SIT DOWN WITH STAFF AND SO I APPRECIATED THEM TAKING THAT TIME AND ANSWERING MY QUESTIONS THEN.

WE ENJOYED IT.

THANKS FOR HAVING US.

EXCELLENT, EXCELLENT.

ANY ADDITIONAL QUESTIONS? UH, HEARING NONE, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE RESOLUTION.

UM, BOARD MEMBER STRATTON.

IS THERE A SECOND? UM, BOARD MEMBER ELLIS CASE.

WE MOVED AND PROPERLY SECONDED THAT WE APPROVE.

UH, ACTION ITEM NUMBER TWO.

IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION?

[00:20:02]

UM, ALL IN FAVOR, LET IT KNOW.

BE, UM, BY SAYING AYE.

AYE.

AYE.

BOARD MEMBER HARRIS.

OKAY.

ALRIGHT.

UH, LET'S SEE.

AND, UH, ANY OPPOSITION? SAME SIGN.

HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.

AND ACTION ITEM NUMBER TWO IS APPROVED.

THANK YOU VERY MUCH.

THANKS FOR YOUR TIME TODAY.

ALRIGHT.

[VI.3. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Enterprise Fleet Management, Inc. to lease up to 97 vehicles to support operations for a period of 60 months in a total amount not to exceed $5,741,129.]

LET ME READ ACTION ITEM NUMBER THREE AND APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT WITH ENTERPRISE FLEET MANAGEMENT INC.

TO LEASE UP TO 97 VEHICLES TO SUPPORT OPERATIONS FOR A PERIOD OF 60 MONTHS IN TOTAL.

UM, AND A TOTAL AMOUNT NOT TO EXCEED, UH, $5,006,752.

AND I THINK MR. SABOSKI FULLER.

GOOD AFTERNOON, CHAIR, AVIAN CAPTAIN METRO BOARD MEMBERS, CEO WATKINS.

UH, MY NAME IS ANDY SCHABOWSKI.

I AM THE CAPTAIN METROS CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT IN SUPPORT OF OUR DAY-TO-DAY OPERATIONS OF BUS RAIL AND, AND, UM, UM, PARATRANSIT.

WE HAVE A FLEET OF ABOUT 300, JUST UNDER 300 SUPPORT VEHICLES.

UM, UH, CAP METRO STAFF HAS TAKEN A LOOK AT THE PROS AND CONS OF EITHER PURCHASING THOSE VEHICLES OR LEASING THEM AND ON A LOT OF VEHICLE, MOST OF THE VEHICLE NEEDS FOR CASES IS ACTUALLY, UM, FINANCIALLY ADVANTAGEOUS AS WELL AS ON A RELIABILITY STANDPOINT TO LEASE THE VEHICLES INSTEAD OF BUY THEM.

UM, THE CONTRACT IN FRONT OF YOU PROVIDES FOR A 60 MONTH LEASE AGREEMENT FOR UP TO 97 SUPPORT VEHICLES.

THESE WILL BE UTILIZED ACROSS THE AGENCY FOR THINGS LIKE STREET SUPERVISION, UM, SAFETY DEPARTMENT ACTIVITIES, BUS STOP AND TRANSIT CENTER CLEANING, FACILITY MAINTENANCE, OUR CONSTRUCTION, UM, CREW RAIL SUPPORT OPERATOR RELIEF, AND I CAN KEEP GOING.

IT, IT SUPPORTS A LOT OF OUR OPERATIONS.

UM, THIS LEASE AGREEMENT REPLACES LIFE EXPIRED VEHICLES, UM, WHICH ARE BETWEEN THE YEARS OF EIGHT AND 20 YEARS OF AGE, SOME OF THEM.

UM, THE CONTRACT CONCLUDES BASIC PREVENTATIVE MAINTENANCE FOR THE LEASE VEHICLES AS WELL.

LEASING VEHICLES COMES TO A LITTLE BIT OVER $5 MILLION OF WHICH 470 K OF THAT AROUND THAT IS THE MAINTENANCE, UM, ITEM.

AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS, BOARD MEMBERS, ANY QUESTIONS, BOARD MEMBERS, ANY QUESTIONS? UH, HEARING NO QUESTIONS? UM, UH, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER THREE.

ALL RIGHT.

BOARD MEMBER BANGO.

IS THERE A SECOND? OKAY.

BOARD MEMBER ELLIS.

IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE ACTION ITEM NUMBER THREE.

ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.

ALL IN FAVOR? PLEASE LET IT BE KNOWN BY SAYING AYE.

AYE.

AYE.

BOARD MEMBER HARRIS.

OKAY.

C AYE.

ALL RIGHT.

ALL RIGHT.

UM, AND IF OPPOSED, SAME SIGN.

HEARING NONE, UH, THE CHAIR WILL MAKE IT UNANIMOUS.

THANK YOU.

THANK YOU.

OKAY, ACTION.

ITEM NUMBER THREE HAS BEEN APPROVED.

UH, MOVING

[VI.4. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract modification for additional funds in the amount of $200,000 to Jay-Reese Contractors Inc., contract for the construction of Railroad Pedestrian Crossing at East 4th & Sabine Street for a revised total amount not to exceed $1,684,650.]

I'LL READ IT IN APPROVAL OF A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO OR HER DESIGNEE TO FINALIZE AND EXECUTE A CONTRACT MODIFICATION FOR ADDITIONAL FUNDS IN THE AMOUNT OF $200,000 TO JAY REESE'S CONTRACTORS INC.

CONTRACT FOR THE CONSTRUCTION OF RAILROAD PEDESTRIAN CROSSINGS AT, UH, EAST FOURTH AND SABINE STREET FOR A REVISED TOTAL AMOUNT NOT TO EXCEED $1,684,650.

AND I THINK MR. CARTWRIGHT'S GONNA, UH, INTRODUCE US.

GOOD AFTERNOON, CHAIR.

ILIAN.

BOARD MEMBERS PRESENT.

CEO WATKINS? YES, I'M KEN CARTWRIGHT, VICE PRESIDENT OF CONSTRUCTION AND FACILITIES.

AND AS YOU MENTIONED, UH, THE BOARD PREVIOUSLY AWARDED A CONTRACT FOR THE CONSTRUCTION OF THIS RAIL PEDESTRIAN CROSSING AT FOURTH AND SABINE.

AND THIS IS LOCATED BETWEEN THE DOWNTOWN STATION AND INTERSTATE 35.

IT'S A MAJOR, UH, UH, NORTH SOUTH, UH, BIKE AND PEDESTRIAN IN CONNECTION TO THAT VICINITY.

ALSO PROVIDES ACCESS TO THE, UH, WALLER CREEK GREEN BELT AT THAT LOCATION DURING CONSTRUCTION AND WORKING WITH THE CITY, WE IDENTIFIED SOME ADDITIONAL SAFETY IMPROVEMENTS RELATED TO THE, UH, TRAFFIC SIGNALS IN THE VICINITY AS WELL AS THE, UH, RAIL SIGNAL SYSTEM ITSELF.

AND AS A RESULT, THERE ARE SOME ADDITIONAL EXPENSES THAT WE WOULD LIKE TO REQUEST.

THE BOARD'S AUTHORIZATION FOR THE, UH, THE FUNDING, UH, FOR THESE ADDITIONAL IMPROVEMENTS ARE WITHIN THE PROJECT BUDGET THAT WAS, UH, PREVIOUSLY APPROVED BY THE BOARD, UH, FOR THE, UH, THE FISCAL YEAR.

BUT WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE REGARDING THIS.

ANY QUESTIONS? BOARD MEMBERS? ANY, UH, BOARD MEMBER? BAYLA? IS THIS FOR THE CROSSING ON 35 OR ON SABINE? JUST WEST OF THERE.

THE CROSSING ON I 35

[00:25:01]

SO THAT ONE IS IN SERVICE NOW.

THIS IS AT FOURTH AND SABINE.

GOT IT.

AND AGAIN, THIS IS A MAJOR ACCESS POINT FOR THE WALL CREEK GREEN BELT.

THAT'S I TO SAY.

SO THIS IS THE NEW CREEK TRAIL? YES.

CONNECTION RIGHT THERE? YES.

GOT IT.

THANK YOU.

OKAY.

ANY ADDITIONAL QUESTIONS? ANY ADDITIONAL QUESTIONS? HEARING NONE, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER FOUR, UH, BOARD MEMBER, UH, VELA AND BOARD MEMBER STRATTON.

IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.

ACTION ITEM NUMBER FOUR.

IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.

ALL IN FAVOR? LET IT BE KNOWN BY SAYING AYE.

AYE.

AYE.

AYE.

AYE.

ALRIGHT.

LOOKING, LOOKING FOR YOUR BOARD MEMBER, HARRIS.

ALL RIGHT.

UH, ANY, ANY OPPOSITION, PLEASE? SAME SIGN.

HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.

THANK YOU.

UH, I'VE

[VI.5. Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with CORE Office Interiors to purchase, relocate, deliver, and install furniture for 3100 East 5th Street, Phase I in an amount not to exceed $450,000.]

MR. CARTWRIGHT, PLEASE TAKE IT AWAY.

THANK YOU AGAIN.

UM, 3,100 EAST FIFTH STREET IS THE NEW ADMINISTRATIVE FACILITY NEXT DOOR TO US HERE.

UM, THIS IS THE, UH, NEW FACILITY THAT THE AGENCY PURCHASED AND IS IN THE PROCESS OF, OF BUILDING OUT, UH, FOR OUR ADMINISTRATIVE, OUR BOARD FUNCTIONS, AS WELL AS, UH, A COMMUNITY ROOM AT THAT LOCATION.

THE BOARD PREVIOUSLY AWARDED A CONSTRUCTION CONTRACT FOR THE FIRST PHASE OF THAT, WHICH IS TO COMPLETE THE CONSTRUCTION OF THE THIRD FLOOR INTERIOR.

THAT CONSTRUCTION IS UNDERWAY NOW, AND THIS WOULD BE THE FURNITURE, UM, TO ACCOMMODATE THAT.

THE, UH, THE FURNITURE, UH, THAT WE'RE DESCRIBING HERE IS WITHIN THE OVERALL PROJECT BUDGET, UM, THAT HAS BEEN, UH, PREVIOUSLY AUTHORIZED.

AND I WOULD NOTE THAT, UM, AS WE MOVED, UH, STAFF OUT OF OUR LEASE SPACE AT 700 LAVACCA, THE COUNTY BUILDING AT THE END OF, UH, LAST YEAR, WE ARE ABLE TO REUSE A SIGNIFICANT AMOUNT OF THAT FURNITURE IN THIS NEW BUILDING IN ORDER TO OFFSET SOME OF THE FURNITURE COSTS HERE.

THAT'S WHY FOR AT LEAST THIS INITIAL PHASE, WE'LL BE ABLE TO LIMIT TO, TO NOT TO EXCEED $450,000.

I WOULD NOTE THAT IN THE FUTURE, IN THE NEXT, UH, COMING MONTHS, WE WILL BE BRINGING YOU A CONSTRUCTION CONTRACT, UH, FOR THE, UH, REMAINDER OF THE BUILDING.

AND THEN WE'LL HAVE A SUBSEQUENT FURNITURE PROCUREMENT RELATED TO THAT PHASE AS WELL.

BUT HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE REGARDING THIS ITEM.

ALRIGHT, BOARD MEMBERS, DO WE HAVE ANY QUESTIONS? UH, BOARD MEMBER STRATTON, WHEN ARE WE SET TO MOVE INTO IT? UM, THIS FIRST PHASE WOULD BE EARLY THIS SUMMER THAT WE WILL BE MOVING INTO THE THIRD FLOOR, AND THEN THE SUBSEQUENT PHASES WILL BE COMPLETE PROBABLY ABOUT A YEAR AFTER THAT.

OKAY, GREAT.

THANK YOU.

LOOKING FORWARD TO IT.

ALRIGHT, ANY ADDITIONAL QUESTIONS? BOARD MEMBERS ADDITIONAL QUESTIONS? OKAY.

UH, HEARING NONE, UH, CHAIR WILL ENTERTAIN A MOTION TO APPROVE ACTION ITEM NUMBER FIVE.

OKAY.

BOARD MEMBER BANGAL WITH THE MOTION BOARD MEMBER ELLIS WITH THE SECOND.

IT'S BEEN MOVED AND PROPERLY SECONDED THAT WE APPROVE.

ACTION ITEM NUMBER FIVE.

IS THERE ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? ANY FURTHER DISCUSSION? HEARING NONE.

ALL IN FAVOR, PLEASE LET IT BE KNOWN BY SAYING AYE.

AYE.

AYE.

OKAY.

UM, OPPOSITION? SAME SIGN.

HEARING NONE, THE CHAIR WILL MAKE IT UNANIMOUS.

UH, THANK YOU.

UH, MR. CARTWRIGHT.

THANK YOU.

APPRECIATE, UH, YOUR VERY INFORMED PRESENTATIONS.

ALRIGHT,

[VII.1. FY2024 Year End Preliminary Financials]

THANK MS. WALKER IS WITH US TO PRESENT THOSE.

YES.

WELCOME.

THE PREVIOUS SPEAKER WAS A LITTLE BIT TALLER THAN I AM.

ALL RIGHT.

GOOD AFTERNOON, CHAIR ILIAN, MEMBERS OF OUR BOARD PRESIDENT AND CEO WATKINS.

MY NAME IS CATHERINE WALKER AND I SERVE AS CAP METRO'S EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL AND RISK OFFICER.

AND TODAY I AM HERE, UM, TO REVIEW OUR NON-AUDIT FINANCIALS.

AND THEN I HAVE ANOTHER PRESENTATION TO FOLLOW THIS, TO GIVE YOU A PEEK IN OUR LONG RANGE, UH, FINANCIAL REVIEW.

RIGHT.

SO FIRST WE'LL COVER THE MAJOR HIGHLIGHTS FOR OUR YEAREND FINANCIALS.

WE HAD SALES TAX REMITTANCES YEAR TO DATE EQUIVALENT TO $389 MILLION.

THAT REPRESENTS 98.1% OF OUR BUDGET FOR OUR OPERATING EXPENSES.

WE HAD, UM,

[00:30:01]

AND THEN ON OUR CAPITAL PLAN, WE HAD PREPARED FOR $411 MILLION.

UH, WE EXPENDED 35% OF THAT EQUIVALENT TO $146 MILLION.

UH, WE DID HAVE SOME PROJECT DELAYS, WHICH I'LL DISCUSS LATER IN THE PRESENTATION, PRIMARILY AROUND OUR THIRD AND BUS GARAGE PURCHASE, UH, LAND PURCHASE FOR OUR GREEN LINE MAINTENANCE FACILITY, UM, ELECTRIC BUS, UH, REPLACEMENTS AND CHARGERS, AND OUR BUS ELECTRIFICATION INFRASTRUCTURE.

ALL RIGHT.

SO FIRST I WILL REVIEW OUR REVENUE YEAR TO DATE.

SO AGAIN, THIS IS UN-AUDITED, BUT, UH, WE'RE PRETTY CONFIDENT IN THESE NUMBERS.

OUR SALES TAX COLLECTED YEAR TO DATE WAS $389 MILLION.

THAT REPRESENTS ABOUT 66% OF OUR REVENUE CAP METRO, UM, DOES COLLECT REVENUE FROM A NUMBER OF SOURCES.

AND SO THOSE INCLUDE OUR PASSENGER REVENUE, OF COURSE, OUR FREIGHT AND RAILROAD REVENUE.

THE OTHER REVENUE CATEGORY YOU SEE IN FRONT OF YOU THAT REPRESENTS OUR INVESTMENT INCOME.

WE DID DO VERY WELL IN OUR INVESTMENT INCOME BECAUSE OF INTEREST RATES.

UM, OUR OPERATING CONTRIBUTIONS IN GRANTS AND OUR PROJECT CONNECT, UH, CONTRIBUTIONS.

UH, FOR THE YEAR END, WE COLLECTED 80% OF WHAT WE HAD BUDGETED FOR THE YEAR.

UH, YOU'VE SEEN THIS SLIDE BEFORE.

THIS IS OUR YEAR OVER YEAR SALES TAX RECEIPTS.

AND SO WHAT YOU'LL SEE IN THE, THE RED BARS THAT REPRESENTS OUR FISCAL YEAR 22 GREEN IS FOR FISCAL YEAR 23.

BLUE IS FISCAL YEAR 24.

UM, WE DID HAVE A FEW MONTHS HERE OVER THE COURSE OF THE FISCAL YEAR WHERE WE DID HAVE A DECLINE YEAR OVER YEAR IN SALES TAX.

SO YOU'LL SEE THAT WAS IN OCTOBER, IN JANUARY, IN JUNE AND IN AUGUST.

AND SO YEAR IN, WE HAD A YEAR OVER YEAR GROWTH OF ABOUT 1.7%.

UM, THIS SLIDE REPRESENTS OUR ROLLING SALES TAX AVERAGE.

SO THIS GOES BACK TO 2007.

AND AGAIN, THE DIPS HERE THAT YOU'LL SEE WAS THE FIRST DIP ON THE LEFT HAND SIDE OF THE GRAPH IS FROM THE GREAT RECESSION, WHICH OCCURRED FROM BETWEEN DECEMBER OF 2007 TO JUNE OF 2009.

I THINK WE ALL REMEMBER THAT TIME.

UM, THE NEXT DIP IS TOWARDS THE RIGHT HAND SIDE OF THE GRAPH, AND THAT'S BASED ON A CONTRACTION SCENE DURING COVID, UH, 19.

AND THEN THE LAST CONTRACTION WHERE YOU SEE WE HAD A GROWTH COMING OUT OF COVID.

AND THEN A CONTRACTION AGAIN WAS BASED ON THE INFLATION THAT WE'VE ALL SEEN OVER THE PAST 24 MONTHS.

ALL RIGHT, NEXT WE'LL TALK A LITTLE BIT ABOUT OUR OPERATING EXPENSES.

SO, UM, OUR SALARIES AND BENEFITS LINE, WE SPEND ABOUT 90% OF OUR BUDGET FOR SALARIES AND BENEFITS.

UM, THAT'S PREDOMINANTLY DUE TO VACANCY SAVINGS AND SOME FAVORABLE PENSION EXPENSES.

REMEMBER, WITH REGARD TO PENSION, WHEN YOU HAVE FAVORABLE ECONOMIC TIMES, THAT USUALLY, UM, WHEN THE MARKET IS DOING WELL, THAT ALSO HAS A POSITIVE IMPACT ON YOUR PENSION BENEFIT.

OUR PROFESSIONAL SERVICES, WE DID HAVE SOME SAVINGS FROM PROFESSIONAL SERVICES.

WE DIDN'T SPEND ALL OF THAT MONEY, SO WE, WE HAD A SAVINGS OF ABOUT 24% THERE.

UM, SORRY, 34%.

UM, JUST GOING DOWN ON THE PURCHASE TRANSPORTATION, WE DID RUN OVER JUST A LITTLE BIT ON OUR PURCHASE TRANSPORTATION, BUT I THINK YOU ALL KNOW THAT WE HAVE HAD SOME, UM, WE ARE IN CONSTANTLY LOOKING FOR A GREAT OPERATORS.

AND SO, UM, AS WE ASSURE THAT WE'VE GOT SERVICE ON, ON THOSE STREETS, THAT WE ARE ALSO PAYING FOR SOME OVERTIME WITH OUR FRONTLINE OPERATIONS STAFF.

UM, YEAR IN, WE SPENT 94% OF OUR OPERATING BUDGET.

THERE WERE A FEW BUDGET TRANSFERS THAT I'LL REVIEW.

ANYTHING OVER $150,000, WE ALWAYS REPORT PUBLICLY TO THE BOARD IN THIS FORMAT.

SO THERE WERE TWO OF NOTE.

UH, ONE WAS AN OPERATING CONTINGENCY REQUEST TO OUR SECURITY SERVICES, AND THAT WAS FOR ADDITIONAL STAFFING AND SUPPORT OF SECURITY OFFICERS AT SOME OF OUR, UM, FACILITIES, WHICH INCLUDE TECH RIDGE, UM, EAST SEVENTH STREET, BEN WHITE BOULEVARD IN EAST FIFTH STREET, UM, WHICH IS OUR, WHICH IS OUR NEW FACILITY.

UM, AND THEN WE HAD A TRANSFER NOT TO CONTINGENCY, BUT A TRANSFER FROM ONE DEPARTMENT TO ANOTHER.

AND SO WE TRANSFERRED APPROXIMATELY THREE AND A HALF MILLION DOLLARS FROM OUR PICKUP SERVICE TO OUR METRO ACCESS SERVICE IN OVER THE COURSE OF THE YEAR.

ALL RIGHT, MOVING ON THROUGH.

NEXT WE'LL TALK ABOUT A RESERVE ALLOCATED AND RESTRICTED FUNDS.

SO RECALL THAT CAP METRO, UM, WE RESERVE TWO MONTHS OF OUR PLANNED OPERATING EXPENSES IN OUR STATUTORY OPERATING RESERVE.

WE ALSO HAVE A BUDGET STABILIZATION RESERVE WHERE WE RESERVE ABOUT A MONTH OF OPERATING EXPENSES.

SO BETWEEN THOSE TWO, WE RESERVE ABOUT A FULL QUARTER OF EXPENSES JUST SITTING IN OUR BANK ACCOUNT.

UM, SO THAT EQUATES TO,

[00:35:01]

ON THE LEFT HAND SIDE, WE ALSO ARE A SELF-INSURED AGENCY, AND SO WE HAVE $1.7 MILLION RESERVED THERE.

WE HAVE A SUSTAINABILITY CAPITAL FUND OF 10 MILLION.

AND THEN WE HAVE THE SMALL CITIES TRANSIT SUPPORTIVE INFRASTRUCTURE INVESTMENT FUND OF 4.7.

ON THE RIGHT HAND SIDE OF THE GRAPH IS OUR ALLOCATED AND RESTRICTED FUNDS.

SO WE HAVE TO DATE ABOUT $42 MILLION SET ASIDE FOR OUR PROJECT CONNECT, UM, EXPENSES COMING IN THE FUTURE.

AND THEN WE HAVE 310 MILLION SET ASIDE FOR CAPITAL PROJECTS.

ALL RIGHT, THIS GRAPH REPRESENTS OUR CHANGE IN NET POSITION.

UM, THIS IS A SUMMARY OF THE PREVIOUS SLIDES.

YOU'LL SEE THAT WE ENDED THE YEAR WITH A POSITIVE NET POSITION OF $121 MILLION.

ALL RIGHT, THESE ARE BUDGET VARIANCES BY DEPARTMENT.

IT IS AN EYE CHART.

AGAIN, JUST SIMPLY REVIEWING ALL THE THINGS I MENTIONED BEFORE.

WE CLOSE THE YEAR AT 94% OF OUR OPERATING BUDGET.

ALL RIGHT, NOW LET'S TALK BRIEFLY ABOUT OUR CAPITAL PROJECTS.

UM, YOU'LL SEE WE BUDGETED $411 MILLION IN OUR CAPITAL PROJECTS FOR FISCAL YEAR 24.

WE, UH, EXPENDED ABOUT $146 MILLION OF THAT E EQUATING TO 35% OF OUR CAPITAL BUDGET.

PREDOMINANTLY, THE PROJECTS THAT WE DID NOT HAVE SPENDING ON ARE THE BIG PROJECTS.

AND SO THOSE ARE THE ONES YOU'LL HEAR US CONTINUE TO TALK ABOUT.

UM, THEY ARE STILL PLANNED, BUT THE TIMING OF THESE JUST WAS NOT, NOT IN OUR FAVOR.

SO SOME OF THAT WAS OUR THIRD BUS GARAGE PURCHASE.

WE ALSO HAD OUR SOUTH BASED DEMAND RESPONSE, UM, TIMING ON THAT.

WE ALSO, OF COURSE, ARE IN CONS.

WE'RE CONTINUING TO LOOK FOR PROPERTY FOR THE GREEN LINE IF SOMETHING ADVANTAGEOUS COMES UP.

WE JUST DON'T HAVE ANYTHING AT THIS POINT.

IT WASN'T OUR BUDGET.

AND OF COURSE OUR PARK AND RIDES FACILITY.

SO THOSE FOUR BIG PROJECTS WERE DRIVING MOST OF THE VARIANCE FOR 24.

ALL RIGHT, AND THAT CONCLUDES OUR FISCAL YEAR, 24 FINANCIALS BOARD MEMBERS.

DO WE HAVE ANY QUESTIONS? BOARD MEMBERS? ANY QUESTIONS? WELL, UH, SEEING NONE, I WILL THANK YOU FOR, UH, DELIVERING THE REPORT, MR. AND IF WE HAVE ANY, MR. CHAIR? OH, I DIDN'T SEE.

THERE YOU GO.

PLEASE.

NOT, NOT SO MUCH A A A QUESTION.

IT'S JUST A, A COMMENT.

UM, SO MAYBE A LITTLE OF BOTH, BUT, SO IT SEEMS LIKE THEN THAT BASED ON FROM WHAT YOU'RE SAYING HERE IS THAT, UM, UH, OVERALL WE DIDN'T SPEND AS MUCH AS WE BUDGETED, IS KIND OF THE TAKEAWAY MESSAGE HERE.

THAT'S RIGHT, YES.

OKAY.

THAT THAT'S A GOOD, THAT THAT'S, THAT'S A GOOD THING.

BUT IT, BUT I MEAN, I I SHOULD SAY THAT A GOOD THING IN THE SENSE THAT IT'S NOT THAT WE WERE 20% UNDER WHAT WE HAD ORIGINALLY BUDGETED.

IT SOUNDS LIKE WE WERE RIGHT ABOUT 95%.

SO I, I'D, I'D CALL THAT A PRETTY DECENT, A PRETTY CLOSE CLOSE VARIANCE THERE THAT, THAT I'D CALL THAT PRETTY FISCALLY RESPONSIBLE USE OF, OF THE TAXPAYER DOLLARS AND WHAT WE WERE LOOKING AT, WHAT WE INTENDED AND HOPED WE'D BE ABLE TO BOTH TAKE IN AND USE AND, AND RESPECT EXPECTED TO USE RESPECTFULLY FOR OUR PROJECTS TO KEEP THE AGENCY GOING AND GOING.

WELL, WE, WE CAME PRETTY DAGGUM CLOSE TO DOING IT, AND WE DIDN'T GO OVER.

YES.

AND JUST TO BE, UH, QUITE CLEAR WITH YOU, IN THE EVENT THAT CAP METRO DID EXCEED OR PLAN TO EXCEED OUR OPERATING BUDGET, WE WOULD HAVE TO COME BACK AND DO AN AMENDMENT TO THE BUDGET.

SO THAT'S SOMETHING WE WATCH VERY CAREFULLY, OF COURSE.

OKAY.

SO THANK YOU TO THAT.

THAT'S A TESTAMENT TO, TO YOUR TEAM, BUT ALSO TO ALL THE DEPARTMENTS AND TO, TO, UH, DOTTIE'S LEADERSHIP THAT WE ARE IN THIS POSITION.

AND THANK Y'ALL FOR THE WORK THAT YOU AND OTHER STAFF DO.

THANK YOU.

ALRIGHT, UH, ANY ADDITIONAL QUESTIONS? BOARD MEMBERS, ANY ADDITIONAL QUESTIONS? OKAY.

UH, THANK YOU FOR THAT REPORT.

UM,

[VII.2. FY2025 Long Range Financial Plan Update]

YES, PLEASE GO AHEAD.

SO, UM, IF YOU THINK ABOUT 2024 AS A LOOK IN THE REAR VIEW MIRROR, NOW WE'RE GOING TO LOOK IN OUR WINDSHIELD AND BEYOND AT WHAT'S IN THE HORIZON FOR THE NEXT 10 YEARS.

SO THERE ARE A FEW OBJECTIVES WHEN WE BEGIN OUR LONG RANGE PLANNING PROCESS.

OF COURSE, UH, WE HAVE TO START, THIS IS A PART OF OUR POLICY THAT WAS LAST ADOPTED IN 2022, BUT IT DOES HELP OUR AGENCY ALIGN ON OUR CAPACITIES AND OUR LONG-TERM GROWTH NEEDS.

THIS IS SOMETHING THAT WE DO NOT IN A SILO, UH, WITH GREEN VISORS AND PIN PROTECTORS, UH, POCKET PROTECTORS, WE ACTUALLY, IT'S A VERY CROSS AGENCY ENDEAVOR TO MAKE SURE THAT WE UNDERSTAND ALL OF THE COSTS THAT CAP METRO COULD INCUR OVER THE NEXT 10 YEARS.

UM, THERE ARE OF COURSE A NUMBER OF BENEFITS.

OF COURSE, IT BUILDS ON FISCALLY, HELPS US, UH, CONTINUE TO BUILD ON BEING A FISCALLY SOUND AGENCY.

IT GIVES US AWARENESS AT AN EXECUTIVE LEVEL ON OPTIONS AND BARRIERS AND OPPORTUNITIES IN THE COMMUNITY.

IT

[00:40:01]

AND OF COURSE IT HELPS US, UM, BALANCE AND WEIGH OUT OUR COMPETING DEMANDS.

SO THERE'S A NUMBER OF FACTORS THAT BUILD UP INTO OUR LONG RANGE FACILITY PLAN, UH, FACILITY, FINANCIAL PLAN MODEL.

UM, THOSE ARE OF COURSE OUR SALES TAX GROWTH ASSUMPTIONS, OUR SERVICE LEVEL ASSUMPTIONS, THE PRODUCER PRICE INDEX PLAN SALARY INCREASES FOR OUR STAFF, ANY COST BENEFIT, ANY BENEFITS IN THE COST OF OUR EMPLOYEES HAVING BENEFITS, UH, FUEL PRICING, WHICH WE DO HEDGE, AND JUST A NUMBER OF OTHER FACTORS THAT ARE BUILT ALONG THOSE ASSUMPTIONS.

IT'S A VERY GROUND, UM, ZERO BASED BUDGETING MODEL.

SO WE ALSO HAVE TO KEEP IN MIND THAT WE HAVE THOSE OPERATING RESERVES, WHICH I MENTIONED IN OUR LAST PRESENTATION, WHICH ARE THE STATUTORY OPERATING RESERVES, OUR BUDGET STABILIZATION RESERVE, OUR SMALL, OUR SMALL CITIES, UM, RESERVE OUR SELF-INSURANCE AND OUR SUSTAINABILITY.

UM, IT ALSO TAKES INTO ACCOUNT IF CAP METRO WERE TO TAKE ON DEBT AT THIS POINT, CAP METRO DOES NOT HAVE DEBT, BUT IT COULD BE AN OPTION FOR US IN THE FUTURE DEPENDING ON THE RETURN ON INVESTMENT FOR SOMETHING LIKE THAT.

AND SO BETWEEN ALL OF THESE FACTORS, WE CREATE AN OPERATING BUDGET AND A LONG RANGE CAPITAL IMPROVEMENT PLAN AND THAT PRODUCES THE LONG RANGE FINANCIAL PLAN.

UH, SO FIRST LET'S JUST TAKE A LOOK AT 2025, WHICH IS THE HIGHWAY WE ARE ON RIGHT NOW.

SO OUR SALES TAX GROWTH, WHEN YOU THINK ABOUT THAT, A 1% CHANGE IN OUR SALES TAX GROWTH IS EQUIVALENT TO ABOUT 400, I'M SORRY, $4 MILLION.

SO, UM, SALES TAX FOR 2025 IS PLANNED AT ABOUT 78% OF OUR ANNUAL REVENUE.

AND THEN OTHER MAJOR PIECES OF REVENUE FOR 25 OF COURSE INCLUDE OUR GRANTS, OUR FARES, UH, FREIGHT REVENUE AND OTHER, WHICH AGAIN IS OUR INVESTMENT INCOME.

OUR LONG RANGE PRODUCT PROJECTIONS DO PLAN FOR A 3.5% SALES TAX GROWTH.

BUT FOR THE CURRENT FISCAL YEAR, WE'VE BACKED THAT OUT A LITTLE BIT JUST AS WE COME OUT OF THE INFLATIONARY ENVIRONMENT WE'VE BEEN OVER THE PAST FEW YEARS.

AND THEN JUST A LOOK AGAIN AT OUR SALES TAX HISTORY, FOR THE MOST PART, CAP METRO HAS HAD A PRETTY, UM, WE'VE SEEN AN INCREASE IN OUR SALES TAX GROWTH.

WE HAD NINE YEARS OF INCREASING SALES TAX UNTIL WE HIT COVID IN 20, LET'S SEE, THAT WAS 2020.

AND THEN WE CONTINUED TO GROW.

WE ALSO TALKED JUST A LITTLE BIT ABOUT FAIR REVENUE, WHICH IS ABOUT 5% OF OUR REVENUE.

UM, WE IN, WE PLAN TO COLLECT ABOUT $20 MILLION IN FAIR REVENUE IN THE COMING YEAR.

CAP METRO IS ALSO A MEMBER OF THE AMERICAN BUS BENCHMARKING GROUP, AND THIS IS A CONSORTIUM OF MID-SIZE TRANSIT AGENCIES ACROSS THE UNITED STATES FROM A A ONE WAY TICKET PERSPECTIVE.

CAP METRO IS CURRENTLY AT A DOLLAR 25 IS OUR FULL FARE.

UM, AND YOU'LL SEE THAT WE ARE WAY ON THE RIGHT, WE'RE A LITTLE BIT UNDERNEATH WHAT SOME OF OUR PEER AGENCIES ARE CHARGING FOR FARE REVENUE.

NEXT, WE'LL TALK ABOUT OUR OPERATING BUDGET EXPENSES FOR 2025.

AND THEN ONCE WE GET THROUGH THIS, WE'LL TALK ABOUT OUR LONGER, LONGER TERM.

BUT FOR 2025, AGAIN, OUR PURCHASE TRANSPORTATION AND THOSE ARE THE SERVICES FOR OUR BUS.

AND, UH, DEMAND RESPONSE IS ABOUT 50% OF OUR OPERATING BUDGET.

THAT'S $228 MILLION FOR THE FISCAL YEAR.

AND THEN WE'RE LOOKING AT, UM, OUR PERSONNEL EXPENSES, WHICH IS ABOUT 22% OF OUR OPERATING BUDGET.

AND THEN OF COURSE WE'VE GOT SERVICES, FUEL AND OUR OTHER EXPENSES.

SO WE DO TAKE A ZERO BASED BUDGETING APPROACH WHEN I, WHEN WE BUILD OUR BUDGET, UM, ONE OF THE DRIVING FACTORS OF THAT IS SERVICE LEVEL.

AND SO WHAT WE'VE GOT HERE FOR YOU IS JUST A MODEL THAT SHOWS OUR DIFFERENT SERVICES AROUND OUR COMMUNITY.

UM, AND WE GO BACK TO 2021 AND WE'RE WALKING YOU THROUGH TO 2025 JUST TO SEE THE STABILITY AND THE VEHICLE OUT SERVICE HOURS THAT CAP METRO IS PROVIDING AROUND OUR CITY.

SO THAT HELPS US UNDERSTAND WHERE WE ARE TODAY.

AND NOW WE'RE GOING TO LOOK OUT THAT THE, YOU KNOW, OUT OF OUR FRONT WINDOW AND TAKE A LOOK AT WHAT WE'VE GOT IN THE NEXT FIVE TO 10 YEARS.

UM, FIRST WE BUILD OUR STANDARD MODEL ON A VERY CONSERVATIVE GROWTH RATE, AND THEN WE TAKE A LITTLE BIT MORE AGGRESSIVE VIEW TO SEE WHAT IT WOULD LOOK LIKE IF WE HAD ANOTHER AGGRESSIVELY GROWING SALES TAX SEASON.

SO HERE ARE, AGAIN, ARE OUR ASSUMPTIONS.

SO WE HAD A FAIR GROWTH ANTICIPATED INCREASE IN 2025, UM, OF 11%, BUT MORE SOLIDLY, MORE STANDARD FOR US IS ABOUT A 2% GROWTH.

SO THOSE ARE MODELED FOR YEARS 26 THROUGH, UH, 2034.