Mar 12, 2025 Austin Transit Partnership Board Meeting

THANK YOU EVERYONE.

[Call to Order]

[00:00:02]

AND I'D LIKE TO CALL THIS MEETING TO ORDER AT 3:03 PM THE MEETING IS BEING CONDUCTED AT A TP, LOCATED AT 2 0 3 COLORADO STREET IN AUSTIN, TEXAS.

AND JUST AS A KIND REMINDER THAT WE HAVE BOTH AMERICAN SIGN LANGUAGE AND OTHER INTERPRETER SERVICES TO PLEASE CONTACT CHLOE MAXWELL AND HER CONTACT INFORMATION IS IN EACH AGENDA POSTING.

I BELIEVE WE DON'T HAVE ANYONE

[1. Public Comment]

SO WE'RE MOVING ON TO OUR EXECUTIVE

[2. Executive Director Report]

SO BRETT CANALI WILL PRESENT, UM, THE UPDATES, OUR LATEST UPDATES.

THANK YOU BOARD CHAIR.

WELCOME EVERYONE TO OUR, UH, MARCH BOARD MEETING.

WE'RE EXCITED, KEEP PROGRESSING THIS, UH, GREAT PROJECT FOR OUR COMMUNITY.

AND JUST A QUICK LITTLE UPDATE.

UH, AS ALWAYS, WE, UH, ON OUR QUARTERLY PROJECT CONNECT STATUS UPDATE THAT SHOWS NOT ONLY WHERE WE'RE ON LIGHT RAIL, BUT OUR PARTNERSHIPS UPDATE WITH CAP METRO AS THEY'RE ADVANCING THE OTHER TRANSIT COMPONENTS, OUR ADMINISTRATIVE HIGHLIGHTS, AND WHERE WE ARE ON THE ANTI DISPLACEMENT.

SO THAT REPORT IS OUT THERE ON OUR WEBSITE.

UM, ON THE NEXT SLIDE, UH, JUST KIND OF A LITTLE BIT OF A, OF A LOOK BACK ABOUT TWO WEEKS AGO, WE JUST HAD A FANTASTIC EVENT HERE IN OUR BUILDING.

WE INVITED THE, UH, OUR, OUR PARTNERS IN INDUSTRY IN HERE TO CONNECT AND BUILD, UH, WITH EACH OTHER.

UH, IT WAS A VERY WELL ATTENDED.

I WANT TO, UH, A SHOUT OUT AND A THANKS TO THE MAYOR FOR COMING TO SPEAK AND BOARD MEMBER GARZA.

UM, JUST A REALLY GOOD FEEL GOOD EVENT, BUT ALSO A REAL EVENT WHERE PEOPLE WERE CONNECTING.

UM, ONE OF THE COMMENTS WE HAD FROM ONE OF OUR, UH, INDUSTRY FOLKS WAS SAYING THAT A TP IS BEING RADICALLY PROACTIVE WHEN IT COMES TO ENGAGEMENT AND, AND GETTING PEOPLE TOGETHER.

I HAD A CHANCE TO VISIT WITH, UH, A SMALL BUSINESS.

A GUY'S NAME WAS DWAYNE CLARK.

HE, HIM AND HIS SISTER HAVE A, HAVE A TRUCKING COMPANY AND, AND A DIRT COMPANY.

I THINK IT'S A VERY SMALL BUSINESS.

AND GREG GUY TO TALK TO.

WE SAT AND UM, WE SAT AND HAD A CUPCAKE OR SOMETHING TOGETHER, AND THEN I GOT TO SEE HIM CONNECTING WITH SOME OF THE LARGEST CONSTRUCTION COMPANIES IN THE COUNTRY.

SO I KIND OF WALKED AWAY WHERE LIGHT RAIL'S ALREADY HAVING AN IMPACT.

IT'S ALREADY CONNECTING.

PEOPLE ARE COMING TOGETHER.

WE'RE WE'RE ALL SMALL BUSINESSES IN AUSTIN ARE GETTING A CHANCE TO, UM, SHOW THEIR WORK AND SHOW THEIR EXPERTISE WITH ALL OF THESE NATIONAL GROUPS.

IT WAS REALLY, IT WAS REALLY NEAT.

AND THAT WAS HAPPENING THROUGHOUT THE DAY, THROUGHOUT THE BUILDING HERE.

SO IT WAS REALLY NEAT.

UM, A BIG SHOUT OUT TO OUR ENTIRE TEAM.

IT TOOK EVERYBODY TO PUT THIS EVENT TOGETHER.

UM, WHEN YOU WALKED IN THE DOOR, YOU SAW DEBBIE, OUR HR DIRECTOR, WELCOMING PEOPLE WITH HER TEAM.

EVERYBODY WAS HERE, UH, DOING IT.

IT WAS A ONE, IT WAS A FUN EVENT AND WE LOVE DOING IT.

AND THERE'S MORE TO COME AS WE CONTINUE ADVANCING OUR PROCUREMENT.

SO, THANK YOU.

THANK YOU.

AND THE LAST ONE IS, YOU KNOW, WE'VE BEEN OUT THERE CONTINUING, UM, UNDER OUR DELIVERY THOUGHT AND LEARNING IS, IS VISITING WITH SOME OF OUR PARTNERS AROUND THE COUNTRY.

YOU KNOW, WE'VE BEEN TO SEATTLE, WE'VE BEEN TO LOS ANGELES.

WE HAD A CHANCE TO GO OUT TO VALLEY METRO TO VISIT WITH VALLEY METRO.

THEY ARE, THEY HAVE TWO BIG PROJECTS.

UM, ONE WRAPPING UP, UH, NORTH, ONE JUST OPENED A NORTHWEST PHASE AND A SOUTH CENTRAL THAT'S ABOUT TO OPEN VERY LARGE, UH, EXTENSIONS TO THEIR LIGHT RAIL SYSTEM.

WE HAD A REALLY GOOD DIALOGUE WITH THEIR CEO AND THEIR STAFF, UM, ABOUT THOSE PROJECTS.

LEARNING NOT ONLY ABOUT PROJECT DELIVERY, BUT ALSO STARTING TO THINK ABOUT THE CONSTRUCTION MANAGEMENT AS WE INCH CLOSER TO THAT AS WELL.

AND ALSO THE CITY OF PHOENIX, UM, UH, CITY OF PHOENIX REPRESENTATIVES WERE THERE AS WELL TO TALK ABOUT THAT COLLABORATION, UH, DURING CONSTRUCTION AS WELL AS SOME OF THE THINGS WE'RE DOING IN, IN DEVELOPMENT AROUND THE STATIONS.

IT WAS A REALLY GREAT, UH, LEARNING EXPERIENCE AND VERY WELCOMING OUT THERE.

AND WE TOOK A LOT OF GREAT LITTLE NOTES AS WE COME BACK HERE AND, UM, DO OUR SAME BIG MOMENTOUS PROJECT HERE IN AUSTIN, BOARD CHAIR.

THANK YOU.

THANK YOU, MR. CANALI.

DO WE HAVE ANY QUESTIONS ABOUT THE UPDATE FROM OUR BOARD MEMBERS? NO.

THANK YOU FOR PRESENTING THAT DAY, MAYOR.

UM, ON MY BEHALF AND MAYOR AND, UM, BOARD MEMBER GARZA, IT WAS A GREAT EVENT.

YEAH.

AND I HAD, UM, ALSO AN IMPROMPTU TEXT FROM A CONSULTANT WHO JUST TEXTED ME, CONGRATULATING THE TEAM FOR PUTTING TOGETHER THAT.

SO I'D LIKE TO EXPRESS MY GRATITUDE TO ALL OF YOU FOR SUCH A GREAT EVENT AS WELL.

SO, SO

[3.1 Approval of minutes from the January 29, 2025 ATP Board Meeting.]

AND, UH, I'D LIKE TO REQUEST A MOTION AND A SECOND TO APPROVE THIS ITEM.

MOVE BY BOARD MEMBER GARZA.

SECOND.

SECOND.

OH, SECOND BY BOARD MEMBER, UH, KAMI .

I , I IGNORE MY FIRST NAME.

KAMI .

[00:05:02]

AYE.

AYE.

AYE.

THE MEETING MINUTES HAVE BEEN APPROVED, UM, UNANIMOUSLY.

UM,

[3.2 Approval of a resolution adopting amendments to ATP's Procurement Policy and Procedures.]

AND I'D LIKE TO DEFER TO YOU, MR. CANAL, FOR THE PRESENTATION.

YEAH, I THINK WE HAVE A FEW FOLKS TO COME UP AND TALK, UH, CASEY AND BRAD, UH, AND GET YOU INTRODUCE YOU, UH, TO JIM MITCHELL WITH AECOM, WHO'S OUR DELIVERY PARTNER, LINDSAY AND TOM ZUKI WITH, WITH EY.

WHILE WE'RE UPDATING OUR PROCUREMENT, UH, POLICY TO REFLECT, UH, THE DIRECTION OF WHERE WE'RE GONNA GO WITH OUR DELIVERY.

JUST TO KIND OF QUICK STORY ABOUT HOW WE GOT HERE, AND EVERYONE AROUND THE TABLE HAS BEEN PART OF THAT, UM, THAT JOURNEY.

UH, KIND OF GONNA GIVE A, A SPECIAL SHOUT OUT TO TOM AND EY.

THEY'VE BEEN REALLY WITH US FOR GOING ON FOUR YEARS NOW FOR THE RESET AND REALLY HELPING US ENGAGE WITH INDUSTRY FROM THOSE EARLY DAYS OF, OF WHO WE WERE AND, UH, KIND OF BRING INTO THIS POINT NOW AS WE UPDATE OUR PROCUREMENT POLICY TO REFLECT ALL THE WORK AND THE DIRECTION THAT WE'RE GOING IN FROM PROCUREMENT.

SO I'LL TURN IT OVER TO CASEY.

YEAH, I THINK THAT'S RIGHT.

WE WANTED TO TAKE A MOMENT AND KIND OF PUBLICLY AND WITH THE BOARD, ESPECIALLY WITH OUR NEW BOARD MEMBER.

UM, THE LAST TIME WE UPDATED ON WHERE WE WERE IN DELIVERY WAS BACK IN NOVEMBER.

SO, UM, IT SEEMED LIKE A PROCUREMENT POLICY UPDATE WAS A GOOD TIME JUST TO GET THE GROUP TOGETHER AND, UM, TALK ABOUT WHERE WE'VE BEEN IN OUR DELIVERY APPROACH AT THIS MOMENT.

YOU KNOW, WE HIRED OUR DELIVERY PARTNER, AECOM, WHICH HAS BEEN, UM, GREAT TO GET THEM ON BOARD AND IN INTEGRATED IN THIS PROCESS AND EVERYTHING ELSE THAT'S HAPPENING IN THE ORGANIZATION.

BUT AT THE SAME TIME, KIND OF WITHIN A COUPLE MONTHS, WE ALSO ISSUED DRAFT, UM, SOLICITATION AND CONTRACT DOCUMENTS FOR OUR MULTI-BILLION DOLLAR FINAL DESIGN AND CONSTRUCTION CONTRACT.

SO, UM, WE ARE AWAITING RESPONSES FROM INDUSTRY THAT ARE COMING IN NEXT WEEK TO COMMENTS ON THAT.

'CAUSE THEY'RE DRAFTS.

AND IN THE MEANTIME, LIKE GREG SAID, WE'VE BEEN MEETING WITH PEER AGENCIES AND WITH INDUSTRY TO GET FEEDBACK ON THOSE, TO GET THEM, UM, AS GOOD AS THEY POSSIBLY CAN BE FOR THEIR RELEASE LATER THIS YEAR.

SO WE JUST THOUGHT AS KIND OF A GOOD MOMENT HERE IN MARCH TO TOUCH BASE ON THAT AS WE, UM, GO INTO THIS ACTION ITEM.

SO I DON'T KNOW IF WE WANT TO MAYBE, TOM, IF YOU WANNA SPEAK A LITTLE BIT SINCE YOU HAVE BEEN WITH US SINCE THE BEGINNING, ABOUT THE PROCESS WE'VE BEEN THROUGH JUST TO LEVEL SET WITH FOLKS.

YEAH, NO, SURE.

UM, SO JUST TO, UM, JUST TO, YEAH, I THINK WE'VE TALKED ABOUT THIS WITH THIS BOARD IN THE PAST, RIGHT? SO A TP HAS BEEN, AND WE'VE BEEN ADVISING AT TP IN A VERY DELIBERATE PROCESS OVER THE PAST TWO AND A HALF YEARS HERE.

AND PLUS, RIGHT? AND IT'S, AND IT'S ENGAGEMENT ON THREE FRONTS, RIGHT? ONE IS ENGAGEMENT WITH INDUSTRY PEERS AS WELL AS WITH THE BOARD AND EDUCATING AND LEARNING FROM ALL THOSE VARIOUS SOURCES.

AND WHAT WE'VE LEARNED IS, YOU KNOW, LEARNING ABOUT PAST PROJECTS, WHAT WENT WELL, WHAT HASN'T GONE WELL, AND THINKING ABOUT IN PARTICULAR, SORT OF AN INDUSTRY MOVEMENT TOWARDS, UH, PREFERENCE FOR SHARING RISKS AND COLLABORATIVE CONTRACTING APPROACHES, UH, AS A RESULT OF THE COMPLEXITY AND SORT OF SOME FAILURES IN THE PAST, UH, ESPECIALLY IN THE TRANSIT SPACE AND TRYING TO BUILD UPON THOSE LESSONS LEARNED, BUT ALSO IN UNDERSTANDING THAT WE ARE A VERY COMPETITIVE ENVIRONMENT WITH ALL THE INFRASTRUCTURE SPENDING GOING ON.

UM, AND IF YOU THINK ABOUT THOSE TWO THINGS AND WHAT, WHAT, WHAT SETS CERTAIN PROJECTS APART, WE'RE LEARNING THAT, YOU KNOW, MORE AND MORE IT'S ATTRACTING THE RIGHT TALENT, UH, TO THIS PROJECT.

AND SO HOW DO YOU DO THAT? AND IT'S BEING A, BEING SORT OF AN OWNER OF CHOICE AND KEEPING TO THE SCHEDULES THAT WE ARE TALKING ABOUT HERE, RIGHT? AND THAT CASEY AND, AND GREG HAVE BEEN TALKING ABOUT AND IS, IS KEEPING ON SCHEDULE WITH THE RFIS AND RFPS AND PROCUREMENTS AND, AND INDUSTRY ENGAGEMENT.

AND THE FIRST BYPRODUCT OF THAT IS THE, IS THE BRINGING ON OF, UH, BEST IN CLASS DELIVERY PARTNER WITH AECOM AND TEAM, UM, AND THE RECENT LAUNCH OF THE RFI, UM, TO INDUSTRY AROUND THE, UH, AROUND THE, UH, CIVIL WORKS PROGRAM AND THE INDUSTRY EVENT WE JUST TALKED ABOUT, RIGHT? AND SO THROUGHOUT THAT PROCESS, ENGAGING WITH ALL THOSE VARIOUS, UH, PEER AGENCIES AND THE, LIKE, THE, THE, THE, THE A TP IS SORT OF LANDING ON A PREFERRED APPROACH AROUND PROGRESSIVE DESIGN BUILD.

AND I THINK, UH, BRAD AND THE FOLKS ARE GONNA TALK A LITTLE BIT MORE AROUND THAT, UNLESS THERE'S ANY OTHER QUESTIONS.

FOR THOSE OF YOU WHO DON'T KNOW ME, I'M JIM MITCHELL OR JAMES MITCHELL.

I'M THE PROGRAM, UH, DIRECTOR FOR THE DELIVERY PARTNER, AND WE'RE ABSOLUTELY THRILLED TO BE PART OF THE A TP DELIVERY TEAM.

AND I CAN TELL YOU, AFTER WORKING AROUND THE WORLD ON BIG METRO PROJECTS, WHETHER IT BE IN THE UK OR MOST RECENTLY IN SAUDI ARABIA, WHERE I WORKED ON THE, UM, THE NEW LIGHT RAIL SYSTEM FOR RIYADH METRO, UH, AND THEN RECENTLY AGAIN IN MARYLAND ON THEIR BIG PROJECT, THAT THIS APPROACH OF THE PROGRESSIVE DESIGN BUILD AND THE COLLABORATIVE ASSESSMENT THAT

[00:10:01]

THERE'S ONLY POSSIBLY AMTRAK IN THE NORTHEAST CORRIDOR THAT'S WORKING ON THE, WITH THE COLLABORATIVE APPROACH AND THE DELIVERY PARTNER.

AND AFTER WORKING ON THAT PROJECT FOR ABOUT SIX WEEKS BEFORE, OR SIX MONTHS BEFORE COMING HERE AND GETTING INVOLVED WITH THIS PROJECT, THEY'RE EVEN FURTHER BEHIND IN WHAT YOU ALL ARE DOING HERE.

THIS IS CUTTING EDGE BECAUSE GREAT COMPANIES ARE MADE UP OF GREAT PEOPLE.

AND THE, AND THE KEY IS GETTING THE RIGHT PEOPLE ON YOUR PROJECT THAT HAVE THE SAME VALUES, THE SAME CORE COMPETENCIES THAT YOU'RE LOOKING FOR.

WE CAN ALL DISSECT PROJECTS WHERE THEY MAY NOT GO AS YOU LIKED, AND IT'S GENERALLY NOT TECHNICAL, IT'S GENERALLY COMMUNICATIONS AND PERSONALITIES AND THINGS LIKE THAT.

SO BY WORKING THROUGH THIS, THE COLLABORATIVE APPROACH THAT A TP HAS CHOSEN AND THE PROGRESSIVE DESIGN BUILD BY GETTING THE TEAMS INVOLVED EARLY ON, HELPING TO SHARE THE VISION, SO IT BECOMES A COMMON VISION, IS BEST OF CLASS.

AND, YOU KNOW, I'VE TALKED TO COLLEAGUES OF MINE AND SAID, I DON'T WANT TO DO ANOTHER PROJECT THAT DOESN'T HAVE THIS TYPE OF APPROACH BECAUSE IT'S SO DIFFERENT IN THE INDUSTRY.

AND I'VE BEEN DOING THIS FOR OVER 40 YEARS.

AND, UH, SO HATS OFF TO, TO A TP THE CITY OF AUSTIN FOR BEING OUT FORWARD THINKING TO DELIVER THE BEST IN CLASS.

AND I, LIKE I SAID, I THINK WHAT WE'RE DOING HERE IS GOING TO SET THE STAGE FOR LOTS OF OTHER AGENCIES TO FOLLOW.

YEAH, AND I'LL, I'LL SPEAK A LITTLE BIT MORE TO, UM, OUR DECISION RECOMMENDATION FOR A PROGRESSIVE DESIGN BUILD APPROACH.

UM, JUST AS FOLLOWING OFF OF WHAT JIM AND GREG HAVE SAID, AND, AND TOM, OUR IT ITERATIVE APPROACH OF TALKING TO THE BOARD AND LEARNING FROM THE BOARD, TALKING TO THE INDUSTRY, AND LEARNING FROM THE INDUSTRY, TALKING TO OUR PEERS AND LEARNING FROM THEM.

UM, PROGRESSIVE DESIGN BUILD HAS BEEN THE THING THAT HAS CONSTANTLY BOILED TO THE TOP ON ALL THE RECOMMENDATIONS THAT WE'VE RECEIVED FROM THE INDUSTRY AND FROM PEERS.

ONE IS BECAUSE IT ALLOWS FOR GREATER INNOVATION INTO THE DESIGN PROCESS, ESPECIALLY THE LEVEL OF DESIGN THAT WE'RE BRINGING, UM, TO THE PROGRESSIVE DESIGN BUILD.

THEY CAN COME IN AND START ON DAY ONE, UM, SUBMITTING AND PROPOSING INNOVATIONS TO THE PROJECT THAT WILL BE BETTER OFF.

AND SIMULTANEOUSLY WE'LL HAVE THE CONTRACTOR ON BOARD WHO IS THERE TO REVIEW THOSE INNOVATIONS AND THE DESIGN TO ENSURE THAT CONSTRUCTABILITY IS ALWAYS AT THE FORETHOUGHT OF ALL OF THE DESIGNS AS WELL.

SO THAT WAY WE CAN BUILD AN INNOVATIVE, UNIQUE, GREAT SYSTEM.

UM, NEXT, UH, HAVING BOTH MEMBERS ON BOARD SO EARLY CAN HELP CREATE GREATER COST, UM, REVIEWS AND ASSESSMENTS, AND WE CAN DESIGN A PROJECT THAT ONE WE CAN AFFORD AND, AND TWO, WILL BE GREAT FOR THE CITY, UM, AND, AND THE RESIDENTS OF AUSTIN.

AND LASTLY, AGAIN, IT'S SOMETHING THAT WE HAVE VETTED AGAIN AND AGAIN WITH THE INDUSTRY OVER THE LAST TWO AND A HALF YEARS.

AND IT'S BEEN THE, THE MOST HIGHLY RECOMMENDED APPROACH, ESPECIALLY FOR THIS PROJECT AND THE UNIQUE COMPLEXITIES THAT IT HAS OF WE'LL GO RUNNING THROUGH AN URBAN ENVIRONMENT WITH THE BRIDGE AND A GREENWAY SYSTEM.

UM, IT, IT REALLY LENDS ITSELF BEST TO A, A PROGRESSIVE DESIGN, BOTH STYLE MODEL.

AND, AND THAT IS WHY WE'VE RECOMMENDED THAT TO THE BOARD BACK IN NOVEMBER.

AND, UH, PROCEEDED WITH, UM, MOVING FORWARD, DEVELOPING A SOLICITATION THAT MATCHES THAT DESIGN AND VISION AND WHAT'S OUT TO THE PUBLIC RIGHT NOW FOR REVIEW AND COMMENT, WHICH IS REALLY EXCITING.

UM, NEXT IS A, A SLIGHTLY MODIFIED VERSION OF A SLIDE I'VE SHOWN YOU QUITE A FEW TIMES, UM, OVER THE LAST YEAR AND A HALF.

UM, AND IT, IT'S KIND OF FOCUSING ON, UH, THE MOST RECENT PAST AND, AND THE IN THE FUTURE.

UH, LIKE WE MENTIONED EARLIER, WE'VE AWARDED OUR, OUR CONTRACT TO AECOM TO BE OUR DELIVERY PARTNER.

HERE'S A, A QUICK SUMMARY OF A LOT OF THE SCOPE OF WORK THAT THEY'RE GOING TO BE HELPING AND PROVIDING FOR US AS WELL.

WE ARE, UM, IN THE BEGINNING STAGES OF RECURRENT OPPORTUNITY, WHICH IS THE PROGRESSIVE DESIGN BUILD FOR THE MAIN LIGHT RAIL SYSTEM.

UM, THE RFI IS OUT, ITS RESPONSES ARE DUE IN A WEEK.

WE GAVE THE INDUSTRY A LITTLE OVER SEVEN, EIGHT WEEKS TO, UM, PUT TOGETHER THEIR REVIEW AND RESPONSES.

AND WE'RE LOOKING FORWARD TO GETTING THOSE.

UM, WE'VE RESERVED A LOT OF TIME AND, UM, ENERGY AND SPACE TO REVIEW ALL OF THOSE COMMENTS, UM, TO ENSURE THAT THE, THE SOLICITATION THAT WE PUT OUT IS THE BEST FOR THE PROJECT AND IT'S COMPETITIVE, UM, FOR, UH, AND INCREASES THE LEVEL OF COMPETITION.

UM, BECAUSE WHAT WE KNOW IS COMPETITION DRIVES GREATER SUCCESS, AND WE WANT TO ENSURE THAT, UM, LIKE TOM SAID, WE WANT TO BE AN OWNER OF CHOICE.

UM, AND ENSURING THAT THE INDUSTRY'S INVOLVED IN THESE REVIEWS IS NOT ONLY CUTTING EDGE, BUT ENSURING THAT THAT WILL HAPPEN.

AND THEN, UM, THE NEXT TWO BIG SOLICITATIONS THAT WE'LL ALSO DO THIS YEAR ARE THE PROGRESSIVE DESIGN BUILD FOR OUR OPERATIONS AND MAINTENANCE FACILITY, AS WELL AS PURCHASING OR DOING THE SOLICITATION WITH THE LIGHT RAIL VEHICLES THEMSELVES.

AND I'LL TURN THE TIME OVER TO LINDSAY TO KIND OF TALK ABOUT SOME OF THE, THE NUANCES BETWEEN THE DIFFERENT SCOPES.

SO ONE

[00:15:01]

THEY ALL HAVE TO CONNECT TO EACH OTHER, THEY ALL HAVE TO COORDINATE WITH EACH OTHER, AND THERE ARE INTERFACES THAT WE HAVE TO HELP MANAGE NO MATTER HOW WE DIVIDE IT UP.

UM, BUT WE WANT TO DIVIDE UP THE SCOPE OR THE RESPONSIBILITIES OF EACH CONTRACTOR TO POSITION THEM, UH, UNDER THE CONTRACT WHERE THAT ENTITY CAN BEST MEET THE DESIRED OUTCOMES AND ACHIEVE THE GOALS OF THE PROJECT.

AND THIS RFI PROCESS AND INDUSTRY ENGAGEMENT AND, AND EVEN THE RECENT CONNECT AND BUILD EVENT, ONE OF THE FOCUSES FOR THAT ENGAGEMENT HAS BEEN GETTING FEEDBACK ON HOW WE DIVIDE UP THESE DIFFERENT CONTRACTS.

AND WE'RE ALREADY HEARING, UM, EARLY THINGS THAT ARE MAKING US THINK A LITTLE DIFFERENTLY ABOUT IT.

AND I THINK, UH, YOU KNOW, OUR ABILITY TO ADAPT AND CHANGE TO THAT FEEDBACK IS A GREAT SIGN THAT THE PROCESS IS WORKING.

AND IN ONE AREA I'LL HIGHLIGHT, WE ORIGINALLY WERE THINKING OF THE LIGHT RAIL CONTRACT, OR THE CURRENT ONE THAT YOU SEE HIGHLIGHTED IN GREEN.

UM, NOT ONLY WOULD IT BE THE LIGHT RAIL ALIGNMENT AND THE STATIONS AND, UM, THE CIVIL IMPROVEMENTS IN THE UTILITIES, IT WOULD HAVE THE RAIL SYSTEMS FOR THE ENTIRE PROGRAM, INCLUDING AT THE MAINTENANCE FACILITY, AND IT WAS GOING TO INCLUDE ALL OF THE TRACK, WHEREAS THE MAINTENANCE FACILITY WOULD BASICALLY BE A BUILDINGS CONTRACT AND JUST BUILD THE VERTICAL FACILITIES THERE.

AND WE'RE ALREADY HEARING SOME FEEDBACK THAT THAT MAY CREATE SOME CHALLENGES AND HOW THE MAINTENANCE FACILITY CONTRACTOR CAN REALLY OWN THEIR, UM, OWN THEIR OUTCOMES IF THEY DON'T HAVE CONTROL OVER THE WHOLE SITE.

AND SO WE'RE LOOKING AT INSTEAD DIVIDING IT UP TO POTENTIALLY HAVE THE TRACK, UH, ALL UNDER FOR THE MAINTENANCE FACILITY.

THEY OWN EVERYTHING INSIDE THAT SITE, THE BUILDINGS, THE SIS, UH, THE FACILITIES, THE TRACK, AND THE SITE WORK.

AND SO WE CONTINUE TO LOOK FORWARD TO ADDITIONAL FEEDBACK.

WE HAVE A SERIES OF MEETINGS AS PART OF THE RFI PROCESS, BUT WANTED TO JUST HIGHLIGHT ONE EARLY EXAMPLE OF HOW, YOU KNOW, WE MAY CHANGE HOW WE'RE THINKING ABOUT THINGS.

AND LASTLY, WE WANNA END WITH JUST KIND OF A, A PREVIEW OF WHAT'S TO COME, UH, THIS YEAR AS FAR AS SOLICITATIONS GO.

UM, LIKE WE MENTIONED, WE ANTICIPATE ISSUING, UM, THE THREE MAJOR SOLICITATIONS, THE PDBS FOR THE MAIN LIGHT RAIL SYSTEM, THE OPERATIONS OF BEING THE FACILITY, AND ALSO OUR VEHICLES.

WE'VE BEEN REALLY STRATEGIC ON, UH, PLANNING THE, THE, THE TIMING OF THOSE TO ENSURE THAT ONE, WE ARE CAPABLE OF HANDLING ALL OF THE SOLICITATIONS IN A TIMELY MANNER AND MEETING OUR DEADLINES.

UM, BUT TWO, ENSURING THAT WE WANNA MAXIMIZE COMPETITION.

AND KNOWING THAT THERE ARE FIRMS THAT MAY WANT TO COMPETE ON BOTH THE, THE MAIN LIGHT RAIL SYSTEM AND THE OPERATIONS OF MAINTENANCE FACILITY, AND GIVING THEM ADEQUATE TIME TO BE ABLE TO RESPOND AND APPROPRIATELY RESPOND TO BOTH, UM, HAS BEEN REALLY IMPORTANT TO US.

SO WE'RE TRYING TO OUR BEST TO STAGGER THESE SOLICITATIONS OUT BY A COUPLE OF MONTHS TO ENSURE THAT THERE'S CLEAR START POINTS AND STOP POINTS, UM, TO ENSURE WE CAN MAXIMIZE THAT COMPETITION AND GET AS MANY PEOPLE INVOLVED AS AS WE CAN.

UM, SO THAT THE PREVIEW GOES, UM, WE WILL GET THE RESPONSES TO THE RFI BACK NEXT WEEK.

WE ANTICIPATE ISSUING THE RFQ, UM, ANY DESIGN BUILD PROJECT, WHICH PROGRESSIVE DESIGN BUILD IS.

AND THE STATE OF TEXAS HAS TO GO THROUGH A TWO STEP PROCESS, AN RFQ, FOLLOWED BY AN RFP.

SO WE WILL ISSUE THAT RFQ IN JUNE, UM, FOR THE MAIN SYSTEM.

UH, WE'LL ISSUE THE RFI FOR THE OPERATIONS AND MAINTENANCE FACILITY IN APRIL, UM, WITH THE ANTICIPATION OF ISSUING THAT RFQ LATER ON IN QUARTER THREE.

UM, WE'LL ISSUE THE RFI FOR THE LIGHT RAIL VEHICLES THEMSELVES IN MAY WITH, UM, ISSUING THE RFP LATER ON IN, IN QUARTER THREE AS WELL.

AND THEN I WANT TO PROVIDE A, A CALL OUT TO THE QR CODE, ESPECIALLY FOR THOSE, UH, IN THE INDUSTRY WHO ARE ATTENDING, UM, EITHER IN PERSON OR VIRTUALLY.

WE BUILD OUT A NEW PART OF OUR WEBSITE WITH A PAGE SPECIFICALLY DEDICATED TO THE PROCUREMENTS OF, OF THESE THREE MAIN THINGS.

UM, SO IF YOU SCAN THAT QR CODE OR GO TO OUR WEBSITE, UM, AT PTX.ORG/BUILD WITH US, IT'LL CONNECT YOU TO, TO THAT IT'S A NEW PART OF OUR SITE.

AND THEN YOU CAN FIND OUT HOW TO REGISTER AS A VENDOR, GET INFORMATION ON EVENTS THAT ARE HAPPENING, UM, AS WELL AS, UH, KEEP UP TO DATE ON, UH, ON THE PROJECT.

SO WE ENCOURAGE EVERYONE TO GO AND LOOK AT, LOOK AT THAT.

UM, AND WITH THAT, WE ARE HERE TO ANSWER ANY OF YOUR QUESTIONS, UM, REGARDING KIND OF THIS DELIVERY UPDATE.

GREAT.

THANK YOU TEAM.

UH, DO WE HAVE ANY QUESTIONS FROM THE BOARD? YES.

BOARD NUMBER FOUR.

THANK YOU, MADAM CHAIR.

I, I DON'T HAVE A QUESTION.

I JUST WANT TO CONGRATULATE THE TEAM ON SUCH A THOUGHTFUL APPROACH AND ALSO HOW THAT APPROACH HAS BEEN ROLLED OUT, UM, SO WELL, UM, WITH THE PUBLIC AND

[00:20:01]

UM, I JUST THINK IT'S, IT'S, IT'S REALLY EXCELLENT AND, AND VERY SMART, AND SO CONGRATULATIONS TO ALL OF YOU.

I'M REALLY ENTHUSIASTIC AS WELL.

I SECOND WHAT BOARD MEMBER HORN SAID.

UM, WHEN WE'RE TALKING ABOUT THE DESIGN, PROGRESSIVE DESIGN BUILD, THERE'S A LOT OF UNKNOWNS AND WE WANT TO MINIMIZE THE RISKS, RIGHT? THE RISKS AS MUCH AS WE CAN THE PROJECT.

AND WHEN I HEAR YOU SAY THE CONSTRUCTABILITY OF THE PROJECT, WE CAN'T FORGET THE MAINTAINABILITY FOR THE LONG LIFE OF THE PROJECT.

SO I'M SURE THAT'S ALWAYS FRONT AND CENTER FOR ALL OF YOU.

SO WITH THAT, UH, I THINK THAT IT'S, IT'S, THIS IS A VERY SMART APPROACH AS WELL.

I THINK THIS IS, I'M EXCITED TO BE ON THE CUTTING EDGE OF THIS NEW INITIATIVE.

AND, UM, AND WHEN WE THINK OF BEST PRACTICES, I, I KIND OF DON'T LIKE THAT TERM IN MANY WAYS, SIMPLY BECAUSE IT FEELS LIKE THERE'S ONLY THE BEST WAY, BUT I BELIEVE IN CONSTANT IMPROVEMENT AND FINDING WAYS TO DO THINGS DIFFERENTLY.

AND I THINK AS A WHOLE WITH, WE HAVE A GREAT OPPORTUNITY TO REVAMP UTILITIES, WELL, IS IT BEST PRACTICE OR IS IT INNOVATION? AND WE DON'T WANT TO BE ON THE BLEEDING EDGE OF TECHNOLOGY, RIGHT? BUT ON THE CUTTING EDGE.

SO, UM, I'M EXCITED, I'M EXCITED TO BE FOLLOWING THIS EFFORT.

AND, UM, THANK YOU, MADAM CHAIR.

YES, SIR.

I WASN'T GONNA SAY ANYTHING , UH, BUT YOU INSPIRED ME.

I JUST GOT, I'LL TALK LOUDER.

I USUALLY NEVER GET ACCUSED OF TALKING TOO LOUD.

BUT, UM, LET, LET ME SAY, UM, ONE OF THE REASONS THAT I LIKE THE PROCESS IS IT HAS ALLOWED US TO MAINTAIN OUR VALUES AS WE PROMISED OUR, OUR VOTING PUBLIC THAT WE WOULD, UH, WE SAID THAT WE WOULD BE THOROUGH, THAT WE WOULD BE PROCESS CENTERED, THAT WE WOULD INCLUDE EVERYONE, THAT WE WOULD SEEK NOT ONLY IMPORTANT NATIONAL AND INTERNATIONAL PARTICIPATION, BUT IMPORTANT LOCAL PARTICIPATION AS WELL.

THERE ARE A LOT OF PEOPLE THAT HAVE FORGOTTEN OUR HISTORY AND HAVE FORGOTTEN THAT MANY OF US COULD NOT SIT IN THESE ROOMS AND CERTAINLY COULD NOT BID ON ANYTHING.

SO IT'S IMPORTANT THAT WE MAINTAIN THE VALUE SYSTEM, THAT, UH, DIVERSITY IS IMPORTANT, THAT INCLUSION IS NECESSARY BECAUSE WE ALL PAY TAXES AND, AND WE ALL EXPECT TO USE THE, THE TOOLS THAT WE BUILD.

SO, UH, I'M APPRECIATIVE THAT WE HAVE MAINTAINED OUR VALUE SYSTEM THAT SAYS EVERY TIME SOMETHING COMES OUT TO BID ON, EVERYBODY WILL KNOW, AND WE WILL LOOK THOROUGHLY TO SEE, UH, WHETHER WE HAVE SENIOR MANAGERS ASSIGNED, OR IT'S THE FIRST PERSON, UH, ON THIS FIRST PROJECT THAT'S ASSIGNED TO THIS.

IT IS CRITICAL THAT WE MAKE SURE THAT, THAT ALL OF US HAVE AN OPPORTUNITY AND THAT OUR TEAMS ARE INCLUSIVE OF THOSE PEOPLE WHO WILL BE CUSTOMERS IN THE LONG RUN THAT HAS BEEN LOST AT THE FEDERAL LEVEL, THAT HAS BEEN LOST AT THE STATE LEVEL.

WANNA MAKE SURE THAT WE DON'T LOSE IT AT THE LOCAL LEVEL BECAUSE WE PROMISED OUR CITY THAT THAT'S THE WAY THAT WE WOULD DO BUSINESS, THAT WE WOULD ALL BE INCLUDED.

THAT'S OUR EXPECT, THAT'S MY EXPECTATION.

AND, AND SO WHEN I LOOK AND SEE THAT YOU HAVE GONE THOROUGHLY THROUGH, AND YOU'VE MADE SURE THAT WE'VE ALIGNED THINGS IN SUCH A WAY, UH, THAT PEOPLE CAN PARTICIPATE, THAT GOOD STRONG HOMEGROWN BUSINESSES HAVE AN OPPORTUNITY TO WORK HERE, TOO, UH, THAT'S MEANINGFUL FOR ME.

AND, AND I APPRECIATE THE WORK THAT YOU'VE DONE.

ANY FURTHER? COMMENTS, QUESTIONS? YES.

AMEN.

.

WELL, WITH WITHOUT FURTHER DISCUSSION, I'D LIKE TO CALL FOR, UM, OH, YOU'RE MOVING TO THE PRESENTATION.

THERE'S ONE MORE.

I SAVED THE MOST EXCITING THING FOR LAST UPDATES TO OUR PROCUREMENT POLICY.

UM, I KNOW EVERYONE WAS WAITING ON THE EDGE OF THEIR SEAT FOR THIS MOMENT, BUT, UM, WE, IT'S THAT TIME OF YEAR WHERE IT'S TIME TO UPDATE OUR PROCUREMENT POLICY AND THE DRIVING MOTIVE.

UH, BEHIND THIS IS THE FDA RECENTLY, UM, ISSUED AN UPDATE TO THEIR THIRD PARTY CONTRACTING GUIDANCE CIRCULAR, UM, 42, 20 0.1 F, UM, THAT WAS ORIGINALLY CREATED BACK, I THINK IN 2008, 2009.

IT'S BEEN A WHILE.

IT'S BEEN IN, UH, MUCH NEED OF UPDATING.

AND THEY, THEY FINALLY DID THAT.

THEY ISSUED IT IN JANUARY AND HAVE IT GOING IN EFFECT ON MARCH 20TH.

WE'RE GONNA BE PROACTIVE ENSURING OUR POLICIES MATCH WHAT THE FEDERAL, UH, GOVERNMENT REQUIRES

[00:25:01]

UM, SO WE NEED TO UPDATE OUR POLICIES TO MATCH THE CHANGES, UM, IN THE, IN THE GUIDANCE.

UM, AS WELL AS, UH, UPDATING OUR, UM, PROCUREMENT CODE TO ALSO MATCH, UH, 2269, WHICH CONTROLS ALTERNATIVE DELIVERY METHODS AND SELECTION PROCESSES, UM, HERE IN TEXAS.

UM, SO I'VE PROVIDED A, A QUICK SUMMARY OF, UM, SOME OF THE CHANGES THAT WE'RE MAKING INTO THE PROCUREMENT POLICY.

FIRST ONE IS JUST REFERENCES TO THE OLD CIRCULAR AND UPDATING THE NEW ONE.

NOTHING MAJOR THERE.

THE NEXT ONE ARE WRITTEN PROCEDURES FOR EVALUATIONS.

UM, THERE USED TO BE A PRETTY HEFTY SECTION IN THE OLD CIRCULAR ABOUT WHAT NEEDED TO BE PUT INTO, UM, THE EVALUATION PROCESS.

AND NOW THEY'VE SIMPLIFIED THAT TO SAY, IDENTIFY EXACTLY WHAT YOU'RE GOING TO EVALUATE, MAKE SURE YOU'RE GOING TO EVALUATE IT, AND ONLY EVALUATE THOSE THINGS.

UM, SO WE'VE SIMPLIFIED OUR LANGUAGE AND COPIED AND PASTED THE, THE SAME LANGUAGE FROM THE FT A TO ENSURE THAT WE'RE COMPLIANT WITH THAT.

IT'S JUST THE BEST PRACTICE IN WHAT WE'VE ALWAYS DONE, BUT JUST SIMPLIFYING THAT LANGUAGE THERE.

UM, NEXT THEY'VE MADE SOME UPDATED, UH, CHANGES TO THE PROCUREMENT PROCEDURES.

MOST NOTABLY, UM, THE, THE PREVIOUS CIRCULAR DID NOT HAVE ANY INFORMATION RELATED TO PROGRESSIVE DESIGN BUILD.

UM, AND THEY'VE UPDATED THE CIRCULAR TO INCLUDE THAT.

UM, SO WE'RE UPDATING OUR PROCUREMENT POLICY TO MATCH THAT LANGUAGE AS WELL, UM, WHICH IS NEW AND EXCITING.

UH, ANOTHER, UH, THING THAT WAS PREVIOUSLY NOT ALLOWED UNDER, UM, THE, THE PREVIOUS GUIDANCE WAS MULTIPLE, UH, AWARD INDEFINITE DELIVERY A AND E CONTRACTS, UM, WHICH WILL REALLY BE BENEFICIAL, ESPECIALLY AS WE HAVE THE SYSTEM UP AND RUNNING TO BE ABLE TO HAVE A, A ON-CALL LIST OF FIRMS TO BE ABLE TO DO MAINTENANCE AND, UM, UH, UPGRADES TO THE SYSTEM, WHICH IS, IS SOMETHING THAT'LL BENEFIT US, UH, IN THE LONGER TERM RUN.

LAST IS THEY'VE UPDATED THE, THEIR LANGUAGE FOR MICRO PURCHASES.

UM, THE PREVIOUS LANGUAGE ADDED UP TO 10,000.

THEY'VE INCREASED IT UP TO $50,000 FOR A MICRO PURCHASE.

UM, AND THEY'VE ALSO GOTTEN RID OF THE WORD SMALL PURCHASE, UM, IN, IN THE GUIDANCE, WHICH IS KIND OF JUST A NUANCE.

AND THEY'VE INSTEAD UPDATED AND ADOPTED THE FAR SIMPLIFIED PURCHASE ACQUISITION.

UM, A LITTLE BIT MORE OF A MOUTHFUL, BUT WE'RE CHANGING OUR LANGUAGE AS WELL TO GET RID OF THE SMALL PURCHASE, UM, LANGUAGE INSTEAD OF USING, USING SIMPLIFIED ACQUISITION, BUT NO REAL BIG CHANGES THERE.

NEXT, THEY'VE ADDED SOME REQUIREMENTS TO DETERMINE WHETHER OR NOT A BIDDER OR PROPOSER IS RESPONSIBLE.

UM, THAT'S SOMETHING THAT PROCUREMENT DOES.

UM, KIND OF BEHIND THE SCENES, ANYTIME SOMEONE SUBMITS A BID OR A PROPOSAL TO THE AGENCY, PROCUREMENT BEHIND THE SCENES GOES THROUGH AND ENSURES THAT THE, THE PROPOSER OR BIDDER IS A RESPONSIBLE BIDDER, MEANING THAT THEY HAVE THE FINANCIAL RESOURCES TO DO WHAT THEY'RE SUPPOSED TO BE DOING, THAT THEY ARE NOT IN ANY MAJOR LAWSUITS CURRENTLY THAT WOULD PROHIBIT THEM FROM BEING ABLE TO DO THE TYPE OF WORK.

UM, BUT THE FDA HAS ADDED, UM, TWO NEW ONES.

ONE, THEY WANNA MAKE SURE THAT WE REVIEW, UM, TO ENSURE THAT NO ONE'S BEEN DEBARRED OR SUSPENDED.

UM, THIS IS SOMETHING WE'VE ALWAYS DONE ANYWAYS.

IT'S JUST A, A, A BEST PRACTICE TO ALWAYS DO.

UM, BUT THEY'VE, THEY'VE SPECIFICALLY PUT THAT INTO THEIR LANGUAGE NOW, UM, AS WELL AS, UM, UH, A STATEMENT THAT THE, IN ORDER TO BE RESPONSIBLE, YOU HAVE TO BE COMPLIANT WITH PUBLIC POLICY.

UM, SO WE'VE ADOPTED THAT LANGUAGE AND PUT IT IN AS WELL.

UM, THE NEXT PART, THEY BROUGHT IN THE LANGUAGE IN THEIR, THEIR DBE SECTION.

IT USED TO BE A PRETTY HEFTY SECTION, AND NOW IT JUST SAYS THAT YOU MUST FOLLOW THE DBE, UM, LAW, WHICH IS A CONGRESSIONAL LAW THAT THE IS IS PUT TOGETHER AND PASSED BY CONGRESS.

SO THE FDA CAN'T MAKE ANY CHANGES ITSELF TO THE, THE, THE DBE PROGRAM.

UM, BUT THEY'VE SIMPLIFIED THE LANGUAGE THERE TO SAY THAT YOU MUST FOLLOW THE, THE, THE LAW.

UM, SO WE'RE UPDATING OUR DBE LANGUAGE TO MATCH THAT, THAT WE WILL ALWAYS FOLLOW THE, THE DBE LAW THAT THAT'S PUT INTO PLACE.

AND THEN LASTLY, UM, CHAPTER TWO 20, CHAPTER 2269 OF THE TEXAS CODE, UM, ALLOWS, UM, AGENCIES TO SELECT OTHER, UM, MODELS THAN DESIGN BID BUILD.

UM, AND IT ALLOWS YOU TO DELEGATE THAT AUTHORITY, AND WE'RE ASKING YOU TO DO THAT IN, UH, CHANGES TO THE CODE, SO THAT WAY WE CAN USE OTHER THINGS, UH, OTHER DELIVERY METHODS THAN JUST DESIGN, BID BUILD, AND WE CAN HAVE THE FLEXIBILITY TO MAKE THOSE DECISIONS.

UM, AND WITH THAT, UM, THE, THE WHOLE CHANGES ARE ATTACHED TO THE BOARD BACKUP DOCUMENTS.

IF YOU ARE REALLY EXCITED ABOUT THESE CHANGES, YOU CAN READ THEM ALL THERE.

UM, BUT WITH THAT SAID, UM, I'M HERE TO ANSWER ANY QUESTIONS YOU MAY HAVE ON, ON THESE RECOMMENDED CHANGES.

YOU HAD ME AT SIMPLIFIED ACQUISITION .

NOW SIMPLIFIED IS LEGAL.

SO WE'RE GONNA , UM, IS THERE ANY QUESTIONS FROM THE BOARD? NO QUESTIONS.

YOU NEED A MOTION? YES, SOME MOVE.

MOVE APPROVAL.

MOVE APPROVAL BY BOARD MEMBER BILION.

SECOND I'LL BY MAYOR WATSON.

UM, ANY DISCUSSION I DO HAVE, UH, I FEEL MUCH BETTER KNOWING THAT PDB, THE PROGRESSIVE DESIGN BILL NOW IS PART OF IT'S INCLUDED IN THE FDA'S REGULATIONS, HAVE THOUGHT THAT THAT WAS ALWAYS A BIT OF A

[00:30:01]

SO THANK YOU TO THE FDA FOR, FOR LISTENING AND TO UNDERSTAND THAT THERE'S OTHER WAYS THAT WE CAN DO BETTER IN DELIVERING THIS VERY EXPENSIVE PROJECTS.

UM, ANY OTHER QUESTIONS OR COMMENTS FROM THE T? EVERYONE IN FAVOR, PLEASE SAY AYE.

AYE.

AYE.

ACTION ITEM NUMBER TWO IS APPROVED UNANIMOUSLY.

CONGRATULATIONS.

THANK YOU.

THANK YOU.

THANK YOU ALL.

THANK YOU.

AND NOW OUR DISCUSSION

[4.1 Presentation of the Annual Audited Financial Report. ]

UM, THIS IS RELATED TO ATP'S 2024 FINANCIAL AUDIT REPORT.

WE HAVE PRESENTERS JOINING US TODAY FROM OUR EXTERNAL AUDIT SERVICE RSM, AND I'LL ALLOW THE, UH, PRESENTERS TO INTRODUCE THEMSELVES.

MR. RIVERA, WELCOME CHAIR BOARD.

THANK YOU, UM, FOR HAVING US.

SO HERE, SEE THE NEXT WITH ME.

WE HAVE RSM, WHO ARE OUR EXTERNAL AUDITORS, UM, WHO CONDUCTED OUR 2024 FINANCIAL AUDIT.

UM, WE HAVE TINO, ROBERTO, AND HEATH JACKSON HERE THAT WERE THE MAIN TWO, UM, INDIVIDUALS ENGAGED IN THE, IN THE AUDIT.

UM, I JUST WANT TO JUST THANK THE TEAM.

WE'RE A REALLY SMALL FINANCE TEAM UPSTAIRS, AND, UM, JUST WANT TO TIP MY HATS TO EVERYONE TO, WE GOT THROUGH THIS SUCCESSFULLY.

THERE WAS NO FINDINGS, AND THEY'RE GONNA WALK YOU THROUGH KIND OF ALL THE AREAS THAT THEY TESTED.

UM, BUT AGAIN, IT WOULDN'T, WE WOULDN'T BE HERE TODAY WITHOUT THE TEAM THAT WE HAVE UPSTAIRS.

SO, THANK YOU.

GOOD AFTERNOON, MADAM CHAIR, MEMBERS OF THE BOARD.

MR. CANI, THANK YOU FOR YOUR TIME THIS AFTERNOON.

MY NAME IS DEAN OTO.

AS, UH, BRIAN INDICATED I'M PART OF THE RSM ENGAGEMENT TEAM THAT WAS ASSIGNED TO THE AUDIT.

AND WITH ME HERE TODAY IS HEATH JACKSON.

HE IS THE SENIOR MANAGER THAT'S ALSO ASSIGNED TO THE AUDIT.

AND WE'RE HERE TO PRESENT THE RESULTS OF THE AUDIT FOR AUSTIN TRANSIT PARTNERSHIP FOR SEPTEMBER 30TH, 2024.

AND WE CREATED A BRIEF PRESENTATION COVER, TWO THINGS, THE RESULTS OF THE AUDIT, AND OF COURSE THE, THE OVERALL CON CONDUCT OF THE AUDIT EXECUTIVE SUMMARY SLIDE.

YES.

THANK YOU.

SO, AS, UH, AS INDICATED AS BRIAN INDICATED, WE COMPLETED THE AUDIT WITHIN THE LAST MONTH, AND, UH, I'M HAVING TO REPORT THAT WE'VE ISSUED AN UNMODIFIED OPINION.

WHAT DOES THAT MEAN? IT PRETTY MUCH RESULTS IN A CLEAN OPINION, MEANING WE DIDN'T, DIDN'T HAVE ANY ISSUES ALONG THE WAY THAT REQUIRED THAT WE MODIFY OUR RESULTS OF THE AUDIT AS PART OF THE OVERALL AUDIT.

OF COURSE, WE, WE STARTED THIS PROCESS BACK IN THE FALL, AND AS PART OF THE OVERALL PROCESS, WE GO THROUGH A RISK ASSESSMENT TO DETERMINE THE EXTENT OF TESTING THAT WE'RE GONNA PERFORM ON, ON THE OVERALL AUDIT APPROACH.

WE STARTED BACK, UH, IN THE FALL AND ACTUALLY STARTED REQUESTING SOME OF THIS INFORMATION IN NOVEMBER, DECEMBER TIMELINE.

AND AS THAT INFORMATION WAS GATHERED, UH, WE COMPLETED THE RISK ASSESSMENT AND DETERMINED THE EXTENT OF, UH, OR PROCEDURES THAT WE NEEDED TO DO IN TERMS OF THE OVERALL AUDIT, UH, STRATEGY.

UH, AS PART OF THAT AUDIT PROCESS, WE'RE REQUIRED TO REPORT WHETHER OR NOT THERE WERE ANY SIGNIFICANT ISSUES OR CHANGES TO THE OVERALL PLAN AUDIT STRATEGY.

AND WE'RE HAPPY TO REPORT THAT, UH, WE DIDN'T ENCOUNTER ANYTHING THAT REQUIRED, UH, THAT WE REPORT TO YOU AS PART OF THE OVERALL AUDIT PROCESS.

UH, AS WE, UH, ASSESS THE, THE ACCOUNTING POLICIES AND PROCEDURES THAT ARE USED BY A TP, WE'RE ALSO REQUIRED TO, TO REPORT WHETHER OR NOT THERE WERE ANY CHANGES OR ADOPTION OF NEW ACCOUNTING POLICIES AND PROCEDURES OR STANDARDS THAT TOOK PLACE DURING THE AUDIT PERIOD.

WE'RE HAPPY TO REPORT THAT THERE WERE NONE MAKES THE WHOLE AUDIT PROCESS A LITTLE EASIER WHEN THERE AREN'T ANY CHANGES, AND IT'S THE SAME THING THAT THAT'S BEEN ADHERED TO IN YEARS PAST.

UM, AS PART OF THE OVERALL AUDIT, WE'RE ALSO REQUIRED TO, TO REPORT TO YOU ANY ISSUES THAT WE COME ACROSS AS IT RELATES TO INTERNAL CONTROLS.

NOW, AS PART OF THE OVERALL AUDIT, WE LOOK AT THE INTERNAL CONTROL PROCESS THAT, THAT THAT MANAGEMENT HAS PLACED IN PLACE, AS WELL AS THEIR POLICIES AND PROCEDURES TO ENSURE THAT FINANCIAL ACCOUNTING AND REPORTING IS BEING DONE CONSISTENT WITH YOUR, UH, REPORTING FRAMEWORK.

AS PART OF THAT, WE DO THAT TO ASSESS, UH, THE, TO GAIN EFFECTIVENESS ON THE OVERALL AUDIT APPROACH, BUT NOT TO ISSUE AN OPINION OVER INTERNAL CONTROLS.

BUT WHEN WE DO THAT, IF WE FIND ANY ISSUES WITH THE INTERNAL CONTROLS THAT WE'VE, WE'VE TESTED, WE'RE REQUIRED TO BRING THEM TO YOUR ATTENTION.

I'M HAPPY TO REPORT THAT THERE WERE NO MATTERS THAT WERE REQUIRED TO REPORT AS PART OF THE OVERALL INTERNAL CONTROL PROCESS.

AND, AND OBVIOUSLY, AS PART OF THE OVERALL AUDIT, WE'RE ALSO LOOKING AT THE NUMBERS AS WE, UH, AS WE AUDIT THE NUMBERS, IF THERE'S ANYTHING THAT'S INCONSISTENT OR THAT REQUIRES ADJUSTMENTS, WE'RE REQUIRED TO REPORT THOSE AUDIT ADJUSTMENTS OR UNCORRECTED AUDIT ADJUSTMENTS,

[00:35:01]

SO OVERALL, IT WAS A CLEAN AUDIT PROCESS.

A LOT OF WORK, LIKE BRIAN INDICATED THAT, UH, THAT TOOK PLACE ON THEIR BEHALF TO, TO MAKE SURE THAT WE GOT IT DONE.

I'LL PASS IT OVER TO KEITH TO COVER THE OVERALL CONDUCT OF THE AUDIT.

HI, THANK YOU.

I'M HEATH JACKSON.

I'M THE, THE RSM MANAGER THAT WAS ASSIGNED TO THE A TP AUDIT.

SO I'LL BE GOING THROUGH THIS REQUIRED COMMUNICATION.

WE ISSUED A SEPARATE LETTER ALONG WITH THE AUDIT, UH, OPINION AND REPORT.

UM, THAT KIND OF GOES MORE IN DEPTH INTO THIS.

THIS IS JUST, LIKE I SAID, WE'RE JUST KIND OF GOING OVER SOME KEY POINTS.

KEY THING TO LOOK UP THERE, SEE ALL THE NOS, THAT'S GOOD.

THAT MEANS WE DIDN'T FIND ANYTHING, NOTHING REALLY TO REPORT, UM, RESPONSIBILITIES IN PLAN AND SCOPE.

UH, WE ISSUED A LETTER EARLY BEFORE WE START, THAT KIND OF EXPLAINS ALL THOSE.

THIS IS JUST SAYING WE DIDN'T HAVE ANY CHANGES TO IT.

UM, AS TINO SAID, LIKE WE LOOK AT YOUR ACCOUNTING POLICIES, WE DIDN'T SEE ANYTHING THAT WAS OUT OF THE ORDINARY.

THAT MEANS IT'S PRETTY MUCH EVERYTHING THAT ALL THE POLICIES THAT A TP HAD IN PLACE WERE THE ONES THAT WERE, YOU KNOW, KIND OF INDUSTRY KNOWN, KIND OF NORMAL.

UM, AGAIN, NOTHING REALLY ADOPTION WISE, NOTHING NEW.

UH, GS B HAD SOME NEW, SOME NEW, UH, I MEAN, GS B ALWAYS HAS NEW, UH, PRONOUNCEMENTS THAT COME OUT, BUT THERE WAS NOTHING, ANYTHING THAT WOULD AFFECT THE A TP AUDIT.

UM, AGAIN, NO SIGNIFICANT POLICIES IN EMERGING OR CON CONTROVERSIAL AREAS THAT A TP WAS INVOLVED IN.

AND, UH, WE DIDN'T SEE ANY UNUSUAL TRANSACTIONS.

UM, NEXT SLIDE.

SO WITH EVERY AUDIT, YOU'RE GONNA HAVE CERTAIN THINGS THAT ARE ESTIMATES.

YOU KNOW, THAT'S NOT SOMETHING THAT'S SPECIFIC, THAT'S HARD, YOU KNOW, TIED IT TO A CONFIRMATION OR TIED IT TO A BANK STATEMENT.

UM, THERE'S CERTAIN THINGS THAT, UM, MANAGEMENT HAS TO KIND OF USE THEIR BEST JUDGMENT.

UM, ONE OF THOSE, AND IN, IN THE PLACE OF A TP IS ACCOUNTING ESTIMATES FOR THE FAIR VALUES OF INVESTMENTS.

SO THE FAIR VALUE IS KIND OF LIKE, I MEAN, FAIR VALUE OF AN INVESTMENT.

YOU KNOW, IT'S, I WOULDN'T SAY IT'S HARD AND FAST.

I MEAN, YOU LOOK AT THE MARKET TODAY, IT GOES UP AND DOWN, RIGHT? SO, I MEAN, YOU CAN LOOK AT IT TODAY, AT THE BEGINNING OF THE DAY, END OF THE DAY, IT'S COMPLETELY DIFFERENT.

SO ESSENTIALLY, MANAGEMENT COMES UP WITH THEIR ESTIMATES RELATED TO THOSE.

AND THEN WE USE OUR OWN ACTUARIES.

WE USE OUR OWN, UH, UH, IN, UM, VALUATION SPECIALIST THAT KIND OF LOOK IN THERE AND SEE, HEY, DOES THIS MAKE SENSE? SO IN THE CASES THAT WE SAW, THE, THE, THE SAMPLES THAT WE PULLED, THEY WERE ALL IN LINE.

SO THERE'S NOTHING REALLY TO REPORT THERE.

UM, SO AGAIN, TINO BROUGHT UP ADJUSTMENTS.

AGAIN, IF THERE WAS A LOT OF ADJUSTMENTS, THIS IS WHERE I PRESENT THEM, BUT NOTHING TO REPORT HERE.

SO MOVE, MOVE THE NEXT SLIDE.

UM, KIND OF OVERALL OBSERVATIONS.

I MEAN, THIS IS ALL AGAIN, WHERE WE WOULD PRESENT CERTAIN THINGS THAT WE WOULD NEED TO DISCLOSE TO THE BOARD.

DISAGREEMENTS, UH, DIFFICULTIES, AS YOU CAN SEE, ALL KNOWS.

SO AGAIN, KIND OF REITERATING THE FACT IT WAS CLEAN AUDIT, UH, CLEAN AUDIT OPINION.

UH, THIS LAST SLIDE IS JUST GOING OVER INDEPENDENCE.

SO INDEPENDENCE IS KEY FOR US TO DO BILL, TO DO AN AUDIT.

I MEAN, YOU LOOK AT THE OPINION, IT SAYS INDEPENDENT AUDITOR'S REPORT.

SO IT'S IMPORTANT FOR US TO STAY INDEPENDENT, UM, FOR US TO DO THAT.

THIS IS KIND OF SAYING WE HAVE STUFF WE DO ON OUR END, BUT IF THERE'S ANYTHING THAT THE BOARD COMES ACROSS, WE NEED YOU GUYS TO TELL US.

WE TALKED TO, YOU KNOW, BRIAN AND HIS TEAM BEFOREHAND, BEFORE WE START THE AUDIT, SEE WHAT CHANGES HAVE MADE.

BUT IF THERE'S ANYTHING THAT YOU GUYS ARE AWARE OF, PLEASE LET US KNOW.

AND THAT WAY, UM, YOU KNOW, WE CAN ALL STAY IN GOOD GRACES OF GS B AND EVERYBODY ELSE.

SO, UM, SO IF THERE'S ANY OTHER QUESTIONS FOR US, AND IF YOU WANT TO ADD ANYTHING? NO, I MEAN, I WOULD LIKE JUST TO THANK, UH, AT TP MANAGEMENT AND GREG AND, AND YOUR TEAM.

I, I THINK, UH, ONE THING I WOULD LIKE TO ADD IS THAT THE, OUR FINANCIAL REPORT IS AVAILABLE ONLINE, ATP TX.ORG UNDER THE TRANSPARENCY SECTION.

SO WE WENT AHEAD AND POSTED THAT OUT THERE FOR THE PUBLIC AS WELL.

GREAT.

UM, DO WE HAVE ANY QUESTIONS FROM MY FELLOW BOARD MEMBERS? NO, YOU MADE IT LOOK EASY, , AND PLEASE REMIND ME, WE GO THROUGH THIS EVERY YEAR.

THE, THE FINANCIAL AUDIT HAPPENS EVERY YEAR.

THAT'S CORRECT.

IT'S A, IT'S AN ANNUAL EVENT THAT HAPPENS STARTING RIGHT AFTER SEPTEMBER 30TH.

IT KIND OF KICKS OFF OKAY.

THE NEXT COUPLE OF MONTHS.

YEAH.

PART OF YOUR FINANCIAL POLICIES, RIGHT? YEAH, THAT'S RIGHT.

THANKS FOR THE REMINDER.

UM, WELL, IF THERE'S, UM, I REALLY APPRECIATE ALL YOUR WORK.

I KNOW WE WENT THROUGH INDIVIDUAL, UM, INTERVIEWS WITH EACH OF THE BOARD MEMBERS, AND IT'S JUST GREAT TO GET TO KNOW YOU GUYS BETTER.

AND THANK YOU.

I APPRECIATE THE WORK.

THANK YOU.

THANK YOU.

OUR NEXT DISCUSSION IS AN UPDATE

[4.2 Update on Draft Environmental Impact Statement Process.]

[00:40:02]

UM, MY NAME'S JENNIFER PINE, UH, AND DAR LAZANO AND I ARE GONNA TAG TEAM THIS BRIEF UPDATE FOR YOU ALL.

UM, SO WE ARE, AS YOU RECALL, IN THE CAPITAL INVESTMENT GRANT PROGRAM.

WE, UM, ENTERED PROJECT DEVELOPMENT BACK IN MAY OF 2024.

SO THAT INITIATED A TWO YEAR PERIOD DURING WHICH WE HAVE TO COMPLETE CERTAIN REQUIREMENTS AND PERHAPS THE MOST SUBSTANTIAL, WHICH IS, UH, COMPLYING WITH THE NATIONAL ENVIRONMENTAL POLICY ACT.

AND WE'RE KIND OF WELL ON OUR WAY TO DOING THAT, UH, AND VERY ACTIVELY COORDINATING WITH FTA ON THAT WORK.

UM, CONCURRENTLY, UH, DESIGN IS PROGRESSING, CERTAINLY TO SUPPORT THE ENVIRONMENTAL REVIEW PROCESS, BUT ALSO JUST PROGRESSING IN GENERAL TO MAKE SURE THAT WE'RE READY FOR THOSE PROGRESSIVE DESIGN BUILD CONTRACTS WHEN THEY COME ONLINE NEXT YEAR.

DO YOU GO TO THE NEXT SLIDE? OH, THANK YOU.

UM, SO JUST TO FOCUS IN ON, UH, THE NEPA WORK, UH, WE RELEASED OUR DRAFT ENVIRONMENTAL IMPACT STATEMENT IN JANUARY, UM, AND THAT KICKED OFF A 60 DAY PUBLIC REVIEW AND COMMENT PERIOD.

SO THAT JUST CLOSED YESTERDAY ON MARCH 11TH.

UM, SO I'LL TALK TO YOU A LITTLE BIT ABOUT WHAT WE'VE HEARD, UH, BUT ALSO MAYBE DARREN, YOU WANNA TALK ABOUT WHAT'S, WHAT'S NEXT? YEAH, SURE.

THANK YOU.

A VERY EXCITING TIME TO BE A PLANNER WITH THIS AGENCY.

I MEAN, AS JED MENTIONED, JUST UNDER 15 HOURS AGO, OUR PUBLIC COMMENT PERIOD CLOSED, AND NOW WE'RE AT THE POINT WHERE WE'RE ACTUALLY TAKING ALL THOSE COMMENTS AND WE'RE GONNA USE THOSE TO DEVELOP A, WHAT'S CALLED OUR FINAL ENVIRONMENTAL IMPACT STATEMENT.