[Call to Order]
[00:00:02]
I THINK WE HAVE, WE HAVE A COMPLETE DAAS.
THIS IS EXCITING TODAY ON A RAINY DAY.
THANK YOU FOR ATTENDING THIS MEETING OF THE AUSTIN TRANSIT PARTNERSHIP BOARD OF DIRECTORS.
WE HAVE A FULL DAAS AND A QUORUM, SO I'D LIKE TO CALL THIS MEETING TO ORDER AT 2:02 PM COULD WE, UH, JUST LEAVE? TODAY IS JULY 15TH, 2026.
ARE YOU SPEAKING TO, TO, TO ME.
CAN YOU WE JOIN THE MEETING FROM THE ORDER? ORDER.
CAN YOU PLEASE MUTE? UM, UH, CAN YOU, CAN YOU HEAR ME, EPSTEIN? GREAT.
THIS MEETING IS BEING CONDUCTED AT THE AUSTIN TRANSIT PARTNERSHIP OFFICE, LOCATED AT 2 0 3 COLORADO STREET IN AUSTIN, TEXAS.
AND AS A REMINDER, THE AUSTIN TRANSIT PARTNERSHIP PROVIDES BOTH AMERICAN SIGN LANGUAGE AND OTHER INTERPRETER SERVICES.
IF YOU NEED ANY OF THESE SERVICES IN THE FUTURE, PLEASE CONTACT OUR A TP BOARD LIAISON, CHLOE MAXWELL.
[1. Public Comment]
TODAY WE HAVE SEVERAL SPEAKERS THAT SIGNED UP TO SPEAK.WE HAVE COME PUBLIC COMMENT, AND WE'RE GONNA START WITH THE ONES ONLINE, THE VIRTUAL SPEAKERS.
UM, WE WOULD LIKE TO START WITH AVES AZAR.
MY NAME IS SSRI SERVE AS THE CHAIR OF THE PROJECT CONNECT COMMUNITY ADVISORY COMMITTEE.
UM, HOWEVER, I'M OF COURSE TESTIFYING TODAY IN MY PERSONAL CAPACITY.
I JUST WANTED TO SPEAK IN FAVOR BRIEFLY.
I WON'T TAKE A LOT OF TIME IN ACTION.
ITEM TWO, WHICH IS APPROVAL OF THE LIGHT RAIL VEHICLE CONTRACT.
UM, I WANNA THANK THE A TP STAFF FOR BRINGING THIS, UM, TO THE, YOU KNOW, COMMUNITY ADVISORY COMMITTEE A WHILE BACK.
AND THEN THERE WAS A LOT OF EXCITEMENT ABOUT THIS.
I REALLY APPRECIATE THE WORK THAT HAS GONE INTO WORKING ON THIS CONTRACT AND MOVING IT FORWARD.
AS WE ALL KNOW, THIS IS, YOU KNOW, A BIG MILESTONE FOR OUR COMMUNITY BECAUSE WE HAVE BEEN WAITING FOR THIS, UH, NOT ONLY IN TERMS OF HOW THE PROJECT MOVES FORWARD, BUT THIS IS REALLY A PART OF THAT DESIGN BUILD WORK THAT THE COMMITTEE AND A LOT OF COMMITTEE MEMBERS WANT TO ENGAGE IN LOOKING AT HOW DO WE MAKE SURE THAT OUR, YOU KNOW, STATIONS ARE ACCESSIBLE, THAT WE HAVE VEHICLES THAT ARE REALLY SUPPORTIVE OF WHAT OUR COMMUNITY WANTS.
SO THIS REALLY MOVES FORWARD WITH SOME OF THOSE REALLY CRITICAL PIECES WHERE THERE'S GONNA BE ENGAGEMENT.
OF COURSE, YOU KNOW, I EXPECT THAT WE'LL BE, YOU KNOW, CONTINUING NOT JUST THE COMMITTEE ADVISORY COMMITTEE, BUT THE COMMITTEE AS A WHOLE WILL KEEP ENGAGING ON THIS.
BUT I DID WANNA, YOU KNOW, JUST SAY A FEW WORDS IN FAVOR OF THIS ITEM AND THANKING, OF COURSE, UM, EVERYBODY ON THE BOARD, BUT ALSO STAFF AND THE WORK THAT HAS GONE INTO IT WITH THE UNDERSTANDING THAT, YOU KNOW, AS A COMMUNITY, WE'LL KEEP ENGAGING ON THIS AMAZING WORK AS IT MOVES FORWARD.
BUT AT THE SAME TIME, I DO WANNA SAY THANK YOU FOR THE WORK THAT HAS GONE INTO THIS.
AND THANK YOU FOR YOUR SERVICE ON THE CAC OF US.
UM, NEXT WE HAVE NANCY CROWDER.
DO WE HAVE NANCY NEXT? WELCOME.
NANCY, YOU ARE NOW YOUR TIME TO SPEAK.
I'M WITH ADAPTIVE TEXAS, A CIVIL RIGHTS, UH, ADVOCACY GRASSROOTS ORGANIZATION THAT'S WORKED WITH TRANSIT ALL ITS LIFE OVER 40 YEARS, AND ARE PROUD TO SAY HOW ACCESSIBLE SERVICES ARE IN AUSTIN, OF WHICH I WAS A PART OF, AND STILL RIDE DAILY.
UM, THE ACCESSIBILITY HAS GAINED MORE, UM, INDEPENDENCE FOR PEOPLE AND ACCESSIBILITY FOR EVERYBODY.
AND ALSO AS THEY AGE, I JUST WANNA TALK IN SUPPORT SUPPORTIVE.
[00:05:01]
UH, ITEM NUMBER TWO, STALER, UM, VEHICLE.UM, JUST 'CAUSE I KNOW THE HISTORY AND I HAVE SEEN WHAT THEY CAN DO FOR ACCESSIBILITY.
I KNOW THAT THEY DON'T JUST BUILD IT OFF THE RACK.
UM, THEY WILL CONFORM TO WHAT THE COMMUNITY NEEDS ARE AND CAPITAL METRO.
AND EVERYBODY HAS BEEN VERY FORTHRIGHT IN SAYING UNTIL WE SAY IT'S OKAY, IT'S OKAY.
UM, ONLY BECAUSE WE ARE DIEHARD RIDERS AND WE'RE VERY COMMITTED TO ACCESSIBLE TRANSPORTATION HERE IN AUSTIN.
I'M GLAD YOU CHOSE WHO YOU CHOSE.
AND, UM, I SEE THAT THEY'RE VERY, VERY, UH, AMENABLE TO THE FEEDBACK OF WHAT IS NEEDED BY OUR COMMUNITY.
BECAUSE NOT ALL COMMUNITIES ARE THE SAME.
WE'RE VERY UNIQUE HERE IN THAT WE HAVE A HIGH POPULATION OF CITIZENS WITH DISABILITIES, AND WE'RE ALL AGING TOO.
AND REGARDLESS OF WHAT PEOPLE MAY HAVE COMPLAINED ABOUT WITH CURB RAMPS, I KNOW PEOPLE USE THEM EVERY DAY.
SO I DO KNOW THAT THE FUTURE OF OUR RAIL TRANSPORTATION IS GONNA MEET EVERYBODY'S NEEDS, AND I REALLY APPRECIATE THE OPPORTUNITY TO SUPPORT THIS ON BEHALF OF ADAPT OF TEXAS.
CAN YOU HEAR ME? CAN YOU HEAR ME? YES, WE CAN HEAR YOU.
THESE PRESENTATIONS ONLY GOT A THANK YOU FOR YOUR COMMENT.
WHILE RECENT PHONE CALLS TO COMMISSIONER TRIVI AND MS. WATKINS WERE NOT RETURNED, AND MAYOR WATSON NEVER HAD THAT PROMISE PERSONAL TALK WITH ME ABOUT SENIOR TRANSIT.
STILL, I DEPEND ON YOU TO BUDGET AND PLAN FOR PUBLIC TRANSIT.
WHEN I READ THAT, THE $39 MILLION REVOKING ON TODAY, IT'S FOR LIGHT RAIL VEHICLE DESIGN.
I DECIDED THAT I NEEDED TO REMIND YOU ABOUT A FEW THINGS.
I DOUBT THAT ANY OF YOU DEPEND ON PUBLIC TRANSIT AS I DO.
SO, I'M HERE TO TELL YOU THAT IT DOESN'T WORK FOR THE PEOPLE WHO NEED IT THE MOST.
AND NOTHING IN THAT $39 MILLION IS GOING TO BEGIN TO FIX IT.
FOR A TRANSIT SYSTEM TO WORK, IT HAS TO BE FLEXIBLE, CONVENIENT, SAFE, RELIABLE, EFFICIENT, AND HAVE NETWORK INTEGRATION ELEMENTS WE LOST HERE LONG AGO AND WON'T GET BACK.
ALLOCATING $39 MILLION TO LIGHT RAIL WITHOUT AN INTEGRATED CITYWIDE BUS SYSTEM.
RIGHT NOW, I'M BEING TOLD THERE'S NOT EVEN A PENNY AVAILABLE TO INSTALL MISSING SIDEWALK, LEADING TO A BUS STOP AND CROSSWALK ON RED RIVER IN MY NEIGHBORHOOD.
IT TAKES LONGER TO TAKE THE BUS THAN WALK THE MILE TO THE HANCOCK CENTER, HEB OR ST.
DAVID'S HOSPITAL AND DOCTOR'S OFFICES RAIL WON'T BE AN OPTION.
I ALSO WAS RECENTLY TOLD THAT CAP METRO HAD PUT MY SUGGESTION INTO THE 2035 PLAN TO DIVERT THE 3 35 BUS TO HANCOCK CENTER INSTEAD OF RUNNING IT IN A STRAIGHT LINE ALONG 38TH STREET TO MUELLER.
BUT IT MIGHT TAKE FIVE YEARS TO IMPLEMENT AND WOULD ALSO REQUIRE THE ELIMINATION OF THE 3 45 BUS ROUTE THAT CURRENTLY RUNS WEST OF BURNETT ROAD ALONG 45TH STREET RAIL WON'T BE AN OPTION THERE EITHER.
CAP METRO STAFF WENT TO SEE COTA CHEAPER, BRAZIL'S CHEAPER RAPID BUS SYSTEM CREATED TO MIMIC RAIL IN THE NINETIES, IN THE LATE NINETIES, THEN IGNORED IT.
K CHIBA HAS A METRO POPULATION OF THREE AND A HALF MILLION.
BUSES ARE COLOR CODED, SO PEDESTRIANS INSTANTLY KNOW WHAT PART OF THE CITY THEY'RE GOING TO.
EVEN WHEELCHAIR RIDERS CAN BOARD BECAUSE OF FUTURISTIC RACE STOPS INVENTED IN THE 1970S, 75% OF THE PUBLIC RIDE THE BUS AND SOME ROUTES WON EVERY 90 SECONDS.
WELL, YOUR LIKE RAIL PLAN ACCOMPLISH THAT.
YOUR ACTIONS TODAY WERE ALSO PROPHESIED AT AN URBAN CONFERENCE HERE IN THE EARLY NINETIES WHEN A SPEAKER UNEXPECTEDLY SAID, DEVELOPERS LIKE RAIL STOPS, NOT BUS STOPS, RAIL STOPS SELL CONDOS, NOT BUS STOPS.
YOUR PROBLEM TODAY IS YOU'RE SINKING MAJOR FUNDING INTO STRAIGHT LINE LIGHT RAIL THAT WON'T GET ANYONE TO ACTUAL DESTINATIONS WITHOUT A FUNDED BUS SYSTEM.
SO IF YOU VOTE FOR THAT $39 MILLION TODAY, AUSTIN WILL BE CHOOSING REAL ESTATE OVER TRANSIT AND WILL ALL BE THE PORTAL FOR IT MAY ANSWER ANY QUESTIONS.
[00:10:01]
TO WENDY PRICE.TODD, UH, YOU MAY RECOGNIZE ME AS A MEMBER OF THE SOUTH CONGRESS PARKING TRANSPORTATION MANAGEMENT DISTRICT, FORMER PRESIDENT OF SOUTH RIVER CITY CITIZENS AND FORMER CHAIR OF THE AIRPORT ADVISORY COMMISSION.
I AM HERE NEUTRALLY TO EXPRESS CONCERN ABOUT THE, UH, RAIL, THE, THE VEHICLE DESIGN.
UM, I FORWARDED AN ARTICLE FROM THE URBAN INSTITUTE WRITTEN BY JONA FREEMARK AUTHORED AND JUST FOUND OUT THERE WAS ONE PUBLISHED, UH, THE DAY BEFORE YESTERDAY ABOUT THE BUILD AMERICA TWO 50 ACT AND THE GIANT REDUCTION IN FUNDING FOR, UM, TRANSIT AND IN PARTICULAR NEW TRANSIT.
SO WHAT I'M ASKING YOU TODAY IS IF THERE IS, IF YOU'RE COMMITTING $39 MILLION FOR, UH, VEHICLE DESIGN, UH, NOW HOW THAT, AND I'M NOT A MEMBER OF THE COMMUNITY ADVISORY COUNCIL, UM, AND MAYBE THEY HAVE DISCUSSED THIS AND YOU'VE HAD SCENARIO PLANNING, BUT HOW DO WE, UM, HOW DO WE MANAGE FOR THE REDUCED BUDGET? AND I'M ASKING YOU TO, FOR A TP TO, UH, REASSESS YOUR FINANCIAL STRATEGY ABOUT THESE NEW BUDGET CONSTRAINTS AND, AND IN PARTICULAR OUR SPENDING FOR, UM, A VEHICLE DESIGN AT THIS TIME.
NOW WE'RE GONNA HAVE IN-PERSON SPEAKERS.
I THINK THAT'S ALL VIRTUAL, CORRECT? YES.
SO IN PERSON, DO WE HAVE HERE IN THE ROOM, MR. JEFFREY BOWEN THAT EVENING? WELCOME.
UH, GOOD AFTERNOON LADIES AND GENTLEMEN.
MEMBERS OF THE BOARD, MR. MAYOR, MR. COMMISSIONER, UH, THE LAST TIME I WAS IN THIS ROOM, UH, MY NAME'S JEFFREY BOWEN.
THOUGHT YOU WERE GONNA GET ME THERE, SIR.
UM, I'M ALSO THE PRESIDENT OF AUSTIN NEIGHBORHOODS COUNCIL.
UM, BEEN A LONG TIME RESIDENT OF, UH, AUSTIN FOR 37 YEARS IN SOUTHWEST AUSTIN.
THE LAST TIME I WAS IN THIS ROOM, WE WERE GOING THROUGH THE PROJECT CONNECT DISPLAY BOARDS AND WHAT CHANGES WERE BEING MADE AT THAT TIME BEFORE IT WENT TO PUBLIC.
SO I'VE BEEN INVOLVED WITH THIS FOR A LONG TIME.
I ACTUALLY SAT ON THE PROJECT CONNECT AMBASSADORS NETWORK PRIOR TO, UM, THE VOTE AND PRIOR THROUGH THIS ENTIRE PROCESS.
AND I SPENT 45 YEARS, OR I'M STILL IN THE BUSINESS, BUT I SPENT 45 YEARS IN THE CONSTRUCTION BUSINESS AS A CONSTRUCTION MANAGER, PROJECT MANAGER, CONTRACT MANAGER FOR THE AIR FORCE.
AND, AND, UH, I'VE DONE THAT FOR MANY, MANY YEARS.
SO WHEN I BRING THIS UP, IT'S BASED UPON THAT BACKGROUND.
IT'S BASED UPON, UH, CONTRACTING THAT I'VE BEEN INVOLVED WITH AT FEDERAL LEVEL, STATE LEVEL, CITY, COUNTY, AND ALSO FOR, UH, CAP METRO.
SO WHEN I GO BACK AND I START LOOKING AT DATA THAT I'VE CARRIED AND AND DEALT FOR A LONG TIME, I PULLED OUT THE BALLOT THAT I HAD THE PROPOSITION ON AND IT SAYS, UH, THE ADDITIONAL REVENUE RAISED BY THE TAX RATE IS TO BE DEDICATED BY THE CITY TO THE, TO AN INDEPENDENT BOARD TO OVERSEE THE, AND FINANCE THE ACQUISITION CONSTRUCTION EQUIPMENT, UH, CONSTRUCTION, EQUIPPING MAINTENANCE AND OPERATIONS OF A RAPID TRANSIT SYSTEM.
SO THIS BOARD IS SUPPOSED TO BE INDEPENDENT.
SO I REALLY ASK THAT YOU LOOK AT THIS, THIS ENTIRE PROCESS WHEN IT COMES DOWN TO THIS, LOOKING AT THE CONTRACT AND WHAT WAS GOING ON.
BECAUSE AS I STARTED LOOKING AND I'M GOING AND ASKING QUESTIONS, IT GOES, DOES A TP KNOW THE OTHER LIGHT RAIL PROJECTS WHERE THEY HIRED AN ADDITIONAL ENGINEER SUCH AS A HIGHER FEE TO DESIGN THE LIGHT RAIL CARS? SO WE WERE LOOKING AT WHAT ARE WE WE'RE DEALING NOW WITH, WE'RE ADDING ANOTHER CONTRACT.
UM, IS A TP STAFF BEING LED TO AN ENGINEERING, UH, FEEDING TROUGH BY THEIR ADVISORS? IN OTHER WORDS, WHEN YOU START LOOKING AT THIS INDUSTRY, JUST LIKE IN ANY OTHER PARTS OF THE CONSTRUCTION INDUSTRY, THERE ARE CONSTRUCTION COMPANIES OR THERE ARE COMPANIES THAT DEDICATE THEIR SELVES TO THESE DIFFERENT, WHETHER IT BE AN AIRPORT, WHETHER IT BE TRANSIT SCHOOLS, WHATEVER THE CASE IS, BEEN THERE.
AND IT IS ABSOLUTELY AMAZING HOW THIS, UH, FOLLOWS.
SO THE BOARD DOESN'T, I KNOW YOU DON'T HAVE THE KNOWLEDGE, UH, BUT I WANNA MAKE SURE THAT WE'RE TRYING TO BE INDEPENDENT AND CHALLENGE A STAFF ON THE BLOATS
[00:15:01]
OF CONTRACTS, BECAUSE RIGHT NOW, AS WE ALL KNOW, UH, TAXPAYER MONEY'S AT RISK.WE HAVE ISSUES WITH FEDERAL FUNDING, WHETHER OR NOT WE'RE GONNA GET THAT, WE'RE TALKING ABOUT CITY BUDGET COMING UP, ALL OF THE DIFFERENT BUDGETS THAT IMPACT ALL OF US AS TAXPAYERS, BUT IMPACT ALL THESE OTHER PROJECTS.
ONE OF THE OTHER QUESTIONS I HAD WAS, WHERE'S THE BID TABULATIONS? WHERE IS IT THAT THOSE ARE AVAILABLE FOR THOSE OF US THAT HAVE QUESTIONING MINDS, WANNA KNOW WHAT THE BID TAB WAS? AND FOR THOSE THAT DON'T REALLY UNDERSTAND THAT, IT'S A LISTING OF ALL THE CONTRACTS.
SO THE ISSUE HERE IS THAT I'M JUST TRYING TO MAKE SURE THAT QUESTIONS ARE ASKED BY AN INDEPENDENT BOARD AND THEY'RE BEING ANSWERED TO THE PUBLIC THAT ARE THE TAXPAYERS THAT END UP PUTTING INTO THIS.
SO I APPRECIATE YOUR, UH, YOUR TIME ON THIS AND THANK YOU VERY MUCH.
AND THANK YOU FOR COMING IN PERSON ON A RAINY DAY.
THANK YOU MADAM CHAIR AND THE BOARD FOR THE OPPORTUNITY TO SPEAK TODAY.
I'M A HOMEOWNER IN NORTHWEST AUSTIN.
I'M A RETIRED ENGINEER WITH 40 YEARS IN THE TECHNOLOGY INDUSTRY AND AN ENTHUSIASTIC SUPPORTER OF A TP LIGHT RAIL.
I WANNA SHARE WITH YOU A CONCEPT THAT I BELIEVE COULD ALLOW RESIDENTS OF AUSTIN TO BEGIN TO REALIZE THE BENEFITS OF LIGHT RAIL AS SOON AS THE FIRST SEGMENT OF TRACK IS LATE, AND BRING THE EXTENSIONS TO CRESTVIEW AND THE AIRPORT INTO REACH AT A SUBSTANTIALLY LOWER COST THAN CONVENTIONAL LIGHT RAIL INFRASTRUCTURE.
THE CONCEPT IS AN AUTONOMOUS POD, A SMALL ELECTRIC ON DEMAND, SELF-DRIVING VEHICLE WITH TWO SETS OF RETRACTABLE WHEELS, ONE FOR WA, ONE FOR RAIL, ONE FOR CONVENTIONAL ROAD SERVICES.
YOU CAN SEE WHAT THIS LOOKS LIKE IN THE PRESENTATION THAT I ASKED TO BE INCLUDED IN YOUR BINDERS.
THIS POD WOULD USE PROVEN OFF THE SHELF COMPONENTS, EV MOTORS AND BATTERIES.
LEVEL FOUR AUTONOMOUS SYSTEMS SIMILAR TO THOSE ALREADY OPERATING IN AUSTIN AND OTHER US CITIES.
CRITICALLY UNLIKE POD SYSTEMS SUCH AS THOSE AT HEATHROW OR WEST VIRGINIA UNIVERSITY, WHICH REQUIRED BUILDING ENTIRELY NEW DEDICATED PATHS, THIS POD WOULD OPERATE ON THE BLUE LINES EXISTING TRACKS WHERE THEY EXIST AND SEAMLESSLY TRANS, UH, I'M SORRY, SEAMLESSLY, UH, TRANSITION TO REGULAR STREETS WHERE THEY DO NOT EXIST.
THAT'S ALSO, UH, SHOWN IN THE HANDOUT ON THE NEXT PAGE.
THIS MEANS THAT THE MOMENT EVEN A PORTION OF THE BLUE LINE IS FINISHED, PODS COULD BEGIN SERVING THE FULL PLANNED ROUTE OVER WHALE RAIL WHERE IT EXISTS AND OVER ROADS WHERE IT DOESN'T.
AS MORE TRACK IS COMPLETED, MORE THE JOURNEY MOVES TO RAIL, THE EXTENSIONS TO CRESTVIEW AND THE AIRPORT BECOME ACHIEVABLE WITHOUT WAITING FOR THE FULL FUNDING OF CONVENTIONAL INFRASTRUCTURE.
THOSE PODS COULD EVEN BE USED TO SUPPLEMENT PLAN TRAINS, INCLUDING SERVICE BEFORE AND AFTER NORMAL HOURS, OR FOR TIMES OR ROUTES OF LOW RIDERSHIP, THOUGH TOO LATE TO INCLUDE IN THIS BUDGET.
THIS OPTION COULD DRIVE EARLY CASH FLOW, PLUS THE POTENTIALLY HIGHER RIDERSHIP COULD HAVE, THE PO COULD HAVE A POSITIVE IN, UH, BENEFIT TO FUTURE BUDGET REVISIONS.
I HAVE NO COMMERCIAL INTEREST IN THIS.
MY DESIRE, UH, IS NOT TO GET A JOB OR A CONTRACT.
I'M SIMPLY AN AUSTIN RE RESIDENT WHO BELIEVES THIS IS WORTH A CONVERSATION.
MY CONTACT INFORMATION IS ON THE LAST PAGE OF THE HANDOUT AND I'D WELCOME THE OPPORTUNITY TO DISCUSS THIS IN DETAIL WITH YOU OR ANY OTHER MEMBER OF YOUR STAFF.
HI, I'M KATIE CAM, A RESIDENT OF AUSTIN SINCE 1983, AND CURRENTLY A RESIDENT OF MUELLER.
I KNOW THE A TP BOARD STAFF AND CONSULTANTS HAVE WORKED VERY HARD ON THE LIGHT RAIL PROJECT WITH GOOD INTENTIONS AND A VISION TO CREATE AN EXTENSIVE RAIL SYSTEM.
BUT THIS LIGHT RAIL IS NOT A DC NEW YORK OR CHICAGO TRANSIT SYSTEM.
IT IS A SLOW MOVING TRAIN THAT CREATES MANY NEW, DANGEROUS CONFLICT POINTS IN THE STREET.
DISRUPTS BUSINESSES DURING CONSTRUCTION, CONSUMES TOO MUCH TAX REVENUE AND EATS UP RIGHT AWAY FOR OTHER AFFORDABLE TRANSPORTATION MODES SUCH AS WALKING, BIKING, AND NEIGHBOR ELECTRIC VEHICLES.
LIGHT RAIL IS A COSTLY, INTRUSIVE, AND AN OLD TECHNOLOGY THAT DOES NOT PROVIDE A TRANSPORTATION SOLUTION.
FOR MOST AUSTINITES PROJECT CONNECTS LIGHT RAIL IS NOT THE WAY.
SO I'M SPEAKING TODAY AGAINST THE USE OF FUNDS TO DESIGN LIGHT RAIL VEHICLES FOR THE PROJECT BECAUSE OF THE RISING COST SHORTENED ROUTE AND THE UNMET TRANSPORTATION NEEDS OF HUNDREDS OF THOUSANDS OF AUSTINITES.
IF THE PROJECT WERE TO CONTINUE,
[00:20:01]
WE NEED TO STOP THE PROJECT AND REOPEN A COMMUNITY DISCUSSION ABOUT WHAT TRANSIT SYSTEM AUSTIN REALLY NEEDS.I'M OPTIMISTIC THAT WE CAN DEVELOP AN EXPANDED, MORE PRODUCTIVE TRANSIT SYSTEM THAT WILL BETTER SERVE AUSTIN.
IT'S A VERY EXPENSIVE TRA TRAIN PROPOSED FOR THE MOST EXPENSIVE PART OF TOWN.
IT IS HIGHLY REGRESSIVE AND AND EQUITABLE.
EVERYONE PAYS FOR THE PROJECT, BUT VERY FEW HAVE A NEED OR ACCESS TO IT.
THE CONCENTRATION OF PUBLIC FUNDS AND THE PART OF TOWN WITH THE HIGHEST CONCENTRATION OF WEALTH IS NOT A GOOD LOOK.
AND DEPRIVES AUSTINITES BARELY AFFORDING OR ABLE TO MOVE IN THE CITY OF RELIABLE TRANSIT SURFACE.
THINKING OF WHO IS LEFT BEHIND.
WE NEED TO DESIGN A TRANSIT SYSTEM THAT ENSURES THE RESIDENTS OF AUSTIN AND HIGHEST NEED OF TRANSIT ARE SERVED.
WELL FIRST, CURRENTLY IT IS EASY TO WALK, BIKE, OR TAKE A BUS TO DOWNTOWN FROM 38TH STREET AND UT OR FROM RIVERSIDE.
IN SOME AREAS IT IS NOT PRACTICAL OR EVEN POSSIBLE TO TAKE TRANSIT FROM MANY LOW AND MIDDLE INCOME NEIGHBORHOODS.
WE ARE LEAVING PEOPLE BEHIND EXPANDING TRANSIT.
THERE FIRST WOULD PROVIDE CRITICAL CONNECTIONS TO JOBS, FOOD, SCHOOLS, AND MEDICAL CARE.
FOR INSTANCE, THE AUSTIN ISD BOARD OF TRUSTEES RECENTLY VOTED TO CUT SCHOOL TRANSPORTATION SERVICES FOR STUDENTS.
AT THE SAME TIME THEY'RE CLOSING NEIGHBORHOOD SCHOOLS.
AS A FORMER AUSTIN ISD HIGH SCHOOL SCIENCE TEACHER, I KNOW THE CRITICAL ROLE OF TRANSPORTATION AND MAKING SURE STUDENTS CAN ATTEND SCHOOL AND EXTRACURRICULAR ACTIVITIES.
HAVING PROJECT CONNECT DEPLOY ON DEMAND TRANSIT SERVICE WILL BE CRUCIAL IN THE COMING MONTHS.
IT IS OKAY TO LET GO OF THE LIGHT RAIL VISION WHEN THE RESULT IS NOT OF ENOUGH BENEFIT TO THE AUSTIN COMMUNITY.
LET'S OPEN UP THE COMMUNITY DISCUSSION TO OTHER TECHNOLOGIES SUCH AS ON-DEMAND TRANSIT SERVICES WITH SMALLER OR LOW SPEED VEHICLES, EVEN RA AND SKY GONDOLAS, WHICH ARE WORKING IN OTHER CITIES.
WHAT IF RA OR BOGOTA STYLE BUS, RAPID TRANSIT, UP AND DOWN NORTH AND SOUTH LAMAR SERVED BY ON-DEMAND TRANSIT ZONES COST LESS AND RESULTS IN MORE PEOPLE BEING SERVED.
OUR PRIMARY TRANSPORTATION PROBLEMS IN THE AREAS OF CONGESTION, FRUSTRATION AND ALIENATION ARE NOT PEOPLE TRYING TO GET TO AND FROM THE AIRPORT OR TO AND FROM UT AND DOWNTOWN.
WE HAVE VAST AREAS OF THE CITY, UNDERSERVED BY TRANSIT WHERE PEOPLE ARE STRANDED OR FORCED TO SPEND HOURS IN TRANSIT.
LET'S RETHINK THIS PROJECT AND PUT THE CONNECT BACK IN PROJECT CONNECT.
OUR NEXT SPEAKER IS SUSAN SLIGO.
I HOPE I PRONOUNCE YOUR LAST NAME CORRECTLY.
UM, YOU KNOW, EVERYONE HAS A A VIEW OR A LENS IN WHICH THEY LOOK AT THINGS.
AND I, I KNOW COMMISSIONER IAN AND I KNOW MAYOR WATSON, BUT THE REST OF YOU, I DON'T KNOW.
SO LET ME GIVE YOU A LITTLE BIT OF IDEA WHERE I'M COMING FROM.
I HAVE A MASTER'S DEGREE IN, IN BUSINESS.
I'M A RETIRED CERTIFIED PUBLIC ACCOUNTANT AND CERTIFIED MANAGEMENT ACCOUNTANT.
I SERVED AS THE TRAVIS COUNTY AUDITOR FROM 1988 UNTIL 2012.
AND IN THE COUNTY, THE COUNTY AUDITOR IS INDEPENDENTLY AN APPOINTED OFFICIAL AND IS THE CHIEF FINANCIAL OFFICER.
THE MAIN DUTY OF THE COUNTY AUDITOR IS TO STRICTLY ENFORCE ALL LAWS REGARDING PUBLIC FINANCE.
AS THE CHIEF FINANCIAL OFFICER FOR TRAVIS COUNTY, I ATTENDED 24 BOND RATING MEETINGS WHEN THE COUNTY ISSUED DEBT.
WE NEVER WENT TO A BOND RATING WHEN OUR, OUR LEGAL COUNSEL HAD NOT BROUGHT THE BOND THROUGH THE ATTORNEY GENERAL.
SO I'M INTERESTED MORE IN, YOU KNOW, FINANCIAL COMPLIANCE AND THE HISTORY OF THIS.
I THINK YOU NEED TO BE STEWARDS OF THE TAXPAYER'S MONEY.
I FELT I DID, I TOOK AN OATH OF OFFICE AND I KNOW SOME OF YOU DID TO FOLLOW THE LAW.
THE, THE AGENDA ITEM TO APPROVE $39 MILLION CONTRACT IS NOT IN THE BEST INTEREST OF TAXPAYERS.
IN LIGHT OF THE RELIANCE ON RECEIVING A FEDERAL GRANT OF OVER $4 BILLION AND PENDING LAWSUITS THAT HAVE NOT YET BEEN RESOLVED AND THE DRAMATIC REDUCTION IN PROJECT SCOPE AND MISREPRESENTATIONS, QUITE FRANKLY, TO THE TAXPAYERS, THE VOTERS DID NOT HAVE A CHANCE TO EVALUATE THE REDUCED PACKAGE.
NO ONE VOTED ON WHAT YOU'RE DOING NOW.
THEY VOTED ON, UM, 31 MILES OF TRAIN AND NOW THERE'S 9.8.
IT IS A SIGNIFICANTLY REDUCED PROJECT AND PEOPLE NEED TO KNOW THAT IT'S NOT FAIR FOR THEM TO THINK THEY'RE GETTING ONE THING AND GET QUITE ANOTHER.
THE, UM, AND THE, AND WE NEED TO BE FOLLOWING THE LAW.
I'M QUOTING NOW FROM THE CITY HAD A CONTRACT WITH VOTERS.
I'M QUOTING THAT DOCUMENT NOW.
IT IS ACKNOWLEDGED UNDER STATE LAW, PARTICULARLY CHAPTER 1202 OF THE TEXAS GOVERNMENT CODE.
THE ISSUANCE OF OBLIGATIONS OF AUSTIN TRANSIT PARTNERSHIP
[00:25:02]
IS SUBJECT TO THE REVIEW AND APPROVAL OF THE ATTORNEY GENERAL OF THE STATE OF TEXAS TO RECEIVE APPROVAL.TO THE EXTENT THAT THOSE CONDITIONS, STATE LAW AND FEDERAL LAW APPLY TO THE REQUIREMENTS OF THIS CONTRACT WITH VOTERS, THOSE CONDITIONS SUPERSEDE THIS CONTRACT.
AND YET THE CITY OF AUSTIN, A TP, WANTS TO BYPASS THE ATTORNEY GENERAL AND IN A LAWSUIT ACTUALLY DOESN'T EVEN WANT THE AG TO BE PART OF THAT.
I HAVE A HUGE PROBLEM WITH THAT AS, AS A PERSON WHO UNDERSTANDS THIS.
THE OTHER THING IT SAYS IN THAT VERY SAME DOCUMENT, FINALLY, IF FEDERAL MATCHING FUNDS ARE NOT AVAILABLE TO COMPLETE COMPONENTS OF THE INITIAL INVESTMENT OR ADDITIONAL COMPONENTS, COUNCIL CONTRACTS WITH VOTERS THAT THE PROJECT CONNECT TAX REVENUE SHALL BE USED TO FUND AS MUCH OF THE INITIAL INVESTMENT IN PROJECT CONNECT IS POSSIBLE.
HAVE YOU THOUGHT ABOUT THAT? WHAT IS THAT? WHAT DO WE GET IF YOU DON'T GET A FEDERAL FUND? AM I OUT OF TOWN? OKAY, THANK YOU.
OUR LAST SPEAKER FOR THE DAY IS IAN WILSON.
I'M GONNA START A TIMER ON MY PHONE SO I CAN SAY ON TOP OF IT.
HI ALL, UH, IAN WILSON, AUSTIN RESIDENT.
UM, I'VE BEEN TO, I THINK ALL OF YOUR MEETINGS OVER THE LAST YEAR.
I KNOW THAT THIS PROJECT IS A LOT, UM, REQUEST NUMBER.
I HADN'T PREPARED, PREPARED TO MAKE COMMENT TODAY, BUT ONE, IT WOULD BE GREAT IF YOU GUYS COULD MOVE TO A SPACE THAT EVERYBODY HAS A SEAT.
LIKE, I FEEL LIKE EVERY ONE OF THE LAST, I DON'T KNOW, THREE, FOUR OF THESE MEETINGS, THE PEOPLE OUT IN THE HALLWAY, PEOPLE ARE INTERESTED AND WANNA BE HERE.
SO IF, IF THERE COULD BE A SPACE FOR EVERYBODY TO BE PRESENT, THAT WOULD BE GREAT.
UH, AND SECOND, UM, I WANT TO SEE MORE OF WHAT YOU ALL ARE DOING IN YOUR PUBLIC OUTREACH.
I THINK THAT YOU, UH, MR. CANALI, I I WANT THE COMMUNITY TO KNOW YOU AND BE EXCITED ABOUT SEEING YOU BECAUSE YOU ARE BRINGING SOMETHING EXCITING TO THE COMMUNITY.
I WANT PEOPLE TO BE EXCITED AND PROUD ABOUT EVERYBODY WORKING ON THE PROJECT.
WE GET FANCY RENDERINGS ONCE EVERY SIX MONTHS.
WE DON'T HAVE A SENSE OF PROGRESS IN THE COMMUNITY.
WHEN I GO OUT AND I SEE ONE OF THE LITTLE PAINTED MARKERS ON THE GROUND, I GET EXCITED BECAUSE I KNOW WHAT IT IS AND I KNOW THAT THERE'S PROGRESS 'CAUSE I SHOW UP TO THESE MEETINGS.
BUT IF YOU WERE TO, IF I WERE TO ASK ANY OF MY FAMILY MEMBERS OR FRIENDS OR NEIGHBORS, DO YOU KNOW WHAT'S GOING ON? DO YOU KNOW ANYBODY WORKING ON THE PROJECT? DO YOU, DO YOU HAVE ANY SENSE THAT THIS IS AN INVESTMENT THAT WE'RE MAKING IN JOBS COMMUNITY? THERE ARE THINGS GOING ON.
I WATCH PROJECTS AROUND THE WORLD SIMILAR TO THIS.
UM, AND THE THINGS THAT SEEM TO RESONATE MOST, THEY HAVE THE MOST POSITIVE COMMENTS ON INSTAGRAM OR YOUTUBE OR WHEREVER, IS WHEN YOU SEE THE PEOPLE ACTUALLY DOING THE WORK.
UH, AND IT'S NOT NECESSARILY IN THE FIELD.
SOME OF IT'S EXECUTIVES, SOME OF IT'S PEOPLE TALKING ABOUT THE TECHNICAL ASPECTS.
BUT I, I THINK WE SHOULD BE CELEBRATING THE PEOPLE WHO ARE GOING TO DO THIS WORK OR DOING THE WORK AND GIVE PEOPLE A SENSE OF PROGRESS.
'CAUSE YOU HEAR MANY COMMENTS ABOUT WHAT ARE WE GETTING? WHERE'S THE MONEY GOING? ANYTHING LIKE THAT.
IF PEOPLE DIDN'T HAVE THIS VOID IN COMMUNICATION TO ASCRIBE ANY NEGATIVE FEELINGS AROUND, AND THEY SAID, OH WOW, JOE'S WORKING ON IT.
LIKE, AND I, I HAVE A TANGIBLE SENSE OF PROGRESS AND A VISION THAT PEOPLE ARE DOING HARD WORK, WHICH WE INTELLECTUALLY KNOW, BUT I THINK THERE'S A DIFFERENCE WHEN YOU SEE PEOPLE AND HEAR PEOPLE WHO TALK.
UM, SO I COULD NOT MORE STRONGLY ENCOURAGE YOU TO RETHINK ABOUT HOW, UH, MUCH MORE FREQUENT AND, UH, HUMAN-CENTRIC YOUR PUBLIC ENGAGEMENT COULD BE, UH, MOVING FORWARD IN THE PROJECT.
UM, THANKS SO MUCH FOR YOUR TIME AND YEAH, THANK YOU FOR BEING FAITHFUL.
ALWAYS COMING TO OUR MEETINGS.
THAT ENDS ALL OUR SPEAKERS TODAY.
UM, THANK YOU FOR EVERYONE WHO REGISTERED TO ADDRESS THE BOARD.
[2. Executive Director Report]
ON TO OUR EXECUTIVE DIRECTOR'S REPORT, MR. CANALI.WELCOME EVERYONE, TO OUR JULY BOARD MEETING GOING ON TODAY.
I WANNA START, AS ALWAYS WITH OUR, UM, UH, EXECUTIVE DIRECTOR, UH, REPORT.
THIS IS OUR, AND YOU KNOW, WE'RE GONNA BE GOING THROUGH, UM, FIRST THING WE HAD WE'RE WE HAVE A DAY WHERE WE'RE GONNA BE GOING THROUGH SOME OF OUR BUDGET, UH, HERE.
UM, I ALSO WANNA HIGHLIGHT, UM, UH, A DIALOGUE THAT WE HAD WITH OUR, UM, UH, WITH OUR, UH, INTERNSHIP PROGRAM, UM, THAT WE HAD, AGAIN, THIS, THIS PAST YEAR, THIS GOING ON RIGHT NOW WITH AECOM AS PART OF OUR, UH, AS PART OF OUR, WE'RE GONNA BRING THIS SLIDE UP REAL QUICK.
[00:30:04]
SO OUR PARTNER, ACOM, NOW FOR SEVERAL YEARS HAS BEEN CREATING AN INTERNSHIP PROGRAM.UM, THIS YEAR WE HAD OVER 111 APPLICATIONS.
UM, IN THE PAST WE ONLY HAD 60, UM, FOR, FOR THE SPOTS TO COME IN AND, UH, IF THESE ARE FOR YOUNG STUDENTS IN OUR LOCAL SCHOOLS.
UM, THIS YEAR WE HAD REALLY GOOD WIDE RANGING FROM ANDERSON, FROM LASA, TEXAS SCHOOL FOR THE DEAF DEL VAL AND ALSO EAST SIDE.
UM, THIS IS A REALLY WONDERFUL PROGRAM.
I KNOW THEY HAD A CHANCE MAYOR TO VISIT WITH YOU EARLIER THIS WEEK.
YEAH, I THINK I'M WEARING THE SAME SHIRT.
AND, AND ONE OF THE NEAT THINGS THAT HAPPENED, UH, I WAS, I WAS IN THE OFFICE, YOU KNOW, A COUPLE WEEKS AGO AND RAN INTO ONE OF THE FORMER PARTICIPANTS IN THIS PROGRAM WHO WAS A HIGH SCHOOL STUDENT WHO IS NOW AN AECOM INTERN WORKING ON THIS PROJECT AS THEY PURSUE THEIR DEGREE IN ENGINEERING.
SO THIS IS REAL, THIS IS JOB CREATION IN ACTION, RIGHT? YOU START YOUNG WITH THESE, UH, WITH THE INTERNSHIPS PROGRAM.
AND AGAIN, THE FACT THAT WE HAD SO MUCH, UM, UH, INTEREST IN JOINING THIS, UH, AS WE ARE, AS THE PROJECTS IS PROGRESSING, IS REALLY FANTASTIC.
AND WE REALLY VALUE OUR PARTNERSHIP WITH AECOM AS THEY PULL THAT TOGETHER EACH YEAR.
UM, ON THE NEXT SLIDE, WE'VE ALSO HAD A CHANCE TO DO WHAT I THINK ALL OF US DO IS GET OUT AND TALK ABOUT, UH, LEARN AROUND THE COUNTRY, WHAT'S HAPPENING, UM, UH, IN, IN OTHER PEER CITIES AROUND THE COUNTRY.
SEVERAL OF US WERE IN, UH, UH, A CONFERENCE IN, IN BALTIMORE, REALLY FOCUSED ON RAIL.
I HAD A CHANCE TO VISIT WITH SOME OF OUR PEERS FROM PHOENIX, FROM THE BAY AREA, FROM CALIFORNIA, AND FROM BALTIMORE TALKING ABOUT, UM, YOU KNOW, WALKING THROUGH THE FEDERAL FUNDING PROCESS, HOW WE'RE DOING DELIVERY.
UM, BUT WE ARE ALSO WELL REPRESENTED AS WHERE I KNOW, UH, LINDSAY AND BRAD WERE TALKING ABOUT OUR PROCUREMENT PROCESSES.
JEN WAS THERE TALKING ABOUT SOME OF OUR FEDERAL PROCESS AND BOARD MEMBER HORN WAS THERE AS WELL.
UM, AND HAD SOME, I THINK WAS ALWAYS AROUND, UH, BOTH LISTENING TO US AND GETTING A CHANCE TO PARTAKE IN THE REST OF THE CONFERENCE.
WELL, I'LL SAY A FEW WORDS, UM, ABOUT THAT.
AND GREG, AND, AND I'M AN ACTIVE PARTICIPANT, UM, UM, WITH, WITH APTA.
AND, UM, I JUST HEARD SO MANY POSITIVE THINGS, UM, ABOUT THE SESSIONS, A LOT OF COMMENTS ABOUT THE PROCUREMENT, UM, SESSION AND JUST REALLY PEOPLE GETTING EXCITED ABOUT HEARING ABOUT, UH, RAIL.
UM, AND THEN ALSO THE, THE, THE CAPITAL DEVELOPMENT, UM, WORKSHOP, UM, THAT THE FEDERAL TRANSIT ADMINISTRATION WAS ALSO A PART OF.
SO IT WAS REALLY JUST GREAT TO, TO BE THERE AND, UM, AND JUST HEAR THE, YOU KNOW, THE ENERGY AND PEOPLE COMING UP TO, UM, YOU KNOW, TALKING TO ME ABOUT, ABOUT HOW EXCITED THEY WERE.
WHO REPRESENTED A TP, UM, AT AFTER RAIL? IT WAS, IT WAS, IT WAS GREAT.
I ALSO READ AN INTERESTING ARTICLE ABOUT, UM, THE INFRASTRUCTURE ACADEMY ALREADY CREATING LIKE 1500 JOBS, SO WE GOTTA START EARLY.
SO CONGRATULATIONS ON ALL THOSE, UM, MOVING FORWARD ON THOSE ELEMENTS.
[3.1. Approval of minutes from the June 17, 2026 ATP Board Meeting.]
NEXT WE'RE GONNA MOVE ON TO OUR ACTION ITEMS. ACTION ITEM NUMBER ONE IS THE APPROVAL OF THE MEETING MINUTES OF THE JUNE 17TH BOARD MEETING.DO I HAVE A MOTION? AND A SECOND PLEASE TO APPROVE THIS ITEM, MOVE APPROVAL.
MOVE BY MEMBER ILIAN, SECOND BY MEMBER GARZA.
ANY DISCUSSION? NO DISCUSSION.
EVERYONE IN FAVOR, PLEASE SAY AYE.
THE MEETING MINUTES HAVE BEEN APPROVED UNANIMOUSLY.
[3.2. Approval of a resolution authorizing the Executive Director or their designee to award, negotiate, and execute a fixed price contract with Stadler US, Inc. for design services, manufacture, testing, and delivery of light rail vehicles for Austin Light Rail, and authorizing initial contract funding of $39,000,000 for preliminary design work only, with funding for additional work under the contract subject to future authorization by the Austin Transit Partnership Board of Directors.]
TO ACTION.ITEM NUMBER TWO IS THE APPROVAL OF A RESOLUTION AUTHORIZING THE AWARD NEGOTIATION AND EXECUTION OF A FIXED PRICE CONTRACT WITH STALER US.
DO I HAVE A MOTION AND A SECOND TO APPROVE THIS ACTION ITEM? I, I WOULD LIKE TO HEAR THIS.
COULD WE DO THAT? SURE, GO AHEAD.
ALRIGHT, WE CAN START WITH INTRODUCTIONS.
WE'LL GO DOWN THE LINE AND THEN MOVE INTO THE PRESENTATION.
I'M LINDSAY WOOD, A TP, EXECUTIVE VICE PRESIDENT, DESIGN AND CONSTRUCTION.
MATTHEW BERTRAND, A-T-P-L-R-B PROJECT DIRECTOR.
AND I'M BRAD CUMMINGS, SENIOR VICE PRESIDENT OF PROCUREMENT AND CONTRACTS MANAGEMENT FOR A TPI AM REALLY EXCITED TO BE HERE IN FRONT OF THE BOARD TODAY, UM, FOR TWO MAIN REASONS.
THE FIRST ONE IS REALLY PERSONAL.
I AM A PRODUCT OF PUBLIC TRANSPORTATION, UM, SPECIFICALLY OF LIGHT RAIL SYSTEMS. I GREW UP IN A REALLY RURAL TOWN IN NORTHERN UTAH.
UM, THE UNIVERSITY I WANTED TO GO TO AND HAD MY DREAMS OF GOING TO WAS 42 MILES AWAY FROM WHERE I LIVED.
UM, I HAD A REALLY UNRELIABLE VEHICLE THAT I DROVE EVERY DAY TO GET ME EVERYWHERE I NEEDED TO GO TO.
AND I WAS REALLY FORTUNATE TO GROW UP IN A PLACE THAT HAD A COMMUTER RAIL SYSTEM THAT CONNECTED ME
[00:35:01]
TO A DOWNTOWN LIGHT RAIL SYSTEM THAT CONNECTED ME RIGHT TO THE UNIVERSITY I WENT TO.WITHOUT PUBLIC TRANSPORTATION, I WOULDN'T HAVE BEEN ABLE TO RECEIVE THE EDUCATION THAT I DID.
UM, AND WHEN I MOVED TO PHOENIX, ARIZONA TO GO TO LAW SCHOOL, I MADE SURE I LIVED WITHIN TWO BLOCKS OF A LIGHT RAIL SYSTEM.
AND THAT'S HOW I GOT TO LAW SCHOOL EVERY DAY, UM, BECAUSE MY UNRELIABLE CAR BECAME EXTREMELY UNRELIABLE AND NON-EXISTENT.
UM, AND LAW SCHOOL IS REALLY EXPENSIVE AND I NEEDED TO FIND A WAY TO GET TO SCHOOL EVERY DAY.
UM, PUBLIC TRANSPORTATION AND LIGHT RAIL SYSTEMS CHANGES LIVES.
IT'S CHANGED MINE AND I'M REALLY EXCITED TO TALK ABOUT, UM, THE ADVANCEMENTS THAT WE'VE MADE IN GETTING AUSTIN'S LIGHT RAIL SYSTEM MOVING FORWARD.
AND THIS CONTRACT, UM, THIS IS A VERY FAMILIAR SLIDE THAT WE'VE SHOWN THE BOARD A FEW DIFFERENT TIMES AND WE'RE SHOWING IT AGAIN BECAUSE IF ANYTHING, I'M RELIABLE AND CONSISTENT AND CHEAP AND USE REUSE THINGS AS MUCH AS POSSIBLE.
UM, BUT MORE MEANINGFULLY WE WANTED TO SHOW THE BOARD THAT, UH, TWO YEARS AGO WE SHOWED YOU THIS SLIDE, UM, RIGHT BEFORE WE WERE ABOUT TO BRING ON OUR DELIVERY PARTNER AND WE SHOWED THE BOARD EXACTLY HOW WE WANTED TO BRING ON THE, THE CONTRACTORS THAT WERE GOING TO HELP US BUILD AND DESIGN AND BUILD AND, AND PROVIDE THE VEHICLES FOR THIS MONUMENTAL SYSTEM HERE IN AUSTIN.
AND WE SHOWED YOU WHEN WE SET OUT TIMELINES, WHEN WE SET OUT PLANS ON EXACTLY WHEN AND HOW WE WERE GOING TO DO THAT.
AND I'M REALLY HAPPY TO SHARE WITH THE BOARD THAT EVERY TIMELINE AND DATE THAT WE PROVIDED TO YOU TWO YEARS AGO HAS BEEN MET TO THE MONTH AND TO THE DAY THAT WE SAID WE WERE GOING TO DO THAT.
UM, IT'S REALLY IMPORTANT THAT WE DO THAT.
WE'RE, WE'RE A NEW AGENCY CREATED SPECIFICALLY TO DO THIS.
WE DON'T HAVE A LONG REPUTATION OF DOING THINGS THAT THAT, THAT, UM, UH, SOME OTHER AGENCIES DO.
SO WE WANTED TO PROVE OURSELVES.
ONE IS AFTER THIS BOARD THAT WHEN YOU ASK US TO DO SOMETHING AND WE TELL YOU WE'RE GOING TO DO IT, THAT WE FOLLOW THROUGH ON EXACTLY WHAT IT IS WE SET OUR OUT TO DO.
AND WE ALSO WANTED TO SHOW THE INDUSTRY AS A NEW ENTITY WITHOUT A REPUTATION, A LONG HISTORY OF DOING THINGS THAT WHEN WE INTEND TO DO SOMETHING AND WHEN WE SAY WE'RE GOING TO DO SOMETHING, WE FOLLOW THROUGH ON EXACTLY THAT.
UM, AND WE'VE BEEN ABLE TO HIT THOSE MILESTONES OF BRINGING ON OUR LIGHT RAIL DESIGNER AND CONSTRUCTOR OUR OPERATIONS MAINTENANCE FACILITY DESIGNER AND CONSTRUCTOR, AND ARE HERE TODAY TO ASK THE BOARD TO APPROVE A CONTRACT TO ALLOW US TO START THAT DESIGN WORK FOR OUR VEHICLES, UM, AND, AND THE EVENTUAL MANUFACTURING OF THOSE TO, TO ROUND OUT THE NECESSARY TOOLS THAT WE NEED IN ORDER TO BUILD THE SYSTEM.
UM, AND REALLY EXCITED TO, TO BE HERE TODAY TO DO THAT.
UM, IF WE COULD GO ON TO THE NEXT SLIDE, I'LL TURN THE TIME OVER TO LINDSAY TO TALK ABOUT, UM, WHY AND HOW WE'RE DOING THAT.
WE WANNA WANT TO TAKE A MOMENT TO DISCUSS WHY IT IS IMPORTANT TO HAVE OUR LIGHT RAIL VEHICLE MANUFACTURER ON BOARD AND PART OF THAT TEAM THAT, THAT BRAD JUST SHOWED, UM, WITHIN OUR OVERALL DELIVERY STRATEGY.
THE LIGHT RAIL VEHICLES REALLY TOUCH EVERY ELEMENT OF WHAT WE'RE DESIGNING AND BECOME THE PERHAPS MOST CUSTOMER FACING ELEMENT OF THE EXPERIENCE THAT AUSTIN LIGHTWELL WILL BRING TO OUR COMMUNITY.
AND WE'VE SEEN TIME AND TIME AGAIN WITH PAST PROJECTS WHEN THE SYSTEM, AND, AND BY SYSTEM I MEAN EVERYTHING FROM THE TRACKS TO THE STATIONS, UM, TO THE MAINTENANCE FACILITY ITSELF.
WHEN IT ISN'T DESIGNED TO THE ACTUAL TRAIN THAT'S GOING TO BE RUNNING ON THAT INFRASTRUCTURE, THERE ARE MANY DIFFERENT INTEGRATION AND INTERFACE RISKS.
UH, THOSE RISKS CAUSE REDESIGN, THEY CAUSE, UH, REWORK AND THEY CAUSE A, AN IMPACT TO THE PUBLIC'S TRUST IN, IN WHAT THEY WANT TO DELIVERED.
AND I THINK MATT'S GONNA TALK A LITTLE BIT ABOUT HOW BY BRINGING THEM ON EARLY, WE'RE GOING TO CREATE A LEVEL OF COORDINATION AND INTEGRATION ACROSS ALL OF OUR CONTRACTS TO ENSURE THAT NOT ONLY ARE WE MANAGING THOSE RISKS AND AVOIDING THEM, BUT THAT ULTIMATELY WILL BE GIVING US MORE COST CERTAINTY IN THE PROJECT AS A WHOLE BY AVOIDING THOSE MISTAKES AND, AND HAVING TO RECOVER FOR THEM.
YEAH, SOME, YOU KNOW, SOME EXAMPLES THAT YOU KNOW, WE'LL BE WORKING OVER THE COMING MONTHS AND YEARS IS, YOU KNOW, REALLY OPTIMIZING THE DESIGN OF AUSTIN LIGHT RAIL FOR THE VEHICLE THAT THAT'S BEING SELECTED.
THAT MIGHT MEAN IN YOUR MAINTENANCE FACILITY TO MAKE SURE THAT THE FALL PROTECTION IS, YOU KNOW, REALLY CLOSE TO THE VEHICLE.
AND SO THAT WHEN YOU KNOW MAINTAINERS ARE OPERATING ON ROOF MATTERED EQUIPMENT THAT, YOU KNOW, THEY'RE, THEY'RE REALLY HAVING AN ERGONOMIC WAY OF, OF MAINTAINING THE VEHICLES FOR A LONG TERM.
UH, IT COULD BE A VERY TECHNICAL THING LIKE, YOU KNOW, THE WHEEL RAIL INTERFACE AND MAKING SURE THAT THE CONSTRUCTION TOLERANCES THAT ARE BEING PROPOSED BY OUR LRT CONTRACTOR ARE, ARE GONNA WORK WITH THE VEHICLE.
UH, OTHERWISE YOU MIGHT, YOU KNOW, END UP WITH, UH, YOU KNOW, UH, ADDITIONAL MAINTENANCE THAT YOU NEED TO PERFORM ON YOUR VEHICLES.
IN THE WORST CASES IT CAN LEAD TO DERAILMENTS.
UM, YOU KNOW, OR, OR MAY SOMETHING A LITTLE BIT EASIER TO, YOU KNOW, TO UNDERSTAND IS, YOU KNOW, WHERE THE PLATFORM IS BASED.
YOU KNOW, UH, YOU KNOW, IN A BAD CASE, YOU KNOW, MAYBE THERE'S A BIGGER GAP, YOU KNOW, THAT IMPACTS THE ACCESSIBILITY OF THE, OF THE SYSTEM, UH, UH, EVEN WORSE CASES THAT THERE'S NO GAP AND THE TRAIN HITS THE PLATFORM.
UH, AND SO THESE ARE ALL THE THINGS THAT, YOU KNOW, REALLY
[00:40:01]
BY HAVING THE LRV CONTRACTOR ONBOARD, AT THE SAME TIME THE LRT AND OMF DESIGN ARE, ARE, ARE REALLY BEING UNDERTAKEN.UM, YOU KNOW, WE HAVE THE REAL ABILITY TO OPTIMIZE, YOU KNOW, THE TOTAL PACKAGE, YOU KNOW, IN A WAY THAT'LL WORK FOR, YOU KNOW, THE CITY OF AUSTIN.
AND ALL OF THESE RISKS ARE ONES THAT HAVE ACTUALLY APPEARED IN PAST PROJECTS.
AND BECAUSE OF THAT, UM, THE WAY THE FEDERAL FUNDING PROCESS WORKS IS THAT, UM, CERTAIN AMOUNTS OF MONEY ARE ASSIGNED TO THOSE RISKS.
AND SO HAVING OUR, UH, MANUFACTURER ONBOARD EARLY HELPS US BRING THOSE OVERALL CONTINGENCY LEVELS IN THE PROJECT DOWN BY DE-RISKING THE PROJECT CHAIR.
I, I DON'T KNOW IF YOU WANNA WAIT OR IF IT'S APPROPRIATE TO ASK QUESTIONS NOW.
NO, GO AHEAD AND ASK THE QUESTION.
SO I, I'M JUST CURIOUS, YOU KNOW, WHEN YOU TALK ABOUT HAVING THE LIGHT RAIL DESIGNED AND THEN YOU HAVE THE CAR DESIGN, WHAT IS REALLY DRIVING, WHICH ONE'S DRIVING THE OTHER, RIGHT? I MEAN, YOU'RE TALKING ABOUT BUILDING 'EM BOTH AT THE SAME TIME.
WE'RE DESIGNING 'EM BOTH AT THE SAME TIME.
SO IT SEEMS LIKE THAT PROCESS ITSELF CREATES SOME CHALLENGES 'CAUSE YOU DON'T KNOW YET WHAT ONE HAND IS DOING VERSUS THE OTHER.
SO WHAT, WALK US THROUGH THE APPROACH WHY WE'RE, WE'RE KIND OF DOING BOTH AT THE SAME TIME VERSUS WE'RE GONNA PICK A CAR AND DESIGN A RAIL SYSTEM TO, TO, YOU KNOW, I'M NOT A SURE I'M EVEN ASKING THE QUESTION THE WAY IT MAKES SENSE, BUT I JUST WANNA MAKE SURE YOU COULD ADDRESS THAT, PLEASE.
AND, AND JUST TO ADD ON TO THAT QUESTION FUNCTIONALLY, HOW, HOW WILL YOU, HOW ARE YOU PLANNING TO ENSURE LIKE THAT COMMUNICATION HAPPENS IN A, IN THAT EFFECTIVE WAY? I MEAN, IT'S SORT OF AN ADD-ON, LIKE HOW, HOW DO, HOW WILL THAT REALLY HAPPEN? YES.
SO THE WAY WE DESIGN THEM AT THE SAME TIME IS BY ESTABLISHING THE DESIGN CRITERIA FOR THE PROJECT THAT ALL OF THE VARIOUS DESIGNERS AND CONTRACTORS HAVE TO USE.
AND THAT INCLUDES THE DESIGN CRITERIA FOR THE OPERATIONS AND MAINTENANCE FACILITY, FOR THE TRACK FOR, UM, BRIDGE STRUCTURES, WHICH IS, IS A GOOD EXAMPLE OF ONE WHERE YOU HAVE TO KIND OF THINK CHICKEN AND EGG WHERE YOU DON'T KNOW THE LOAD OF THE TRAINS THAT YOU'RE DESIGNING YOUR BRIDGES TO UNTIL YOU HAVE THE TRAIN.
AND, UH, SO THIS ALLOWS US TO SAY WE HAVE A VEHICLE WITH THESE CHARACTERISTICS, AND THEN WE USE ALL OF THOSE CHARACTERISTICS TO FEED THEM INTO THAT DESIGN CRITERIA MANUAL THAT ALL OF OUR DESIGNERS WILL USE SO THAT THEY'RE NOT GUESSING WHAT THE BRIDGE LOAD THEY NEED TO DESIGN TO.
THEY HAVE A SPECIFIC LOAD THAT THEY HAVE TO MEET.
AND IT ALSO HELPS TO, UM, KEEP THE PROJECT AFFORDABLE BY NOT OVERDESIGNING, BECAUSE WHEN YOU DON'T KNOW WHAT THE VEHICLE IS, YOU TEND TO DESIGN FOR A WORST CASE SCENARIO TO AVOID AS MUCH REWORK AS POSSIBLE LATER.
ANOTHER EXAMPLE OF THAT IS THE CLEARANCE ENVELOPES OF THE TRAINS, MEANING HOW MUCH SPACE THEY TAKE, NOT ONLY STATIC OR WHEN THEY'RE NOT MOVING, BUT ALSO WHEN THEY'RE GOING AROUND A CURVE AND, AND THEY KIND OF TILT SLIGHTLY.
AND YOU HAVE TO THINK ABOUT THAT ENVELOPE AND EVERY ELEMENT OF THE SYSTEM ALONG THE WAY FROM THE CLEARANCES AT THE STATIONS, TO THE PLATFORMS, TO THE CANOPIES, TO THE SPACE NEEDED FOR OUR OVERHEAD CATENARY WIRES.
AND BY HAVING THE ACTUAL DIMENSIONS OF THE TRAIN IN HAND, WE CAN THEN GIVE THOSE AND FEED THEM INTO OUR CRITERIA MANUALS INSTEAD OF OUR DESIGNERS HAVING TO ASSUME THE BIGGEST ENVELOPE POSSIBLE THAT COULD ACCOMMODATE ANY OF THE POSSIBLE TRAINS, WHICH THEN LEADS TO MORE SPACE.
WE'RE TAKING MORE REAL ESTATE, WE HAVE TO ACQUIRE AND MORE COSTS TO THE PROJECT.
SO WE WILL, AND TO ACCOMPLISH THIS, UH, WE WILL HAVE EARLY COORDINATION TO, UM, SHARE THE SPECIFICATIONS OF THE ACTUAL LIGHT RAIL VEHICLES WITH EACH OF THE LIGHT RAIL AND OPERATIONS AND MAINTENANCE FACILITY DESIGN BUILD TEAMS. AND THEN WE HAVE AN INTERFACE, UH, WORKING GROUP OR INTERFACE MANAGEMENT WORKING GROUP THAT WILL MEET REGULARLY WHERE THEY GO THROUGH ALL OF THE TOUCH POINTS WHERE THINGS SPEAK TO EACH OTHER ON THE PROJECT AND ENSURE THAT THEY'RE DESIGNING TO THE RIGHT CHARACTERISTICS.
THAT ANSWER YOUR QUESTION? YEAH, I THINK IT, WHAT, WHAT YOU'RE SAYING THAT THE REAL KEY ISSUE IS THAT DESIGN CRITERIA THAT YOU'RE, YOU'RE ASKING BOTH AGENCIES TO DESIGN TO, AND SO HAVE WE CREATED THAT YET? SO WE, YES, WE HAVE A DRAFT SET OF CRITERIA, BUT THE, THE WAY THOSE WERE DRAFTED WERE IN ABSENCE OF KNOWING THE VEHICLE.
SO IT'S THAT SORT OF WORST CASE YOU, YOU DESIGN FOR ALL OF THE WORLD OF POSSIBILITIES YOU MIGHT HAVE IN A TRAIN.
AND NOW WE HAVE THE OPPORTUNITY TO REFINE THOSE TO THE ACTUAL CHARACTERISTICS AND RIGHT SIZE OUR DESIGN TO THE TRAIN ITSELF.
SO, SO WHAT WE'RE BUILDING HERE IS UNIQUE.
IT'S NOT SOMETHING THAT'S DONE SOMEWHERE ELSE.
IN OTHER WORDS, UH, THERE'S ALREADY RAIL SYSTEMS THAT ARE STATLER CARS THAT USE, UM, YOU KNOW, UH, HAVE SIMILAR FEATURES AS OUR COMMUNITY.
AND SO, UM, ARE WE CREATING SOMETHING BASED ON
[00:45:01]
ANOTHER RAIL SYSTEM WHERE WE KNOW WHAT THOSE DESIGN CRITERIA ARE? ARE WE TRYING TO KIND OF CREATE OUR OWN BASED ON WHAT, SO HAPPY TO ANSWER THAT.IT MIGHT HELP IF WE WAIT TILL WE GET TO THE VEHICLE ITSELF, AND I WILL ABSOLUTELY ANSWER THAT QUESTION, BUT THERE ARE SOME OTHER VISUALS THAT KIND OF DESCRIBE THE, THE UNIQUE NATURE OF THIS LIGHT RAIL VEHICLE.
AND THEN I CAN COVER THAT ANY OTHER, OKAY.
I AM GONNA BE WALKING US THROUGH THE PROCUREMENT PROCESS THAT WE ENGAGED, UM, TO GET TO THIS POINT TODAY.
UM, IT FOLLOWED A VERY, VERY SIMILAR PROCESS TO HOW WE PROCURED OUR TWO PROGRESSIVE DESIGN BUILD CONTRACTS.
IT STARTED OUT WITH ISSUING A REQUEST FOR INFORMATION AND RFI WHERE WE PROVIDED THE INDUSTRY FOR COPIES OF THE TECHNICAL SPECIFICATIONS, CONTRACT DOCUMENTS, EVALUATION CRITERIA, RFP DOCUMENTS, UM, MONTHS BEFORE WE ACTUALLY INTENDED TO ISSUE THE SOLICITATION.
WE DID THIS FOR A COUPLE OF DIFFERENT REASONS.
ONE, UM, IT TAKES A LOT OF TIME AND ENERGY FOR THAT MANUFACTURERS TO DECIDE WHETHER OR NOT THEY WANNA PARTICIPATE IN THAT PROCUREMENT PROCESS.
AND BY PROVIDING THE DOCUMENTS IN ADVANCE, IT GAVE THEM THAT EXTRA TIME THAT IS NECESSARY TO HELP THEM UNDERSTAND AND DECIDE WHETHER OR NOT THEY WANT TO PARTICIPATE.
IT'S REALLY AN EXPENSIVE PROCESS TO GO THROUGH THIS PROCUREMENT PROCESS BECAUSE WE'RE ASKING THEM TO PROVIDE A, A VEHICLE SELECTION WITH SOME DESIGN CRITERIA ASSOCIATED WITH THAT.
AND IT'S A, A COSTLY AND EXPENSIVE AND TIMELY PROCESS FOR THEM TO, TO UNDERTAKE, AND WE WANTED TO CREATE THAT OPEN SPACE FOR THEM TO MAKE THAT DECISION FOR THEMSELVES.
WITH ALL OF THE INFORMATION IN INVOLVED WITH THAT, WE ALSO PROVIDED AN OPPORTUNITY FOR THEM TO PROVIDE FEEDBACK ON THOSE DOCUMENTS THAT WE PUT OUT.
WE RECEIVED ABOUT A LITTLE OVER 500 COMMENTS AND QUESTIONS THROUGH THIS PROCESS.
WE REVIEWED AND EVALUATED AND INCORPORATED A, A LARGE MAJORITY OF THOSE INTO THE EVENTUAL DOCUMENTS TO MAKE SURE THEY WERE CLEAR AND MORE SPECIFIC, AND WE ANSWER ALL OF THOSE NECESSARY QUESTIONS, WHICH LIMITED THE NUMBER OF QUESTIONS THAT WE RECEIVED IN THE ACTUAL SOLICITATION PROCESS, SO THAT WAY THE MANUFACTURER COULD BE FOCUSED ON PUTTING THEIR PROPOSAL TOGETHER AND NOT HAVING TO ASK ALL OF THOSE QUESTIONS IN AN ACTIVE PROCUREMENT SPACE.
UM, WE ALSO DID IT TO, UM, INCREASE COMPETITION AND MAKE OUR SOLICITATION MORE COMMERCIALLY COMPETITIVE.
UM, IT'S REALLY IMPORTANT THAT WE RECEIVE A LARGE NUMBER OF PROPOSALS AND BIDS TO MAKE SURE THAT WE GET COST CENTRIC PROPOSALS SUBMITTED.
UM, KNOWING THAT COMPETITION IS, IS THERE, UM, IT SHARPENS EVERYONE'S PENCILS A BIT TO KNOW THAT THAT TYPE OF ACTIVE ENGAGEMENT IS HAPPENING.
REALLY HAPPY TO SAY THAT THROUGH THIS PROCESS AND THROUGH ISSUING THE RFP THAT WE DID, WE RECEIVED FOUR PROPOSALS FROM MANUFACTURERS THAT WERE REALLY STRONG AND EXTREMELY COMPETITIVE.
AS A PART OF THIS SOLICITATION PROCESS, WE ASKED THEM TO PROPOSE A VEHICLE THAT WAS MODERN, UM, IN ITS DESIGN, THAT IT WAS GOING TO BE ATTRACTIVE TO WRITERS, BUT NOT ONLY ATTRACTIVE, BUT IT WAS PEOPLE CENTERED INTUITIVE FOR WRITERS TO BE ABLE TO ACCESS AND USE AND NAVIGATE.
WE ASKED THEM TO MAKE SURE THAT, UM, IT WAS PERFORMANCE BASED, THAT IT MET ALL OF THE PERFORMANCE REQUIREMENTS THAT WE ESTABLISHED IN THE, THE SOLICITATION DOCUMENTS.
WE CHALLENGED THE INDUSTRY TO UTILIZE ACCESSIBILITY IN, IN ITS DESIGN PROCESS AND TO MAKE SURE THAT THE VEHICLE THAT WE SELECTED WAS GOING TO BE USABLE BY ALL.
AND WE ASKED OF COURSE TO MAKE SURE THAT IT WAS GOING TO BE SAFE AND RE RELIABLE AND PUT TOGETHER PLANS AND DESIGNS THAT WERE GOING TO HELP MEET ALL OF THOSE SPECIFIC REQUIREMENTS.
UM, WE ALSO ASKED THEM TO PROPOSE ABOUT TECHNICAL SUPPORT THAT THEY COULD PROVIDE BOTH DURING THE DESIGN PROCESS, BUT AFTER THE VEHICLES ACTUALLY MANUFACTURED AND THEIR PLANS AND STRATEGIES FOR THAT.
WE ASKED THEM TO TALK ABOUT SPARE PARTS AND WHAT WAS GOING TO BE NEEDED IN ORDER TO MAKE SURE THAT VEHICLES WERE ABLE TO BE MAINTAINED AND WE HAD THE PARTS NECESSARY TO CONTINUE MOVING THAT FORWARD.
UH, WE ALSO DID REALLY CREATIVE THINGS IN HOW WE ASKED THEM TO PROPOSE THEIR COST.
UM, RIGHT NOW IT'S A WEIRD, WEIRD WORLD, UM, TO GET BEST PRICING ON CERTAIN THINGS.
THERE'S SO MANY THINGS THAT ARE HAPPENING, UM, DURING COVID AND POST COVID THAT WERE PRICES FLUCTUATED SO MUCH, WE WANTED TO CREATE AS MUCH COST CERTAINTY INTO THE PROCESS AS POSSIBLE.
SO ALONG WITH PROPOSING A PRICE FOR THE VEHICLES THEMSELVES, WE ASKED THEM TO BID ON ESCALATION, UM, THAT THEY WOULD BE CAPPED AT TO MINIMIZE AND CREATE COST CERTAINTY FOR US.
UM, WHICH IS REALLY, REALLY IMPORTANT AS YOU'RE LIVING IN A WORLD OF A LOT OF UNKNOWNS BETWEEN, UM, ESCALATING PRICES ON TARIFFS THAT WE WANTED TO CREATE AS MUCH COST CERTAINTY INTO THE PROCESS AS POSSIBLE.
UM, AND THROUGH THAT WE EVALUATED ALL OF THOSE TECHNICAL SPECIFICATIONS, APPROACHES THEIR SAFETY AND RELIABILITY AND COST, UM, AND SELECTED THE BEST VALUE PROPOSER THAT COMBINES ALL OF THOSE ELEMENTS OF, OF THE VEHICLE ITSELF, THE DESIGN AND FUNCTIONALITY OF IT, THE PERFORMANCE THAT IT CAN PROVIDE AND COST AND IDENTIFIED THE, THE STADLER VEHICLE THAT THEY PROPOSED THAT IS THAT BEST VALUED VEHICLE, UM, FOR A TP AT THIS MOMENT.
UM, AND IF WE GO TO THE NEXT SLIDE, WE'LL, WE'LL TALK ABOUT, UM, THE VEHICLE ITSELF.
[00:50:01]
BEFORE WE DO THAT, JUST A QUICK QUESTION.WHEN YOU, YOU USED THE PHRASE BEST VALUE, BEST VALUE PROPOSAL IDENTIFIED, AND YOU'VE SAID THAT A COUPLE OF TIMES, A LOT OF PEOPLE JUST FOCUS ON THE PRICE AND I HEARD YOU ABOUT WHAT, HOW YOU'RE DETERMINING VALUE VERSUS JUST PRICE, BUT HOW DID IT, HOW DID THIS DO WITH REGARD TO PRICE? THAT'S A REALLY GREAT QUESTION.
SO WE RECEIVED THE FOUR PROPOSALS.
THIS WAS THE, THE SECOND LESS EXPENSIVE OR SECOND CHEAPEST PROPOSAL THAT WE RECEIVED, AND IT WAS WITHIN A REALLY CLOSE MARGIN WITH THE, THE LOWEST OR THE LEAST EXPENSIVE VEHICLE.
UM, BUT THIS VEHICLE PROVIDED ADDITIONAL FEATURES THAT WE'LL GET TO THAT KIND OF EXPLAIN WHY WE MADE THAT BEST VALUE DECISION WHERE, UM, COST, IF IT'S THE ONLY DECISION YOU LOSE ON VALUE THAT'S RELATED TO THE ACCESSIBILITY AND PERFORMANCE AND, AND OTHER THINGS THAT WE'LL IDENTIFY.
BUT IT WAS RAW PRICE, JUST ON A RAW PRICE BASIS.
IT WAS, IT WAS THE SECOND LOWEST PRICE.
AND THEN YOU FACTORED IN THINGS LIKE VALUE, WHICH YOU'LL TALK MORE ABOUT IN A MINUTE.
UH, ANO A FOLLOW UP QUESTION TO THAT THEN IS, UM, OF COURSE WE'VE ALL SEEN, UH, A MEDIA REPORT AND, UH, ADDRESS THAT, IF YOU WILL.
SO THERE WERE DEFINITELY SOME INCONSISTENCIES AND MISINFORMATION IN THAT MEDIA REPORT AS FAR AS THE OVERALL PRICING.
UM, BUT IDENTIFIED AN OVERALL CONTRACT PRICING THAT DID NOT REALLY INCLUDE THE DETAILS NECESSARY TO JUSTIFY THAT OVERALL EXPENSE.
UM, WITH, WITH THAT OVERALL PRICING, THE OVERALL MAXIMUM AMOUNT THAT WE'RE ASKING THE, THE BOARD TO EVER BE ABLE TO PROVE IS, IS THAT $352.8 MILLION.
UM, ATTACHED WITH THAT IS THE VEHICLES ITSELF, BUT THERE'S SO MUCH MORE TO THAT.
THERE ARE THE SPARE PARTS THAT ARE ASSOCIATED WITH IT, AND THERE'S TRAINING AND MANUALS THAT NEED TO BE PUT TOGETHER.
THERE ARE MOCKUPS AND SPECIAL TOOLS AND DIAGNOSTICS THAT NEED TO BE CREATED FOR THE VEHICLE AND THAT ARE BEING PURCHASED AS WELL.
UM, THE BIGGEST BULK OF THAT DOLLAR AMOUNT OUTSIDE OF THE VEHICLES ITSELF IS A REALLY HEALTHY CONTINGENCY AMOUNT TO COVER COST ESCALATION AND ALL OF THOSE UNKNOWNS THAT THAT POP UP DURING THE COURSE OF CREATING AND MANUFACTURING THE VEHICLE.
UM, SO THERE WAS KIND OF A MISNOMER THAT YOU CAN'T DIVIDE THAT OVERALL PRICE BY THE 21 VEHICLES.
WE'RE ASKING THE BOARD TO ALLOW US TO MANUFACTURE AND GET A PER VEHICLE COST NUMBER.
IT, IT'S JUST NOT HOW THAT MATH WORKS.
UM, AND THERE'S SO MUCH MORE THAT GOES INTO THE OVERALL COST THAN, THAN JUST THE VEHICLE.
AND SOME OF THOSE COSTS ARE IN EXCESS OF, UM, WHAT THE CONTRACT AMOUNT WOULD BE.
THEIR A TP HELD CONTINGENCIES AND RESERVES FOR FUTURE UNKNOWNS.
THEY ARE NOT COMMITTED TO THE ACTUAL CONTRACT VALUE, THEIR, THEIR OWNER'S SIDE, UM, ABILITY TO PLAN FOR THE FUTURE.
AND TO FOLLOW UP ON, ON THAT SAME QUESTION, HOW MUCH OF THAT DELTA OF COST TOO IS BECAUSE THIS IS A STARTER SYSTEM, BECAUSE I'VE, THE, ONE OF THE QUESTIONS I HEAR ALL THE TIME IS LIKE, WE ALREADY HAVE TRAINS IN AUSTIN.
IT'S NOT A STARTER SYSTEM, BUT THIS IS A WHOLE DIFFERENT KIND OF SYSTEM IN TERMS OF LIGHT RAILS.
SO IS THERE A DELTA IN THAT COMPARISON? THERE ARE ADDITIONAL COSTS THAT COME WITH A STARTER SYSTEM EVEN IN BUYING THE TRAINS THEMSELVES BECAUSE THEY, YOU KNOW, WHEN YOU'RE EXTENDING A SYSTEM AND YOU ALREADY HAVE A FLEET AND OPERATION, IT'S ALREADY RUNNING ON THE TRACKS AND USING THE OVERHEAD CARY WIRES AND OPERATING IN THE MAINTENANCE FACILITY, YOU ALREADY KNOW HOW ALL OF THOSE INTERACTIONS ARE GOING TO TAKE PLACE.
AND IT'S A BIT OF A COPY PASTE TO THE NEW, UM, EXPANSION OF THE FLEET HERE.
WE HAVE TO TEST AND, AND COMMISSION FROM SCRATCH TO MAKE SURE ALL OF THE VARIOUS SYSTEMS AND INFRASTRUCTURE, UM, INTERACT IN THE INTENDED WAY WITH A BRAND NEW FLEET THAT HAS NEVER, UM, YOU KNOW, THE, NONE OF THE SYSTEMS HAVE BEEN USED BEFORE.
AND THAT TESTING AND COMMISSIONING WHEN DONE THE FIRST TIME IS MORE COMPLEX, UH, THAN WHEN YOU'RE EXPANDING A SYSTEM.
AS WELL AS THE COMMUNITY ENGAGEMENT, YOU KNOW, WE'RE DEFINING WHAT, UM, MANY OF THE CUSTOMER FACING FEATURES MAY BE IN THESE VEHICLES, WHICH IS ALSO A BIT UNIQUE TO A STARTER SYSTEM BECAUSE WE DON'T HAVE LIGHT RAIL VEHICLES TODAY.
WE DON'T ALREADY KNOW WHAT, YOU KNOW, UNIQUE USER GROUPS WILL NEED FROM THOSE VEHICLES TO MAKE THEM ACCESSIBLE TO MAKE THAT CUSTOMER EXPERIENCE ONE THAT MAKES PEOPLE WANT TO RIDE AND EASY TO USE.
AND SO WE'LL BE GOING THROUGH AN ENGAGEMENT PROCESS THAT IS A BIT UNIQUE TO A STARTER SYSTEM THAT YOU LIKELY WOULDN'T DO WITH AN EXPANSION AS WELL.
SO WITH THAT, I'D LIKE TO INTRODUCE STALER, WHO IS THE VEHICLE MANUFACTURER OF THE VEHICLE THAT WE'VE SELECTED.
UM, THEY HAVE DELIVERED ALMOST 13,000 DIFFERENT RAIL TRAINS AROUND THE WORLD.
[00:55:01]
EMPLOYEES THAT ARE AROUND THE WORLD.AND THEIR US HEADQUARTERS ARE BASED IN SALT LAKE CITY, UTAH, WHERE THEY MANUFACTURE AND PUT TOGETHER ALL OF THE VEHICLES HERE FOR THE US PRODUCTS.
UM, THEY HAVE A, A VERY WIDE PRESENCE OF DELIVERING ALL SORTS OF TYPES OF VEHICLES, LIGHT RAIL, COMMUTER ROW, UM, AND, AND OTHERS AROUND THE COUNTRY.
UM, THEY, THEY PROVIDE VEHICLES FOR MARTA, CALTRAIN, BART IN THE BAY AREA, S-B-C-T-A IN CALIFORNIA AS WELL.
THEY'RE PROVIDING, UM, THE SAME OR VERY SIMILAR CITYLINK VEHICLE FOR UTA AND UTAH.
THEY'RE MANUFACTURING THOSE RIGHT NOW AND THEY HAVE A REALLY STRONG TEXAS SPACE PRESENT.
THE PRESENCE THEY PROVIDE, THE, THE RED LINE VEHICLES THAT CAP METRO, UM, USES.
THEY PROVIDE THE COMMUTER RAIL VEHICLES FOR DART ON THE SILVER LINE AS WELL AS THE VEHICLES FOR DCTA AND TEX RAIL.
THEY HAVE A REALLY STRONG TEXAS BASED PRESENCE IN DELIVERING VEHICLES OVER THE LAST 10 YEARS AND HAVE INVESTED MORE THAN $30 MILLION INTO TEXAS BASED SUPPLIERS BASED ON THOSE PREVIOUS CONTRACTS THAT THEY'VE, THEY HAVE WITH THOSE OTHER ENTITIES IN TEXAS.
UM, AND, AND KNOW HOW TO DELIVER VEHICLES THAT WORK AND RUN WELL IN THE ENVIRONMENTS THAT WE CREATE, WHICH TODAY IS REALLY RAINY AND TOMORROW PROBABLY STILL RAINY, BUT AFTER THAT REALLY HOT AND HUMID, UM,
SO I'LL COME BACK TO THE QUESTION BOARD MEMBER FORTUNE AND, AND MAYOR A BIT TO YOUR QUESTION AS WELL OF, UH, WHAT MAKES THESE VEHICLES PERHAPS A BIT DIFFERENT THAN OTHERS, AND ARE WE BUYING SOMETHING OFF THE SHELF VERSUS ARE WE BUYING SOMETHING THAT'S BESPOKE? AND AND THE TRUTH TO THAT QUESTION IS IT, IT'S A BIT IN BETWEEN.
UH, WE'RE SELECTING A VEHICLE THAT IS SERVICE PROVEN KNOWN TO BE RELIABLE.
THIS IS NOT GOING TO BE THE FIRST OF ITS KIND.
THERE ARE SEVERAL HUNDRED OF THIS EXACT MODEL, WHICH IS THE, CALLED THE CITY LINK.
UM, I THINK NEARLY AROUND 500, UH, THAT ARE IN SERVICE AROUND THE WORLD.
AND, AND THAT'S IMPORTANT TO MAKE SURE THAT IN THIS FIRST LIGHT RAIL VEHICLE THAT WE'RE BRINGING TO AUSTIN, THAT IT IS A DESIGN THAT IS ALREADY PROVEN, BUT IT IS ALSO UNIQUELY DESIGNED TO AUSTIN'S UNIQUE NEEDS.
AND WE HAVE, YOU KNOW, A CLIMATE THAT HAS MANY, MANY HUNDRED PLUS DEGREE DAYS.
WE HAVE SOME VERY STEEP HILLS THAT WE'RE GOING TO BE RUNNING ON.
AND, UM, THOSE THINGS CREATE, FOR EXAMPLE, UNIQUE POWER REQUIREMENTS THAT THE VEHICLE HAS TO HAVE AND THE NUMBER OF MOTORS, UM, ALONG THE, THE TRAIN TO MEET THOSE CONDITIONS.
WE ALSO HAVE THE NUMBER OF RIDERS THAT WE'RE PLANNING FOR.
AND ONE DIFFERENCE THAT I THINK WASN'T, UM, CHARACTERIZED PERHAPS BETWEEN COMPARING OUR VEHICLE AND THOSE IN, SAY SALT LAKE, SALT LAKE, OR EVEN PHOENIX OR OTHER CITIES AROUND THE COUNTRY, IS THAT WE'RE PLANNING FOR LONGER LIGHT RAIL TRAINS.
UH, IN FACT, MOST OF THOSE OTHERS HAVE TRAINS THAT ARE ABOUT TWO THIRDS THE LENGTH OF OURS.
AND THE REASON WE'RE PLANNING FOR LONGER TRAINS IS BECAUSE THEY CARRY MORE RIDERS, WHICH WE ARE PROJECTING TO, TO, UM, YOU KNOW, HAVE, UM, WITH AUSTIN'S GROWTH, A GREAT DEMAND FOR THIS SERVICE.
AND IF WE USED THOSE MORE TYPICAL SHORTER LIGHT RAIL VEHICLES, WE WOULD ACTUALLY HAVE TO BUY SEVERAL MORE OF THEM.
AND THE COST BENEFIT OF THAT, OR THE COST OF THAT IS MUCH HIGHER THAN THE INCREMENTAL COST OF INSTEAD BUYING A LONGER VEHICLE, BUT FEWER OF THEM, NOT ONLY IS THAT NEAR TERM COST LOWER, BUT THE LONG TERM COST OF MAINTAINING MORE VEHICLES WOULD BE MUCH HIGHER THAN MAINTAINING AND OPERATING FEWER VEHICLES THAT CAN CARRY MORE RIDERS EVERY DAY.
UH, THERE'S ALSO SOME UNIQUE REQUIREMENTS AND, AND BRAD REFERENCED THEM A LITTLE BIT IN TERMS OF OPTIMIZING ACCESSIBILITY, UH, WHICH HAS BEEN A, YOU KNOW, LOCAL AND, AND COMMUNITY DRIVEN PRIORITY FOR US HERE.
AND THIS WILL ACTUALLY BE THE FIRST US LIGHT RAIL VEHICLE WITHOUT ANY STEPS IN THE AISLE.
MEANING IT, THE AISLE SPACE FROM ONE END OF THE CAR OR THE, THE CAB, THE TRAIN TO THE OTHER, UM, WILL BE A HUNDRED PERCENT LOW FLOOR.
AND, AND THAT BRINGS A LOT OF BENEFITS TO OUR RIDERS, BUT IT DOES BRING UNIQUE CHARACTERISTICS.
UM, WE ARE, I THINK AT OUR LAST MEETING WE TALKED A LITTLE BIT ABOUT, UM, AND PROBABLY BO DUE TO TEARS, THE, THE VOLTAGE OF OUR POWER SYSTEM THAT WE'RE PLANNING FOR.
UH, AND THAT SEEMS LIKE A, A MINOR THING, BUT IT'S A BIG DIFFERENCE IN THE TRAINS IN TERMS OF THE POWER SUPPLY THAT HAS TO COME TO THEM.
AND THAT'S DIFFERENT FROM SALT LAKE AND UM, AND SEVERAL OTHER CITIES.
AND WHILE THAT DOES ADD AN INCREMENTAL COST TO THE TRAINS, IT REDUCES OUR OVERALL PROJECT COSTS SUBSTANTIALLY LARGER BY
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REDUCING THE NUMBER OF TRACTION POWER SUBSTATIONS THAT WE HAVE TO HAVE, AND ALL OF THE REAL ESTATE THAT GOES INTO LOCATING THOSE.SO THERE'S BEEN MANY, UM, TRADE OFFS IN AND WEIGHING KIND OF WHAT SHOULD WE HAVE OFF THE SHELF AND WHAT SHOULD WE HAVE THAT MEETS AUSTIN'S UNIQUE CONDITIONS.
AND, AND WE'VE LOOKED AT THOSE THROUGH A LENS OF, UM, FINANCIAL RESPONSIBILITY IN KEEPING THE PROJECT AFFORDABLE.
UH, AND I THINK, BRAD, YOU'RE GONNA TALK A LITTLE BIT ABOUT WHAT GOES INTO THE COMPONENTS OF THIS BASE ORDER CONTRACT ITSELF.
I, I MENTIONED THIS BEFORE WITH YOUR QUESTION, MAYOR.
UM, AND I, I MISSED A COUPLE, BUT I GOT MOST OF THEM, UM, AND FOCUS ON THE ONES I MISSED.
THE PROJECT MANAGEMENT AND COORDINATION, OF COURSE, INVOLVED IN MAKING SURE THE PROJECT MOVES FORWARD AND THE VEHICLES GET, UM, MANU DESIGNED AND MANUFACTURED ACCORDINGLY.
WE ALSO WANT TO INVOLVE THE COMMUNITY IN A LOT OF DIFFERENT WAYS AND HAVE THEIR INPUT ON THE DESIGN.
UM, AND THE MANUFACTURER WILL HELP US HOST THOSE DIFFERENT COMMUNITY EVENTS TO ENSURE THAT WE SOLICIT FEEDBACK FROM THE COMMUNITY AND INCORPORATE THEIR NEEDS INTO THE OVERALL DESIGN OF THE VEHICLE, THE SPARE PARTS, THE MOCKUPS, THE TOOLS, AND ALL OF THE THINGS THAT ARE NEEDED TO MAKE SURE THAT ONCE WE HAVE THE, THE, THE TRAINS HERE, WE CAN KEEP THEM MOVING FORWARD AND OPERATING THE TESTING AND COMMISSIONING.
PROBABLY SHOULD HAVE MENTIONED IT.
WE WANNA MAKE SURE THE VEHICLES ARE TESTED AND PROVEN WERE OPERABLE BEFORE WE PUT THEM INTO FULL SERVICE.
THAT'S INCLUDED IN THE CONTRACT AS WELL.
ANOTHER ONE I FORGOT TO MENTION WAS WARRANTY.
AND WE WANT TO MAKE SURE THAT THE THINGS WE PUT ONTO THE VEHICLE, UM, ARE, ARE, HAVE THE WARRANTY NECESSARY TO GET THEM THROUGH THE FIRST FEW YEARS OF, OF OPERATION.
UM, DID MENTION THE ESCALATION BID ALLOWANCE, WHICH WAS INCLUDED IN THE CONTRACT.
WE WANTED TO MAKE SURE WE HAD COST CERTAINTY ON THIS.
SO THROUGH AN OPEN COMPETITIVE PROCESS, WE HAD EACH MANUFACTURER PROPOSE AN ESCALATION AMOUNT THAT IS CAPPED, THAT WE'LL NEVER EXCEED, UM, ON THAT, UM, WHICH IS INCLUDED IN THIS.
AND THEN OF COURSE, HEALTHY AMOUNT OF CONTINGENCY FOR THE UNKNOWNS THAT HAPPENED DURING THE COURSE, AND BEING ABLE TO INCORPORATE SOME OF THAT COMMUNITY FEEDBACK INTO THE, THE PROCESS AS WELL.
SO LOTS OF ELEMENTS AND COMPONENTS THAT CONSIST AND, AND GO INTO THE CONTRACT ITSELF.
SO, UM, ONE OF THE THINGS I'VE BEEN IMPRESSED WITH IS, IS SEEING HOW, UM, SO MY QUESTION IS REALLY GONNA BE ABOUT LIKE PEER CITIES AND, UM, YOU KNOW, THAT, THAT A TP, UM, HAS BEEN ABLE TO FIND THINGS THAT WORK WELL FOR OTHERS AND THEN, AND THEN DO THEM HERE.
LIKE YOU'VE TALKED ABOUT THE COLLABOR COLLABORATIVE BEHAVIORAL ASSESSMENT THAT YOU UTILIZE IN PROCUREMENT, UM, AND OTHER THINGS LIKE YOU'RE TRYING TO LEARN FROM OTHERS AND THEN, AND THEN, YOU KNOW, NOT REPEAT MISTAKES BRING IN THE BEST.
SO I WAS JUST WONDERING IN TERMS OF THIS TIMING OF, UM, OF, OF THE, THE CONTRACT WITH THE DESIGNING OF THE VEHICLES.
I MEAN, CAN YOU TALK ABOUT ANY OTHER SYSTEMS, LIKE HOW, BECAUSE I'M SURE THERE'S LIKE A, THERE'S A STORY BEHIND HERE, LIKE, LIKE THERE HAVE BEEN IN OTHER ELEMENTS WHERE YOU'RE LIKE, OH, I'M GONNA LEARN FROM THIS AND BRING THIS HERE.
I MEAN, COULD YOU SHARE SOME, SOME, A LITTLE BIT MORE SPECIFICALLY ABOUT THAT? YEAH, THANK YOU.
YEAH, THANK YOU FOR THAT QUESTION.
WE'VE ALWAYS OPERATED ON OUR, OUR MODEL, AND WE'VE TALKED ABOUT THIS WITH THE, THE DELIVERY CONTRACTS, THE DESIGN AND CONSTRUCTION CONTRACTS OF HAVING KIND OF THIS TRIFECTA WAY OF HOW WE'VE ALWAYS APPROACHED EVERYTHING.
ONE, TALKING TO OURSELVES AND THE BOARD ON WHAT THE BOARD WANTS ON CERTAIN THINGS.
AND THEN WE'VE GONE TO THE INDUSTRY TO GET INDUSTRY FEEDBACK THROUGH THE RFI PROCESS AND THROUGH ONE-ON-ONES THAT WE'VE HELD WITH DIFFERENT INDUSTRY MEMBERS, BUT WE'VE ALSO HAD A LOT OF CONVERSATIONS AND COMMUNICATIONS WITH OUR PEER AGENCIES.
WE'VE TALKED OF COURSE WITH CAP METRO, WHO'S BEEN INVOLVED IN THE REVIEW PROCESS AND THE SELECTION PROCESS OF ALL OF THESE MAJOR CONTRACTS.
BUT WE'VE ALSO TALKED TO UTA AND UDOT AND SALT LAKE CITY ON THEIR MOST RECENT, UM, BOTH PROGRESSIVE DESIGN BUILD SOLICITATION THAT THEY DID, BUT THEY ALSO DID A PROCUREMENT FOR VEHICLES AND GOT SOME GOOD LESSONS LEARNED FROM THEM.
WE TALKED TO VALLEY METRO IN PHOENIX, WE TALKED TO MBTA IN BOSTON.
WE'VE TALKED TO, TO THE AGENT, ALL THE AGENCIES HERE IN TEXAS, DAR AND, AND TRINITY METRO ON THINGS THAT THEY'VE DONE, UM, AS WELL AND LESSONS LEARNED FROM, FROM THOSE AGENCIES.
SO WE'VE REALLY TRIED TO CREATE THIS, UM, TRIFECTA OF INFORMATION AND FIGURING OUT WHAT'S BEST FOR THIS PROJECT.
MAYBE AN EXAMPLE OF ONE OF THOSE LESSONS LEARNED THAT WE HEARD OVER AND OVER AGAIN FROM PEER AGENCIES WAS THE MARKET VOLATILITY, UM, IN THIS AREA AND EVERYTHING FROM SUPPLY CHAIN TO TARIFFS TO JUST THE WORLD CONSTANTLY FEELS LIKE IT'S CHANGING IN THIS MARKET.
AND, YOU KNOW, MANY OTHER AGENCIES HAVE NOT HAD THE CONTRACT PROVISIONS
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TO PROTECT THEM FROM THOSE CHANGES.AND WE'RE GETTING HIT WITH VERY LARGE CHANGE ORDERS, UM, YOU KNOW, WELL DOWN THE LINE THAT WERE NOT PLANNED FOR.
AND SO LOOKING AT, UH, A MARKET ESCALATION APPROACH, BUT ONE THAT IS VERY BALANCED AND DOESN'T PUT ALL OF THE RISK ON THE CAR BUILDER OR ALL OF THE RISK ON THE AGENCY, BUT ALLOWS BOTH PARTNERS TO GO INTO THAT, UM, WITH EYES OPEN AND IS ALSO NOT SUBJECTIVE AND ALLOWS US TO USE, UM, THEIR ACTUAL FEDERAL INDICES.
YEAH, WE BASED IT OFF OF MULTIPLE FEDERAL INDICES THAT MEET ALL OF THE THINGS THAT BUILD UP INTO THESE VEHICLES, UM, TO COMPARE THE, THE PRICING TO THAT WE BASED ALL OF THE ESCALATION OFF OF, AND THEN SET NOT TO EXCEED AMOUNTS SO THAT WE ARE, ARE PROTECTED FROM SORT OF UNCAPPED FINANCIAL EXPOSURE WHEN MARKET CONDITIONS CHANGE.
BUT THAT'S ONE WHERE WE JUST HEARD OVER AND OVER AND OVER AGAIN, UM, WE WISH WE HAD THOUGHT ABOUT AND HAD A DIFFERENT WAY TO PROTECT, PROTECT AGAINST, UM, UNKNOWN MARKET CONDITIONS THAT MAY CHANGE IN THE FUTURE.
UH, ONE OF THE OTHER ONES THAT I WANNA THROW INTO IS JUST WHEN YOU HAVE THE OPPORTUNITY TO MAKE SURE THAT THE VEHICLE'S BEING INCLUDED IN THE DESIGN OF THE SYSTEM AND REALLY THE OPERATIONS AND MAINTENANCE FACILITY, YOU TAKE ADVANTAGE OF THAT WHILE YOU CAN, BECAUSE THERE'S A LOT OF AFTER WORK THAT OTHER AGENCIES HAVE HAD TO DO BECAUSE THEY DIDN'T HAVE THE LUXURY OF BEING ABLE TO INCORPORATE THE VEHICLE THAT WAS CHOSEN INTO THOSE DESIGNS.
UM, SO WE'VE DESIGNED OUR PROCESS TO, TO MATCH THAT FEEDBACK AS WELL.
COULD YOU JUST BE A LITTLE BIT MORE SPECIFIC ON TWO OF THOSE, WHICH IS LIKE WHAT TYPES OF AFTER WORK AND THEN WHAT PROVISIONS IN THE CONTRACT, UM, THAT, YOU KNOW, WILL BE SORT OF PROTECTING.
ACTUALLY, BRAD, DO YOU WANNA COVER THE CONTRACT? AND THEN MATT, IF YOU WANNA TALK ABOUT SOME OF THE INTERFACES, PARTICULARLY WITH THE MAINTENANCE FACILITY.
UM, OUR, OUR DESIGN BUILD CONTRACTOR IS ANXIOUS TO SAY THE LEAST, TO HAVE THE CAR BUILDER ON BOARD BECAUSE THERE ARE MANY THINGS IN THEIR DESIGN THAT DEPEND ON, ON THE TRAINS THAT WILL ACTUALLY BE MAINTAINED THERE.
DO WHOEVER WANTS TO YEP, SURE.
SO YEAH, FOR, YOU KNOW, SOME OF THE MAINTENANCE FACILITY, YOU KNOW, INTERFACES, UM, YOU KNOW, I MEAN, SOMETIMES IT'S LIKE THE PHYSICAL, LIKE, YOU KNOW, HOW DOES THE TRAIN INTERACT WITH, YOU KNOW, FALL PROTECTION? UM, BUT IT ALSO CAN BE KIND OF MAJOR DECISIONS LIKE, YOU KNOW, HOW MANY MAINTENANCE TRACKS DO YOU NEED BASED ON THE MAINTENANCE CONCEPT OF THE VEHICLE.
UH, HOW, HOW IS THE VEHICLE RELIABILITY GONNA DRIVE THE AMOUNT OF TIME THAT YOU NEED TO, YOU KNOW, SERVICE THE VEHICLES? UM, YOU KNOW, WHETHER IT'S, YOU KNOW, THE, UH, YOU KNOW, HOW, HOW THE, THE MAINTENANCE FACILITY IS GONNA PLUG INTO THE TRAIN TO POWER THE TRAIN, YOU KNOW, SO THAT, YOU KNOW, MAINTENANCE CAN BE DONE ON, YOU KNOW, ON AND WITHOUT, YOU KNOW, UH, UH, YOU KNOW, ENERGIZING THE OVERHEAD CATENARY.
UH, AND SO THERE'S, YOU KNOW, THERE'S, THERE'S A LOT OF THOSE DIFFERENT INTERFACES THAT, UM, YOU KNOW, OUR, OUR, OUR DECISION IS TO KIND OF, YOU KNOW, MAKE AN ASSUMPTION NOW AND, AND THEN BRING THAT FORWARD TO A FUTURE VEHICLE CONTRACT THAT WOULD POTENTIALLY LIMIT COMPETITION AND, AND POTENTIALLY KIND OF DESIGN IN CERTAIN DECISIONS THAT DIDN'T HAVE THE BENEFIT OF, OF HAVING A VEHICLE MANUFACTURER ON EARLY.
UM, YOU KNOW, OR ALTERNATIVELY HAVE TO DO A REWORK BECAUSE THE DECISIONS THAT WE MADE ABOUT THE SIZE OF THE VEHICLE OR THE TECHNICAL CHARACTERISTICS OF, OF, YOU KNOW, AN INTEGRATION POINT, UM, ISN'T, WASN'T THE RIGHT ONE AT THE TIME OR OVER DESIGN.
YOU, YOU MENTIONED ONE THAT HAS TO DO WITH THE POWER OF HOW YOU MOVE THE TRAIN AROUND.
UM, IN THE OPERATIONS AND MAINTENANCE FACILITY, THERE'S DIFFERENT WAYS TO DO THAT.
AND IF, YOU KNOW, SOME CAPABILITIES THAT YOU CAN USE KIND OF THE ONBOARD STORAGE OF POWER ON THE VEHICLES, YOU CAN SAVE SOME SUBSTANTIAL COST IN THE WAYSIDE OR NOT ONBOARD THE, THE TRACK SIDE, UM, AND FACILITY SIDE POWER IN THE MAINTENANCE FACILITY DESIGN ITSELF.
AND IF WE WEREN'T ABLE TO CONFIRM WHAT WE CAN ASSUME THE VEHICLE CAN DO, IT MEANS WE WOULD HAVE TO ASSUME AND PROVISION FOR THOSE POWER NEEDS ON THE FACILITY SIDE, WHICH IS A HIGHER COST.
AND SO YOU, YOU AGAIN, HAVE TO KIND OF ASSUME A WORST CASE AND DESIGN FOR THAT.
AND, UM, THIS ALLOWS US TO REALIZE SOME OF THOSE MORE EFFICIENT COST SAVINGS EARLY AND CONTRACTUALLY.
I THINK ONE OF THE STRONG FEEDBACK WE RECEIVED FROM OTHER AGENCIES, UM, WAS IN SOME OF THE OPTION TERMS THAT WE'VE ADDED ONTO THE CONTRACT, WELL, SPECIFICALLY AROUND, UH, TECHNICAL SERVICE AND SPARE SUPPLIES AGREEMENT THAT ARE ASSOCIATED WITH THAT.
UM, WE HAVE AN OPTION THAT WE'LL BRING TO THE BOARD LATER ON, UM, IF, IF, IF DEEMED NECESSARY.
UM, BUT FOR TECHNICAL SUPPORT, A GEEK SQUAD, UM, FOR LACK OF A BETTER TERM OF, OF TECHNICAL SUPPORT FOR THE VEHICLE THAT THE MANUFACTURER PRO PROVIDES, AS WELL AS SPARE SUPPLIES.
I, I'VE WORKED IN, UH, A NUMBER OF DIFFERENT TRANSIT AGENCIES AND HAVE MANAGED WAREHOUSES AND INVENTORY SPECIFICALLY, UM, IN, IN THOSE AGENCIES.
AND I'VE SEEN A LOT OF WASTE IN, IN, IN EXTRA PARTS THAT WERE PURCHASED AS A RESULT OF QUANTITIES THAT WERE ESTIMATED, BUT ENDED UP NOT BEING NEEDED.
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RESOURCES FOR A LONG TIME BY HAVING THE, THE MANUFACTURER BE ABLE TO PROVIDE THOSE SPARE PARTS.WE WON'T NEED LARGE WAREHOUSES FULL OF THOSE THAT WE, WE MANAGE AND THEN HAVE GO OBSOLETE AS TIME RUNS ON, AND THOSE PARTS BECOME NO LONGER NEEDED.
UM, SO LEARNING FROM THE AGENCIES ON, ON THAT REGARD WAS REALLY IMPORTANT TO MAKE SURE THAT WE STRUCTURED NOT ONLY THE VEHICLE AND THE CONTRACT NOW FOR WHAT WE NEED, BUT IN THE FUTURE AS WELL, UM, WHICH IS REALLY IMPORTANT.
SO LIKE INVENTORY, AND I'LL GO TO YOU NEXT REAL QUICK, BUT NOW THAT YOU MENTIONED THE OBSOLESCENCE, UM, FROM SPARE PARTS OR TOO MUCH INVENTORY, IT ALL MAKES SENSE, BUT ALSO FROM THE DESIGN SIDE OF THINGS, I MEAN, WE'RE COMMITTING TO A VEHICLE AND A DESIGN AND WHAT GUARANTEES US THAT THE DESIGN OBSOLESCENCE OR THAT THERE'S NEW TECHNOLOGIES THAT ARE GONNA COME ON BOARD, ARE WE DOING THE BEST WE CAN TO MAKE SURE WE'RE NOT YEAH.
TIED INTO SOMETHING THAT'S GONNA BECOME OBSOLETE? SO THAT WILL HAPPEN.
UM, TECHNOLOGY CHANGES SO FAST THAT YOU, YOU CAN NEVER AVOID ENTIRELY OBSOLESCENCE, BUT YOU CAN PROTECT YOURSELF AGAINST IT.
AND SO, UH, ONE OF THE CONTRACT OPTIONS, WHICH IS NOT IN THE BASE ORDER, IT'S SOMETHING FOR FUTURE CONSIDERATION BY THE A TP BOARD AS WE GET CLOSER TO, UM, YOU KNOW, REVENUE SERVICE, UH, BUT IS FOR THAT TECHNICAL SUPPORT AND, AND SPARE SUPPLY.
AND IN THERE ARE PROVISIONS FOR PROTECTION AGAINST OBSOLESCENCE, WHICH MEANS, UM, IF, AND REALISTICALLY WHEN SOME ELEMENT OF TECHNOLOGY GOES OBSOLETE, THAT ST.
STALER WOULD BE ACCOUNTABLE FOR PROVIDING A, YOU KNOW, EQUAL OR BETTER REPLACEMENT.
AND, AND THIS CONTRACT ALLOWS FOR THAT FOR WHAT PERIOD OF TIME? I'M SORRY, FOR, FOR WHAT PERIOD OF TIME IS THAT PROTECTION? SO THROUGH THE OPTIONS THAT ARE AVAILABLE, WE HAVE, UM, THREE 10 YEAR OPTIONS FOR THAT T TRIPLE S, THE TECHNICAL SUPPORT AND SPARE SUPPLIES.
THAT WOULD, WE WOULD COME TO THE BOARD FOR EACH, UM, 10 YEAR AUTHORIZATION.
UM, SO ESSENTIALLY WE WANTED TO MAKE SURE THAT WE WERE ABLE TO SUPPORT THAT FOR THE ENTIRE LIFECYCLE OF THE VEHICLE, WHICH MOST VEHICLES IS AROUND 30 YEARS.
UH, MY, MY QUESTION WAS JUST PART OF THE QUESTION THAT I'D ASKED BEFORE ABOUT THE CONTRACT, UH, PROTECTIONS, BECAUSE YOU WERE SAYING THAT'S WHAT YOU HEARD OVER AND OVER AGAIN.
AND SO, UM, SO WHAT, WHAT ARE THOSE START THE ESCALATION ALLOWANCE AND HOW WE'RE BUILDING THAT UP? YEAH, SO THAT, THAT'S A REALLY GREAT QUESTION, ESPECIALLY AROUND ESCALATION.
WHAT HAPPENED, ESPECIALLY DURING COVID, IS PRICES BECAME SO VOLATILE, UM, AND, AND, AND I HAD A CONTRACT AT THE TIME FOR A VEHICLE IS WHERE PRICING ESCALATED BEYOND WHAT ANYONE COULD HAVE EVER PREDICTED.
AND THERE ARE TIMES WHERE THAT MAY AND COULD HAPPEN.
AND WE WANTED TO PROTECT OURSELVES AND CREATE THAT COST CERTAINTY ASSOCIATED WITH THAT.
SO SOME OF THE FEEDBACK WE HAD IS ON FROM THE DIFFERENT AGENCIES IS HOW THEY DID IT AND HOW THEY WISH THEY WOULD'VE DONE IT DIFFERENTLY.
UM, AND THE WAY THAT WE MODELED THAT WAS ONE, TO HAVE THAT COMPETITIVELY BID OUT AS A PART OF THE PROCUREMENT PROCESS, BECAUSE AS SOON AS YOU'VE LOCKED DOWN AND IDENTIFIED THE MANUFACTURER, YOU LOSE THAT COMPETITIVE NEGOTIATION STANCE, UM, FOR THAT.
SO WE ASKED ALL OF THE MANUFACTURERS TO PROPOSE A, A ESCALATION AMOUNT THAT THEY WOULD BE CAPPED AT.
ONE OF THEM GAVE US A NUMBER WITH AN, AND IT WAS THE, THE LEAST EXPENSIVE VEHICLE THAT WAS SELECTED THAT SAID THEY REFUSED TO HOLD THEMSELVES TO A CAP, UM, AS A PART OF, AS A PART OF THAT.
UM, BUT EV THE OTHER THREE MANUFACTURERS PROPOSED A CAP THAT THEY WOULD BE HELD TO OVER THE COURSE OF DELIVERING THE CONTRACT.
SO HAVING THAT COMPETITIVELY BID MADE IT SO IT WAS GOING TO BE LOWER THAN WE WOULD'VE EVER BEEN ABLE TO GET AND TRYING TO NEGOTIATE THAT ONE-ON-ONE WITH THE MANUFACTURER.
SO THAT'S ONE THING THAT WE LEARNED AND WE INCORPORATED IN THAT.
AND, AND THEN ALSO THE INDICES THAT WERE SELECTED AND USED WERE REALLY IMPORTANT TOO, BECAUSE WE WANTED TO MAKE SURE THAT THEY REALLY REPRESENTED IT WHAT IS CONSISTENT WITH THE VEHICLE ITSELF.
UM, SO WE TIED THOSE INDICES THAT WE'VE SELECTED TO, TO MEET THE NEEDS OF THE VEHICLE.
UH, IT'S WHAT WE NEGOTIATED WITH THE, THE MANUFACTURER AND INCLUDED IN THAT, IN THERE.
SO THAT WAY THE ESCALATION IS BEING DOCUMENTED INDEPENDENTLY BETWEEN EITHER OF US BASED ON THOSE FEDERAL INDICES THAT ARE INCORPORATED AND ALLOWS US, IF THOSE INDICES DON'T EXCEED REACH OR EXCEED THAT CAP, WE DON'T ACTUALLY EVEN HAVE TO PAY FOR THE ESCALATION THAT ISN'T OCCURRING.
SO IT'S NOT A FIXED PRICE GUARANTEED AMOUNT EACH YEAR.
IT'S A, A CAP, AND THEN THE INDICES, YOU KNOW, KIND OF SHOW WHERE YOU LAND WITHIN THAT NOT TO EXCEED AMOUNT.
UM, BUT YOU DON'T NECESSARILY HIT IT EVERY TIME.
UH, SO HERE WE WANT TO DISCUSS WHAT WE'RE ASKING THE BOARD FOR AUTHORIZATION ON TODAY.
WE'VE TALKED ABOUT ALL OF THE DIFFERENT COMPONENTS THAT WILL FORM
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THE, THE FULL CONTRACT, BUT WE'RE NOT ACTUALLY ASKING YOU FOR AUTHORIZING THAT FULL CONTRACT'S WORTH, UH, WORTH OF WORK.AND THEN WE WILL COME BACK TO THE BOARD BEFORE PROCEEDING WITH ANY ADDITIONAL WORK BEYOND THAT FIRST PRELIMINARY DESIGN PHASE, UM, TO COME BACK FOR ANY OF THOSE OTHER ELEMENTS THAT BRAD DESCRIBED EARLIER AS COMPONENTS OF THE OVERALL CONTRACT.
UH, AND MATT, CAN YOU DESCRIBE A LITTLE BIT MORE ABOUT WHAT WILL BE OCCURRING IN THIS FIRST INITIAL PHASE? YEAH, SO THE, YOU KNOW, THE INITIAL PHASE REALLY STARTS WITH DESIGN COORDINATION, WHICH IS, YOU KNOW, WHAT WE CALL, UH, THE LRB MANUFACTURER WORKING WITH THE LRT AND AND OMF CONTRACTORS TO, YOU KNOW, REALLY TALK ABOUT, YOU KNOW, WHAT, YOU KNOW, WHAT, UH, BOARD MEMBER JOHN, YOU KNOW, YOU KNOW, WAS LOOKING AT, YOU KNOW, WHAT ARE THE INTERFACES WHO OWNS THE INTERFACE? AND SO WE HAVE AN INTERFACE PROTOCOL THAT APPLIES ACROSS ALL OF THE CONTRACTS, L-R-V-O-M-F AND LRT, UM, THAT LAYS OUT, YOU KNOW, WHAT THE PROCESS IS, IS GONNA BE.
AND, AND SO FOR SOME OF THOSE INTERFACES, IT'LL BE THE LRB DRIVING IT, YOU KNOW, FOR EXAMPLE, UH, THE DYNAMIC ENVELOPE THAT WE, THAT WE SHOWED ON THE SCREEN, THAT'S SOMETHING THAT IS, IS REALLY A, A FUNCTION OF THEIR VEHICLE.
UH, OTHER INTERFACES, UH, FOR EXAMPLE, THE GRADE, YOU KNOW, THAT'S SOMETHING THAT THE LRT CAN CAN HELP WORK WITH THE, YOU KNOW, LATERAL VEHICLE CONTRACTOR TO SEE, YOU KNOW, WELL, WHAT'S THE MAXIMUM GRADE THE VEHICLE CAN, CAN, CAN, UM, YOU KNOW, CAN MEET, YOU KNOW, WHILE, YOU KNOW, PROVIDING SERVICE FOR, FOR AUSTIN.
UH, AND, AND SO THAT'S, UM, YOU KNOW, SOME OF THE, YOU KNOW, KIND OF PRELIMINARY DESIGN COORDINATION WORK THAT'LL HAPPEN IN, IN, IN THE EARLY STAGES.
UH, WE WE'RE ALSO INVOLVED IN COMMUNITY COORDINATION.
SO, UM, JUST AS WE WANNA MAKE SURE THAT THE, UH, VEHICLE'S GONNA WORK FOR, YOU KNOW, YOU KNOW, AUSTIN LIGHT RAIL, THE ALIGNMENT AND THE, THE MAINTENANCE FACILITY, WE WANNA MAKE SURE IT'S GONNA BE RIGHT FOR THE COMMUNITY.
UH, AND, YOU KNOW, WHILE SOME OF THE PRIOR RENDERINGS, IT, IT REALLY LOOKS LIKE THE, THE VEHICLE MIGHT BE ABLE TO ROLL RIGHT OFF THE MANUFACTURING LINE AND RIGHT HERE INTO AUSTIN.
UM, THIS IS REALLY THE START OF A, OF A LONG DESIGN PROCESS, UM, THAT A TP STAKEHOLDERS AND THE COMMUNITY ARE REALLY GONNA BE INVOLVED IN.
UM, WHETHER THAT'S, YOU KNOW, WORKING WITH, UH, YOU KNOW, THE ACCESSIBILITY COMMUNITY AND, AND MAKING SURE THAT THE VEHICLES ARE GONNA WORK FOR, FOR THE NEEDS OF THE VARIETY OF PEOPLE THAT'LL BE USING THE SYSTEM.
UM, OR, YOU KNOW, WORKING WITH OPERATORS AND MAKING SURE THAT, YOU KNOW, OPERATING THE VEHICLE IS ERGONOMIC AND SAFE AND THAT THEY HAVE THE RIGHT LINES OF VIEW, UM, YOU KNOW, FOR, FOR WHERE THEY'RE GONNA BE OPERATING IN AUSTIN.
UH, AND, AND SO THIS IS, YOU KNOW, UM, YOU KNOW, THE START OF, UM, VERY MANY CHECK-INS THAT WILL HAVE, UM, TO REALLY MAKE SURE THAT, YOU KNOW, THE DESIGN PROCESS IS, IS, IS, YOU KNOW, ALIGNED WITH THE FEDERAL PROCESS, ALIGNED WITH THE DESIGN OF THE OMF AND LRT, YOU KNOW, AND THAT THE BOARD HAS, YOU KNOW, THE APPROPRIATE OVERSIGHT, UM, TO MAKE SURE THAT WE'RE, UH, YOU KNOW, IMPLEMENTING THE VISION FOR, FOR AUSTIN LIGHT RAIL.
AND THIS APPROACH ALLOWS US TO LOCK IN THE PRICE CERTAINTY FOR THE ULTIMATE NOT TO EXCEED AMOUNT WITHOUT COMMITTING, UH, WITH PROCEEDING WITH THAT WORK UNTIL THAT'S APPROPRIATE TO THE PHASE OF NOT ONLY THE FEDERAL FUNDING PROCESS THAT WE'RE IN, BUT THE OVERALL, UM, STAGE OF DEVELOPMENT IN THE, THE PROJECT THAT WE ARE IN, UM, WHILE MINIMIZING ALL OF THE RISKS WE TALKED ABOUT EARLIER BY HAVING THE CAR BUILDER ON BOARD AND BUILDING THEIR REQUIREMENTS INTO THE OVERALL DESIGN OF THE SYSTEM.
I WILL NOTE THOUGH, THAT THE ULTIMATE NOT TO EXCEED AMOUNT IS ALL PART OF OUR PLANNED BUDGET.
AND WHILE WE'RE NOT AUTHORIZING ANY OF THAT WORK BEYOND THE 39 MILLION TODAY, IT IS PART OF OUR OVERALL, UM, PLANNED AND PROJECTED COST FOR THE PROJECT.
AND I KNOW, MAYOR, YOU HAD A QUESTION WHEN THEY'RE FINISHED.
ALRIGHT, WELL, I'VE GOT A FEW, SO I WANNA MAKE SURE YOU'RE DONE.
WELL, I, I KIND OF WANNA START AT WHERE YOU ENDED, UM, UH, BECAUSE I THINK IT'S REAL IMPORTANT FOR US TO DO THAT, AND I DON'T THINK THERE'S ANYBODY ON THE BOARD OR ANYBODY THAT HASN'T HEARD ME EXPRESS CONCERNS ABOUT SPENDING WHEN WE'RE STILL FACING UNCERTAINTY, INCLUDING SOME OF THE UNCERTAINTY WE'VE HEARD ABOUT TODAY.
THIS HAS BEEN POINTED OUT, THE SUPREME COURT JUST SENT, UH, THE, UH, THE LAWSUIT THAT WE'RE INVOLVED IN BACK TO THE TRIAL COURT FOR JURISDICTIONAL ISSUES.
UM, WE DON'T HAVE CERTAINTY FROM FTA.
AND SO WHAT I HAVE EXPRESSED IS, UH, AND I WANNA FRAME KIND OF WHAT YOU'RE SAYING A LITTLE BIT DIFFERENTLY, MAYBE, MAYBE NOT DIFFERENTLY, BUT MAY CREATE A, MAYBE A TIGHTER FRAME.
I WANT US TO APPROACH ALL EXPENDITURES WITH, UH, THE WORD STEWARD GOT USED EARLIER, EARLIER TODAY WITH, WITH STEWARDSHIP IN MIND AS WE GO FORWARD.
AND, UM, I ASK AECOM, UH, TO HELP
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CREATE A FRAMEWORK OR A PROTOCOL.UH, THERE ARE EXPERTS THAT WE HAVE, UH, INVOLVED IN THIS.
AND THE MEMO, I THINK OF THE MEMO GOT PUT IN THE BACKUP, UH, THAT THEY, THEY CREATED ON THIS.
AND I THINK THAT'S IMPORTANT AS WE GET READY TO VOTE ON SOMETHING.
THE TWO THINGS THAT I HAVE POINTED OUT, AND I NOTE IN THE RESOLUTION, IT HAS THESE TWO THINGS SPECIFICALLY STATED, UM, IS ONE THAT WE PROTECT AND PRESERVE PROJECT READINESS SO THAT WE'RE ABLE TO MOVE FORWARD.
BUT THERE'S A FLIP SIDE TO THAT COIN AND THAT FLIP SIDE OF THE COIN IS THAT WE PROTECT THE TAXPAYERS BY NOT SPENDING MONEY THAT ISN'T NECESSARY, AND THAT CREATES UNNECESSARY RISK.
UM, I KNOW THAT AECOM TALKED TO, TO SOME FOLKS AND PROBABLY Y'ALL QUITE A BIT, AND I THINK THE PRESENTATION YOU'VE PROVIDED IS A GOOD ONE, BUT I WANT TO, I WANT TO ASK A FEW POINTED QUESTIONS, UH, SO THAT WE CAN MAYBE CREATE SOME ADDITIONAL CLARITY ABOUT WHAT IT IS.
AND FRANKLY, UH, I BE CANDID, MY HOPE IS THAT WHAT WE'RE DOING HERE, IF WE VOTE IN FAVOR OF THIS, IS THAT WE ARE AS A BOARD KIND OF ESTABLISHING A STEWARDSHIP PROTOCOL, A, A A SPENDING PROTOCOL ON HOW WE'RE GOING TO PRESERVE READINESS, BUT ALSO NOT PUT THE TAXPAYER IN A, A SITUATION WHERE THERE'S UNNECESSARY RISK.
AND SO I WANT TO ASK SOME POINTED QUESTIONS ABOUT THIS RESOLUTION AND ABOUT THE CONTRACT, UM, TO MAKE SURE I'M CLEAR AND, AND MAYBE ESTABLISH, UH, KIND OF THAT PROTOCOL FIRST.
THE, THE, THE WHOLE ISSUE, AND YOU JUST TALKED ABOUT IT, BUT I WANT TO GET IT SAID OUT LOUD AGAIN, IS THE REASON WE'RE ENTERING INTO THIS CONTRACT NOW IS ONE OF THE REASONS IS THAT IT WILL ALSO, IT WILL ALSO LOCK IN THE PRICE NOW AND THAT WILL PROVIDE TAXPAYER PROTECTION.
UH, BY, BY AUTHORIZING THIS AWARD TODAY, WILL LOCK IN THE PRICING FOR THE VEHICLES FOR THE LIFE OF THE VEHICLE.
AND I WILL, CAN I ADD ONE MOMENT TO THAT? IS NOT ONLY DOES IT LOCK IN THE PRICE, UM, AND, AND PROTECT OUR TAXPAYER RESOURCES, BUT IT ALSO HELPS US IN THE FEDERAL PROCESS BY KNOWING THAT PRICE WHEN WE GO INTO OUR NEXT, UM, GATE IN THE CAPITAL INVESTMENT GRANT PROGRAM.
THAT IS ONE WAY IT PROTECTS READINESS.
UM, AND I WANT TO JUST SAY IT OUT LOUD AND MAKE SURE YOU ALL AGREE.
I, IT'S BEEN SAID, BUT I WANT IT TO BE SAID THAT THE WAY WE GOT HERE WAS THROUGH A COMPETITIVE AND AND DISCIPLINED BID PROCESS.
VERY COMPETITIVE OPEN FOR LONGER THAN, UM, IT OFTEN IS.
UM, AND DREW A LOT OF COMPETITION.
NOW, BACK TO THE POINT THAT WAS JUST MADE, UM, ABOUT AWARDING THE CONTRACT, AWARDING DOING THIS RESOLUTION, ONE OF THE THINGS THAT IT DOES IS IT LOCKS IN THE FIXED PRICE, BUT IT DOES NOT AUTHORIZE THE FULL SPEND.
AND OUR CONTRACT IS WRITTEN AS SUCH THAT WE HAVE THE ABILITY TO ISSUE MULTIPLE NOTICES TO PROCEED.
AND THOSE ARE THE TRIGGER POINTS FOR AUTHORIZING FUTURE FUNDING.
AND, AND WE HAVE ACKNOWLEDGED THAT WE WILL BE COMING BACK TO OUR BOARD FOR THOSE FURTHER FUTURE AUTHORIZATIONS.
WELL, FOR THE RECORD, THE RESOLUTION HAS IN ONE OF THE RESOLUTION PARAGRAPHS THAT BEFORE PROCEEDING WITH ANY FUTURE PHASES OF WORK UNDER THE CONTRACT, BEYOND THE PRELIMINARY DESIGN WORK PHASE, AND, AND BEFORE EXERCISING OPTIONS FOR ADDITIONAL VEHICLES OR SERVICES THAT ARE PROVIDED CONTRACT, UM, IT HAS TO COME BACK TO THE BOARD.
AND THERE IS NO OBLIGATION FOR THIS BOARD TO APPROVE ANY FUTURE PHASE.
MEANING THERE IS NO OBLIGATION, NO
MAYOR, MAYOR, IF I COULD ADD TO THAT 'CAUSE IT'S, PLEASE.
SO, SO THE ABILITY FOR US TO GET OUT OF THIS CONTRACT AT SOME POINT IN THE FUTURE IS PRESERVED SHOULD THERE NOT BE ANY FUTURE AUTHORIZATION? YEAH, WE, WE HAVE A TERMINATION FOR CAUSE OR CONVENIENCE, UM, ASSOCIATED WITH THE CONTRACT SO WE CAN TERMINATE AND, AND PAY FOR SERVICES RENDERED AT ANY TIME.
UM, I WANNA ALSO POINT OUT THAT ONE OR THE OTHER, IN FACT, THE THE FIRST RESOLUTION PARAGRAPH MAKES CLEAR THAT IT'S ONLY FOR THE PRELIMINARY DESIGN WORK.
UM, SO TO, UH, BOARD MEMBER FORTUNE'S COMMENT, UH, IF, IF WE PASS THIS RESOLUTION TODAY, THE CONTRACT WILL EXPLICITLY SAY THAT ANYTHING ELSE WE DO WILL
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REQUIRE FUTURE AUTHORIZATION, AND WE ARE NOT OBLIGATED TO DO THAT AND WOULD BE ABLE TO, TO GET OUTTA THE CONTRACT.THE NOTICE OF PROCEEDS SPECIFICALLY OUTLINES THAT EXACT PROCESS.
SO WHEN WE TALK ABOUT PRESERVING READINESS, THIS ALLOWS US TO PRESERVE READINESS, BUT AT THE SAME TIME, WHAT IT DOES IS IT CREATES A PROTECTION, A PROTOCOL, IF YOU WILL, ON SPENDING SO THAT WE DON'T HAVE TO GO FORWARD.
WE'RE JUST, WE'RE TRYING TO DO THE BALANCE OF PRESERVING READINESS AND PROTECTING THE TAXPAYER FROM UNNECESSARY RISKS.
IT CREATES A SERIES OF ON-RAMPS FOR US TO BE ABLE TO MOVE THE WORK FORWARD AS NEEDED AND PROGRESS IT AS, AS THE BOARD DESIRES.
WELL, I ACTUALLY LOOK AT THAT AS OFF RAMPS.
UM, BUT, UM, BUT, BUT THAT'S OKAY.
THAT'S A HIGHWAY KIND OF PHRASE.
THAT'S NOT A TRANS AS ESTABLISHED EARLIER.
UM, AND THE REASON I ACTUALLY, THERE'S SOME METHOD TO MY MADNESS ON THAT.
PART OF THE REASON I SAY IT THAT WAY IS BECAUSE TO PROTECT THE TAXPAYER FROM UNNECESSARY COSTS, WHAT I WOULD BROADLY LABEL AS POTENTIAL STRANDED COSTS, IF THE UNCERTAINTY GOES, UH, IN A DIFFERENT WAY FOR US, UM, WE WANT TO BE ABLE TO HAVE OFF RAMPS AND BE ABLE TO, UH, TO PROTECT THE TAXPAYER.
AND THAT'S, THAT'S NOT REALLY A QUESTION, BUT I'LL JUST SAY IT OUT LOUD.
UM, WHEN WE'RE TALKING ABOUT, UH, SOME OF THE OTHER ITEMS THAT WE HAVE COMING, I MEAN, WE'VE GOT SOME PRICE TAG ITEMS THAT ARE, THAT ARE COMING DOWN.
UH, IF, IF, IF THINGS GO FORWARD, UM, AND, AND WE'VE, WE'VE, I WANNA MAKE SURE THAT WE SAY IT OUT LOUD AND I HEAR IT FROM OUR PROFESSIONAL STAFF, AND THAT IF, IF I VOTE IN FAVOR OF THIS, IT IS THAT PEOPLE UNDERSTAND THE VOTE.
AND THAT IS, AND WE'VE SAID IT A NUMBER OF TIMES, BUT ONE MORE TIME, THE BOARD ISN'T PRE-COMM PERMITTING EVEN BECAUSE WE'RE DOING DESIGN FOR RAIL LINES, UH, RAIL CARS, AND THOSE ARE TIED INTO THE DESIGN OF, UH, UH, THE, THE OMF AND ALL OF ALL THE OPERATION MAINTENANCE FACILITY AND ALL THAT WE'VE GOT GOING ON.
WE ARE NOT PRE-COMM PERMITTING IN ANY WAY TO THOSE THINGS.
NO, YOU ARE LOCKING IN THE NOT TO EXCEED AMOUNT.
IF WE ELECT TO AUTHORIZE THOSE ELEMENTS OF THE CONTRACT THROUGH FUTURE NOTICE TO PROCEEDS, UM, WHICH WE WOULD COME TO THE BOARD BEFORE ISSUING DOES THE, THE KIND OF THE SPENDING PROTOCOL THAT WE'RE, WE'RE SOMEWHAT ADOPTING WHEN WE TAKE THIS NOT SOMEWHAT THAT WE WOULD BE ADOPTING WHEN WE TAKE THIS VOTE ON THIS SPECIFIC ITEM, DOES THAT, SO THAT WHAT WE'RE DOING IS PRESERVING THE READINESS IN THIS SITUATION.
UH, AND THAT INCLUDES HOW FTA LOOKS AT THINGS, UH, WHAT WE NEED TO DO TO KEEP MOVING THE, THE PROJECT FORWARD, AND IT AVOIDS THE CREATION OF POTENTIAL STRANDED COST.
DOES THAT IN ANY WAY DELAY THE PROJECT'S? UM, ULTIMATE COMPLETION DATE? NO.
UM, HOW WILL YOU KEEP THE BOARD UPDATED ON FUTURE PROGRESS SO THAT WE CAN MAKE THOSE DECISIONS? SO WE WILL COME BACK TO YOU AND, AND HAVE THIS DISCUSSION ASKING FOR YOUR APPROVAL TO AUTHORIZE ANY FUTURE EXPENDITURE OF FUNDS BEYOND THIS INITIAL AUTHORIZATION OF THE 39 MILLION.
UM, AND IN ADDITION TO THAT, WITHIN THAT FUTURE AUTHORIZATION, THERE ARE MULTIPLE CHECKPOINTS ALONG THE WAY IN THE DELIVERY OF THAT WORK.
AND YOU SEE SOME OF THEM HIGHLIGHTED ON THE SCREEN HERE, UH, AS WE FINISH THE, YOU KNOW, LENGTHY DESIGN PROCESS THAT MATT DESCRIBED EARLIER, THERE IS AN OPPORTUNITY TO ACCEPT THAT FINAL DESIGN BEFORE WE RELEASE SCHADLER TO MOVE INTO THE MANUFACTURING PHASE.
AND WE WILL CERTAINLY BE IN COMMUNICATION WITH OUR BOARD BEFORE WE TAKE THAT STEP.
UM, THERE'S ALSO ADDITIONAL, YOU KNOW, YOU SEE HERE, WE HAVE THE OPPORTUNITY WHEN WE RECEIVE THE FIRST VEHICLE, UM, TO, TO MAKE SURE THAT WE'RE IN THE RIGHT PLACE AND ON TRACK BEFORE MOVING FORWARD WITH THE REMAINDER OF THE FLEET.
SO WE WILL BE COMING BACK REGULARLY, NOT ONLY ON THIS CONTRACT, AND I REALIZE WE AREN'T DISCUSSING THE OTHER CONTRACTS UNDER THIS AGENDA ITEM, BUT IN A SIMILAR FASHION, UM, TO YOUR NOTE MAYOR, FOLLOWING THIS PROTOCOL ROLLED OUT ACROSS ALL OF OUR MAJOR DELIVERY CONTRACTS TO HAVE THESE OPPORTUNITIES FOR OUR BOARD TO AUTHORIZE THE NEXT PHASES OF WORK ALIGNED WITH BOTH THE FEDERAL FUNDING PROCESS TO PRESERVE READINESS, BUT ALSO JUST THE, THE STAGE OF WHERE WE'RE AT IN THE PROJECT.
[01:30:01]
GOT SOME COMMENTS THAT I WANNA MAKE ABOUT THE CONTRACT AND THE, THE VOTE THAT WE MIGHT TAKE AND ABOUT HOW WE APPROACH THIS WHEN THAT'S AN APPROPRIATE TIME.IF, IF I MAY, MEMBER PAVILION, UM, AND, AND MAYOR, IF YOU'LL LOOK, IF YOU'LL LOOK BACK AT, UH, A TP PROCUREMENT UPDATES AND THE LIGHT RAVE LIGHT, UH, RAIL VEHICLES, ONE THING THAT WE ASKED THE TEAM TO DO WAS TO LAY OUT ALL THE DELIVERABLES AND THEN IDENTIFY FOR US WHEN THOSE WERE DELIVERED SO THAT WE, WE CALL, WE CALL THAT AT THE PERFORMANCE REVIEW, A CROSSWALK THAT WE, THAT WE KNEW EVERYTHING THAT WAS SUPPOSED TO BE DONE.
IS IT ON SCHEDULE, IS IT ON BUDGET, ET CETERA.
AND THEY, THEY'VE DONE AN EXCELLENT JOB OF IDENTIFYING EVERYTHING THAT WAS ASKED OF THEM, AND THEN THE STATUS OF IT TODAY AND, AND WHETHER IT IS, UH, JUST BEING INITIATED, WHETHER IT'S SUBSTANTIALLY COMPLETED.
BUT I THINK IT IS IMPORTANT TO BE ABLE TO, TO GO TO EVERY DELIVERABLE AND SAY, THESE, THESE HAVE BEEN DELIVERED, UH, WITH BY THESE MEANS.
SO AS WE, AS WE MOVE FORWARD, IT IS BECAUSE WE'VE GOT, UH, A LEVEL OF COMPLETION DONE FOR WHAT WAS, WHAT WAS APPROVED BY THE BOARD ALREADY.
YEAH, I I, I COMPLETELY AGREE.
BUT IF IT'S APPROPRIATE, YEAH, I COMPLETELY AGREE.
AND, AND I THINK BY ESTABLISHING A, A STEWARDSHIP OR SPENDING PROTOCOL, AN EXPENDITURE PROTOCOL THAT HAS THE VERY SPECIFIC GOAL OF REDUCING UNNECESSARY RISK TO THE TAXPAYER AND AVOIDING STRANDED COST, AND AT THE SAME TIME PRESERVING READINESS WITH THOSE BEING OUR, OUR CLEAR VISION, IT WILL ALLOW FOR EVEN MORE OPPORTUNITY FOR THE PROFESSIONAL STAFF TO BRING BACK TO US AND REPORT ON HOW THINGS ARE BEING ACCOMPLISHED SO THAT BEFORE WE AUTHORIZE ANY FUTURE ACTIONS, WE'LL KNOW WHAT THAT STATUS IS.
IT, IT'S, UM, I HAVE A QUESTION.
IT'S ABOUT THE RESOLUTION ITSELF OKAY.
IF YOU'LL LOOK AT THE, DRAW THE BOARD'S ATTENTION TO THE FIRST, UM, THEREFORE BE RESOLVED CLAUSE, IT REFERS TO, UM, COMMENCING THE PRELIMINARY WORK, UM, DESIGN WORK PHASE UNDER THE CONTRACT DESCRIBED HEREIN.
BUT I DON'T SEE ANYTHING DESCRIBED IN THIS RESOLUTION ABOUT WHAT WE JUST HEARD THE BRIEFING ON.
AND I JUST WANT TO TECHNICALLY JUST MAKE SURE THAT THAT'S NOT GOTTA BE BETTER DEFINED SO THAT WE WE'RE, WE'RE SAYING IN LOCKSTEP WITH WHAT OUR INTENT IS HERE.
SO, AND I DON'T KNOW IF YOU HAD SOMETHING, AND I, I HAD A FURTHER QUESTION ABOUT, SO IT'S THE, ON PAGE SEVEN, UM, THE LAST TWO PARAGRAPHS, THE, UH, BE IT FURTHER RESOLVED, UM, JUST IF YOU CAN EXPLAIN A LITTLE BIT MORE, UM, WHAT THAT AUTHORIZATION, UM, COVERS IT, IT VERSUS WHAT THE BOARD IS AUTHORIZING.
'CAUSE THE, THE NEXT PARAGRAPH IS TALKING ABOUT, UM, WHAT THE EXECUTIVE DIRECTOR OR THEIR DESIGNEE IS AUTHORIZED TO AWARD NEGOTIATE.
SO I DO, UM, DO YOU WANNA TAKE, TAKE THAT QUESTION ON PAGE SEVEN, THE SECOND PARAGRAPH, THE, BE IT FURTHER RESOLVED, I THINK.
BUT THE, THE FIRST QUESTION ABOUT THE CAP ON THE 39 MILLION NOW THEREFORE BE IT RESOLVED, IT AUTHORIZES ONLY NOT TO EXCEED 39 MILLION.
SO IS THAT WHAT YOU'RE SEEING? NO, THE, THE QUESTION I HAVE IS, IT SAYS THE WORK DESCRIBED HEREIN, BUT THERE'S NOTHING IN THE, THE DOCUMENT THAT DESCRIBES THE WORK.
I THINK, WELL, ACTUALLY I SHOULDN'T ANSWER LIKE A LAWYER
AND THE CONTRACT IS DESCRIBED HEREIN, NOT THE SCOPE OF PRELIMINARY DESIGN WORK.
BOARD MEMBER, IF I COULD HELP YOU WITH THAT, UH, THE REFERENCE TO THE CONTRACT DESCRIBED HEREIN IN THE FIRST BE RESOLVE CLAUSE REFERENCES THE CONTRACT AS DEFINED IN THE SECOND BE RESOLVE CLAUSE, WHICH IS THE, THE CONTRACT FOR DESIGN COORDINATION SERVICES, ET CETERA.
SO THAT'S THE CONTRACT DESCRIBED HEREIN IN THE FIRST BE IT RESOLVED.
DOES THAT ANSWER YOUR QUESTION? YEAH, I JUST DIDN'T SEE THE CONTRACT.
SO IT'S HARD TO, TO REFER TO THE, THE REFERENCE TO THE 39 MILLION WITHOUT THE CONTRACT.
IT'S JUST DEFINED IN THE NEXT BE RESOLVED.
AND THE NEXT BE RESOLVED ANSWERS YOUR QUESTION FOR MEMBER HORN, 'CAUSE THAT WAS THE FOLLOW UP.
I THINK SHE'S LIKE ASKING FOR A COPY OF THE CONTRACT ITSELF SO THAT YOU CAN COMPARE AND CONTRAST.
WELL, IT'S, I'M NOT GONNA BE ABLE
[01:35:01]
TO GET IT TODAY BEFORE THIS DISCUSSION.YEAH, I MEAN, I THINK, JUST FOR CLARIFICATION, I THINK WHAT THIS BOARD HAS BEEN ASKED TO DO IS TO MOVE TOWARDS NEGOTIATING A CONTRACT.
SO THE CONTRACT IS NOT YET FINALIZED.
SO IS THAT, IS THAT CLEAR NEGOTIATE AND EXECUTE YES.
SO, SO THERE ISN'T A CONTRACT THAT THAT, THAT THIS DESCRIBES YET? NO.
SO THERE'S ONE THAT'S BEEN AGREED TO IN MOST OF ITS TOTALITY THAT WE WILL, AFTER INCORPORATING ANY ADDITIONAL BOARD FEEDBACK, OF COURSE WE'D INCLUDE THAT.
UM, BUT WE HAVE A CONTRACT THAT'S READY TO GO THAT'S BEEN NEGOTIATED AND AGREED TO FOR THE MOST PART.
UM, I'M HERE JUST WAITING FINAL AUTHORIZATION TO, TO FINALIZE THAT NEGOTIATION AND EXECUTE.
AND IF I COULD SAY BOARD MEMBER, THE REASON THAT WE INCLUDED THE, THE TERM NEGOTIATE HERE IN THIS RESOLUTION WAS SIMPLY SO THAT WE WOULD HAVE THE BENEFIT OF ANY INPUT FROM THE BOARD ON KIND OF THE FINAL WORDING OF THE CONTRACT.
S SO THE, THE EXECUTION PIECE OF THE NEXT PARAGRAPH, UM, REFERS TO EXECUTING THE CONTRACT IN A NOT TO EXCEED, BUT DOESN'T AUTHORIZE THE SPEND.
THE SPEND AUTHORIZATION BOARD MEMBER COMES FROM THE FIRST BE IT RESOLVED AND IT'S LIMITED TO THAT 39 MILLION.
UM, I HAVE ANOTHER QUESTION, AND I'M GONNA GO BACK A LITTLE BIT ON THE, THE PART ABOUT STATLER THEMSELVES AND, AND I'M HAPPY TO SEE THEM HERE IN THE ROOM, BUT IT'S ALSO THE, UM, AND I I WROTE MY QUESTION HERE TO MAKE SURE I DIDN'T TRIP, BUT, UM, CAN YOU, AND I DIDN'T HEAR YOU MENTION ANYTHING HERE, BUT CAN YOU WALK US THROUGH THE BUY AMERICA REQUIREMENTS FOR THIS COMPLIANCE? AND ESPECIALLY TO, TO YOUR POINT ABOUT THE READINESS MAYOR WITH THE FDA, LOOKING AT HOW WE'RE EXECUTING THIS EFFORTS.
THE BIO IS A VERY STRATEGIC INVESTMENT IN OUR SUPPLY CHAIN WITHIN THE COUNTRY, UM, AND THAT THE MAKEUP OF THE VEHICLES THEMSELVES, I BELIEVE SADLER WAS GONNA GO THROUGH AN AUDIT PROCESS WHEN I GOT THE BRIEFING, BUT CAN YOU ENLIGHTEN US A LITTLE MORE AND FOR THE BENEFIT OF THE PUBLIC, WHAT THAT MEANS AND HOW THIS IS REALLY A, A WIN-WIN WIN IF, IF WE ARE ABLE TO MEET THIS MARK? YEAH, GREAT QUESTION.
SO THE BUY AMERICA ACT REQUIRES THAT FOR ROLLING STOCK PURCHASES, 70% OF THE MANUFACTURING AND THE COMPONENTS MANUFACTURED HAVE TO BE DONE IN THE UNITED STATES.
UM, SO WHAT WE ARE REQUIRED TO DO, AND WHAT WE HAVE DONE IS DONE AN INDEPENDENT AUDIT OF THE VEHICLE AND THE COMPONENTS THAT THEY'RE PROPOSING TO ENSURE THAT IT HITS THAT 70% MARK AND THE INDEPENDENT AUDIT HAS BEEN COMPLETED AND IT'S DONE.
AND IT SHOWS THAT AT, AT A MINIMUM AMOUNT, 71.5% OF ALL THOSE COMPONENTS ARE GOING TO BE DONE WITH POTENTIAL OPPORTUNITY FOR MORE, UM, THAT STAFF ARE PROPOSED IN THEIR PROPOSAL.
SO WE'VE BEEN ABLE TO VERIFY AND, AND DOCUMENT A MINIMUM AMOUNT THAT EXCEEDS THAT 70% REQUIREMENT.
YEAH, I THINK THAT'S A VERY IMPORTANT PIECE OF, OF HOW THIS ALL COME TOGETHER.
AND, UM, AND JUST THE, THE, THE FACT THAT YOU GUYS SET UP A, UM, MANUFACTURING IN UTAH IN THE UNITED STATES IS SOMETHING THAT IS NOT TAKEN LIGHTLY AND IT'S SOMETHING THAT'S A BIG INVESTMENT, BUT SOMETHING I REALLY WANTED TO POINT OUT THAT THE THOUGHTFULNESS OF HOW Y'ALL APPROACH THE SOLICITATION, THE PROCUREMENT, THE COMPETITION, LOOKED AT ALL THOSE FACTORS, UM, IN THE READINESS.
WE WANNA LOOK REALLY GOOD TO THE FDA TO MAKE SURE WE DID OUR HOMEWORK TO MAKE SURE THAT ALL OF THESE PIECES, AND WE'RE CHECKING EVERY BOX TO NOT TRIP AFTER WE HAVE, UM, ADVANCED TOO FAR.
AND THEY'RE LIKE, OH, WELL WE DIDN'T DOUBLE CHECK THIS OTHER MATH, BUT I'M, I'M HAPPY TO HEAR ABOUT THE INDEPENDENT AUDIT.
ANY FURTHER QUESTIONS FROM THE FELLOW BOARD MEMBERS? I, I JUST WONDERED, ARE THERE ANY TEXAS FIRMS INVOLVED BESIDES UTAH? YOU MEAN
SO WHAT STALER WILL BE DOING, UM, AFTER THIS CONTRACT IS EXECUTED, THEY'LL START BIDDING OUT SUPPLIES IN DIFFERENT PARTS SO THAT ARE ASSOCIATED WITH THAT.
SO THEY DON'T COME, PRESUPPOSED IS KIND OF OUR ENGINEERING CONTRACT, REALLY BUILD OUT THOSE TEAMS. THEY HAVE TO BID OUT A LOT OF THAT, THAT INFORMATION, UM, AND, AND, AND PARTS ALONG WITH THAT.
BUT THEY'RE COMMITTED TO TRYING TO GET AS MUCH TEXAS BUSINESS AS POSSIBLE, AND THEY'VE DEMONSTRATED THAT THROUGH THE PREVIOUS CONTRACTS THEY HAVE AWARDED, BEEN
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AWARDED IN THE STATE OF TEXAS AND INVESTED MORE THAN $30 MILLION INTO TEXAS BUSINESSES OVER THE LAST 10 YEARS, UM, BASED ON THE CONTRACTS THAT THEY'VE RECEIVED IN TEXAS BEFORE.I KNOW YOU HAD SOMETHING ELSE TO SAY.
THERE'S A MOTION SECOND BEFORE WE GO.
UM, ONE LAST THING I'D LIKE TO JUST POINT OUT IN TERMS OF LEARNING MORE ABOUT THE INTERFACE AND THE TIMING OF WHEN THESE DECISIONS MATTER IN THE ENGINEERING AND THE DESIGN.
I MEAN, I HEARD YOU SAY ABOUT THE LENGTH OF THE VEHICLES, JUST TO CONFIRM WITH THE, WITH OUR CITY, WITH THE URBAN FABRIC AND THE LENGTH OF OUR BLOCKS, I JUST WANNA MAKE SURE THAT ALL OF THAT INTERFACE, OF COURSE, IS THOUGHT ABOUT IN HOW WE'RE ADDRESSING THE PLATFORM DESIGN AND THOSE PIECES.
UH, OUR PLATFORMS OR OUR STATION PLATFORMS ARE DESIGNED TO BE ABLE TO ACCOMMODATE ACTUALLY TWO OF THESE TRAINS COUPLED TOGETHER SO THAT NOT ONLY IN DAY ONE, WE CAN OPERATE WITH ONE TRAIN, AS OUR SYSTEM GROWS AND WE CARRY EVEN MORE RIDERS OR SAY FOR SPECIAL EVENTS WHERE WE WANNA COUPLE TWO TRAINS TOGETHER AND CARRY NEARLY 500 PEOPLE AT A TIME PER TRAIN, UM, OUR PLATFORMS WILL BE ABLE TO ACCOMMODATE THAT, UH, EVEN FURTHER WE'RE PLANNING SO THAT THEY CAN BE EASILY EXTENDED, YOU KNOW, WELL INTO THE FUTURE TO BE ABLE TO, WE'RE BASICALLY LEAVING THE FOOTPRINT CLEAR TO LENGTHEN THEM TO ACCOMMODATE A THIRD TRAIN IN THE FUTURE.
WE'RE NOT BUILDING THEM THAT WAY RIGHT NOW.
THEY WON'T NEED IT, BUT WE'RE LEAVING THE FOOTPRINT CLEAR SO THAT THAT EXTENSION COULD HAPPEN AT SOME LATER DATE IF EVER NEEDED.
YEAH, I DON'T HAVE ANY FURTHER QUESTIONS AND I KNOW WE DID NOT MAKE A MOTION AND A SECOND.
SO, UH, IF THERE'S NO FURTHER QUESTIONS FROM THE BOARD, I'D LIKE TO GET, UM, A MOTION AND A SECOND PLEASE MOVE BY BOARD MEMBER GARZA.
SECOND, SECOND, SECOND BY BOARD MEMBER PAVILION.
ANY FURTHER DISCUSSION? I'D LIKE TO BE RECOGNIZED.
UM, THANK YOU MADAM CHAIR, UM, AND BOARD MEMBERS.
AND, UH, FROM MY PERSPECTIVE, TODAY ISN'T JUST ABOUT TRAINS.
UH, IT'S ABOUT HOW WE'RE GOING TO GOVERN DURING UNCERTAINTY.
WE'RE WORKING CLOSELY WITH FTA AND WE HAVE DEMONSTRATED VERY GOOD SUCCESS WITH FTA.
I BELIEVE WE'RE RIGHT ON THE LAW, UH, AND I BELIEVE AUSTIN NEEDS RAIL.
THOSE POSITIONS HAVEN'T CHANGED, BUT WE HAVE CIRCUMSTANCES THAT HAVE CHANGED AND WE HAVE CIRCUMSTANCES THAT WE NEED TO CONSIDER IF WE'RE GOING TO BE GOOD STEWARDS OF THE TAXPAYER'S MONEY.
WE ASK THE TAXPAYERS TO TRUST US, AND WE WILL DEMONSTRATE THAT THEY CAN TRUST US IF WE RECOGNIZE THE CIRCUMSTANCES WE OPERATE IN AND WE RESPOND.
THE LITIGATION TIMELINE HAS LENGTHENED.
FEDERAL FUNDING IS NOT CERTAIN.
STEWARDSHIP REQUIRES A CAREFUL SPENDING POSTURE.
TODAY'S DISCUSSION HELPED ESTABLISH WHAT THAT POSTURE SHOULD BE, WHAT IT WILL BE, PRESERVE READINESS, PROTECT TAXPAYERS.
WHEN I SPEAK OF PRESERVING READINESS, I RECOGNIZE THAT DOING NOTHING IS ALSO NOT GOOD.
STEWARDSHIP WAITING ISN'T FREE.
FTA PIPELINE RISK, FEDERAL REIMBURSEMENT, RISK, PRICE, CONTINGENCIES, REDESIGN, COST ESCALATIONS, AND THE DELAY OF THE OVERALL PROJECT SCHEDULE.
PROTECTING THE TAXPAYER INVOLVES MAKING SURE WE AVOID UNNECESSARY FINANCIAL EXPOSURE.
I KNOW THAT EVERYONE UP HERE SHARES MY CONCERN ABOUT SPENDING, UH, SPENDING ANY MONEY THAT BECOMES A STRANDED COST IF CIRCUMSTANCES CHANGE.
THAT CONCERN IS WHY WE NEED A PROTOCOL, A SPENDING PROTOCOL, A STEWARDSHIP PROTOCOL LIKE WE'RE DOING TODAY.
IF WE VOTE IN FAVOR OF THIS, I THINK WE DO THIS FOR THIS DECISION, AND WE NEED TO BE SURE WE DO IT FOR ALL DECISIONS.
WE ONLY FUND THE WORK NEEDED TO PRESERVE READINESS, AND NOTHING MOVES FORWARD WITHOUT US AS A BOARD SAYING YES.
AGAIN, WE AREN'T OBLIGATED TO PROCEED BY APPROVING THIS PHASE.
WE PROTECT THE TAXPAYERS FROM UNNECESSARY RISK, AND WE PRESERVE READINESS.
WE KEEP FUTURE DECISIONS IN FRONT OF THIS BOARD MADE IN PUBLIC AND ON ITS OWN TIMELINE, OUR OWN TIMELINE.
IN MY VIEW, THAT'S WHAT STEWARDSHIP NEEDS TO LOOK LIKE.
STAYING READY WITHOUT WRITING A BLANK CHECK, OUR GOAL IS TO
[01:45:01]
SPEND ONLY WHAT IS NECESSARY TO PRESERVE READINESS AND AVOID UNNECESSARY FINANCIAL EXPOSURE.I BELIEVE THAT'S HOW WE PROTECT PROJECT, CONNECT AND PRESERVE THE PUBLIC'S TRUST.
I WILL BE VOTING IN FAVOR OF THIS BECAUSE I SEE US ESTABLISHING A STEWARDSHIP PROTOCOL.
UM, ANY FURTHER COMMENTS OR ANY FURTHER DISCUSSION FROM ANY FELLOW BOARD MEMBERS? WELL, WITH THAT, I HAVE THE HONOR TO CALL ALL OF YOU ON A VERY CONSEQUENTIAL VOTE.
IF EVERYONE IN FAVOR, PLEASE SAY AYE.
UM, ITEM NUMBER TWO PASSES UNANIMOUSLY.
I LIKE TO INVITE OUR TEAM FROM STALER TO COME FORWARD AND SAY A FEW WORDS.
UH, DEAR BOARD DEAR TEAM OF A TP.
I'M THE CEO OF THE NORTH AMERICAN DIVISION OF ESLER RAIL.
UM, I WANNA EXPRESS, UH, TWO THINGS, UM, REAL QUICK.
ON ONE HAND, UH, GRATITUDE AND ON THE OTHER HAND, THE EXCITEMENT THAT WE HAVE, NOT JUST FOR THIS DAY, BUT REALLY THE THE WAY FORWARD.
UM, GRATITUDE, OBVIOUSLY FOR THE TRUST AND THE OPPORTUNITY THAT YOU PUT IN US AND, AND GIVE US TO, TO HELP YOU TO, TO TRANSITION THE, THE WAY TRANSIT WORKS IN IN AUSTIN.
AND BRAD, I NEED TO DISAPPOINT YOU BECAUSE A TP DOES HAVE ALREADY A REPUTATION, UM, BUT IT'S ACTUALLY A REPUTATION THAT IS REALLY NEEDED IN OUR INDUSTRY.
THE PROCESS OF HOW THIS PROCUREMENT WORKED, UM, IS WELL KNOWN, UH, IN THE ABTA COMMUNITY.
UH, WELL RECOGNIZED THAT THERE IS A DIFFERENT WAY OF DOING A PROCUREMENT.
UM, IN MY ALMOST 15 YEARS IN MY CAREER, THERE WAS NEVER A PROCUREMENT THAT WAS ASSIGNED AND AWARDED ON TIME.
UM, YOU'RE THE FIRST ONE, AND I THINK THAT'S GOING TO HELP YOU ALONG THE PROCESS TO, TO STAY ON BUDGET, TO BE VERY EFFECTIVE AND EFFICIENT, AND OBVIOUSLY TO ALSO KEEP THE COMMUNITY EXCITED, UM, EXCITEMENT FOR THE PARTNERSHIP.
UM, A TP IS, IS THE, THE NAME IS PART OF THE PROGRAM.
UH, WE ARE, YOU KNOW, THERE'S A LOT OF WORK OUT IN OUR INDUSTRY CURRENTLY IN NORTH AMERICA.
AND AS A MANUFACTURER, WE DO ALSO CAREFULLY CHOOSE WHO WE WANNA CONSIDER TO WORK WITH.
AND A TP HAS BEEN ON TOP OF OUR LIST OF WANNA WIN THIS JOB AND BEING PART OF THIS PARTNERSHIP BECAUSE THE WAY HOW PROCUREMENT WENT, THE WAY HOW THE PEOPLE ARE INTERACTING WITH US AND THE TEAMS ARE WORKING TOGETHER.
AND OBVIOUSLY WE DO, WE DO LOVE AUSTIN TOO.
SO WE WANT TO BE PART OF, OF THIS EXCITING PROJECT, UH, REALLY A TRANSFORMATIONAL PROJECT.
IT IS GONNA GONNA CHANGE THE WAY HOW PEOPLE ARE COMMUTING AND HOW PEOPLE ARE LIVING AND, AND MOVING WITHIN THE CITY AND ITS BOUNDARY.
UM, WE'RE EXCITED FOR, YOU KNOW, THE VEHICLE ITSELF USUALLY, NOT USUALLY, BUT IN THIS CONTRACT SPECIFICALLY IS, IS AN IMPORTANT PART, BUT IT'S ALSO RELATIVELY SPEAKING PERCENTAGE WISE.
UH, THE INFRASTRUCTURE IS VERY IMPORTANT.
SO THE CARS, USUALLY THEY CAN DRIVE COSTS, AND WE'RE EXCITED THAT WE ARE ON BOARD VERY EARLY BECAUSE WE WANT TO HELP TO DRIVE THE COSTS DOWN, TO BE, UM, A GOOD PARTNER EARLY ON TO, TO HELP MAKE DECISIONS, WHETHER THAT'S IN THE INFRASTRUCTURE OR IN THE MAINTENANCE FACILITY THAT ARE MOST EFFECTIVE AND EFFICIENT FOR, UM, NOT ONLY FOR THE, THE MONEY THAT'S SPENT NOW IN THE NEXT COUPLE OF YEARS, BUT REALLY OF THE LIFE CYCLE OF THE ENTIRE PROJECT AND PRODUCT.
UM, WE, AS I SAID ALREADY, WE'RE REALLY EXCITED FOR, WE, WE FEEL LIKE WE SHARE THE SAME VALUES BETWEEN, UH, AUSTIN A TP, AND, AND SCHADLER.
AND WE'RE REALLY EXCITED TO, UH, TO SHOW OFF, UM, BASED ON THOSE VALUES.
SO IN CONCLUSION, I WANNA CONGRATULATE A TP FOR THIS IMPORTANT STEP AND WANTED TO, AGAIN, THANK YOU FOR HAVING US TODAY, FOR HAVING US ON THE TEAM AND TO BUILD THE FUTURE TOGETHER.
THANK YOU FOR TAKING THE TIME TO COME.
I DON'T THINK, I THINK WE NEED TO CELEBRATE.
I'M SORRY, BUT THIS IS A BIG DEAL.
AND THANK YOU FOR THE KB LIFT THE RESTROOM.
[01:50:01]
NOW WE'RE MOVING FORWARD[4.1. Proposed Fiscal Year 2026-27 Budget Presentation.]
WITH, UM, DISCUSSION ITEMS. IS ITEM NUMBER, UH, FOUR IN OUR AGENDA, WHICH IS THE PRESENTATION OF THE PROPOSED FISCAL YEAR 20 26, 27 BUDGET.UM, SO PLEASE INTRODUCE YOURSELF AND OUR FINANCE TEAM.
WELL, THANK YOU FOR HAVING US.
BRIAN RIVERA, CHIEF FINANCIAL OFFICER FOR A TP.
I'M THE SENIOR VICE PRESIDENT AND BUDGET AND TREASURY FOR A TP PLEASURE TO BE HERE TODAY.
SO I'M GONNA WALK US THROUGH THE FIRST TWO SLIDES OF THIS PRESENTATION.
UM, I'M GONNA COVER OUR BUDGET COMPONENTS, WHICH I'M SURE YOU'RE ALL VERY FAMILIAR WITH.
UM, THE PRIMARY COMPONENT, OR ONE OF THE COMPONENTS IS ANNUAL BUDGET.
THIS IS WHERE OUR PROPER PROPOSITION, $8 FLOW IN AND WHERE WE PLAN FOR OUR APPROPRIATIONS TO BE SENT OUT TO ANTI-DISPLACEMENT AND OUR CAPITAL FUND.
UH, THESE ARE DONE ON AN ANNUAL BASIS, SO THEY DO EXPIRE OR ROLL BACK TO ZERO, WHATEVER WE SET THEM TO IN THE NEXT YEAR.
THE NEXT COMPONENT IS OUR CAPITAL BUDGET.
THIS IS WHERE WE PLAN FOR OUR, OUR, UH, SPEND FOR OUR CAPITAL PROJECT.
WE HOUSE ALL OF OUR COSTS HERE.
IT IS MULTI-YEAR, SO IT IS NOT LIMITED TO JUST ONE FISCAL YEAR.
ANYTHING WE DO NOT SPEND ROLL FORWARD TO THE NEXT FISCAL YEAR.
AND THIRD COMPONENT IS OUR SPENDING PLAN.
THIS IS OUR CASH OUT THE DOOR PLAN THAT SHOWS HOW WE'RE BE GONNA BE SPENDING THOSE DOLLARS IN THE CAPITAL BUDGET.
ON THE RIGHT HAND SIDE, I'LL JUST GO VERY HIGH LEVEL OVER OUR BUDGET TIMELINE.
WE SPENT THE PAST COUPLE MONTHS, UH, REFINING OUR BUDGET AND PLANNING IT OUT THROUGH THE BUDGET DEVELOPMENT PHASE.
WE'RE HERE IN JULY TO PRESENT TO Y'ALL.
UM, IN AUGUST, WE'RE GONNA BE PRESENTING TO OUR COMMUNITY, UH, STAKEHOLDER GROUPS AND THEN BACK IN SEPTEMBER FOR ADOPTION.
OKAY, SO WE'VE HEARD A LOT OF THESE TERMS IN THE LAST, UH, ITEM IN THE AGENDA.
UH, PROTECTING AFFORDABILITY AND SECURING THE CORRIDOR THAT IS PRIMARILY FOCUSED ON SECURING RIGHT AWAY ALONG THE ALIGNMENT.
IT'S ONE OF THE WAYS THAT WE PROTECT THAT AFFORDABILITY, BUT IT'S ALSO THROUGH THE COST CERTAINTY AND RISK MITIGATION OF THOSE COSTS THROUGH CONTRACTING.
UH, THE SECOND ONE IS THE EFFECTIVE CONTRACT MANAGEMENT.
AND THIS IS WHERE WE ESSENTIALLY TAKE A STRONG FOCUS AND LOOK AT HOW WE MANAGE OUR CONTRACTS, HOW WE SPEND AND INTERFACE WITH OUR CONTRACTORS THAT CAN LEAD TO COST SAVINGS AND REALLY APPROPRIATE USE OF OUR CONTRACTS.
AND THEN THIRDLY, IT'S PROGRESSING THROUGH THE, THE FEDERAL PROCESS.
SO THAT MEANS, JUST LIKE WE DID IN THE PAST, COMPLETING THE NEPA PROCESS, GETTING A RECORD DECISION, BUT CONTINUING TOWARD ENTRY TO ENGINEERING AND SETTING OURSELVES UP FOR SUCCESS WITH THE CIG OR THE CAPITAL INFRASTRUCTURE GRANT.
SO SOME OF THE WAYS THAT WE DO THAT AS A TP ARE THROUGH A THOUGHTFUL APPROACH TO OUR STAFFING NEEDS.
SO WE'VE ALIGNED OUR STAFFING NEEDS TO BE TIED CLOSELY TO OUR PROJECT NEEDS AS WELL.
WE FOCUS ON MAKING SURE THAT WE'RE STAFFED APPROPRIATELY ON THE FULL-TIME SIDE, BUT ALSO THROUGH OUR DELIVERY PARTNERS SUCH AS AECOM.
IN THE PAST FOUR YEARS, WE'VE REDUCED OUR, UH, TOTAL STAFFING ON FTES DOWN BY 26%.
THAT'S FROM A HIGH OF 87, UM, BACK A FEW YEARS TO THE 64 THAT WE ARE PROPOSING IN THIS NEXT YEAR'S BUDGET.
AS I MENTIONED, UH, THE ACTIVE AND EFFECTIVE CONTRACT OVERSIGHT.
SO WORKING CLOSELY, MANAGING OUR CONTRACTS, HAVING, UM, REGULAR MEETINGS, INTERFACING WITH OUR PROJECT MANAGERS, BUT ALSO OUR VENDORS TO ENSURE THAT WE'RE STAYING ON TARGET, ON BUDGET, ON TIME.
AND THEN ALSO LEARNING FROM LESSONS THAT WE'VE DISCOVERED OURSELVES AS WE GO THROUGH THE PROGRESSIVE DESIGN BUILDING PROCESS.
AND LASTLY, STRONG BUDGET MANAGEMENT.
AND THIS LOOKS LIKE MONTHLY REPORTING CHECK-INS WITH OUR, OUR MANAGEMENT, OUR EXECUTIVES, AND THEN ALSO ROUTINE RE-FORECASTING AS WE HIT SIGNIFICANT MILESTONES TO ENSURE THAT WE'RE ON TRACK.
SO I'LL COVER REST THE SLIDES AND WALK THE BOARD THROUGH THE KEY HIGHLIGHTS FOR 27 AND TALK THROUGH A LITTLE BIT OF OUR SPEND PLAN THAT WE HAVE INCLUDED IN THIS PROPOSED BUDGET THAT WE HAVE IN FRONT OF THE BOARD TODAY.
UM, REALLY AS, AS DAN MENTIONED, ONE OF THE THINGS I WANTED TO HIGHLIGHT JUST BEFORE DIVING INTO THE SPEND CONVERSATION IS REALLY ON THE CONTRACT MANAGEMENT SIDE, ONE OF THE BENEFITS OF REALLY HAVING A, A GOOD TEAM ON THE PROJECT MANAGEMENT SIDE, AND EVEN THROUGH SORT OF FINANCIAL OVERSIGHT AND CONTRACT MANAGEMENT FUNCTIONS WITHIN A TP, WE'VE BEEN ABLE TO, TO UNDERSPEND ON, ON SOME OF THE CONTRACTS THAT WE'VE AWARDED AND WHAT THAT MATERIALIZES IS IN, IN IT MATERIALIZES IN OUR, UM, APPROPRIATIONS THAT CARRY OVER FROM ONE FISCAL YEAR TO THE NEXT.
SO ONE THING YOU'LL SEE IN THIS BUDGET DOCUMENT IS THAT OUR APPROPRIATION REQUESTS THAT'S INCLUDED IS A LITTLE LOWER THAN OUR PLANNED SPEND FOR FY 27.
AND THAT'S JUST A FUNCTION OF THE FACT THAT WE'VE BEEN, UM,
[01:55:01]
WE, WE, WE CARRY FORWARD THOSE SAVINGS, RIGHT? SO WE ONLY USE THE DOLLARS THAT WE NEED TO IMPLEMENT THE WORK, UM, FOR THE RESPECTIVE FISCAL YEAR WITHIN THE FY 27 SPEND PLAN.UM, IT, IT'S MAINLY FOCUSED, AS DAN MENTIONED, ON PROTECTING AFFORDABILITY AND, AND SECURING THE CORRIDORS IS SECONDARY, BUT IT'S A LOT OF THE PROTECTING AFFORDABILITY IS FOCUSED ON RISK REDU RISK REDUCTION.
SO AGAIN, AS WE THINK THROUGH, UH, FINANCIAL STEWARDSHIP IN THE NEXT PHASE OF THE NEXT CONTRACT AUTHORIZATIONS THAT WE'RE BRINGING FORWARD TO THE BOARD FOR AUTHORIZATION, WE'RE ALIGNING THOSE CONTRACT AUTHORIZATIONS WITH OUR FISCAL YEAR SPEND PLAN FOR 27.
SO AGAIN, IT'S PROVIDING THAT ADDITIONAL LEVEL OF OVERSIGHT FOR THE BOARD TO ONLY AUTHORIZE THE WORK THAT'S NEEDED TO ADVANCE THE WORK, TO PROGRESS THROUGH THE FEDERAL PROCESS, PROTECT AFFORDABILITY.
AND AGAIN, IN, WITHIN THE FEDERAL PROCESS IS MAINTAINING REIMBURSABILITY OF COST, RIGHT? AS WE'RE WRAPPING UP THE PROJECT DEVELOPMENT FEES AND ENTERING INTO ENGINEERING, ALSO INCLUDED IN, IN THE SPEND PLAN ARE, UM, SOME SERVICES THAT, UH, SOME FUNDS TO HELP OUR PARTNER AGENCIES, SO CITY OF AUSTIN AND CAP METRO WITH SOME OF THE ADDITIONAL SERVICES THAT WE'D BE REQUESTING OF THEM AS WE'RE, UM, GOING THROUGH DESIGN PROGRESSION AND ASKING FOR THEIR LEVEL OF REVIEW AS THOSE DESIGN, UM, REVIEWS COME THROUGH.
SO AGAIN, KNOWING THAT THERE'S GONNA BE ADDITIONAL RESOURCE REQUESTS ON THEIR SIDE, WE'RE, WE'RE ASSISTING AND, AND FUNDING FOR THOSE ADDITIONAL POSITIONS.
UM, AND THEN AS DAN MENTIONED, A, AGAIN, AS WE'RE WE WERE BUILDING THIS YEAR'S BUDGET PROPOSAL, SIMILAR TO WHAT WE'VE DONE IN YEARS PAST, WE'VE TAKE, WE'VE TAKEN A REAL STRUCTURED APPROACH IN TALKING WITH EACH OF THE EXECUTIVE VICE PRESIDENTS AND UNDERSTANDING THEIR RESOURCE NEEDS FROM A FTE STANDPOINT.
AND AGAIN, JUST BEING ABLE TO BALANCE THOSE RESOURCE NEEDS WITH INTERNAL A TP RESOURCES AND OUR EXTERNAL RESOURCES THROUGH OUR DELIVERY, CONTRACT DELIVERY, PARTNER CONTRACT, AND OTHER STAFF AUGMENTATION CONTRACTS.
ON THE REVENUE SIDE, UM, WE'RE ANTICIPATING FROM FY 27 PROPOSED BUDGET STANDPOINT, AGAIN, WORKING WITH CITY STAFF, WE'RE ANTICIPATING ABOUT $194 MILLION IN PROP A REVENUE THROUGH FISCAL YEAR 2027.
AND AGAIN, OUR INVESTMENT PORTFOLIO CONTINUES TO GENERATE INTEREST INCOME AS, UM, WE HAVE THOSE FUNDS INVESTED IN THE INTERIM WAITING TO BE SPENT FOR FUTURE FUTURE EXPENSES.
SO OUR SPEND PLAN ON THE CAPITAL FUND IS REALLY BROKEN INTO TWO BIG MAIN COMPONENTS.
SO WE HAVE OUR PROFESSIONAL SERVICE CONTRACTS, WHICH AGAIN, ARE, ARE THE TWO BIG DESIGN CONSTRUCTION CONTRACTS THAT THE BOARD AWARDED EARLIER IN 2026.
UM, AGAIN, WE'LL BE BRINGING FORWARD A, A FUTURE AUTHORIZATION FOR THE NEXT LEVEL OF DESIGN SERVICES THAT WE'D BE, WE WOULD BE ADVANCING UNDER THOSE CONTRACTS IN THE FALL.
AND OUR SPEND PLAN ALIGNS WITH THAT, THOSE AUTHORIZATIONS OR THAT PARTIAL FUNDING OF THAT AUTHORIZATION.
WE'VE INCLUDED THE, THE COST ASSOCIATED WITH THE, THE CONTRACT THAT WAS, OR THE AUTHORIZATION THAT WAS JUST PREVIOUSLY AWARDED.
UM, KNOWING THAT THERE'S GONNA BE DESIGN PROGRESSION ON THE LIGHT RAIL VEHICLES AND SOME INTEGRATION AND INTERFACE MANAGEMENT ON THAT PART, WE EMBEDDED THOSE COSTS.
UM, ONE OF THE, THE NEW THINGS, ONE OF THE NEW ITEMS THAT, THAT IS INCLUDED IN THIS YEAR'S SPEND PLAN THAT WAS NOT INCLUDED IN PRIOR YEARS IS RIGHT OF WAY ACQUISITION.
SO AGAIN, KNOWING THAT THE BOARD PROVIDED THE AUTHORIZATION TO STAFF TO BEGIN THE, THE RIGHT OF WAY ACQUISITION PROCESS ON A SET OF PARCELS THAT WERE IDENTIFIED, WE, WE'VE INCLUDED A PORTION OF THAT SPEND BECAUSE THOSE COSTS ARE GONNA START TO MATERIALIZE IN FY 27 AND MOVING FORWARD.
AND AGAIN, WE'RE JUST TRYING TO SECURE, UM, PARCELS ALONG THE CORRIDOR, SECURE REAL ESTATE EARLY TO AGAIN, REDUCE RISK, GET SCHEDULE CERTAINTY, AND AGAIN, UM, JUST CONTINUE TO MOVE THE PROJECT FORWARD.
AND THEN LASTLY, ON THE, THE PROFESSIONAL SERVICE SIDE OF, OF THE SPEND PLAN, WE HAVE INCLUDED A CERTAIN LEVEL OF COST ASSOCIATED WITH BETTERMENTS.
NOW BETTERMENTS ARE, UM, CITY UTILITIES THAT AGAIN, WE'RE, WE'RE GONNA BE DESIGNING AND, AND REPLACING FOR THE CITY UTILITIES, BUT THERE ARE CERTAIN, UH, PROJECTS THAT THE CITY UTILITIES WOULD LIKE FOR US TO IMPLEMENT ON THEIR BEHALF THAT WOULD UPGRADE ULTIMATELY THE, THE SERVICE WITHIN THAT PARTICULAR AREA.
SO AGAIN, AS DESIGN IS PROGRESSING, WHERE WE'RE GONNA START TO INCUR COSTS FOR DESIGNING THOSE PARTICULAR BETTERMENTS ON BEHALF OF THE CITY UTILITIES.
ON THE ADMIN EXPENSE SIDE, IT, IT REALLY THINK OF THIS IS THE A TP PERSONNEL COSTS AND OUR PARTNER COORDINATION COSTS WITH THE CITY OF AUSTIN AND CAP METRO.
AND THEN WE ALSO HAVE A, AGAIN, WE WILL DIVE INTO THIS HERE
[02:00:01]
ON THE NEXT SLIDE, BUT ON THE BUSINESS SUPPORT CONTRACT SLIDE, THOSE ARE ULTIMATELY ALL OF THE OTHER ADDITIONAL CONTRACTS THAT KEEP THE ORGANIZATION RUNNING.SO WE HAVE OUR LEGAL COSTS, FINANCIAL ADVISOR COSTS THERE, UM, AS WELL AS JUST IT, IT SYSTEMS AND FACILITY COSTS.
ONE OF THE MAIN THINGS THAT I REALLY WANTED TO HIGHLIGHT HERE, AGAIN, JUST COMING OFF OF THIS DISCUSSION ON THE LAST ITEM IS, AGAIN, THIS, THIS SPEND PLAN.
UM, IT ALIGNS WITH PRIOR CONTRACT AUTHORIZATIONS BY THE BOARD, AND AGAIN, IT ALIGNS WITH THE CONTRACT AUTHORIZATIONS THAT WE'LL BE BRINGING FORWARD TO THE BOARD IN THE FALL TIMEFRAME.
AND THINKING THROUGH FINANCIAL STEWARDSHIP, THE, THE SPEND PLAN IS REALLY ALIGNED WITH ONLY THE COST THAT WE'D BE INCURRING THIS UPCOMING FISCAL YEAR.
SO AGAIN, THINKING ABOUT OUR FISCAL YEAR 2028 BUDGET AND SPEND PLAN THAT WE'LL BE BRINGING BACK TO THE BOARD NEXT SUMMER, AGAIN, THAT'S JUST ANOTHER MECHANISM FOR THE, FOR THE BOARD TO HAVE OVERSIGHT OVER, UM, OUR SPEND PLAN AND THAT FOLLOWING FISCAL YEAR.
ON THE ADMINISTRATIVE EXPENSE SIDE, AGAIN, HERE'S A FURTHER BREAKDOWN OF THOSE THREE MAIN CATEGORIES.
UM, PERSONNEL COSTS OF 14 POINT HALF MILLION DOLLARS MATERIAL, AND ANOTHER COST OF 1.2 AND THE BUSINESS SUPPORT CONTRACTS OF 30.1 MILLION.
ONE OF THE THINGS HERE, AGAIN, IS WE'VE TOUCHED ON A LITTLE BIT THROUGHOUT THE PRESENTATION, IS THAT FROM A FTE STANDPOINT, AGAIN, WE'RE REDUCING DOWN FROM 65 TO 64.
AND THAT'S JUST, AGAIN, A FUNCTION OF LOOKING AT OUR VACANT POSITIONS AND UNDERSTANDING WHETHER OR NOT WE WOULD, WOULD BE NEEDING THOSE RESOURCES GOING INTO THE NEXT FISCAL YEAR.
WE'RE INCLUDING IN THIS PROPOSED BUDGET FOR THE BOARD TO CONSIDER A 3% WAGE INCREASE FOR STAFF, FOR ELIGIBLE EMPLOYEES.
AND IT ALIGNS WITH, UM, JUST THE OVERALL, WELL OTHER ENTITIES ACROSS THE REGION ARE, ARE IMPLEMENTING FOR THEIR STAFF MEMBERS.
AND LASTLY, UM, AGAIN, JUST WANTED TO HIGHLIGHT THIS REALLY FOR THE BOARD, AND IT'S, IT'S, UM, REALLY JUST A FUNCTION OF THE PROP A DOLLARS THAT WE HAVE WITHIN OUR INVESTMENT PORTFOLIO.
BUT WHEN YOU LOOK AT OUR PERSONNEL COSTS FOR THE ORGANIZATION, THEY'RE CONTINUING TO BE OFFSET BY THAT INTEREST INCOME THAT'S BEING GENERATED BY OUR INVESTMENT PORTFOLIO.
SO, UM, IT'S JUST A LITTLE ANECDOTE THERE THAT REALLY THE PROP A DOLLARS THAT WE'VE BEEN RECEIVING FROM THE CITY ARE REALLY GOING TO PUSH FORWARD THE PROJECT SPECIFIC COSTS.
UM, AND THEY CONTINUE TO BE UTILIZED IN THAT MANNER FOR FISCAL YEAR 2027.
I KNOW DAN TOUCHED ON THIS EARLY ON, BUT I WANTED TO PROVIDE A LITTLE MORE INFORMATION AS, AS FAR AS THE BUDGET ROADMAP FOR THE SUMMER.
SO AGAIN, WE HAVE, UM, WE'VE, WE'VE PUBLISHED OUR PROPOSED BUDGET DOCUMENT ON OUR WEBSITE.
SO AGAIN, YOU GO TO ATP TX.ORG UNDER THE FINANCIALS, UM, SUBHEADER, YOU'LL BE ABLE TO FIND THE BUDGET DOCUMENT OUT THERE ONLINE WITH A HIGH LEVEL SUMMARY OF WHAT'S ALL INCLUDED.
UM, AGAIN, COMING OUT OF THIS, THIS MEETING, WE'RE DAN, MYSELF, AND AND SARAH ON OUR, UM, BUDGET STAFF ARE AVAILABLE TO HAVE ANY OTHER IN-DEPTH CONVERSATIONS WITH BOARD MEMBERS THROUGHOUT THE MONTH OF AUGUST AND REMAINING PART OF JULY, WE'LL LAUNCH OUR FORMAL BUDGET Q AND A PROCESS.
SO ANY QUESTIONS THAT BOARD MEMBERS MIGHT HAVE, UM, WE'LL MAKE SURE THAT WE GO AHEAD AND DISTRIBUTE THOSE ANSWERS OUT TO THE BOARD.
SO EVERYONE HAS THAT INFORMATION GOING THROUGHOUT AUGUST.
IN AUGUST, WE'LL BE IN FRONT OF THE CAC COMMITTEE, PROVIDING THEM AN OVERVIEW OF OUR FISCAL YEAR 2027 BUDGET.
AND THEN WE'LL BE BACK IN FRONT OF THE BOARD IN SEPTEMBER FOR BUDGET ADOPTION.
WITH THAT, UM, THAT WRAPS UP OUR PRESENTATION IF THERE ARE ANY QUESTIONS.
AND THANKS FOR THE PRESENTATION.
I WANNA MAKE SURE, I'M TRYING TO WRAP MY HEAD AROUND THE, THE MOVEMENT OF THE MONEY.
UM, HOW MUCH IS, AND, AND THIS MAY BE IN HERE, AND I JUST HAD MISSED IT, AND, BUT HOW MUCH CURRENTLY, UH, DOES A TP HAVE SITTING RESERVED FOR ALL OF THE WORK THAT APPEARS, UH, ON THIS? HOW MUCH TOTAL BASED UPON, UM, THE PROP A MONEY THAT'S BEEN SENT OVER BY THE CITY OVER THE YEARS? YEAH, SO AT THE, IT'S INCLUDED IF, UM, WITHIN OUR BUDGET DOCUMENT, WE HAVE OUR FUND SUMMARIES INCLUDED TOWARDS THE END OF THE DOCUMENT.
AND ON THE OPERATING FUND FUND SUMMARY, THE TOTAL ENDING BALANCE AT THE END OF FISCAL YEAR 2027, TAKE INTO CONSIDERATION, THE TOTAL SPEND PLAN WILL HAVE $217 MILLION ROLLING OVER TO BE UTILIZED OR TO BE APPROPRIATED IN FISCAL YEAR 2028.
SO IF YOUR SPENDING PLAN IS ROUGHLY $400 MILLION,
[02:05:02]
UM, A TP WILL STILL ROLL OVER OR CARRY FORWARD $217 MILLION.UM,
THAT'S INCLUSIVE OF OUR FY 2027, UM, PROJECTED PROP A RECEIPTS.
I NOTICED THAT IN THE POTENTIAL REVENUE THAT WE'LL GET FROM INTEREST IS LOWER.
UM, WHY IS THAT IN TERMS OF THE ECONOMY, THE INTEREST RATES TWO FUNCTIONS TO THAT.
SO ONE OF IT IS WHERE INTEREST RATES ARE PROJECTED TO GO OVER FISCAL YEAR 2027, AND THEN ALSO OUR INCREASED SPEND FOR FY 27 27, WE HAVE LESS DOLLARS IN OUR INVESTMENT PORTFOLIO GENERATING INTEREST INCOME.
SO IT'S JUST A FUNCTION OF THOSE TWO ITEMS. UNDERSTOOD.
UM, SO THE NEXT MONTH, WE'LL, FOR THE BOARD, SUBMIT QUESTIONS IN DETAIL AFTER YOU'VE READ THIS DOCUMENT AND SUBMIT YOUR QUESTIONS.
WHAT WE'VE DONE IN THE PAST IS THAT FOR QUESTIONS THAT A SINGLE BOARD MEMBER GETS ANSWERS TO, THE ANSWERS GET DISTRIBUTED TO THE WHOLE BOARD FOR, UH, ACKNOWLEDGEMENT OF, UH, HOW QUESTIONS THAT BOARD MEMBER GARZA MAY HAVE, THAT THE MAYOR MAY NOT KNOW ABOUT, BUT THAT IT'S OPEN AND TRANSPARENT FOR EVERYONE TO BE APPRAISED OF ALL THOSE QUESTIONS.
SO THANK YOU FOR PUTTING THIS TOGETHER.
GETS IT KEEPS GETTING THICKER AND THICKER YEAH.
ANY FURTHER QUESTIONS OR COMMENTS BEFORE THEY GO? NO.
SO MOVING FORWARD, WE'RE GONNA HAVE OUR FINAL ITEM OF THE DAY, SO EVERYONE IS STUCK AROUND.
[5.1. Annual Audit Recommendations Follow-Up.]
ITEMS WILL BE PRESENTED BY ATP'S INTERNAL AUDIT STAFF LED BY CHIEF AUDIT EXECUTIVE KATIE HOUSTON.SO I, I HAVE TWO ITEMS TO BRING FORTH TODAY.
UH, THE FIRST ONE IS THIS CONTRACT REIMBURSEMENTS AUDIT.
UM, AND THEN THE SECOND ONE IS VERY BRIEFLY JUST ON FOLLOW UP, UH, TO GET US STARTED HERE.
I THINK, UH, THE OBJECTIVE OF THIS AUDIT WAS TO DETERMINE IF PAYMENTS FOR OTHER DIRECT COST REIMBURSEMENTS ARE ALIGNED WITH FEDERAL GUIDANCE, SUPPORTED BY EVIDENCE, APPROVED BY STAFF, AND, UH, CONSISTENTLY APPLIED.
UH, WE FOCUSED OUR, UH, REVIEW HERE ON THE CONTRACTS THAT ARE ELIGIBLE TO RECEIVE FEDERAL REIMBURSEMENT.
UM, AND THE GOOD NEWS HERE IS THERE'S A LOT OF GREAT, YES, I CAN TALK LOUDER.
THERE'S A LOT OF GREAT, UH, CRITERIA, UH, TO, TO SUPPORT THIS REVIEW.
UM, BUT IN A NUTSHELL, ALL OF THAT, UH, COMPREHENSIVE GUIDANCE SAYS THAT OUR EXPENDITURES NEED TO BE REASONABLE, NECESSARY, AND ABLE TO BE ALLOCATED TO THE TRANSIT PROJECT THAT THE FTA, UH, MAY FUND.
UM, I THINK THAT COVERS THAT ONE THERE.
UH, SO GOING INTO HIGH LEVEL RESULTS HERE, UM, I KNOW THIS IS A REVIEW FOR, UH, MOST OF Y'ALL, BUT JUST TO COVER IT, UM, FOR ANY OTHER INTERESTED PARTIES HERE, UH, WE FOUND THAT THE CONTRACT LANGUAGE GENERALLY ALIGNS WITH FEDERAL REQUIREMENTS.
UH, AND BECAUSE OF THAT, IT POSITIONS OUR STAFF TO, UM, BE ABLE TO EXECUTE A THOROUGH INVOICE REVIEW PROCESS.
UM, THAT, THAT STAFF DOING THAT WORK IS GENERALLY PROCUREMENT STAFF WHO ARE OVERSEEING THESE OTHER DIRECT COSTS.
AND THEY HAVE, UH, SOME REALLY GREAT PROCESSES TO ENSURE THAT THE CHARGES ARE ACCURATE, THAT THEY'RE AUTHORIZED AND THAT THEY'RE SUPPORTED WITH, UH, SUPPORTING DOCUMENTATION.
WE NOTED A LOT OF REALLY GREAT COORDINATION ACROSS THE ORGANIZATION, CERTAINLY THE PROJECT MANAGEMENT STAFF THAT KIND OF OVERSEES THE DIRECT LABOR COSTS.
ALSO, THE PROCUREMENT FOLKS DOING THEIR REVIEW OF THESE INVOICES, FINANCE FOLKS WHO HAVE THE RESPONSIBILITY OF ISSUING PAYMENT.
AND THEN OF COURSE, UH, IT, IT GOES WITHOUT SAYING, I THINK NONE OF THE WORK COULD BE DONE WITHOUT THE EFFORTS OF OUR THIRD PARTY CONTRACTORS.
SO THAT COORDINATION WAS JUST REALLY AWESOME TO SEE.
AND THEN THE LAST NOTE WE'LL WE'LL MAKE HERE IS WHEN WE'VE IDENTIFIED INSTANCES WHERE THE CONTRACTING LANGUAGE DOESN'T FULLY ALIGN WITH THE INVOICING THAT WE'RE SEEING.
WE HAVE THESE OTHER CLARIFICATIONS, UH, CALLED FINDING AND DETERMINATION MEMOS, THAT THAT PROVIDES MORE CLARITY.
I'LL TALK ABOUT THAT A LITTLE BIT MORE ON THIS NEXT
[02:10:01]
SLIDE.SO WE DID IDENTIFY A FEW OPPORTUNITIES TO IMPROVE, AND WE'VE GROUPED TWO OF THEM TOGETHER ON THIS SLIDE, KIND OF GENERALLY AROUND FORMALIZING GUIDANCE.
THE FIRST ONE IS TO FORMALIZE OPERATING PROCEDURES FOR THE PROCUREMENT STAFF THAT ARE DOING THIS REVIEW.
I HAVE TO SAY HERE, A BIG TIME, KUDOS TO, TO THOSE FOLKS DOING, UH, THE, IN THE PRIMARY INVOICE REVIEW, LOTS OF GOOD SCRUTINY IS APPLIED EVERY MONTH TO THESE INVOICES.
SO WE WERE REALLY IMPRESSED WITH THE WORK THAT'S BEING DONE.
THE, THE CHALLENGE WE SAW HERE, MAYBE THE RISK WE SAW IS THAT THAT REVIEW IS LARGELY BASED ON INFORMAL UNDOCUMENTED KNOWLEDGE RATHER THAN DOCUMENTED PROCEDURES.
AND WE'D LIKE TO SEE THAT, UH, FORMALIZED WITH SOME DOCUMENT, YOU KNOW, DOCUMENTARY OPERATING PROCEDURES.
UM, SOME OF THE CRITICAL, UH, APPROVAL DOCUMENTATION WASN'T REALLY SHARED WITH INVOICE STAFF.
THAT'S AN EXAMPLE OF THAT IS ONE OF THOSE FINDING AND DETERMINATION MEMOS.
IT PROVIDED A LOT OF INFORMATION ON THE APPROVAL WE MADE, UM, WHY WE MADE THE APPROVAL AND HOW IT ALIGNS WITH THE FEDERAL GUIDANCE.
BUT IT WASN'T SHARED WITH THE STAFF DOING THE INVOICE REVIEW OR WITH FINANCE FOLKS.
UM, WHAT WE'RE SUGGESTING HERE IS TO BUILD OUT A QUALITY CONTROL REVIEW PROCESS.
WE THINK IF THAT EXISTED AT THAT TIME, MAYBE A DISCREPANCY LIKE THAT WOULD'VE BEEN CAUGHT EARLIER.
AND THEN BEYOND, UH, KIND OF FORMALIZING OUR GUIDANCE FOR OUR STAFF, THE NEXT THING WE NOTED HERE IS TO FORMALIZE THIS GUIDANCE FOR THE THIRD PARTY CONTRACTORS THEMSELVES.
BASICALLY A TRAINING THAT SAYS, THIS IS KIND OF HOW WE WANT TO BE INVOICED.
UM, WHAT WE'RE GONNA KICK BACK IF WE DON'T SEE IT IN THE INVOICES THEMSELVES, THE SUPPORT WE'RE LOOKING FOR, UM, THAT TYPE OF, UH, GUIDANCE MIGHT, UH, REDUCE SOME OF THE DOWNSTREAM REWORK, RESUBMISSION, MAKE THE PROCESS A LITTLE MORE EFFICIENT.
I'VE HEARD THE WORD KICKBACK IN A POSITIVE WAY,
UM, SO LAST SLIDE HERE ON OPPORTUNITIES FOR IMPROVEMENT.
UH, TWO ADDITIONAL ITEMS HERE.
UM, WE'RE RECOMMENDING THAT WE PRE-APPROVE RELOCATION CHARGES.
OUR CONTRACTS DO SAY THAT WE WILL PAY FOR RELOCATION, UH, WITH PRIOR APPROVAL, BUT WE DON'T REALLY HAVE A TOOL BUILT OUT TO MAKE SURE THAT THAT HAPPENS.
WE HAVE THAT FOR TRAVEL, UH, BUT NOT RELOCATION.
SO WE'RE SUGGESTING THAT WE IMPLEMENT A CONTROL OF THAT NATURE.
AND THEN ALSO TO IMPLEMENT A RELOCATION AGREEMENT, WE NOTED SOME MORE STRINGENT RELOCATION, UH, ASSISTANCE REQUIREMENTS FROM OTHER TRANSIT ENTITIES.
UM, CAP METRO BEING ONE THAT REQUIRES A RELOCATION AGREEMENT, WE'RE SUGGESTING WE IMPLEMENT THAT HERE.
AND THEN THE LAST ITEM IS, UM, I FEEL LIKE I'M LOOKING BACK AND FORTH HERE, UH, IS TO VALIDATE THE TRAVEL EXPENSES PAID BY PER DIEM.
WE CHANGED OUR CONTRACTING APPROACH.
UH, WHEN WE EXECUTED THE OMF AGREEMENT.
PRIOR TO THAT WE WERE REIMBURSING, UH, TRAVEL BASED ON ACTUAL EXPENSES AND LOOKING OVER EVERY RECEIPT.
THAT'S QUITE AN ARDUOUS PROCESS FOR OUR PROCUREMENT STAFF.
UH, SO WE ASKED A LOT OF QUESTIONS ABOUT WHY WE CHANGED APPROACH HERE AND HAD SOME CONCERNS EARLY ON, BUT ULTIMATELY I, WE GAINED SOME FAMILIARITY WITH THAT, AND I THINK WE FEEL COMFORTABLE WITH THAT CHANGE IN APPROACH.
IT DOES SEEM LIKE IT'S GONNA BE QUITE A BIT MORE EFFICIENT, UH, AND PUT A LITTLE, UH, LESS PRESSURE ON OUR PROCUREMENT STAFF DOING THIS REVIEW.
WHAT WE SUGGEST IS THAT WE DEVELOP A DOWNSTREAM KIND OF COMPENSATING CONTROL, WHERE ON A PERIODIC BASIS, ONCE A MONTH, ONCE A YEAR, WHATEVER, UH, WE, WE GO AHEAD AND RETAIN THAT BACKUP DOCUMENTATION AND CONFIRM THOSE CHARGES.
THESE ARE THE KIND OF FORMAL RECOMMENDATIONS WE MADE.
THEY'RE ALSO IN THE DRAFT REPORT THAT Y'ALL ALREADY HAVE.
UM, AND REALLY THEY JUST SPEAK TO EACH ONE OF THOSE FOUR OPPORTUNITIES FOR IMPROVEMENT THAT I JUST WENT OVER.
I THINK WHAT'S REALLY IMPORTANT TO NOTE HERE IS MANAGEMENT AGREED WITH OUR RECOMMENDATIONS AND THAT THEY'RE GONNA IMPLEMENT SOME CORRECTIVE ACTIONS BY JULY OF NEXT YEAR.
I'LL MAKE PARTICULAR NOTE ON NUMBER ONE THERE.
UM, YOU KNOW, KUDOS FOR SOME PROMPT ACTION HERE.
I THINK WE'VE ALREADY HIRED, UH, THE PERSON WHO'S GONNA BE DOING THIS QUALITY CONTROL REVIEW.
WE'RE REALLY EXCITED TO SEE A QUICK MOVEMENT ON THAT ONE.
SO I THINK THAT'S IT FOR THIS ITEM, BUT I'LL PAUSE HERE BEFORE I MOVE ON TO FOLLOW UP.
DO Y'ALL HAVE ANY QUESTIONS ON THIS? YES.
AND, AND IT'S A PROCESS QUESTION.
UM, SO, UH, WHERE ARE WE GOING TO TRAIN THE NEW PROCEDURES? UM, OFT OFTENTIMES WE PUT IT IN OUR PRO IN OUR PERFORMANCE EVALUATION PROCESS.
BUT WHERE IS IT THAT EVERYBODY KNOWS WHERE TO GET IT? EVERYBODY'S TRAINED FOR IT AND EVERYBODY'S TESTED TO KNOW WHETHER THEY UNDERSTAND THE POLICY YET.
UH, SOMETHING LIKE THAT WOULD BE REALLY AWESOME TO PUT ON THE SHAREPOINT SITE.
WE HAVE ALL KINDS OF TOOLS, POLICIES, RESOURCES THERE, COVERING A NUMBER OF
[02:15:01]
FUNCTIONS, UM, ACROSS THE ORGANIZATION.SO I WOULD THINK THAT WOULD BE THE BEST PLACE FOR IT.
LOVE, I LOVE THE TOOL, JUST LIKE TO MAKE SURE THAT, THAT WE'VE CONTEMPLATED HOW WE IMPLEMENT IT.
I HAVE A QUICK QUESTION REGARDING THE PER DIEM, WHICH I COMPLETELY AGREE WITH AS WELL.
WHAT'S THE CAP ON THE PER DIEM? ARE WE FOLLOWING GSA STANDARDS? ARE WE CREATING OUR OWN PER DIEM? THE, THAT'S EVOLVED AS OUR CONTRACTS HAVE EVOLVED.
UM, AND THE MORE RECENT CONTRACTS HAVE PROVIDED SOME LANGUAGE IN THE AGREEMENTS THEMSELVES THAT SAY, YOU KNOW, TO OBTAIN, UH, THE GSA RATE.
UM, BUT FOR THAT PARTICULAR AGREEMENT, UH, WE CALCULATED THAT, UH, RATE BASED ON GSA GUIDANCE AND THEN ALSO KIND OF A MARKET ASSESSMENT.
AND THEN THE PROCUREMENT STAFF HAVE ALSO PROVIDED, UM, A, A LIST OF HOTELS IN THE AREA THAT WILL HONOR THOSE RATES.
UH, SO OUR THIRD PARTY CONTRACTORS HAVE ACCESS TO THAT UPFRONT AND THEY KNOW WHERE TO STAY TO, TO GET THOSE REDUCED RATES.
BUT WE'RE STILL REQUIRING THE BACKUP RECEIPTS.
SO EVEN THOUGH THERE'S A PER DIEM CAP, THERE'S STILL THE REQUIREMENT TO SUBMIT RECEIPTS NOT TO OUR STAFF.
THE, THERE IS A REQUIREMENT IN THE CONTRACTS THAT THE THIRD PARTY CONTRACTORS RETAIN THAT DOCUMENTATION.
AND ULTIMATELY, I THINK THAT WILL BE REALLY USEFUL FOR A DOWNSTREAM REVIEWER AT THE FDA, YOU KNOW, EXTERNAL FINANCIAL AUDITOR.
UH, BUT NO, THAT IS NOT REQUIRED TO BE SUBMITTED TO OUR TEAM.
THAT'S REALLY WHAT THIS CONTROL WOULD DO.
WE WOULD, ON A, YOU KNOW, SAMPLE BASIS OR ON A PERIODIC BASIS, WE WOULD DO THAT WORK.
WOULD DO THAT WORK TO GO CONFIRM THAT THE THIRD PARTIES HAVE PROPERLY RETAINED THAT DOCUMENTATION AND THAT SHOULD BE ALIGNED WITH THE FEDERAL GUIDANCE.
WE DIDN'T, WE DIDN'T SEE CONCERNS WITH, WITH THAT BEING A PROBLEM DOWN THE LINE, BUT WE THINK WE CAN KIND OF SHORE THIS PROCESS UP A LITTLE BETTER BY ADDING THAT, THAT VALIDATION PROCESS.
SO I, AND I, I APPRECIATE THIS PRESENTATION, UM, QUITE, QUITE A LOT BECAUSE, UM, ALL OF THIS HAS TO DO WITH SPEND ON CONTRACTS AND SPEND INTERNALLY, LIKE REVIEWING INVOICES AND ALL OF THOSE THINGS.
I MEAN, IT, IT CAN BE EXPONENTIALLY, UM, BENEFICIAL TO DO THINGS THAT PROVIDE EFFICIENCY, UM, AS I THINK ESPECIALLY FOR THE WORK THAT'S GOING ON WITH A TP AND I, AND I REALLY DO APPRECIATE THIS, UM, ITEM TOO, THE PRO THE PROVIDING THE FORMAL TRAINING, UM, JUST BECAUSE OF THE, UM, HOPEFULLY TIME SPENT, UM, REALLY ON BOTH SIDES AND THE, THE MONEY SPENT, UM, COULD BE, YOU KNOW, ANYWAY, THINGS COULD BE A LOT MORE EFFICIENT.
AND I'M JUST, UM, ASKING, UH, YOU KNOW, WHETHER OR NOT THAT THAT'S, THAT'S MAYBE, UM, IF YOU, IF YOU THINK ABOUT DOING THAT, YOU KNOW, AS YOU ONBOARDING, UM, LIKE AS PART OF KICKOFF MEETINGS, YOU KNOW, UH, A POWERPOINT THAT JUST LIVES THERE THAT PEOPLE CAN ALWAYS GO, GO BACK AND TAKE A LOOK AT.
UM, JUST A THOUGHT THERE THAT THE, THE TRAINING IS LIKE BUILT INTO MAYBE THE KICKOFF MEETINGS TOO.
THERE IS QUITE A ROBUST ONBOARDING PROCESS RIGHT NOW.
UH, BUT THE, THE SPECIFICS OF THE INVOICE REVIEW PROCESS, I THINK THAT'S WHERE WE SAW ROOM FOR IMPROVEMENT.
AND I WOULD LEAVE THAT TO GREG AND HIS TEAM TO DECIDE IF, IF THAT'S THE APPROPRIATE PLACE TO PROVIDE THAT GUIDANCE.
NOW I, WELL I'M, I, AND I JUST REALLY WANTED TO SAY THAT I APPRECIATE SEEING IT.
IT WAS JUST A THOUGHT, SO GREAT.
UH, THERE IS A REALLY ROBUST ONBOARDING PROCESS AND IT'S ALSO, IT'S ALSO ONGOING, UH, CONTRACT MANAGEMENT, RIGHT? IT'S, IT'S NOT JUST A ONE-OFF, IT'S AS WE GO THROUGH EACH INVOICE AS WE LEARN IT NOW, WE'LL HAVE OUR FOURTH LARGE VENDOR ON, UH, AND WE WORK THROUGH THAT.
AND I THINK THIS IS WHY FULL, FULL CONCURRENCE WITH THESE RECOMMENDATIONS FROM MANAGEMENT, THIS IS A PERFECT TIME FOR THIS TYPE OF LOOK AND THIS TYPE OF AUDIT.
YOU KNOW, WE, WE USE THE WORD READINESS A LOT.
WE USE A LOT TODAY IN TERMS OF MAKING SURE WE CAN CONTINUE READY AS WE ADVANCE THE PROJECT, BUT ALSO READINESS AS WE GO THROUGH THE FT A PROCESS, RIGHT? THE FTA, THEIR ASSESSMENT OF US, THEIR ASSESSMENT OF OUR PROCESSES, THEIR ASSESSMENT OF HOW WE MANAGE OUR CONTRACTS.
SO HAVING THIS NOW IS REALLY FANTASTIC TIMING.
'CAUSE WE ALWAYS ARE ALWAYS LOOKING FOR THOSE ITERATIONS FOR IMPROVEMENT.
AND THERE'S NO BETTER WAY OF DOING THAT, HAVING SOME FOLKS LOOK AT HOW WE'RE DOING IT.
UM, IT IS THE TRUE KIND OF FOUNDATIONAL PART OF READINESS, CONTRACT READINESS.
WE HAVE A LOT OF CONTRACTS, WE HAVE A LOT OF BIG CONTRACTS.
UM, AND WE WANNA MAKE SURE THAT WE ARE, UH, CONTINUING LOOKING AT THOSE IMPROVEMENTS.
AND I THINK IT GOES BACK AS WELL TO THE INVESTMENTS THAT WE'VE MADE.
AND THIS BOARD HAS, HAS APPROVED IN OUR TECHNOLOGY, RIGHT? IN OUR, IN OUR ORACLE FINANCIAL SYSTEM AND OUR PROCORE SYSTEM, AND MAKING SURE THAT THOSE SYSTEMS TALK TO EACH OTHER AND AS WE INTERFACE WITH INVOICING.
UM, SO WE ARE, UH, I, I, I KNOW THAT WE HAVE SO MANY CONTRACTS THAT WE'RE GONNA CONTINUE TO LOOK AT THIS.
SO THIS IS A REALLY GOOD TIME, ESPECIALLY FOR THIS FRACTION OF, OF
[02:20:01]
THIS, THIS, THIS TYPE OF EXPENSE THAT ARE IN CONTRACTS.UM, AND WE CAN ITERATE TO A DIFFERENT VERSION OF IT.
I THINK THAT IS BOTH MORE EFFICIENT, BUT ALSO ALLOWS US TO COLLECT ALL THAT INFORMATION FOR THOSE LONGER TERM, UH, DEEPER AUDITS OR REVIEWS THAT NEED TO OCCUR.
[5.2. Presentation on Contract Reimbursement Audit.]
THE NEXT ITEM.UM, WE DO OUR ANNUAL FOLLOW UP EVERY SUMMER THIS YEAR.
WE FOLLOWED UP ON FIVE RECOMMENDATIONS FROM AUDITS IN THE PAST.
UH, THAT FOUR OF 'EM CAME FROM THAT USER ROLES AUDIT.
THAT WAS WHERE WE TOOK A LOOK AT THAT ORACLE SYSTEM TO MAKE SURE THAT, YOU KNOW, WE HAVE OUR, OUR ROLES SEPARATED SO THAT NO ONE PARTY HAS TOO MUCH CONTROL OR AUTHORITY OF ONE PART OF THE PROCESS.
UM, AND WE FOUND THAT THREE OF THOSE ARE STILL UNDERWAY.
UM, THE TOP ONE THERE, IT, WE CONFIRMED AS IMPLEMENTED THAT WAS, UH, TO DEVELOP A DOCUMENTED SYSTEM ACCESS POLICY.
SO KUDOS TO THE IT FOLKS, UH, FOR THEIR WORK AND GETTING THAT ONE ACROSS THE FINISH LINE.
AND THEN THE LAST ONE THERE WAS A RECOMMENDATION, UM, FOR PROCUREMENT TO REGULARLY CALCULATE, UM, OUR SPENDING ON LOCAL FIRMS, UH, AND THAT THAT ONE IS ALSO UNDERWAY STILL.
AND THEN, YOU KNOW, PER USUAL, WE'LL, UH, MAKE SURE THESE UPDATES ARE RECORDED.
AND OUR DASHBOARD, IT'S ACTUALLY ALREADY RECORDED.
UM, AND I COULD SEND YOU ALL A LINK TO THAT AS WELL.
I APPRECIATE ALL THE HARD WORK.
UM, THIS CONCLUDES THE JULY 15TH, 2026 A TP BOARD OF DIRECTORS MEETING.
THANK YOU FOR YOUR ATTENDANCE TODAY AND THE RAIN AND VIRTUALLY SO THE MEETING STANDS ADJOURN AT 4:24 PM THANK YOU AND CONGRATULATIONS AGAIN.