[00:00:01]
IT IS NOW 3:01 PM ON TUESDAY, APRIL 28TH, 2026, AND THE COMMITTEE OF THE WHOLE OF THE DALLAS AREA RAPID TRANSIT MEETING IS CALLED TO ORDER.
[2. Approval of Minutes: April 7, 2026, and April 16, 2026]
OUR FIRST ITEM IS THE APPROVAL OF MINUTES FROM THE APRIL 7TH, 2026 AND APRIL 16TH, 2026 MEETING.IS THERE A MOTION TO APPROVE? IS THERE A SECOND? SECOND.
ALL THOSE, UM, UH, PLEASE INDICATE YOUR VOTE ON THE VOTING MACHINES.
HEY, IF YOU WANT TO GO TO THE MINUTES, THE, THE, THE, THE VOTING IS STILL OPEN.
WE NEED, WE NEED, WE NEED CHLOE.
OPPOSED? THAT MOTION IS APPROVED.
[3. Items of Interest]
NEXT ITEM IS ITEMS OF INTEREST.UH, WE DON'T HAVE ANY FROM OUR, UH, PRESIDENT, CEO, ANY BOARD MEMBERS HAVE ANY ITEMS OF INTEREST? MR. MCGREGOR? I JUST WANNA BRIEFLY MENTION THAT, UM, A GROUP OF US IN DC UH, HAD A CHANCE TO MEET WITH THE STAFFERS OF SENATOR CRUZ AND SENATOR CORNIN, UM, AND, UH, IT WAS PRODUCTIVE AND, OH, YES.
UM, AND IT WAS PRODUCTIVE AND IT'S GOOD TO GET DART'S NAME UP THERE.
ANY OTHER BOARD MEMBERS? ITEMS OF INTEREST? MS. GARCIA, I ALSO WANNA THANK STAFF FOR THIS AWESOME REPORT THAT WE DID HAND OUT WHEN WE WERE VISITING WITH THE CONGRESSIONAL OFFICE.
ALRIGHT, ANY OTHER BOARD MEMBERS? ITEMS OF VICTORY? ANY ITEMS OF INTEREST? ALRIGHT, UM, MOVING ON TO PUBLIC COMMENTS.
ADAM, GENERAL COUNSEL, WOULD YOU PLEASE READ OUR RULES? I, OH, OKAY.
WE DON'T HAVE ANY PUBLIC COMMENTS.
[18. *Briefing on FY 2026 Financial Outlook (Gary Slagel/Jamie Adelman)]
MOVE ON NOW TO, UM, ITEM 18, BRIEFING ON FY 2026 FINANCIAL OUTLOOK.JAMIE ALMAN, A, B, P, AND CFO.
SO, IN A MOMENT, I'M GONNA TURN IT OVER TO NU BUT I WANTED TO WALK THROUGH, UM, THE CALENDAR THAT WE'RE GONNA BE, UH, GOING THROUGH THIS YEAR THROUGH THE BUDGET DEVELOPMENT PROCESS.
UM, THE CALENDAR'S GONNA LOOK VERY SIMILAR TO WHAT YOU SAW LAST YEAR.
I CANNOT ADD TIME TO THE CALENDAR.
WE DO HAVE LIMITED RESOURCES THERE, BUT WE ARE GONNA MAKE SOME CHANGES TO INFORMATION THAT IS PRESENTED TO THE BOARD MEMBERS AT THESE UPCOMING MEETINGS.
SO, BEGINNING AT THE MAY 26TH MEETING, UM, WHEN WE DO OUR CAPITAL BUDGET OUTLOOK, WE WILL GO THROUGH A DETAILED REVIEW OF, UM, THE CAPITAL BUDGET, WHAT'S IN THE CIP, WHAT'S PROPOSED TO BE IN THE CIP, AND ALSO PROVIDE THE BOARD WITH A VERY DETAILED LIST OF ALL OF THE PROPOSED NEW PROJECTS THAT WOULD BE GOING IN.
UM, AND REALLY A LIST OF, OF THE REQUESTS THAT THE FP AND A STAFF RECEIVED THROUGH THE CALL FOR CAPITAL PROJECTS FOR THE FY 27, UH, PROCESS.
THEN IN JUNE, YOU'LL RECEIVE YOUR UPDATE ON THE OPERATING BUDGET OUTLOOK.
UM, THAT'S STILL A LITTLE BIT EARLY FOR US TO GIVE YOU ANY PROJECTIONS ON WHAT WE'RE REALLY GONNA NEED FOR FY 27, BUT WE WILL GIVE YOU SOME UPDATES AND INDICATORS ON WHERE WE ARE HEADED ON SOME SPECIFIC ITEMS. AND THEN IN JULY, UM, AT THE JULY 14TH MEETING, WE WILL BRING YOU A FULL BUDGET BOOK, UH, 20 YEAR FINANCIAL PLAN AND, UM, OBVIOUSLY THE DEBT SERVICE PROJECTIONS FOR FY 27.
AT THE SAME TIME, WE'LL BRING YOU A LOT MORE DETAIL SUPPORTING THAT BUDGET BOOK.
UH, YOU WILL RECEIVE SOME COST CENTER LEVEL DETAILS SO THAT YOU CAN DIG IN A LITTLE BIT MORE TO THE OBJECT ITEMS THAT ROLL UP INTO THE BUDGET BOOK, UM, ON JULY 31ST, UH, UH, SHOULD THE BOARD BE INCLINED AND THE CHAIR APPROVE, WE WOULD LIKE TO HOLD A BUDGET, OR EXCUSE ME, A BOARD WORKSHOP TO DO A DEEPER DIVE INTO THE PROPOSED FY 27 BUDGET AND 20 YEAR FINANCIAL PLAN.
[00:05:01]
BOARD APPROVAL AT THE AUGUST 11TH MEETING TO DISTRIBUTE THE BUDGET BOOK TO THE SERVICE AREA CITIES FORMALLY.I WILL NOTE THAT AS SOON AS WE RELEASE THE BOOK ON JULY 14TH, UH, THE GENERAL PUBLIC, UH, INCLUDING THE SERVICE AREA, CITIES, CITY MANAGERS, MAYORS, EVERYONE HAS FULL ACCESS TO THAT BOOK.
SO THEY, THEY TECHNICALLY RECEIVE IT IN JULY AT THE SAME TIME THAT OUR BOARD RECEIVES THE BOOK.
UH, BUT WE'LL FORMALLY RELEASE THAT IN AUGUST.
THEN WE'LL CONTINUE TO HAVE DISCUSSIONS WITH THE BOARD ON THE 27TH AND THEN HAVE A BRIEFING WITH CITY MANAGERS, UM, ON, ON OR AROUND THE 27TH.
THAT'S STILL KIND OF A TENTATIVE DATE, BUT WE'RE WORKING ON THAT.
WE DO THAT EVERY YEAR TO, UM, HAVE AN OPEN CONVERSATION WITH ALL THE CITY MANAGERS OF OUR SERVICE AREA CITIES.
AND THEN IN SEPTEMBER, WE WILL SEEK APPROVAL OF THE PROPOSED FY 27 BUDGET AND 20 YEAR FINANCIAL PLAN, UM, AT COMMITTEE THE WHOLE ON THE EIGHTH AND FROM THE FULL BOARD ON THE 22ND.
UM, WE'RE HERE FOR ANY SUPPORT THAT WE CAN PROVIDE THROUGHOUT THE PROCESS.
I WILL MAKE MYSELF AVAILABLE, AS WILL MY TEAM, UM, SHOULD YOU HAVE ANY QUESTIONS AND WANT TO DO A DEEPER DIVE AFTER YOU RECEIVE THE FULL BOOK ON THE 14TH.
AND WITH THAT, I'M GONNA TURN IT OVER TO NU AND HE'S GONNA WALK THROUGH THE FY 26 OUTLOOK WITH Y'ALL.
UM, SO FIRST WE WANTED TO HAVE A LOOK AT OUR FINANCIAL STANDARDS, UH, SPECIFICALLY COVERING THE GUIDANCE AND THE FOR THE BUDGET AND FINANCIAL PLAN.
UH, LOOKING PRIMARILY AT, UH, B FIVE.
UM, SO THAT REQUIRES A PROJECTION OF THE INFLATION FOR THE DALLAS AREA.
UH, THAT'S AN ESTIMATE THAT WE RECEIVE FROM OUR RESPECTIVE ECONOMIST.
UH, SO B FIVE STATES THAT THE OPERATING EXPENSE GROWTH IS CAPPED AT 90% OF THE CPI ESTIMATE.
NOW, THERE ARE SOME ALLOWANCES TO THAT.
B FIVE, UH, STANDARD, FOR EXAMPLE, UH, BOARD APPROVED CONTRACT INCREASES, UH, NEW SERVICES AND PROGRAMS, EXPENSES AROUND FACILITIES, UH, ACTUAL ANALYSIS.
SO WHEN OUR ACTUARIES LET US KNOW THAT WE NEED TO INCREASE OUR RESERVES, UH, ANY HEALTHCARE INCREASES, THOSE TYPICALLY INCREASE, UH, AT A HIGHER RATE THAN CPI USUALLY AROUND, UH, 7%.
UM, AND THEN FUEL AND ELECTRICITY PRICE INCREASES, THOSE ARE MORE VOLATILE AND MORE, UH, MORE DIFFICULT TO PREDICT.
UM, SO ALSO LOOKING AT THE STANDARD B NINE, UH, WHICH IS FOR CAPITAL.
UH, SO THAT REQUIRES AN ESTIMATE FOR THE ECONOMIST, UH, FOR THE CONTRACT, UH, CONSTRUCTION PRICE INFLATION FOR THE DALLAS AREA.
UH, SO WHAT THAT DOES IS THAT SETS THE FLOOR, UH, MAKING SURE THAT THE CAPITAL BUDGET GROWS NO LESS, UH, THAN THE ECONOMY'S PROJECTION.
THAT HELPS US TO MITIGATE, UH, THE RISK OF UNDER BUDGETING FOR THINGS LIKE STANDARD REPAIR SGR AND ENSURES THAT WE, UH, MAINTAIN OUR ASSETS LOOKING AT SALES TAX.
SO SALES TAX IS TYPICALLY ON A A TWO MONTH LOOK BACK IN REPORTING.
UH, FOR EXAMPLE, APRIL REPORTING NOW IS LOOKING AT FEBRUARY RECEIPTS.
UM, SO YEAR TO DATE THROUGH FEBRUARY, UH, WE ARE $9.4 MILLION FAVORABLE TO, TO THE YEAR TO DATE BUDGET, UH, WHICH IS A 2.5%, UH, YEAR TO DATE VARIANCE.
JUST TO LEVEL SET, UH, WE DID RECEIVE A $4.4 MILLION POSITIVE AUDIT ADJUSTMENT IN FEBRUARY.
AND THAT AUDIT ADJUSTMENT IS JUST A CORRECTION FROM PRIOR PERIODS.
UH, SO THAT'S ALMOST HALF OF THE $9.4 MILLION, UH, POSITIVE UNIT DATE VARIANCE.
ALSO, A FEW MORE THINGS, UH, PREVIOUS MONTHS IN FY 2026.
UH, THOSE INCLUDE SOME DYNAMIC VARIANCES.
UH, SOME MONTHS ARE POSITIVE, SOME MONTHS ARE NEGATIVE.
UH, AND JUST WANNA KEEP IN MIND ALSO THAT, UH, THIS IS STILL, WE STILL HAVE MORE THAN HALF OF THE YEAR TO GO, WHICH IS WHY, UH, RIGHT NOW WE'RE FORECASTING TO BE AT BUDGET, UH, FOR SALES TAX AT 9 37 $0.5 MILLION.
UH, SO A FEW THINGS, OUR ECONOMISTS.
UM, SO THEY TYPICALLY GIVE US THREE DIFFERENT SCENARIOS FOR FORECASTING.
UH, THAT FIRST IS THE, THE BASELINE.
UH, WHAT FEELS MOST LIKELY TO HIM IN TERMS OF WHAT'S GONNA HAPPEN.
UH, THAT PUTS US AT ABOUT $2 MILLION OVER BUDGET.
UM, THERE'S ALSO THE OPTIMISTIC, UH, STRETCH FORECAST WHERE THAT'S ASSUMING EVERYTHING GOES RIGHT AND MORE, UH, THAT'S ABOUT $10 MILLION, UH, OVER THE BUDGET AT $947.2 MILLION.
UH, THEN THERE'S THE MORE OF A MODEST, UH, PROJECTION.
UH, THAT'S, UH, SORT OF A WORST CASE, LOOKING AT $2.5 MILLION LESS THAN THE, THE BUDGET, UH, AT $935 MILLION.
UH, SO THE BASELINE AND THE LOWER ESTIMATE, UH, ARE ONLY PLUS OR MINUS ABOUT $2 MILLION, UH, RESPECTIVELY, WHICH IS WHY WE'RE COMFORTABLE WITH THE FORECASTING AT BUDGET FOR THE CURRENT FISCAL YEAR.
UH, SO KEEP IN MIND, THIS IS JUST OUR PRELIMINARY ESTIMATE.
UH, WE HAVE A, A LONGSTANDING, UH, PRACTICE TO RECEIVE A REFRESH ESTIMATE, UH, FROM THE ECONOMIST AROUND THE JUNE TIMEFRAME.
UM, SO WE WOULD HAVE A FEW MORE MONTHS OF DATA, UH, BETTER INSIGHT OF THE LOCAL MARKET.
UM, AND THAT GIVES US A CHANCE TO FINE TUNE OUR SALES TAX PROJECTION IF WE NEED TO.
[00:10:01]
IF IN A FEW MONTHS, UH, WE NEED TO ADJUST THAT FORECAST, WE WILL COME TO YOU WITH AN UPDATED FORECAST.UH, SO THIS IS OUR SALES TAX FORECAST TO ACTUALS.
UH, WE'VE DONE THIS CHART IN THE PAST FOR THE BOARD.
THE BLUE LINE, UH, THOUGH THAT REPRESENTS THE ACTUAL COLLECTIONS.
UH, THE ORANGE LINE IS THE BUDGET.
UH, THE GRAY LINE IS WHAT OUR ECONOMISTS, UH, HAVE PROJECTED.
UH, THE HEADLINE HERE IS THAT WE'VE BEEN RIGHT IN LINE WITH BUDGET FOR MOST YEARS.
UH, SO YOU SEE THE MAJOR SWINGS, UH, DURING THE COVID PERIOD FROM FFY 20 THROUGH FY 2023.
AND THEN IN FY 2024, UH, YOU SEE THAT WE ARE BELOW BUDGET.
UH, BUT THAT SAME YEAR, UH, WE HAD A SIGNIFICANT $13 MILLION, UH, NEGATIVE AUDIT ADJUSTMENT.
BUT EVEN THEN, UH, WE ONLY MISSED BUDGET BY ABOUT 2%.
AND THEN IN FY 25, WE PERFORMED, UH, WITHIN 1% OF BUDGET.
SO AGAIN, PRETTY TIGHT PERFORMANCE TO BUDGET FOR SALES TAX.
HERE IS A HISTORICAL VIEW OF OUR SALES TAX.
UH, THIS JUST SHOWS WHY WE TRY TO BE AS ACCURATE AS POSSIBLE, UH, FOR OUR PROJECTIONS.
UH, THIS SHOWS OUR SALES TAX FROM 2005 ALL THE WAY THROUGH A PROJECTED 20, UH, 30.
UM, SO THE ORANGE BARS ARE THE FINANCIAL PLAN NUMBERS IN THE FUTURE, AND THE BLUE BARS ARE THE ACTUALS.
SO OVERLAY ON THE BARS, YOU SEE THE DOTTED, UH, GREEN LINE, WHICH IS THE GROWTH WEIGHT GROWTH RATE.
UH, SO THERE IS THAT VARIABLE, UH, THAT VARIABLE STAIR STEP IN OUR GROWTH RATE YOU SEE IN THE FUTURE.
UH, SO THAT AVERAGE, UH, IS CLOSE TO 3.8%.
UM, THIS PRACTICE IS PARTICULARLY, UH, THE YEARS THAT WHERE WE SEE THE BUDGET ZERO GROWTH, UH, THAT HELPS TO SMOOTH OUT ANY VARIABILITY THAT WE, THAT MAY, THAT MAY BE CAUSED BY UNPREDICTABLE EXTREMES IN THE FUTURE.
UM, FOR EXAMPLE, THE RECESSIONS IN 2001, 2008, AND THE UNPREDICTABILITY OF COVID.
UM, SO WE DO SEE SOME WILD SWINGS HISTORICALLY.
UM, WE TRY TO ACCOUNT FOR THAT AND ALSO SMOOTH OUT THAT VARIABILITY.
HISTORICALLY, AVERAGE SALES TAX GROWTH HAS BEEN 5% OVER THE, OVER THE LAST 20 YEARS.
AND THE ESTIMATES FOR FY 2026 AS MENTIONED EARLIER, UH, THOSE ARE STILL IN LINE WITH THE FINANCIAL PLAN.
SO LOOKING AT THE 20 YEAR SALES TAX PROTECTION.
UH, SO WHAT'S REALLY IMPORTANT TO NOTE HERE IS YOU CAN SEE THE GREEN LINE, WHICH IS THE FINANCIAL PLANS PROJECTION FOR SALES TAX.
UH, YOU CAN SEE THAT STAIR STEP TREND.
UM, SO THAT'S DRIVEN BY THAT 0% GROWTH EVERY SEVEN YEARS.
UH, SO THAT'S CONTRIBUTING TO THAT GAP BETWEEN, UH, THE ECONOMIST PROJECTIONS AND THE, AND THE FINANCIAL PLAN.
UM, AS YOU CAN SEE THE DIFFERENCE BETWEEN WHAT OUR ECONOMIST IS PROJECTING VERSUS THE FINANCIAL PLAN, THAT EQUATES TO A $2.1 BILLION DIFFERENCE OVER THE 20 YEAR WINDOW OF THE FINANCIAL PLAN.
LOOKING AT OUR FY 2027 SALES TAX PROJECTIONS.
JUST A FEW THINGS TO NOTE, UM, OUR ECONOMIST DOES USE, UH, AS WE MENTIONED, MULTIPLE METHODS, UH, FOR FORECASTING DART SALES TAX.
UH, SO HE'S A WELL-RESPECTED ECONOMIST.
UM, HE PROVIDES ECONOMIC FORECAST FOR A NUMBER OF CITIES.
UH, HE DOES PROJECTIONS, UH, FOR DALLAS AND FORT WORTH.
UM, SO HE IS GOT A LOT OF LOCAL INSIGHT.
UM, IN TERMS OF THE, THE PROJECTIONS.
HE'S ALSO A PROFESSOR AT OKLAHOMA CITY UNIVERSITY.
HE BUILDS THE, THE MODELS TO PROJECT OUR SALES TAX.
THE ECONOMIST PROJECTION FOR FY 2027 IS 9 81 $0.4 MILLION, UH, WHICH IS 4.7% ABOVE FY 2026.
UH, SO THE FINANCIAL PLAN, AS YOU KNOW, IS PROJECTING FY 2027 TO BE 9 37, UH, $0.5 MILLION.
SO THAT REPRESENTS A 0% GROWTH YEAR.
AND AS I'VE MENTIONED, UH, WE BUILD IN THOSE, UH, 0% FLAT GROWTH YEARS INTO THE FINANCIAL PLAN.
CURRENTLY, UH, MANAGEMENT IS ESTIMATING ABOUT A 2% TO 3%, UH, GROWTH RATE OVER FY 2026, UH, WHICH IS A MORE MODEST GROWTH, UH, THAN OUR ES THAN OUR ECONOMIST IS ESTIMATING.
BUT OUR PRACTICE HAS BEEN, UH, TO BUDGET ON THE LOW END, UH, FOR SALES TAX PROJECTIONS.
AND AS YOU'VE SEEN ON THE PREVIOUS SLIDE, UM, THOSE ESTIMATES HAVE BEEN HIGHLY ACCURATE OVER TIME PER OUR FINANCIAL STANDARDS.
UH, WE ARE, OUR SALE TAX GROWTH IS CAPPED AT 3.8% OVER THE LIFE OF THE FINANCIAL PLAN.
AND WE PLANTED HERE TO THAT FINANCIAL STANDARD THROUGHOUT OUR PROJECTIONS FOR THE, FOR THE BUDGET SEASON, LOOKING AT INFLATION AND EXPENSES, SPECIFICALLY AT CPI.
UM, ONE THING TO NOTE HERE ON THIS, ON THIS GRAPH, UH, SO THE ORANGE LINES THAT REPRESENTS LAST YEAR'S PROJECTIONS, AND THE BLUE LINE IS THE UPDATED PROJECTION.
UH, THE MAIN TREND WE WANT TO MAKE SURE THAT THE BOARD, UH, PAYS ATTENTION TO IS THE SOLID BLUE LINE, WHICH IS THE 90% OF THE, OF THE ECONOMY'S LATEST PROJECTION FOR CPI.
UH, THE REASON WE'RE SHOWING THIS IS AGAIN, UH, TO SHOW THAT WE'RE REMAINING IN COMPLIANCE WITH OUR B FIVE STANDARD FOR FY 2027.
OUR ECONOMIST IS ESTIMATING A PRETTY SIGNIFICANT
[00:15:01]
INCREASE IN CPI, BUT YOU CAN SEE THAT, THAT THAT FLATTENS OUT, UH, TO AROUND 2%, UH, TOWARDS THE END OF THAT PROJECTION, UH, WHICH IS PRETTY MUCH IN LINE WITH LAST YEAR'S PROJECTIONS.HERE IS A HISTORICAL COMPARISON OF THE CPI FOR DFW, WHICH IS THE DARK, UH, BLUE LINE AND THE NATIONAL CPI, THE DASHED ORANGE LINE, UH, VERSUS WHAT IS INCLUDED IN THE FINANCIAL PLAN, UH, WHICH IS 90% OF THE PROJECTED D-F-W-C-P-I, AND THAT'S THE GREEN SOLID LINE.
UH, SO ONE THING TO NOTE HERE, YOU CAN SEE IN FY 2022, UH, THE DFW INFLATION WAS AT 8.8%, UH, COMPARED TO THE 2.1% WE HAD, UH, PROJECTED IN THE PLAN THAT 8.8 PER THAT 8.8%, UH, CONTINUES TO AFFECT OUR BUDGET EVEN TODAY.
UH, YOU CAN SEE THAT ALTHOUGH THE INFLATION RATE HAS DROPPED, UH, SINCE THEN, IT'S STILL ABOVE ZERO, WHICH MEAN OUR COSTS CONTINUE TO GROW.
THIS IS A VIEW OF THE FY 2026, UH, BUDGET NUMBERS.
UH, SO THIS SLIDE IS JUST A REMINDER TO THE BOARD OF THE BUDGET THAT WAS ADOPTED BY THE BOARD, UH, FOR THIS YEAR.
UH, OVERALL, THE BUDGET GREW, UH, BY JUST 2.7%, UH, FROM FY 2025.
UM, SO THE LARGEST INCREASE WAS IN THE OPERATING BUDGET.
UM, AND MOST OF THAT GROWTH WAS DUE TO THE BEGINNING REVENUE SERVICE ON THE SILVER LINE NINE.
THESE NEXT TWO SLIDES, UH, WE WANTED TO SHOW WHERE WE'RE PROJECTING TO END THE YEAR AT FOR THE OPERATING BUDGET AND THE CAPITAL AND NON-OPERATING BUDGET, UH, FOR FY 2026.
SO ON THIS SLIDE, LOOKING AT THE OPERATING BUDGET, THE TOTAL BUDGET FOR THE YEAR IS 7 5, 7 0.9 MILLION.
AND THEN YEAR TO DATE THROUGH FEBRUARY, UH, WE ARE AT $7 MILLION UNDER BUDGET, OR 2.2% UNDER, UH, A LOT OF THIS IS DRIVEN BY TIMING.
UH, SOME ACTIVITY NOT, NOT OCCURRING EXACTLY WHEN WE PLANNED IT OR THOUGHT IN THE BUDGET.
UH, SO THE ACTIVITY WILL HAPPEN A LITTLE LATER IN THE YEAR THAN WHAT WE BUDGETED.
THERE'S ALSO SOME OPEN HEAD COUNT THAT'S DRIVING THE VARIANCE AS WELL, BUT THAT SHOULD BE FILLED BY THE END OF THE YEAR.
UH, SO WE'RE FORECASTING IN TOTAL TO BE $3.3 MILLION UNDER PLANNED, WHICH IS 0.44% UNDER PLAN, WHICH IS, AGAIN, FAIRLY TIGHT TO BUDGET.
AND ALSO KEEP IN MIND, LAST YEAR IN FY 2025, WE PERFORMED AT ALMOST 99% OF OUR OPERATING BUDGET LOOKING AT CAPITAL AND NON-OPERATING.
UM, SO CAPITAL NON-OPERATING IS A BIT DIFFERENT FROM THE OPERATING BUDGET.
UH, THERE ARE LARGE PROJECTS THAT HAVE, UH, CASH FLOWS ACROSS MULTIPLE YEARS.
SO IF THERE'S A DELAY IN THE PROJECT, UH, WE'LL SEE THAT UNDERSPENDING IN THE CURRENT YEAR.
UH, BUT THE BALANCE WILL BE SPENT IN SUBSEQUENT YEARS.
UM, SO THIS IS MORE OF A MOVING TARGET THAN OPERATING, WHICH IS WHY WE SEE THE, THE LARGER VARIANCES, UH, THAN COMPARED TO, TO OPERATING.
AND THAT, AGAIN, THAT'S PRETTY TYPICAL FOR CAPITAL.
UH, AND THAT'S BEEN PRETTY TYPICAL IN PRIOR YEARS.
UH, SO WE'RE FORECASTING TO COME IN AT 114 MILLION UNDER BUDGET FOR CAPITAL.
AGAIN, VERY TYPICAL FOR THE KAPLAN AND OPERATING EXPENDITURES.
SO WITH THIS LAST SLIDE, BEFORE WE OPEN IT UP FOR QUESTIONS, WE JUST WANTED TO REMIND THE BOARD, UH, THAT WE HAVE A LONGSTANDING PRACTICE OF TRANSPARENCY AND FISCAL RESPONSIBILITY.
UH, THANKS IN LARGE PART TO OUR BOARD ADOPT FINANCIAL STANDARDS AND PRACTICES.
UH, SO ALL THE INFORMATION YOU SEE HERE, THE BUDGET, THE AUDIT OF FINANCIAL STATEMENTS, THE MONTHLY AND QUARTERLY FINANCIAL REPORTS, SALES TAX INFORMATION THAT'S DISTRIBUTED IN THE PRESIDENT'S PACKET THAT YOU RECEIVE ON A RECURRING BASIS, UH, AND ALL THAT INFORMATION IS AVAILABLE TO THE PUBLIC ONLINE@DART.ORG, UH, SLASH FINANCIAL TRANSPARENCY.
UH, WITH THAT, WE THANK YOU, UH, FOR YOUR TIME AND WE OPEN IT UP FOR QUESTIONS.
UH, MEMBERS, THIS IS A BRIEFING ITEM.
ARE THERE ANY QUESTIONS, MR. ABRAHAM? MR. CHAIR? THREE.
MR. ABRAHAM, DID I GET YOU NEXT? THREE MINUTES.
UM, SO, UH, FIRST THING I HAD, I KIND OF WANTED TO TALK ABOUT WAS, UM, AS WE START PREPARING THE BUDGET, I WANNA MAKE SURE THAT WE TRY TO, I KNOW WE'RE GONNA HAVE THE PHYSICAL BOOK, BUT LET'S DO EVERYTHING WE CAN TO GET EVERYTHING AS ELECTRONIC AS POSSIBLE.
UM, AND THEN WE TALKED ABOUT VARIANCE ANALYSIS.
AND SO, UH, I THINK ME AND JAMIE, WE, WE TALKED ABOUT THAT, RIGHT? YES.
AM I, AM I LOSING MY MIND HERE?
CAN YOU HEAR ME NOW? THERE WE GO.
SO THAT'S PART OF, UH, THE ADDITIONAL DETAIL THAT WE'RE GONNA BE PROVIDING ON JULY 14TH, ALONG WITH THE BOOK AND THE GL KIND OF LEVEL DETAIL THAT WILL ROLL UP BY COST CENTER TO DO THAT BUDGET BOOK.
UM, WE WILL BE PROVIDING VARIANCE ANALYSIS ON ANY CHANGE FROM PRIOR YEAR BUDGET TO CURRENT YEAR BUDGET, UM, OF 5% AND $50,000.
SO HOPEFULLY THAT KIND OF HELPS, YOU KNOW, CUT THROUGH ANY, ANYTHING,
[00:20:01]
ANY ISSUES THAT WE HAD LAST YEAR, KIND OF WORKING THROUGH THE BUDGET AT THE END AND GETTING AN DATA OUT THERE.UH, THE OTHER THING IS WE DID, AND I WAS TOTING THIS TO MY CITY, AND MAYBE OTHERS ARE SAYING IT, BUT WE, WE'VE HIRED A FIRM TO DO A WHAT, A ANALYSIS OR SOMETHING OF OUR, I THINK IT WAS SYSTEMS, WHAT? IT WASN'T SYSTEMS IT WAS, AND I MAY BE, I MAY BE MISSING IT, SO HELP ME, HELP ME GET THERE.
BUT WE HIRED AN OUTSIDE FIRM AND IT WAS IN THE BUDGET, AND THEY WERE SUPPOSED TO LOOK AT, I THINK COST.
WHAT, DO YOU REMEMBER WHAT I'M TALKING ABOUT? OH, I, YOU'RE SPEAKING OF THE STRATEGIC ORG ASSESSMENT.
AND WE LOOKED AT SPECIFIC AREAS, HR, PROCUREMENT, AND DATA MANAGEMENT.
AND WHAT, UH, IS SOME OF THAT STUFF GONNA BE INCORPORATED INTO THE BUDGET? ARE WE GONNA HAVE SOME HOPEFULLY SAVINGS THAT CAME OUT OF THAT, THAT STUDY? SO YES AND NO.
UM, SOME OF THE SUGGESTIONS THAT THEY GAVE US AREN'T THINGS THAT WE CAN JUMP TO IMMEDIATELY.
UM, SOME THINGS ARE GONNA REQUIRE US TO DO A LITTLE MORE WORK IN ORDER TO GET THERE.
UM, I'M, I'M SPEAKING MORE TO THE PROCUREMENT SIDE.
UM, BUT ALSO, UH, FOR EXAMPLE, LIKE THE ERP SYSTEM HELPS WITH SOME OF THAT AS WELL MM-HMM
BECAUSE WE HAVE A LOT OF JUST INEFFICIENT PROCESSES RIGHT NOW THAT ARE EVERYTHING SO STANDALONE.
SO, UM, THE CONSOLIDATION OF SOME OF THOSE SYSTEMS WILL IMMEDIATELY PROVIDE SOME OF THOSE EFFICIENCIES MM-HMM
UM, BUT WE ARE LOOKING TO START IMPLEMENTING AND WE WILL BE REPORTING OUT TO THE BOARD, I BELIEVE ON A, A QUARTERLY BASIS.
WE ACTUALLY, UM, PROVIDED A MEMO TO THE BOARD MARCH 13TH, I THINK, AND IT OUTLINED WHAT THE ANNUAL REPORTING FRAMEWORK WOULD BE RELATIVE TO THE SOA RECOMMENDATIONS.
SO WE HAVE 16 PRIORITY RECOMMENDATIONS, AND THEN THERE'S ANOTHER 45 SMALLER ONES.
SO WE WANT TO, WE'RE WORKING WITH THE VARIOUS DEPARTMENTS RIGHT NOW TO KIND OF SEE WITH THE PROGRESS ON THOSE, THEN WE WANT TO START REPORTING ANNUALLY ON WHAT THE DIFFERENT, THE PRODUCTIVITY SAVINGS, IF THERE'S ANY COST SAVINGS, SOME OF THOSE THINGS THAT WE CAN REPORT OUT AS OUTCOMES.
I THINK THAT'S LIKE, YOU KNOW, LIKE WE HIRED 'EM, I WAS EXCITED ABOUT IT.
SO I THINK IF THERE'S, THERE'S VALUE THAT WE GOT OUT OF IT, WE NEED TO, YOU KNOW, ESPECIALLY IN THE NEXT YEAR.
AND SEVERAL OF 'EM WERE OUTLINED AS QUICK WINS, SO WE'RE TRYING TO WORK TO GET SOME OF THOSE QUICK WINS DONE.
UM, AND THEN MY LAST KIND OF, COULD YOU, I THINK THERE WAS A CAPITAL UNDERRUN SLIDE.
SO WHAT'S, HOW MUCH OF THIS IS DUE TO INEFFICIENCY ON OUR SIDE? OR IS IT JUST WE MISESTIMATED WHEN THINGS WERE GONNA GET STARTED? WHAT'S THE, WHAT DOES THIS MEAN TO ME? SO REALLY IN ANY GIVEN YEAR, WE WOULD, WE ALMOST NEVER SPEND A HUNDRED PERCENT OF OUR CAPITAL BUDGET.
UM, A LOT OF IT HAS TO DO WITH TIMING.
UM, OTHER PRIORITIES EMERGING THROUGHOUT THE AGENCY.
FOR EXAMPLE, A LOT OF ATTENTION THIS YEAR IS BEING DIVERTED TO WORLD CUP PREPARATION.
AND READYING VEHICLES, STAFF SERVICE FOR WORLD CUPS.
SO, AND SOME OF IT JUST COMES DOWN TO CASHFLOW, TIMING OF LIKE INVOICES COMING IN FROM VENDORS.
SOMETIMES THERE'S A LAG ON THAT.
UM, THERE'S A QUESTION ON A, A LARGE INVOICE, UM, THAT DRIVES SOME OF THE LAG ON MM-HMM
ACTUAL RECOGNITION OF CAPITAL COSTS WITHIN THE YEAR.
AND THEN SOMETIMES PROJECTS BECOME JUST DEPRIORITIZED MM-HMM
UH, BECAUSE OTHER MORE EMERGING ISSUES COME UP.
AND THEN THOSE PROJECTS TYPICALLY WILL ROLL FORWARD TO THE NEXT YEAR OF THE CIP, AND THEN WE'LL REASSESS THEM AS WE'RE, UH, REESTABLISHING THE, THE CAPITAL BUDGET FOR FUTURE FISCAL YEARS.
I MEAN, IT'S, IS THIS, IS IT FAIR TO SAY THAT IT'S, WHAT IS IT, WHAT'S THE PERCENTAGE OF THAT? IS THAT LIKE ONE, ONE EIGHTH? I DON'T, I DON'T, I DON'T HAVE MY MATH, MY MATH MATH HAT ON, BUT IT'S, I MEAN, MAN, THAT'S A LOT OF MONEY THAT WE'RE KIND OF JUST FLOATING OUT THERE AND WE'RE GOING OUT THERE.
I MEAN, ESPECIALLY LAST YEAR, WHERE WE'RE JUST LIKE, WITH OUR HANDS OUT, YOU KNOW, TRYING TO JUST MM-HMM
APPROVE OUR BUDGET, YOU KNOW, SO IT'S, HOPEFULLY WE CAN KIND OF TIGHTEN THIS UP OR FIGURE OUT HOW, HOW TO HAVE IT, YOU KNOW, WITHIN THAT MAYBE A 5% THRESHOLD OR SOMETHING.
LIKE, I DON'T, I DON'T, I DON'T KNOW THE ANSWER, BUT YES, IT'S HARDER.
FIVE PER THRESHOLD, LIKE THAT IS HARDER ON THE CAPITAL SIDE, AGAIN, JUST BECAUSE OF TIMING OF PROJECTS, WE'RE EXPERIENCING PROCUREMENT DELAYS.
YOU KNOW, SEVERELY UNDERSTAFFED RIGHT NOW ON THE PROCUREMENT SIDE, THAT SLOWS THINGS DOWN, THAT SLOWS DOWN CASH FLOW ON THESE PROJECTS.
'CAUSE IT TAKES LONGER TO ACTUALLY CONTRACT AND IT TAKES LONGER TO GET THINGS MOVING.
BUT THAT DOESN'T MEAN WE SHOULD DEFUND A PROJECT BECAUSE OF IT.
SO, AND THAT'S NOT WHAT I'M SAYING.
IT'S JUST LIKE, IT, IT JUST, IT JUMPS OUT AS, AS INEFFICIENCY TO ME.
LIKE, OKAY, IF WE'RE NOT STAFFED AT THE APPROPRIATE LEVELS AND WE'RE NOT SPENDING THE BUDGET THAT WE SAID WE'RE GONNA SPEND, IS THAT HAPPENING ON THE SECURITY SIDE? IS THAT HAPPENING ELSEWHERE? YOU KNOW WHAT
[00:25:01]
I MEAN? SO THAT'S WHERE YEAH.I'M, I'M REALLY TRYING TO DRIVE THAT POINT ACROSS AHEAD OF TIME, SO, SO WE'RE NOT, YOU KNOW.
AND I'LL MAKE SURE THAT WE AT OUR CAPITAL UPDATE, UM, NEXT MONTH, THAT WE PROVIDE SOME MORE INSIGHT AND DETAIL AS TO THE SPECIFIC PROJECTS THAT ARE DRIVING THAT IN HERE.
UM, SO YOU CAN SEE REALLY, UH, WHERE THOSE ARE YEAH.
AND, AND THAT'S THE INTENT OF MY COMMENTS, RIGHT? LIKE DRAGGING IT OUT.
BECAUSE AS I SEE THIS, I'M NOT, I'M NOT THE SMARTEST MAN IN THE ROOM.
SO THERE'S OTHERS THAT ARE GONNA ASK.
ACTUALLY, MY FIRST QUESTION IS GONNA BE A FOLLOW UP ON THE LAST QUESTION BY MARK.
UM, IN LOOKING AT THIS, UH, AT THIS SLIDE, IF INSTEAD OF, BECAUSE WHAT I UNDERSTAND YOU'RE SAYING IS THAT A LOT OF, IS THE RESULT OF TIMING, IF INSTEAD OF LOOKING AT ONE YEAR OR PARTIAL YEAR, THIS WAS THE SAME SLIDE, BUT FOR THREE YEARS, WOULD IT BE MUCH MORE FLAT OUT OR PROJECTED THREE YEARS AHEAD? IT CAN BE.
THERE'S GONNA BE NOISE IN THERE BECAUSE CAPITAL KIND OF CHANGES FROM YEAR TO YEAR.
UH, BECAUSE THE WAY I LOOK AT CAPITAL IS LIKE, THEY'RE, THEY'RE MORE LIKE ONE-TIME COSTS, RIGHT? IT'S A RIGHT, IT'S A COST ASSOCIATED WITH A SPECIFIC TASK, A SPECIFIC PROJECT, NOT LIKE OPERATING COSTS AND OUR OPERATING BUDGET WHERE IT'S LIKE YOU MAKE A SERVICE CHANGE AND THEN THAT FLOWS ALL THE WAY INTO THE FUTURE.
SO I THINK WHAT I'M TRYING TO SAY, THERE'S THIS PROJECT AND YOU INTENDED TO PREVENT AS MUCH OF IT THIS YEAR, BUT YOU HAVEN'T OVER THE NEXT THREE YEARS, WOULDN'T THAT UNIT OUT AND, AND YOU'RE MORE LIKELY TO BE ACCURATE? YEAH, IT SHOULD.
AND, AND WE CAN DO A LOOK BACK TO SHOW, UH, COMPARISON OF BUDGET VERSUS ACTUAL SPEND ON SOME OF THESE PROJECTS.
WE'LL HAVE TO GIVE YOU SOME CONTEXT WITH THAT BECAUSE SOME PROJECTS, LIKE I SAID, GET CANCELED, SOME GET PUSHED OUT INTO THE FUTURE AND DOLLARS GET REALLOCATED.
WHAT IS DRIVING THE A REDUCTION IN EXPENSES, OPERATING EXPENSES? SO YOU'VE GOT A, A FEW THINGS.
UM, SO LOOKING AT, UH, THE, WE'VE GOT SLOPE AHEAD COUNT AGAIN THAT, AS I MENTIONED BEFORE, UM, WE'VE GOT, UH, JUST AROUND THE, ON THE TIMING SIDE, WE'RE LOOKING TO, UM, ON THE SERVICES SIDE, YOU'LL SEE THAT PICKUP TOWARDS THE END OF THE YEAR.
UM, THAT, SO WE HAVE THAT, THAT LOWER, UH, FORECAST VARI FOR SERVICES.
UM, THEN, YOU KNOW, THERE'S SOME PUTS AND TAKES, UM, WE'VE GOT PURCHASE TRANSPORTATION AHEAD OF BUDGET, AND THEN WE'VE GOT THE SALARIES AND WAGES AGAIN.
UH, BUT AGAIN, JUST IT'S USUALLY A TIMING, A TIMING PLAY.
SO TOWARDS THE END OF THE YEAR, YOU'LL SEE THAT CATCH UP.
THAT'S WHY WE WE'RE FORECASTING TO BE SO TIGHT.
UM, TWO MORE QUICK QUESTIONS, JUST FOR MY OWN EDIFICATION.
THE ECONOMIST WORKS FOR WHOM? SO HE IS A PROFESSOR FOR THE OKLAHOMA, OKLAHOMA CENTER UNIVERSITY.
UM, SO HE'S THE PRESIDENT THERE, AND I BELIEVE HE DOES FORECAST FOR THE CITY OF DALLAS AND FORT WORTH AS WELL.
SO THE CITY OF DALLAS PAYS HIM TO DO THE YEAH, HE'S INDEPENDENT.
HE'S LIKE, HE'S LIKE AN INDEPENDENT, HE'S WHAT? YEAH.
THAT WE SELECTED THROUGH A SOLICITATION PROCESS.
THAT'S WHAT I WANTED TO GET TO.
AND THEN THE LAST QUESTION IS, I THINK IT'S YOUR SLIDE NINE WHERE YOU HAVE THE BLUE AND ORANGE BARS, OR IF, IF IT'S NOT NINE, IT MIGHT BE 10.
UH, IN, IN THE FORECASTED NUMBERS, DO WE, OH, THIS IS NOT THE SALES TAX REVENUE FOR DART, THIS IS SALES TAX IN GENERAL.
SO THE BLUE IS HISTORICAL ACTUAL COLLECTIONS, CORRECT? CORRECT.
AND THEN THE ORANGE IS PROJECTED PER THE FINANCIAL PLAN.
THEN MY QUESTION IS IN THE ORANGE BAR IS, DO WE ACCOUNT FOR THE FACT THAT WE'RE LOSING SOME REVENUE, UH, GIVEN, UH, THE, THE, THE AGREEMENTS WE'VE MADE WITH, UH, SOME OF THE MEMBER CITIES? UH, NO, BECAUSE WE WILL STILL COLLECT THOSE SALES TAX DOLLARS.
IT'S JUST HOW WE SPEND THEM THROUGH THE BUDGET PROCESS.
THE, UH, STANDARD B FIVE, UH, IT, THE CRITICISM OF THE SECOND BULLET POINT THERE HAS ALWAYS BEEN THAT IT'S 90% EXCEPT FOR, AND THEN THE, EXCEPT FOR HAS GROWN ENORMOUSLY THAT LIST.
IS IT POSSIBLE, JAMIE, THAT WHEN WE GET A NEW CONTRACT OR A NEW, UH, PROJECT, NEW PROGRAM IN THAT WE CAN BE HIGHLIGHTED THAT THAT AFFECTS THIS 90% NUMBER GOING FORWARD AND HOW MUCH IT DOES SO THAT THAT WOULD BE FLAGGED FOR THE BOARD WHEN WE DO THAT? DOES THAT MAKE SENSE? AND YOU COULDN'T DO IT VERY ACCURATELY BEGINNING OF THE YEAR, BUT TOWARD THE END YOU COULD GET A LOT MORE ACCURATE.
UM, AND SO OUR PRACTICE RIGHT NOW HAS NOT BEEN TO BUILD INTO THE 20 YEAR PLAN, EVERY SINGLE CONTRACT INCREASE.
UH, THAT WE SEE, UM, WHAT WE DO ACCOUNT FOR IN THE 20 YEAR PLAN ARE, ARE VERY LARGE CONTRACTS.
THAT, MY, MY, MY ISSUE IS A LITTLE BIT MORE DETAIL GROSS THAN THAT, I SUPPOSE, UH, BROADER.
AND THAT IS THAT THAT WAS, WHEN THAT WAS ADOPTED MANY YEARS AGO, IT WAS ADOPTED AS A WAY
[00:30:01]
TO REIGN DOWN THE COSTS AND KEEP FISCAL, UH, CONSERVATISM WITH THE AGENCY AND THE BOARD OVER THE YEARS WITH EACH VOTE, EACH CONTRACT INCREASE, ET CETERA, HAS KIND OF GOTTEN AWAY FROM THAT.I JUST WANNA MAKE SURE THAT THAT IS ONE OF THE BRIDALS THAT THE BOARD KEEPS AN EYE ON WITH EVERY PROGRAM, EVERY NEW CONTRACT THAT COMES UP.
SO WE CAN KEEP AN EYE ON THAT, WHAT IT DOES TO THAT 90% FIGURE.
IS THAT, DOES THAT MAKE SENSE? IT DOES MAKE SENSE, SIR.
AND I, I THINK WHAT I WAS TRYING TO GET TO IS, WE ARE DOING THAT BECAUSE WHEN WE BUILD OUT THE FINANCIAL PLAN, WE'RE ONLY LOOKING AT ONES THAT WE CONTRACTS AND CONSIDER THOSE THAT WILL MATERIALLY AFFECT THAT FINANCIAL PLAN INTO THE FUTURE.
FOR EXAMPLE, PURCHASE TRANSPORTATION, LIKE OUR TRANS DEV CONTRACT, RIGHT? HERZOG STALER, THOSE ARE VERY LARGE MULTIMILLION DOLLAR PROJECTS.
SO WE ARE NOT, UM, OVERESTIMATING OPERATING GROWTH INTO THOSE FUTURE YEARS BY LOOKING AT EVERY SINGLE CONTRACT.
WE DO CONSIDER THAT, UM, EVERY TIME WE BRING IN ITEM TO THIS BOARD, UM, ON WHETHER OR NOT THEY WILL HAVE CAPACITY IN THEIR FUTURE BUDGETS, BUT WE DON'T TRACK IT.
AND SO WHAT I'M TRYING TO SAY IS WE'RE NOT OVERSTATING THE FINANCIAL PLAN BY EVERY SINGLE CONTRACT.
AND THAT'S ALSO, THAT'S EVIDENT BY WHEN WE COME TO YOU, FOR EXAMPLE, LAST YEAR, AND WE HAD TO MAKE ADMINISTRATIVE REDUCTIONS, RIGHT? BECAUSE OF CONTRACT GROWTH THAT WE HADN'T CAPTURED IN THE FINANCIAL PLAN.
REIGN IN SPENDING IS BY NOT OVER NOT ABUSING THAT EXCEPTION IN THAT STANDARD.
AND WE'RE ONLY LOOKING AT THE VERY LARGE ONES THAT WE DON'T WANNA HAVE BIG SURPRISES ON.
SO ITEM TWO, DO WE CURRENTLY HAVE ANY DIESEL HEDGES IN PLACE? WE ARE NOT CURRENTLY HEDGING, NO.
UM, WE HAVE, WELL, WE USE, UH, A STATE CONTRACT FOR CNG, WHICH IS OUR, OUR LARGEST FUEL, RIGHT? 'CAUSE THAT FUELS OUR BUS ROLLING STOCK.
UM, I DON'T THINK WE, WE MIGHT USE SOME DIESEL FOR SOME OF OUR, LIKE HEAVIER EQUIPMENT.
WE DON'T USE A WHOLE LOT OF DIESEL, BUT GASOLINE WE DO USE QUITE A BIT, UM, FOR OUR NON-REVENUE FLEET.
AND THEN FOR CNG, ARE WE, ARE WE HEDGING RIGHT NOW AT ALL? UH, LET ME GET BACK TO YOU.
BECAUSE WE EXERCISE THROUGH A STATE CONTRACT, SO THEY MAY BE DOING THAT ALL RIGHT.
WE ARE NOT DIRECTLY DOING THAT, BUT I'LL GET SOME MORE DETAILS ON THAT.
THEN GO TO, GO TO THE SLIDE, IF YOU WOULD, WHERE WE MATCH, UH, HISTORICAL TAX RECEIPTS WITH WHAT WE PROJECTED, WHAT THE ECONOMISTS PROJECTED, ET CETERA.
FROM 2015 TO 2019 20, WHEN WAS IT? BERNARD WEINSTEIN WEINSTEIN WAS OUR ECONOMIST.
UH, PERRYMAN PERRYMAN PERRYMAN.
WHEN WAS BERNIE? HOW, HOW LONG AGO WAS HE OUR ECONOMIST? BEYOND THAT, IT DOESN'T MATTER.
AND PERMAN THEN, IS, IS PERMAN DOING ANYTHING FOR US RIGHT NOW? UH, NO.
SO WHEN DID PERRYMAN STOP BEING THE ECONOMIST ON WHOM WE WERE RELYING, WHEN DID WE GO OUT FOR RFP 2022.
SO WHO IS OUR ECONOMIST NOW? DEARMAN DEARMAN, JACOB DEARMAN.
AND SO FROM 2022, I NOTICED THAT THE GAPS BETWEEN OUR ASSESSMENTS AND WHAT OUR ECONOMISTS TOLD US SEEM TO BE GREATER.
OF COURSE, COMING OUTTA COVID, IT'S A LITTLE EXAGGERATED 22, BUT EVEN IN 24 AND 25, WE'VE GOT THOSE DIFFERENTIATIONS THAT ARE GREATER THAN BEFOREHAND.
SO WHY DID WE, WHY DO WE NOT USE PER ANYMORE? UH, WE WENT THROUGH A SOLICIT OPEN SOLICITATION PROCESS AND DETERMINED THAT DEARMAN WAS A BETTER FIT FOR US BECAUSE ONE, WE GET A SIGNIFICANT AMOUNT MORE SUPPORT AND DETAILED INFORMATION, UM, FROM DEARMAN.
I WILL NOTE THAT IN FY 24, UH, SENATOR, YOU MENTIONED THIS, BUT THERE WAS A A OVER $13 MILLION AUDIT ADJUSTMENT FROM THE COMPTROLLER, RIGHT? SO THAT DROVE OVER 1% OF THAT VARIANCE IN FY 24.
AND THAT'S OUT OF OUR CONTROL.
THAT AUDIT ADJUSTMENT FROM THE COMP THAT WAS DRIVEN BY THE COMPTROLLER HAD NOTHING TO DO WITH US.
IT AFFECTED EVERY CITY IN THIS ROOM WENT BACK TO LIKE 2015.
SO IT WAS A BIG REACH BACK ON THAT ADJUSTMENT.
SO LOOK AT 2024, JUST TO MAKE SURE I UNDERSTAND HOW TO READ THIS GRAPH.
OUR ACTUAL RECEIPTS WERE 2% LESS THAN OUR BUDGETED RECEIPTS, OR 2% LESS THAN WHAT OUR ECONOMISTS PROJECTED.
WE WOULD GET OUR BUDGETED RECEIPTS.
AND, AND SO AS I'M READING THIS, OUR BUDGETED RECEIPTS WERE EXACTLY WHAT THE ECONOMISTS SAID WE SHOULD GET IN 24, RIGHT? CORRECT.
WE WERE, WAS THAT THE BASELINE? WAS THAT THE, OF THE, OF THE THREE WAS THE BASELINE? WE ALWAYS, WE GENERALLY GO WITH THE LOWER END OF WHAT THE ECONOMIST PROJECTS.
SO THE LOWER END OF THE ECONOMIST PROJECTION IN 2024 WAS TOO HIGH BECAUSE WE ACTUALLY RECEIVED 2% LESS.
AM I READING IT CORRECTLY? YEAH, THAT'S CORRECT, YES.
BUT IF YOU TOOK THE AUDIT ADJUSTMENT OUT OF THERE, RIGHT,
[00:35:01]
YOU'D BE LESS THAN A 1% VARIANCE FROM THAT'S CORRECT.FROM BUDGET TO ACTUAL RECEIPTS AND TO WHAT THE ECONOMIST PROJECTED.
AND A LESS THAN 1% VARIANCE ON OVER 900 MILLION.
RIGHT? SO WHEN YOU LOOK AT IT THAT WAY, PUT IT IN CONTEXT TO THE DOLLAR AMOUNTS WE'RE TALKING ABOUT.
IT'S A MINIMAL SPREAD BETWEEN THE TWO.
I'VE SEEN IN THE PAST, OUR NUMBERS HAVE BEEN BETTER THAN THOSE THAT WERE PROJECTED.
AND SO I NOTICED THIS BECAUSE IT LOOKS SO DIFFERENT THAN THE ONES I'M USED TO SEEING AS A BOARD MEMBER FOR A BUNCH OF YEARS.
SO I'LL BE INTERESTED IN WHAT IT SHOWS NEXT YEAR.
UH, IF WE GO BACK TO SLIDE, UH, 17, THE CAPITAL NON-OPERATING, THE QUESTION REALLY HAS TO DO WITH THE MODERNIZATION PROGRAM AND WHERE DO WE STAND WITH THAT? AND ARE THESE NUMBERS INCLUDED IN THAT PARTICULAR, ARE WE STILL DOING THE SAME THINGS THAT WE HAD ALREADY FORECASTED TO DO IN TERMS OF THE MODERNIZATION PROGRAM? OR HOW, HOW IS IT BEING SPLIT? SURE.
THE, THE MODERNIZATION PROGRAM IS BUILT INTO THE CIP.
THE, THE COST IN FY 26 ARE, ARE LOW FOR THAT PROGRAM BECAUSE WE'RE JUST KICKING OFF INITIAL PROCUREMENTS.
UM, A LOT OF PLANNING AND DESIGN WORK ON THOSE.
UM, THE, THE COST FOR TRANSFORM WILL GET SIGNIFICANTLY HIGHER IN FUTURE YEARS AS WE MOVE TO ACTUAL CONSTRUCTION AND WE EXECUTE A CONTRACT FOR THE ACTUAL LRVS.
AND THOSE ACTUALLY START PRODUCTION.
SO THERE IS SOME IN HERE, BUT IT'S UM, IT'S VERY LIGHT.
BUT WE ARE CONTINUING TO USE THOSE, THE SUPPLIERS THAT HAVE PROJECTED, I MEAN THEY WANNA BE ON TEAMS. AND SO ARE WE STILL WORKING WITH THOSE PARTICULAR, WE'RE MOVING FORWARD WITH SOLICITATIONS? YES.
THE LRV SOLICITATION IS ON THE STREET RIGHT NOW.
UM, THERE IS AN RFQ ON THE STREET FOR PROGRESSIVE DESIGN BUILD FOR THE UNIFIED SIGNALING SYSTEM.
UM, AND WE ARE ADVANCING ALSO, UH, DESIGN AND ARCHITECTURAL WORK FOR STATION MODIFICATIONS.
ANYONE ELSE? I HAVE A FEW QUESTIONS.
UM, YOU CAN PUT ME ON FOR THREE MINUTES.
SO I JUST WANT TO MAKE SURE, UM, EVERYONE KIND OF UNDERSTANDS A LITTLE BIT OF THE PROCESS THAT'S A LITTLE BIT DIFFERENT THAN, UM, HISTORICAL.
UM, OBVIOUSLY WE DO NOT HAVE A, UM, BUDGET AND FINANCE COMMITTEE DESIGNATED, UH, THIS YEAR THAT WAS INTENTIONAL SO THAT WE CAN KEEP AS MUCH OF THIS CONVERSATION AT THE COMMITTEE OF THE WHOLE TO ENSURE THAT, UM, ALL UH, MEMBERS, ALL CITIES, ALL VOICES ARE, UM, HEARD THROUGHOUT THIS, THROUGHOUT THIS PROCESS, UM, UH, AT THIS COMMITTEE LEVEL.
NUMBER TWO, UM, RIGHT PRIOR TO THE UH, DEVELOPMENT COMMITTEE MEETING, I SENT OUT A LETTER TO, UM, OUR BOARD AND UM, LEADERSHIP STAFF IN REFERENCE TO SOME OF THE PRIORITIES THAT I WOULD LIKE FOR US TO, UM, SET OUT THROUGHOUT THIS BUDGETING AND OPERATIONAL PLANNING PERIOD.
UM, HOPEFULLY YOU ALL RECEIVE THAT AND WE CAN DISCUSS THAT PART LATER.
UM, SPECIFICALLY ON THE SLIDES THAT YOU ALL PROVIDED, I JUST HAVE A FEW QUESTIONS.
SOME OF THEM HAVE BEEN, UM, ADDRESSED ALREADY.
SO SALES, TAXES, UH, FUEL COSTS, UM, PAGE 11, SLIDE 11.
UM, JUST WANNA MAKE SURE I UNDERSTOOD.
FOR NEXT FISCAL YEAR, ARE WE BUDGETING AT THE 0% OR AT THE TWO TO 3%? SO WE'RE ESTIMATING THE FINANCIAL PLAN SAYS ZERO BETWEEN 26 AND 27.
WE ARE ESTIMATING, UM, UH, HAVING, WE KNOW THAT ZERO IS NOT REALISTIC, THAT'S NOT GONNA HAPPEN THERE.
SO WE'RE LOOKING ON A LOW END OF LOOKING BETWEEN LIKE A TWO AND 3%.
WE'RE GIVING A RANGE RIGHT NOW BECAUSE WE'RE STILL WORKING THROUGH THE BUDGET.
UM, AND WE WANNA MAKE SURE THAT WE ARE LEAST IMPACTFUL TO SERVICE AS POSSIBLE AS WE, UH, WORK ON THE PROPOSED FY 27 BUDGET.
SO RIGHT NOW OUR ESTIMATE IS A RANGE OF TWO TO 3% GROWTH.
AND THEN ON, UM, SLIDE 16, YOU IDENTIFIED THESE, WHICH I DIDN'T KNOW BEFORE, AT LEAST BY NAME.
SO PURCHASE TRANSPORTATION, I THINK YOU SAID IT TO DIRECTOR AND REFERS TO, UH, TRANSDEV CONTRACT.
HERZO STALER FOR SILVER LINE AND TRE.
AND THEN SO WHAT'S DRIVING THE OVER, UM, BUDGET FOR THAT RIGHT NOW? SO PART OF THAT IS, UM, CONTRACTUAL INCREASES.
SOME OF IT IS ALSO INCREASED DEMAND FOR PARATRANSIT SERVICE AND GOLINK.
UM, OUR TNC CONTRACTS ARE IN THERE AS WELL.
AND WE DID SEE AN INCREASE IN THE TNC CONTRACT WHEN WE EXECUTED THOSE LAST YEAR.
SHAMELESS PLUG AND, AND DART DOES NOT CAP, UM, ANY OF OUR PARATRANSIT OR MICRO TRANSIT, UM, RIDERS OR, OR SERVICES,
[00:40:01]
IS THAT CORRECT? THAT IS CORRECT.WE GO ABOVE AND BEYOND WITH OUR 80 A PARATRANSIT SERVICE AND SERVICE, THE 700 SQUARE MILE REGION OF OUR, UM, OUR SERVICE AREA AND OUR, WE DON'T CAP THE NUMBER OF TRIPS, UM, THAT WE WILL PROVIDE IN THE YEAR FOR GOLINK MICROT TRANSIT SERVICE.
AND THEN ON UM, SLIDE TWO, UM, I'M SORRY I KIND OF KEEP BOUNCING BACK AND FORTH.
SO THE BUDGET BOOK, I JUST WANNA MAKE SURE I UNDERSTAND.
THIS IS GOING OUT ON JULY THE 14TH, IS THAT WHAT I HEARD YOU SAY? THAT IS CORRECT.
UM, AND SO IT HAS TO BE OUT, LET'S CALL IT IN THE STREETS FOR A MINIMUM OF 30 DAYS.
SO WE ARE GONNA RELEASE IT TO OUR BOARD ON JULY 14TH.
UM, WE WILL SEEK DIRECTION FROM THIS BOARD TO RELEASE IT FORMALLY TO THE SERVICE AREA CITIES ON AUGUST 11TH.
SO THAT'S NOT THE JULY 14TH, CORRECT.
MY POINT WAS THAT THEY WILL HAVE ACCESS TO IT ON JULY 14TH.
'CAUSE IT'LL BE ON OUR WEBSITE LIKE ANY OF OUR OTHER BOARD MATERIALS.
AND OF COURSE WE RAN INTO THIS LAST YEAR AND, AND I JUST WANNA KNOW WHERE IS THE SERVICE PLAN INVOLVED IN THIS PROCESS? THIS THE, THE APPROVALS FOR FY 27 SERVICE PLAN.
SO WE DID NOT ANTICIPATE, UM, NEEDING TO MAKE ANY KIND OF MATERIAL CHANGE TO SERVICE LEVELS GOING INTO FY 27.
SO OUR INTENT IS TO LOOK VERY HIGH LEVEL AT MODES OF TRANSPORTATION FOR FY 28 TO ADDRESS THE FUNDING OF THE GMP AND THE 20 YEAR FINANCIAL PLAN.
AND THEN WE WOULD COME BACK TO THE BOARD STARTING THAT MORE DETAILED PROCESS OF ASSESSING SERVICE FOR FY 28 IN THE FALL AFTER WE GET THROUGH THE FY 27 BUDGET PROCESS.
SO JUST ON THE RECORD, IF THAT CHANGES AND WE HAVE TO MAKE SERVICE CHANGES, UM, FOR FY 27, THEN UM, MY POSITION IS THE SAME AS IT WAS LAST YEAR THAT IT NEEDS TO BE CORRELATED WITH THE PASSING OF THE BUDGET, UM, KNOWLEDGE AND, AND, AND THAT'S JUST WHERE I'M AT ON THAT.
ANY OTHER BOARD MEMBERS? ALRIGHT, THANK YOU BOTH.
[21. Approval of Contract for Enterprise Resource Planning Software Subscription for Financial and Procurement Modules (Patrick J. Kennedy/Jamie Adelman)]
ARE NOW MOVING ON TO APPROVAL OF AGENDA ITEM 21 CONTRACT FOR ENTERPRISE RESOURCE PLANNING SOFTWARE SUBSCRIPTION FOR FINANCIAL AND PROCUREMENT MODULES.IS THERE A MOTION TO APPROVE? SO MOVED.
IS THERE A SECOND? IT'S BEEN MOVED IN SECOND.
ANY DISCUSSION MR. ABACHA? THREE MINUTES.
AS HAS BEEN LAID OUT, UH, ENTER ENTERPRISE RESOURCE SOFTWARE SOFTWARE, UH, CERTAINLY PLAYS A SIGN SIGNIFICANT ROLE IN ANY ORGANIZATION AND HAS AN IMPACT ON EVERYTHING THAT HAPPENS DAY TO DAY.
SO, UH, MY TWO CONCERNS ARE, NUMBER ONE, WE HAVE A NEW CEO COMING IN AND CERTAINLY, UH, THINK THEY SHOULD HAVE SOME INPUT ON THE DIRECTION WE HAD HERE.
AND NUMBER TWO, UH, TO LOCK YOURSELF TO ANY TYPE OF TECHNOLOGY FOR FIVE YEARS IS, UH, CONCERNING.
IF YOU LOOK WHERE THINGS WERE FIVE YEARS AGO VERSUS WHERE THEY ARE TODAY, IT'S VERY DIFFICULT TO PROJECT OUT OR THINGS ARE GONNA BE FIVE YEARS FROM NOW, PARTICULARLY WITH, UH, THE IMPLEMENTATION OF AI.
SO, UM, THAT'S CONCERNING ME AS WELL.
SO FOR THOSE TWO REASONS, UH, I THINK THIS IS SOMETHING, UH, WE NEED TO HOLD OFF ON AND, UH, I WILL NOT BE SUPPORTING THIS MOTION.
ANYONE ELSE? MR. ELLI? THREE MINUTES.
UH, I JUST WANTED TO ASK, UH, WOULD THE PRICE FOR THIS SERVICE BE IMPACTED IF WE APPROVED A TWO OR A THREE YEAR CONTRACT AS OPPOSED TO A FIVE YEAR CONTRACT? UM, YES.
THE PRICE WOULD INCREASE, UH, BASED ON THE UPDATED QUOTES THAT WE GOT FOR A THREE YEAR CONTRACT.
'CAUSE THE PRICE WOULD START ESCALATING AT YEAR FOUR VERSUS YEAR SIX.
AND, UM, I GUESS, UH, YOU KNOW, I'LL, I'LL JUST SAY I SHARE DIRECTOR OR BOT'S CONCERNS.
YOU KNOW, THERE, THERE'S BEEN A LOT OF, UH, TALK ABOUT, YOU KNOW, SOFTWARE AS A SERVICE IN GENERAL.
UH, YOU KNOW, HOW THAT MODEL MAY CHANGE WITH THE IMPLEMENTATION OF AI.
FIVE YEARS SEEMS LIKE A LONG TIME WHEN A, UH, BETTER PRODUCT MAY COME ALONG.
UM, YOU KNOW, THAT, THAT MIGHT DO THE SAME THING OR A BETTER THING AT A LOWER COST.
SO I WOULD BE SUPPORTIVE OF THIS AT A SHORTER TERM COMMITMENT.
BUT, UH, NOT, NOT AT FIVE YEARS.
THREE MINUTES AND OKAY, I GOT YOU, YOU MR. ENOCH.
MY COMMENTS WOULD BE SIMILAR TO THE ONES I MADE A COUPLE OF MEETINGS AGO, WHICH IS, UH, AND, AND I'VE NOTICED SINCE THEN, IF YOU LISTEN TO ANY BUSINESS RADIO OR LISTEN OR READ BUSINESS PUBLICATIONS, MANY, MANY COMPANIES NOW ARE CUTTING BACK ON THEIR LONG-TERM COMMITMENTS FOR
[00:45:01]
SAAS SOFTWARE AND THAT'S AFFECTED SERVICENOW.CROWDSTRIKE, IT'S A SER IT'S AFFECTED A LOT OF THE SOFTWARE COMPANIES REVENUES BECAUSE WHERE THEY COULD GO OUT AND BOOK A FOUR YEAR, FIVE YEAR CONTRACT IN THE FUTURE.
NOW THEY'RE BOOKING TWO AND THREE YEAR CONTRACTS.
AND, AND THE REASON FOR THAT IS BECAUSE PEOPLE DON'T KNOW WHAT AI IS GOING TO DO, GOING TO DO WITH THOSE SAAS SYSTEMS IN THE FUTURE OR WHETHER THEY GONNA BE, UH, SO CHANGE.
SO I UNDERSTAND THAT THERE'D BE A, A DIFFERENCE IN COST PER YEAR IF WE SHORTENED THIS FROM THREE TO TWO, IS MY UNDERSTANDING CORRECT.
UM, UNDER THE INFOR CONTRACT THAT WAS PROVIDED IN THE QUOTE THAT WAS PROVIDED, THE COST WOULD ACTUALLY INCREASE IN YEAR FOUR VERSUS, UH, A DECREASE IN COST.
AND WE DID A LOT OF RESEARCH ON, UM, YOU KNOW, SAAS SYSTEMS AND WHAT IS HAPPENING.
AND REALLY THE SAAS ENVIRONMENT IS JUST CHANGING, IT'S MODIFYING, UM, AS THE TECH ENVIRONMENT CHANGES AND WHAT WE'RE SEEING, UM, WE, YOU KNOW, WE WE'RE LOOKING INTO THE FORESTER AND DELOITTE AND A LOT OF OTHER REPUTABLE SOURCES THAT ARE TALKING ABOUT HOW DO YOU NAVIGATE THE, THE CURRENT ENVIRONMENT.
AND REALLY WHAT WE'RE SEEING IS THAT MORE NICHE, UM, SMALLER STANDALONE SYSTEMS, A SYSTEM THAT DOES ONE SPECIFIC THING IS REALLY WHERE THE, THE VIBE CODING AND THIS AI CODING IS REALLY HAVING AN EFFECT ON SAAS SYSTEMS. UM, THE, THE MARKET DOESN'T SEE, UM, ERP SYSTEMS REALLY LIKE LARGER ENTERPRISE SYSTEMS BEING AFFECTED FOR 5, 7, 10 YEARS INTO THE FUTURE BECAUSE ERPS DO SO MANY THINGS.
IT'S NOT JUST A SOFTWARE SYSTEM.
IT, IT SOLVES A PROBLEM FOR AN AGENCY AS A WHOLE BECAUSE IT DOES ACT AS THAT BACKBONE CENTRAL NERVOUS SYSTEM.
AND THE, THE VIBE CODING WITH THE, THIS, THESE OTHER SAAS SYSTEMS THAT ARE GOING AWAY AREN'T SOPHISTICATED ENOUGH TO BE ABLE TO SOLVE AN AGENCY'S FULL PROBLEM.
IT'S TARGETED ON VERY UNIQUE NICHE PROBLEMS. UM, AND EVEN IF WE WERE TO MAKE A CHANGE, UM, YOU KNOW, THE IMPLEMENTATION COST FOR A CHANGE LIKE THIS THAT WE HAVE IN THERE IS NEARLY $3 MILLION.
WE'RE TALKING ABOUT CHANGING OUT OUR FINANCIAL ACCOUNTING AND REPORTING SYSTEMS. SO THAT TOUCHES, I THINK I HAD LISTED IN THE PRESENTATION, NEARLY 30 SYSTEMS OR APPLICATIONS AT THIS AGENCY.
SO THAT'S NOT SOMETHING THAT WE TAKE LIGHTLY.
THAT'S WHY WE'VE ALSO HAD LAWSON FOR NEARLY 40 YEARS AS AN AGENCY.
SO WE THINK THAT WE'RE PUTTING OURSELVES IN A GOOD SITUATION IN LOCKING IN A FLAT PRICE FOR FIVE YEARS THAT'S GOING TO GENERATE SAVINGS FOR THE AGENCY AS WE GET THIS TRANSITION COMPLETED OVER WHAT WE'RE CURRENTLY PAYING NOW.
SO THIS YEAR ALONE, WE'RE PAYING OVER $800,000 TO SUPPORT OUR CURRENT ERP SYSTEM AND THESE OTHER DISPARATE SYSTEMS BECAUSE OUR CURRENT ERP SYSTEM DOESN'T PROVIDE THOSE.
AS SOON AS WE EXECUTE THIS CONTRACT WITH INFOR, WE CUT OUT 500,000 OF THAT IMMEDIATELY.
AND THEN ONCE WE'RE FULLY IMPLEMENTED, WE HAVE ADDITIONAL 300,000 PLUS IN THOSE DISPARATE SYSTEMS THAT I THINK WOULD BE MORE AFFECTED BY THIS CHANGE IN AI CODING.
UM, THOSE WOULD BE ELIMINATED AND BROUGHT INTO THAT ERP SYSTEM.
SO WE ARE LOOKING AT THIS AND WE'LL SEE SAVINGS AS AN AGENCY AS WE MOVE FORWARD.
SO, SO EVERYTHING YOU JUST DESCRIBED LOOKS BACKWARDS, NOT LOOKING FORWARDS IN MY VIEW.
AND, AND LOOKING BACKWARDS IN THE AI WORLD IS THE WRONG DIRECTION TO LOOK.
SO IIII DON'T HAVE ANY DOUBT THAT Y'ALL HAVE THOUGHT, THOUGHT ABOUT THIS AND GIVEN THAT VERY, AND, AND, AND YOU COULD BE RIGHT ON THAT, HOW MUCH WOULD IT COST US ON A MORE PER YEAR BASIS IF WE DIDN'T GO FIVE YEARS, WE WENT TWO OR THREE YEARS ON THIS CONTRACT.
SO THE QUOTE THAT WE RECEIVED FOR A THREE YEAR STARTED A 5% ESCALATION IN YEAR FOUR.
SO IT WOULD COST AN ADDITIONAL $60,000.
YEAH, SO, SO I'M, AND I'M, AGAIN, I'M NOT CONCERNED ABOUT THAT EITHER BECAUSE IN THREE YEARS THEY'RE NOT GONNA HAVE THE PRICING POWER TO GO UP IN THE FOURTH YEAR.
THEY'RE NOT GOING UP NOW A A LOT OF THE SAAS SYSTEMS ARE NOT GOING UP.
THEY'RE GETTING INCREASED, DECREASED, UH, TIME ON THE CONTRACTS AND DECREASE AT LEAST FLAT MONEY.
SO RIGHT NOW, IF WE NEGOTIATE A THREE YEAR DEAL, THEIR DEAL IS OKAY, WE'LL DO IT FOR THREE YEARS AT THE SAME PRICE ONE YEAR AND THREE EXCEPT THERE'LL BE AN ESCALATION OF FOUR OF 5% IN YEAR FOUR AND SOME OTHER ESCALATION IN YEAR FIVE, A 5% ESCALATION IN YEAR FIVE AS WELL.
SO OUR DELTA, THE COST OF OUR OPTION TO KEEP THIS THING OPEN IS 5% OF THE COST OF YEAR THREE AND 5% OF THE COST OF YEAR FOUR.
AND ABOUT HOW MUCH IS THAT? APPROXIMATELY? $60,000.
SO IF WE WERE TO SHORTEN THE CONTRACT, OUR MAX EXPOSURE WOULD BE $60,000 TO THE AGENCY.
AM I HEARING YOU CORRECTLY? UH, FOR THE SOFTWARE SERVICE SPECIFICALLY, YES.
IF YOU WERE TO WANT TO CHANGE SYSTEMS AT THE, THAT'S, THAT'S, I DON'T KNOW.
I'M, I'M NOT THREE YEARS IN THE FUTURE.
I JUST KNOW I WANT OPTIONS TO BE ABLE TO DO SOMETHING DIFFERENT AT THE END OF THREE YEARS.
AND IF I'M UNDERSTANDING CORRECTLY, THAT WOULD COST US $60,000 TO BUY THAT OPTION, SO TO SPEAK.
[00:50:01]
NEXT I HAVE MR. ABRAHAM THREE MINUTES.UM, DIRECTOR GREEN BEAT BEAT ME TO THE PUNCH.
UM, YEAH, I, I THINK, I THINK WE HAVE TO, I, I, I WON'T BE VOTING FOR A FIVE YEAR DEAL AND I KIND OF BROUGHT IT UP EARLIER.
UM, BUT THREE YEARS WITH THE OPTION IS SOMETHING THAT I, I THINK KIND OF PLAYS INTO WHAT WE'RE, WHAT I'M SEEING IN THE LANDSCAPE AND ON THE STUFF I DEAL WITH.
UM, AND I, I THINK THAT'S A, A HEALTHY COMPROMISE BECAUSE AT THE SAME POINT, I MEAN A BIG, A BIG THING THAT A LOT OF PEOPLE MAY NOT HAVE HEARD IS RIGHT NOW YOU GUYS ARE ON SERVERS ON PREMISE, YOU'RE NOT EVEN IN THE CLOUD, YOU KNOW? MM-HMM
I HAVE, I HAVEN'T NOT SURFED IN THE CLOUD IN LIKE, I DON'T KNOW, 10 YEARS, YOU KNOW, MY, MY FIRST CFO JOB.
UM, SO, SO I DO, I DO RESPECT THE CHANGE, BUT I THINK LOCKING IN THAT LONG IS JUST, I, I THINK IT'S JUST WE'RE OPENING OURSELVES UP TO OTHER STUFF THAT MAY BE OUT THERE IN A COUPLE YEARS.
UM, MS. WON KRAUS THREE MINUTES.
UM, SOME OF MY QUESTIONS, UM, HAVE ALREADY BEEN ASKED, UH, MAINLY THE THREE VERSUS FIVE YEARS.
I COULD GO EITHER WAY FOR THAT, THAT PART.
UM, MY CONCERN IS THE IMPLEMENTATION AND THE DELAY.
IT MAY TAKE THREE TO SIX MONTHS TO FIND CEO.
UM, WHAT IS THE DOWNSIDE? BECAUSE I'M CONCERNED OF THE LACK OF PATCHES, THE LACK OF, UH, SECURITY AND THE LACK OF SUPPORT DURING THE THREE TO SIX MONTHS.
WE CANNOT AFFORD A TECHNOLOGY, UM, INCIDENT THAT COULD PARALYZE OUR ENTIRE SYSTEM BECAUSE OF LACK OF A PATCH.
SO CAN YOU GIVE ME A LITTLE BIT MORE INFORMATION ON THAT? SURE.
SO, UM, I TO, YOU KNOW, MAKE AN ANALOGY, UM, RESPECTFULLY, THE CEO DOESN'T GENERALLY GET INVOLVED IN THAT LEVEL OF DECISION.
UM, THE CEO WILL DELEGATE, UH, THE DECISION MAKING PROCESS AND, AND THE EXPERTISE TO THE, THE VARIOUS DEPARTMENTS THAT ARE THE SUBJECT MATTER EXPERTS AND WORK IN THOSE DEPARTMENTS ON A DAILY BASIS.
UM, FOR THIS INSTANCE, UH, YOU KNOW, THAT FALLS TO ME, UH, AS A CFO COVERING TECHNOLOGY, PROCUREMENT AND FINANCE.
UM, YOU KNOW, IT'S KIND OF LIKE, YOU KNOW, THE CEO TELLING, UM, OUR COO SPECIFICALLY WHAT ONBOARD SYSTEMS WE SHOULD BE USING, RIGHT.
VERSUS WHAT OUR OPS FOLKS, THEY'RE THE EXPERTS KNOW AND NEED AND WANT TO USE, UM, ON THEIR BUSES.
UM, THIS PROCESS HAS BEEN ONGOING SINCE ABOUT 2019.
UH, WE WERE SCHEDULED TO REPLACE THE FULL ERP, UH, BACK IN 20 20, 20 21.
UM, BECAUSE OF COVID, BECAUSE OF THE UNCERTAINTY OF COVID, UH, THE PROCESS KIND OF GOT PHASED.
AND SO THE FIRST PHASE OF THAT WAS THE HUMAN RESOURCE CAPITAL, HR AND PAYROLL.
AND THAT'S WHEN, UH, WORKDAY WAS SELECTED IN 2022 AND THEN WE TRANSITIONED IN 23.
UM, I THINK IT'S, IT'S DEFINITELY TIME FOR US TO GET OFF OF AN ON-PREM SYSTEM AS, UH, DIRECTOR ABRAHAM INDICATED AND, UM, MODERNIZE WITH THE TIMES AND BE MORE EFFICIENT WITH A SYSTEM THAT CAN DO A LOT OF WORK FOR US, UH, VERSUS SPENDING A LOT OF STAFF TIME DOING DATA ENTRY AND MANUAL WORK.
AND I WAS ACTUALLY WANTING TO FOCUS MORE ON THE THREE TO SIX MONTHS DELAY.
UM, WHEN DID, OR WHEN DOES THE SUPPORT STOP? SO LIKE I MENTIONED EARLIER, THE, UH, THE CONTRACT THAT WE HAVE FOR OPERATIONS AND MAINTENANCE OF THE ON-PREM SYSTEM, THEY'LL CONTINUE TO SUPPORT LIKE OUR HARDWARE, OUR INSTANCE OF LAWSON, BUT THERE WILL BE NO MORE, UM, UPDATES TO THE SYSTEM, SECURITY PATCHES, UPGRADES.
IF SOME KIND OF NEW TECHNICAL GUIDANCE COMES OUT OR GASB STANDARD COMES OUT THAT REQUIRES SOME KIND OF REPORTING COMPLIANCE, WE'RE NOT GONNA GET THAT UPDATE AND SUPPORT IN THE OLD SYSTEM.
BUT WE WILL RECEIVE THAT AUTOMATICALLY AS PART OF OUR COST IN THE UPDATED SYSTEM.
WHAT'S THAT DATE THOUGH? IS WHAT I'M TRYING TO FIND OUT.
DO YOU KNOW THE EXACT DATE? IT'S IN 2027.
IT'S IN 2027, SO NEXT FISCAL YEAR.
BUT THIS IS, I WILL SAY THAT, YOU KNOW, EVEN DELAYING THE DECISION THREE TO SIX MONTHS, UM, IT'S DELAYING IMPLEMENTATION, IMPLEMENTATION IS SLOTTED TO TAKE BETWEEN 18 AND 24 MONTHS FOR A SYSTEM OF THIS MAGNITUDE.
SO WE'RE PUSHING, YOU KNOW, FURTHER INTO THE FUTURE WHEN WE COULD BE AND DELAYING REALIZATION OF SAVINGS AS AN AGENCY.
AND, UH, MY CONCERN IS ALSO HAVING A GOOD MIGRATION PLAN AS WELL.
AND THAT'S PART OF THE, THE SUPPORT SERVICES.
[00:55:01]
AND SUPPORT SERVICES.WE SPECIFICALLY ASKED FOR A FULL YEAR OF POST GO LIVE SUPPORT, UM, TO ENSURE THAT WE HAVE THE CONTINUED US BASED SUPPORT.
UM, EVEN AFTER WE GO LIVE WITH THIS NEW SYSTEM, WE DO HAVE, UM, CHANGE MANAGEMENT ON BOARD AS WELL BECAUSE THAT IS ALWAYS A HUGE PART OF THE SUCCESSFUL LAUNCH OF A NEW SYSTEM, IS MAKING SURE THAT WE'RE PROPERLY COMMUNICATING WITH OUR STAFF AND THE PEOPLE THAT ARE INTERACTING WITH THAT SYSTEM.
AND I THINK YOU'VE ANSWERED MY QUESTIONS.
I'LL BE SUPPORTING THIS, UH, CHANGE.
UM, I'M AGNOSTIC AS TO WHETHER THREE TO FIVE YEARS I COULD GO EITHER WAY.
SO I'LL JUST SEE HOW THE AMENDMENTS, UH, FLOW, UH, ON THIS PARTICULAR MOTION.
I WILL THEN MAKE A MOTION
YEAH, LET'S, IF WE CAN HAVE SOME MORE DISCUSSION, SOME MORE DISCUSSION BEFORE FRIENDLY AMENDMENTS HAD.
ANYONE ELSE? MR. KENNEDY? THREE MINUTES.
UM, YOU KNOW, I THINK THIS IS IMPORTANT BACKGROUND, UH, INFRASTRUCTURE IMPROVEMENT FOR THE AGENCY.
UM, I DO FIND, UH, MARY'S POINT OR QUESTION, UH, COMPELLING TO ASK AND FOR THE BOARD TO CONSIDER IS THE $60,000 PURCHASE ESSENTIALLY WORTH THAT FLEXIBILITY, RIGHT? AND I THINK THAT'S SOMETHING THAT WE HAVE TO HAVE TO WEIGH.
SO MY QUESTION TO YOU THEN IS WHAT IS THE DOWNSIDE OF PAYING THAT $60,000 PRICE TAG FOR THAT FLEXIBILITY? UH, IS IT THE FACT THAT YOU JUST MENTIONED THAT WE WE'RE DEALING WITH 18 TO 24 MONTHS OF IMPLEMENTATION AND THEN, YOU KNOW, THAT EATS UP THE MAJORITY OF THAT THREE YEARS, ALL OF A SUDDEN.
IS THAT THE, ESSENTIALLY THE NEED TO HAVE THAT FIVE YEAR WINDOW? UM, I WANNA MAKE ONE CORRECTION.
I GOT A PHONE, A FRIEND, UM, FROM MY CREW BEHIND ME.
UH, THE COST FOR THE OPTIONS WOULD BE $95,000, NOT 60,000.
SO I WANNA MAKE THAT CORRECTION.
UM, SO YES, IT DOES EAT INTO IT.
SO ESSENTIALLY ONCE WE GET IMPLEMENTED AND WE'RE UP AND LIVE, WE HAVE A YEAR, YEAR AND A HALF LEFT ON OUR BASE CONTRACT.
UM, IT IS ALSO MY PERSONAL OPINION THAT I, I REALLY DON'T THINK ERP SYSTEM SOFTWARE COSTS ARE GOING TO DECREASE.
UM, WE HAVE ONLY EVER SEEN SOFTWARE COSTS INCREASE, AND I UNDERSTAND THAT THERE'S A CHANGE IN THE ENVIRONMENT, UM, AND AI IS, IS CHANGING, UM, THE LANDSCAPE OF TECHNOLOGY.
UM, BUT TECHNOLOGY HAS CHANGED SIGNIFICANTLY OVER THE LAST 10 TO 15 YEARS AND COSTS HAVE ONLY INCREASED ON THOSE AS WELL.
YEAH, NO, IT KIND OF MAKES ME THINK OF WHEN THE MANUFACTURING OF SHOES MOVES FROM ONE PLACE TO ANOTHER FOR CHEAPER LABOR, THE COSTS DON'T GO DOWN
UM, SO I GUESS THAT'S, THEN IT BRINGS UP THE NEXT QUESTION WHERE IS, IS THE ONE YEAR ENOUGH FOR US ONE YEAR TO ONE AND A HALF YEARS AFTER FULL IMPLEMENTATION? IS THAT ENOUGH FOR US TO FULLY EVALUATE, OKAY, WAS THAT THREE YEARS SUCCESSFUL THEN, OR DO WE ACTUALLY NEED THEM? OKAY.
WE PROBABLY NEED MORE LIKE TWO TO THREE YEARS EFFECTIVELY TO FULLY ESSENTIALLY BETA TESTS THE SYSTEM AND THE TIME IT TAKES FOR THAT SOFTWARE AS A SERVICE TO EVOLVE WITH WHATEVER NEW TECHNO TECHNOLOGY TOOLS THAT THEY MAY BE IMPLEMENTING THROUGHOUT THAT TIME.
WOULD YOU SAY THAT THAT'S ESSENTIALLY THE, THE REASONING BEHIND GOING FOR THE FIVE? YES.
IT, UM, A, A SYSTEM THIS COMPLEX, UM, AND THAT TOUCHES SO MANY ASPECTS OF OUR BUSINESS WILL TAKE TIME TO SUSS OUT ANY POTENTIAL PROBLEMS. THE SUCCESS TWEAKS THAT WE NEED TO MAKE.
UM, THERE ARE ALSO, UH, EFFECTS OF THIS TRANSITION.
UM, THERE ARE EFFECTS OF THIS ON OTHER ENTERPRISE BASED SYSTEMS THAT WE NEED TO BE LOOKING TO REPLACE, UM, THAT WILL BE COMING TO THE BOARD IN THE NEAR FUTURE.
ONE OF THEM IS OUR ENTERPRISE PROJECT MANAGEMENT SYSTEMS. SO DELAYING THIS THEN DELAYS THAT.
SO YOU START STACKING, UM, THE COST AND IMPACT OF THOSE OTHER SOFTWARE SYSTEMS ON TOP OF EACH OTHER AND THEY START TO COMPOUND.
YEAH, I DON'T FIND THE, THE NEED FOR DELAY TO BE, TO BE PARTICULARLY COMPELLING FOR THE NEW CEO FOR THE REASONS THAT YOU MENTIONED, PLUS THE IMMEDIATE COST SAVINGS THAT THE IMPLEMENTATION WOULD, UH, PROVIDE FOR US THAT WOULD PROBABLY EVEN EXCEED, DO EXCEED WHATEVER THOSE COSTS FOR THE, THE FOURTH YEAR, FIFTH YEAR OPTIONS MIGHT BE.
UM, SO I AM NOT PARTICULARLY INTERESTED IN, IN DELAYING THIS.
UM, I SUPPOSE I COULD BE SWAYED IF IT ALLOWS US TO MOVE FORWARD ON THE THREE PLUS TWO OR, OR HOWEVER WE WANNA DO IT.
BUT I DO THINK FOR YOUR REASONING THAT WE SHOULD GO WITH THE FIVE AND I WOULD BE, I WOULD BE SUPPORTING THE FIVE.
IS, IF WE, IF WE DID MOVE FROM THREE OR TWO, THREE FROM FIVE, WILL THAT GIVE US ANY DELAY IN GETTING THIS CONTRACT LAUNCHED? OR COULD WE, IF WE VOTED ON IT FOR THREE YEARS RIGHT NOW, CAN WE MAKE THE CHANGE AND JUST DO IT AND LET IT LET THE CONTRACT START?
[01:00:01]
UM, I'M GONNA LOOK TO GENERAL OR OUR ACTING CEO.WE DO HAVE VALID QUOTES, UH, FOR BOTH A FIVE YEAR OPTION AND A THREE YEAR, UM, OR EXCUSE ME, A FIVE YEAR BASE TERM AND A THREE YEAR BASE TERM WITH TWO OPTION YEARS.
SO I THINK WE COULD MOVE FORWARD WITH EITHER ONE OF THOSE, UM, BASED ON DIRECTION FROM THE BOARD TODAY.
JEAN'S NODDING YES, THAT THAT'S CORRECT.
WE, WE RECEIVED PRICING FOR A FIVE YEAR AND A THREE WITH TWO ONE YEAR OPTIONS.
SO THOSE PRICINGS ARE, OR, OR THERE, AND AS LONG AS I'M HERE AND THERE'S NO, NO, UM, UM, IMPEDIMENT OR ANYTHING TO THE IMPLEMENTATION INTEGRATION THAT THEN THAT SHOULDN'T BE AN ISSUE.
ARE YOU READY FOR A MOTION, MR. CHAIRMAN? UH, THERE'S A MOTION ON THE FLOOR I THINK.
OH, THEN AND I, I, I STILL HAVE A QUESTION IF THAT'S OKAY.
WHAT, WHAT IS THE MOTION AS IT IS RIGHT NOW? THE MOTION RIGHT NOW IS TO APPROVE STAFF RECOMMENDATION TO APPROVE FIVE GET THANK YOU.
THANK YOU MR. MCGREGOR AT THREE, UH, THREE MINUTES.
UH, JAMIE, MY, MY ORIGINAL QUESTION WAS THE ONE THAT UM, UH, PATRICK KENNEDY JUST ASKED.
UH, NOW THE SAME QUESTION'S SLIGHTLY DIFFERENT.
IT, ASIDE FROM THE PRICE DIFFERENCE, WHAT'S THE DOWNSIDE OF DOING THE THREE YEAR, THE THREE YEAR WITH A OPTION FOR TWO ADDITIONAL YEARS? UM, SO I MEAN, IT, IT COMES AT A COST OF $95,000.
AND, UM, Y'ALL HAVE TO PROMISE THAT WHEN I COME BACK IN THREE YEARS AND ASK TO EXERCISE OPTIONS AND INCREASE THE CONTRACT VALUE, I'M NOT GONNA GET CHEWED OUT WHILE I'M STANDING UP HERE.
GIVEN THAT I THINK THAT FOR ME, UM, THAT VERSION, IF SOMEBODY'S GONNA MAKE A FRIENDLY AMENDMENT MAKES SENSE.
WE'RE, WE'RE HEDGING, UH, ON WHETHER OR NOT AI IS GONNA AFFECT THE, THE, THE, THE FEES OF THIS IN THE FUTURE? I'M NOT COMFORTABLE, I'M NOT AN EXPERT IN SOFTWARE.
I, I TEND TO RELY ON YOU GUYS WHO HAVE LOOKED INTO IT.
UH, BUT UM, IT'S, IT'S A FAIR HEDGE.
I THINK, UH, YOU KNOW, IF IT GO WELL, THAT'S ALL, IT'S, SO I, I WOULD SUPPORT, I WOULD WELCOME, UH, A FRIENDLY AMENDMENT TO MAKE IT A THREE YEAR WITH TWO YEAR, UH, SORRY, A THREE YEAR PLAN WITH OPTIONS FOR TWO ADDITIONAL YEARS.
UM, I'M GONNA TAKE A, UM, I'M GONNA TAKE A A MOMENT TO MAYBE ASK SOME CLARIFYING QUESTIONS ON PROCEDURALLY HOW WE POSSIBLY MAY GO ABOUT THIS.
21 IS THE ONLY ITEM THAT WE'RE ON THE RECORD FOR RIGHT NOW.
UM, WHAT AMENDING TO, UM, AMENDING THE TERMS OF THE CONTRACT, WHAT WE NEED TO BE DOING, THAT'S ITEM 21 AND 22? OR HOW, HOW ARE THESE INTERTWINED, IF ANY? NO, THE, THE TERM REALLY ONLY APPLIES TO ITEM 21 'CAUSE THAT IS THE ACTUAL SOFTWARE ITSELF.
UM, THE SECOND CONTRACT IS MORE FOR THE, THE IMPLEMENTATION AND SUPPORT SERVICES, WHICH DON'T SPAN THE SAME TIME PERIOD.
SO ANY, IF ANY, UM, TERM CHANGES TO WHAT STAFF'S RECOMMENDING RIGHT NOW ONLY NEED TO APPLY TO 21? CORRECT.
AND MEMBERS, WE ARE ONLY ON ITEM 21 RIGHT NOW.
UH, AND JUST SO I CAN CLARIFY, THE TOTAL NOT TO EXCEED FOR THE THREE YEAR IS 6,003,000 800, 830 5057 CENTS.
IS THAT SOUND CORRECT? SO JEAN, DO YOU HAVE THAT PRICING SHEET IN FRONT OF YOU? I DON'T HAVE THE YES YOU WANT TO.
SO WHAT WE WOULD BE LOOKING TO DO, UM, SO CURRENT CONTRACT NOT TO EXCEED IS THE, UH, 3.2 MILLION.
UM, SO IF YOU WERE GOING TO SWITCH TO A THREE YEAR, AND MY NEXT QUESTION WOULD BE, ARE YOU GOING TO, WOULD YOU LIKE ME TO INCLUDE THE OPTION YEAR PRICING AS IT'S QUOTED RIGHT NOW IN THE TOTAL NOT TO EXCEED ON A THREE YEAR PLUS TWO YEAR OPTION SO THAT STAFF HAS THE ABILITY TO EXERCISE SET OPTIONS IF THE VENDOR IS PERFORMING, UM, RESPONSIBLY AND MARKET CONDITIONS HAVEN'T CHANGED SIGNIFICANTLY, SO WE'RE CAPTURING THAT ENTIRE COST OR JUST THE THREE YEARS AND I HAVE TO COME BACK FOR, UM, BOARD AUTHORIZATION TO EXERCISE SET OPTIONS.
I, I THINK SINCE I MADE THE MOTION, I, I THINK YOU WOULD'VE TO COME BACK BECAUSE THE, THE, THE, THE QUESTIONS THAT THE BOARD
[01:05:01]
HAS, UH, HAVE TO DO WITH WHAT, WHAT'S THE EFFECT OF AI.SO AT THAT TIME, IF, IF WE GO THAT OPTION, I MYSELF WOULD WANT TO, UH, HEAR AN UPDATE AFTER THE THIRD YEAR OR BEFORE WE GET INTO THE FIRST YEAR OPTION, FOURTH YEAR OPTION.
SO, UM, WHAT I DID WAS I TOOK THE, THE THREE YEAR BASE AND THEN, UM, I DID ADD A 10% CONTINGENCY.
SO THE UM, COST FOR THAT WOULD BE 2,000,050 2007 OR SEVEN, EXCUSE ME, $2,052,800.
THAT IS THREE YEARS OF THE CONTRACT AT 6 22 0 6 OH PER YEAR.
UM, I CAN ELIMINATE THE CONTINGENCY IF THAT IS A PROBLEM FOR ANY OF THE BOARD MEMBERS.
'CAUSE WE'RE LOOKING AT ITEM JUST ITEM 21.
RIGHT, BUT YOU'RE SAYING JUST THE, ARE YOU SAYING PER YEAR OR TOTAL THE TOTAL NOT TO EXCEED? I THOUGHT THE TOTAL NOT TO EXCEED.
I THOUGHT THE TOTAL FOR THREE YEARS IS AROUND 6 MILLION THOUGH FOR BETWEEN THE TWO CONTRACTS.
SO WE'RE, I'M TALKING IMPLEMENTATION IS NOT INCLUDED.
I'M SORRY, IN THIS NUMBER, THIS IS JUST THE SOFTWARE.
COULD YOU GIVE, COULD YOU GIVE US THE TOTAL NOT TO EXCEED FOR JUST THREE YEARS? UM, FOR JUST 21.
SO TWO ONE, SO WITH NO CONTINGENCY MM-HMM
WELL, IT'S 180 1 0.41, BUT WE DON'T USUALLY GET THAT SPECIFIC IN THE UH, OKAY.
SEE, UH, I THINK THERE'S ALSO SOME CLARITY WE WANT TO ENSURE, UM, FOR THE, FOR THE PURPOSES OF, UM, THE PROCUREMENT PROCESS ITSELF AND IF ANY ADDITIONAL OUTCOMES COME ABOUT IT.
WE JUST WANT TO ENSURE WE HAVE THAT PROPER ON, ON OUR END AS WELL.
THE PROCUREMENT PROCESS HAS, HAS BEEN SOUND, UH, THROUGH THE ENTIRE NO, I BELIEVE THAT.
YEAH, I'M JUST SAYING IF THERE ARE ANY, ANY FOLKS THAT DON'T, WE JUST WANNA MAKE SURE WHAT WE'RE ABOUT TO DO RIGHT NOW IS VERY PROPER.
ANYONE HAVE ANY QUESTIONS? UH, IN GENERAL, MS. GARCIA FOR THREE MINUTES? THANK YOU, MR. CHAIRMAN.
UM, IF WE MAKE ANY CHANGES TO WHAT YOU'RE PROPOSING TODAY, DOES THAT AFFECT, DO WE HAVE TO GO BACK AND ASK THE OTHER BIDDER TO ALSO BID ON A THREE YEAR? I KNOW THERE'S NUMBERS HERE IN THIS, IN THIS, BUT DO WE HAVE TO GO BACK? OKAY.
THEY WERE BIDDING ON FIVE AND THREE, SO I JUST WANTED TO MAKE SURE THAT THAT WAS A FAIR PROCESS.
SHE GAVE US ANY OTHER QUESTIONS FOR MEMBERS? WE'RE ALMOST AT THE 0.186.
MR. ENOCH, DO YOU HAVE, UM, AN AMENDMENT? I MOVE TO AMEND AND AWARD THE CONTRACT FOR ERP SOFTWARE TO DLT FOR A FEE YEAR THREE YEAR PLUS TWO ONE YEAR OPTIONS FOR AN AMOUNT NOT TO EXCEED $1,866,182.
AND SECOND TO AMEND THE MOTION TO APPROVE AS STATED BY MR. ENOCH FOR NOW A THREE PLUS ONE AND ONE, UH, TERM YEARS FOR DLT AND THE AMOUNT TO NOT TO EXCEED 1.8 6 6 1 8 2.
ANY DISCUSSION ON THE AMENDMENT? NO, BUT FOR THE RECORD, I ACCEPT THE AMENDMENT.
YEAH, THAT'S KIND OF AN IMPORTANT RECORD.
WHO, WHO WAS THE SECOND ON THE ORIGINAL? I THINK IT WAS, UM, I THINK IT WAS.
SO WE'RE JUST GONNA TAKE ONE VOTE ON IT SINCE IT WAS, UH, UH, ACCEPTED BY THE, UH, THE MAKER AND THE SECOND.
ANY FURTHER DISCUSSION ON THE MOTION AS AMENDED.
SEEING NONE, UM, LET'S TRY THIS ON THE MACHINES PLEASE INDICATE YOUR VOTE AND THAT PASSES 13 TO ONE.
[22. Approval of Contract for Enterprise Resource Planning Phase 2 Software Implementation and Support Services (Patrick J. Kennedy/Jamie Adelman)]
NEXT ITEM IS NUMBER 22, APPROVAL OF CONTRACT FOR ENTERPRISE RESOURCE PLANNING, PHASE TWO SOFTWARE IMPLEMENTATION AND SUPPORT SERVICES.THEIR MOTION TO APPROVE AS IS, IT'S BEEN MOVED THERE.
[01:10:01]
NONE, PLEASE INDICATE YOUR VOTE ON THE MACHINE AND THAT PASSES 12 TO ONE.[23. *Briefing on Potential May 2026 Service Changes and Financial Implications (Patrick J. Kennedy/Trey Walker/Jamie Adelman)]
NEXT WE WILL HAVE A BRIEFING ON POTENTIAL MAY, 2026 SERVICE CHANGES AND FINANCIAL IMPLICATIONS.AND FOR THE RECORD, WE WILL BE GOING INTO EXECUTIVE SESSION ON THIS, SO IF THERE'S ANYTHING PRIVILEGE, HOLD YOUR QUESTIONS UNTIL THAT TIME PLEASE.
BOARD OF DIRECTORS AND MR. GARMA.
I'M THE INTERIM VP FOR DART SERVICE PLANNING AND SCHEDULING, AND I'M JOINED BY OUR CHIEF FINANCIAL OFFICER, JAMIE ALDERMAN.
AND WE WILL BE JOINTLY DELIVERING THIS PRESENTATION, UM, POTENTIAL, UM, SERVICE CHANGE AND FINANCIAL IMPLICATIONS ASSOCIATED WITH THE CITY WITHDRAWAL ELECTIONS IN MAY 26TH.
AS YOU KNOW, THREE CITIES, EDISON, HIGHLAND PARK, UNIVERSITY PARK, HAVE CALLED WITHDRAW ELECTIONS FROM DART.
AND THE EARLY VOTING IS GOING ON.
THE ELECTIONS WILL BE HELD ON THIS COMING SATURDAY, MAY 2ND.
SO IF VOTERS IN ANY CITY APPROVE WITHDRAWING FROM DART, WE ARE REQUIRED TO CEASE ALL SERVICES TO THAT CITY THE DAY AFTER THE VOTES ARE COUNTED.
UH, DART HOSTED A NUMBER OF PUBLIC MEETINGS ACROSS THE SERVICE AREA IN FEBRUARY AND MARCH, AND ALSO A FORMAL PUBLIC HEARING IN LATE LATE MARCH TO INFORM THE POTENTIAL SERVICE IMPACT.
SO WE'RE TAKING THIS BRIEFING AS AN OPPORTUNITY TO, UH, BRIEF BRIEFLY, UM, REFRESH THE MEMORY ABOUT THE POTENTIAL SERVICE IMPACT ON FINANCIAL IMPLICATIONS, UM, RELATES TO THE POTENTIAL CITY WITHDRAWALS.
SO I'M GONNA GO OVER POTENTIAL SERVICE CHANGES FIRST, HERE'S A QUICK LIST OF THE OVERVIEW OF POTENTIAL SERVICE CHANGES RANGING FROM, UH, RAIL STATION, BUS STOP CLOSURES TO GOLINK COVERAGE REDUCTION AND PARATRANSIT DISCONTINUATIONS.
UH, SOME OF THOSE CHANGES ARE ONLY APPLIED TO A CERTAIN CITY.
SOME OF THEM GONNA BE APPLIED FOR ALL THREE CITIES.
SO WE'RE GONNA GO INTO EACH TYPE OF THE SERVICE POTENTIAL SERVICE CHANGE IN THE NEXT SEVERAL SLIDES.
TALKING ABOUT POTENTIAL RAIL STATION CLOSURE.
FIRST, THIS ONLY APPLIES TO ADDISON.
SO IF ADDISON PULLS OUT THE SILVER LINE, ADDISON STATION WOULD BE CLOSED.
TRAINS WILL BE PASSING BY THAT STATION WITHOUT STOPPING, AND IT'S GONNA IMPACT HUNDREDS OF RIDERS ON DAILY BASIS.
POTENTIAL BUS STOP AND TRANSIT CENTER CLOSURES.
AND THIS WILL IMPACT ALL THREE CITIES.
THE BIGGEST IMPACT WOULD APPLY TO ADDISON WITH MORE THAN 80 BUS STOP AND TRANSIT CENTER CLOSURES ASSOCIATED WITH 11 BUS ROUTES, HIGHLAND PARK AND UNIVERSITY PARK.
UM, BOTH WILL HAVE, UH, A COUPLE OF DOZENS OF BUS STOP CLOSURES AS WELL.
TALKING ABOUT ADDISON A LITTLE BIT MORE.
UM, WITH THE POTENTIAL CLOSURE OF ADDISON TRANSIT CENTER, ALL THE 11 ADDISON BUS ROUTES CURRENTLY MERGE INTO THE TRANSIT CENTER WOULD HAVE TO BE REALIGNED TO THE EAST TO THE NORTH TRAIL STATION AND PRESTONWOOD SHOPPING CENTER AREA TO PRESERVE CONNECTIONS AS A SHORT TERM SOLUTION.
AND STAFF WILL CONTINUE TO EVALUATE LONGER TERM SOLUTION TO HELP IMPROVE THE RIDER EXPERIENCE OVER THIS TEMPORARY SHORT-TERM SOLUTION.
ALSO, WITH THE POTENTIAL ADDISON TRANSIT CENTER CLOSURE, UH, THAT MEANS THE ADDISON RESIDENTS AND BUSINESS WILL LOSE ACCESS TO THIS VERY ACTIVE MULTIMODAL TRANSIT CENTER, UM, WHICH S OF THE PEOPLE ARE IN USING ON DAILY BASIS RIGHT NOW.
UM, ADDISON AS A VERY DYNAMIC COMMUNITY, ALSO HOSTS A SPECIAL EVENTS ALL YEAR ROUND, INCLUDING THE VERY POPULAR, UH, KABOB TOWN IN JULY.
SO WITH THE CLOSURE OF ADDISON TRANSIT CENTER AND THE SERVICE IN ADDISON, THAT MEANS, UM, PEOPLE WILL LOSE ACCESS TO TRANSIT TO GO INTO THOSE SPECIAL EVENTS.
AND DART HAS BEEN EFFECTIVELY RELIEVED THE, UH, SPIKE MOBILITY DEMAND DURING THOSE SPECIAL EVENTS, UH, NOT ONLY TO THOSE WHO TOOK DART TO PARTICIPATE THOSE EVENTS, BUT ALSO WE HAVE BEEN OFFERING OUR FACILITIES AS A DART ON OVERFLOW PARKING DURING THOSE EVENTS FOR THOSE WHO DROVE TO PARTICIPATE THOSE EVENTS.
SO WITH THE POTENTIAL, UH, CLOSURE OF THE ADDISON TRANSIT CENTER, THOSE BENEFITS WILL BE GOING AWAY AND DART TRANSIT FACILITY WILL BE FENCED AND SECURED.
THIS WILL ALSO IMPACT THE TRANSIT ORIENTED DEVELOPMENT PROJECT, ADDISON JUNCTION BEING APPROVED BY THE ADDISON COUNCIL.
SO THE SHADED AREAS ARE DART PROPERTIES, WHICH YOU CAN SEE IS A CORE PART OF THE TOD PROJECT.
SO WITH, UM, ADDISON POTENTIALLY LEAVING DART, THIS WILL JEOPARDIZE THIS PARTNERSHIP AS WELL TALKING ABOUT POTENTIAL GOLDEN
[01:15:01]
COVERAGE REDUCTION.SO THIS WILL IMPACT ALL THREE CITIES.
UM, ADDISON CURRENTLY HAS AN EXISTING LINKAGE FROM ADDISON TRANSIT CENTER TO THE COLOR SPRING GOING ZONE.
SO WITH ADDISON PULLS OUT THIS LINKAGE WILL BE DISCONTINUED AND ALSO THE VITU PARK AND WEST SIDE OF THE ADDISON TOWN CENTER.
COVERAGE UNDER THE FARMER'S BRANCH GO ZONE WOULD BE REMOVED AS WELL.
UM, LAST YEAR DARTBOARD APPROVED A CITYWIDE GOLDEN ZONE FOR ADDISON.
IF ADDISON LEAVES DAR, THIS ZONE WILL NOT BE IMPLEMENTED.
SIMILARLY FOR PARK CITIES, UH, THE PARK CITY'S GOLDEN ZONE COVERS THE ENTIRETY OF THE HIGHLAND PARK AND A SIGNIFICANT PORTION OF UNIVERSITY PARK.
UM, THE ZONE ALSO BUILD A DIRECT CONNECTION FROM PARK CITIES TO THE LEFT FIELD AIRPORT.
SO IF ANY OR BOTH OF THE PARK CITIES LEAVING, UM, DART THE, THEIR COVERAGE UNDER THE GO LINK PARK CITY GOING ZONE WILL BE REMOVED.
THERE IS ALSO GOING TO BE POTENTIAL PARATRANSIT DISCONTINUATION TO ANY OF THE CITIES, UM, WITHDRAWING FROM DART AS WELL.
AND THAT INCLUDES A DA PARATRANSIT SERVICE, UH, ENTIRELY WITHIN THAT CITY OR TWO FROM A DIFFERENT CITY.
FINALLY, BUT NOT LEAST THE SIDE SPEC OF SHADOW PARTNERSHIPS WILL BE POTENTIALLY IMPACTED AS WELL.
SO DART AND SMU HAS A LONGSTANDING, UH, SMU SHADOW PARTNERSHIPS UNDER THE SITE SPECIFIC SHADOW POLICY.
UM, IF UNIVERSITY PARK LEAVES DART, THEN THIS WILL CHANGE THE NATURE OF THE PARTNERSHIPS AND DART MAY HAVE TO, UM, TERMINATE THIS CONTRACT AND, UM, STOP THE FINANCIAL CONTRIBUTION, UH, TO THE SHADOW OPERATION.
AND THIS WILL ALSO, UM, MAKE, UM, DART HAVE TO REASSESS THE TRANSIT PASS PRICE OFFERED AS A HUGE DISCOUNT AS PART OF THE SHADOW AGREEMENTS FOR THE SMU STUDENTS.
UM, AS A NON-ART SHADOW SERVICE.
UH, WE WILL ALSO NEED TO ESTABLISH AN ACCESS AGREEMENT FOR THE SMU SHADOW IF THEY CHOOSE TO CONNECT INTO, UM, THE MOCKINGBIRD STATION AS THEY'RE DOING TODAY.
SO, UM, WE'LL CLOSELY MONITORING THE, UM, ELECTION OUTCOME IN THE NEXT COUPLE WEEKS AND WE'LL BRING THE RELEVANT ACTION ITEM REGARDING THE SMU SHADOW TO THE BOARD FOR CONSIDERATION IN THE COMING MONTHS.
SO WITH A CRITICAL AND MASSIVE CHANGE, UM, WITH PENDING OUTCOME, UH, GOING ON.
SO THIS IS, UH, VERY IMPORTANT.
OUR COMMUNICATION TEAM HAS BEEN PUTTING THE COMMUNICATING SERVICE INFORMATION TO STAKEHOLDERS, BOTH INTERNAL AND EXTERNAL, UM, FRONT AND CENTER, UM, AND ALSO TO PREPARE OUR RIDERS FOR ANY POTENTIAL, UM, OUTCOME FROM THE ELECTIONS.
SO HERE IS A COMPREHENSIVE LIST OF MIXED TECHNIQUES OUR COMMUNICATION TEAM HAS DEVELOPED AND READY TO ADOPT, UM, RIGHT BEFORE THE ELECTION AND ALSO AFTER THE ELECTION AS WELL.
AGAIN, QUICK CALENDAR OF KEY EVENTS.
WE ARE HERE TODAY TO BRIEF YOU ABOUT THE POTENTIAL SERVICE CHANGE AND FINANCIAL IMPLICATION ASSOCIATED WITH THE POTENTIAL WITHDRAWAL PRIOR TO THE MAY 2ND WITHDRAWAL ELECTIONS.
AND I JUST GOT AN UPDATES ABOUT THE DATES OF THE CITY COUNCIL MEETINGS.
UM, SO ADDISON WILL BE HOSTING THEIR COUNCIL MEETING AT MAY 12TH, AND PARK CITIES WILL HOST SPECIAL COUNCIL MEETINGS, RELATES TO ELECTION AND MAY 13TH.
UM, SO IF ANY OF THEM PULL OUT FROM DART, THE SERVICE WILL BE STOPPED FOR THAT JURISDICTION THE DAY AFTER THEIR CITY COUNCIL MEETING.
SO MAY 13 OR MAY 14TH, BASED ON, UM, WHATEVER CITY IS, WE'RE GOING TO TURN OVER TO JAMIE TO COVER THE FINANCIAL IMPACT SECTION.
UM, SO FOR STARTERS, I I JUST WANNA REMIND EVERYONE THAT, UM, IF ANY ONE OF THE CITY'S COMBINATION THEREOF, UH, DO WITHDRAW DART CONTINUES TO COLLECT THE SALES TAX DOLLARS UNTIL THEIR FULL FINANCIAL OBLIGATION IS PAID OFF.
UM, HIGH LEVEL FROM A SALES TAX PERSPECTIVE, UH, WHAT WE'RE SEEING NOW, UM, THE THREE CITIES REPRESENT, UH, APPROXIMATELY 3.7% OF OUR TOTAL SALES TAX COLLECTIONS ANNUALLY.
UM, WE DO HAVE THE BREAKOUT HERE, UM, ADDISON AT ABOUT 1.9 HIGHLAND PARK AT APPROXIMATELY ONE AND UNIVERSITY PARK JUST SHY OF 1%.
UM, WE DO HAVE OUR ACTUALS THERE FOR FY 25 AT 33 MILLION AND AN ESTIMATE OF FY 26 AT 35 MILLION.
UM, AND THEN THERE IS A SIGNIFICANTLY LARGER IMPACT OVER THE 20 YEAR PLAN AT APPROXIMATELY $1 BILLION OVER THE 20 YEAR PLAN FOR THOSE THREE YEARS.
AND, UM, STAFF WILL PIVOT AND ADJUST BASED ON, UH, THE RESULTS OF THE ELECTIONS, UH, THIS WEEKEND.
SO WITH THAT, UM, WE ARE AVAILABLE TO ANSWER
[01:20:01]
ANY QUESTIONS, UM, AND WE WILL AWAIT DIRECTION FROM THE BOARD.ALRIGHT, MEMBERS QUESTIONS? MR. MCGREGOR? THREE MINUTES.
UM, JAMIE, FIRST ON THE LAST SITE THAT YOU HAVE, UM, I WANNA MAKE SURE I UNDERSTAND THIS.
IS, THIS IS WHAT THEY WOULD BE PAYING IF, IF THEY, IF THEY WERE NOT WITHDRAWING RIGHT? THE, THESE ARE THE ACTUAL COLLECTIONS THAT DART RECEIVES, UM, AS A PROPORTION OF OUR TOTAL SALES TAX FROM THOSE THREE CITIES, RIGHT? RIGHT, RIGHT.
SO I, I'D BE CURIOUS, AND YOU MAY NOT HAVE THIS, BUT WHAT ADDISON IN PARTICULAR, UH, IF THEY WITHDRAW, THEY, THEY'RE STILL GONNA PAY FOR THE SILVER LINE FOR A FEW YEARS, RIGHT? UH, THAT WILL BE INCLUDED IN THE CALCULATION OF THEIR WITHDRAWAL OBLIGATION? YES.
SO WE WOULD CONTINUE TO COLLECT THEIR SALES TAX DOLLARS UNTIL THEIR FULL OBLIGATION, RIGHT? UM, IS PAID ANY IDEA WHAT THAT AMOUNT IS, UM, OR HOW MANY YEARS? UH, ADDISON'S, SORRY TO PUT YOU ON THE SPOT, SORRY.
UM, ADDISON'S IS APPROXIMATELY THREE YEARS, AND THAT'S BASED ON THE LAST, UH, FORMAL, UH, UH, CALCULATION THAT WE DID.
THAT WAS AS OF FISCAL YEAR 24.
BUT, UM, I DISCLAIMER THAT, AND EVERY TIME WE RELEASE THESE CALCULATIONS, WE SAY THAT IT IS AN ESTIMATE, UM, AND THAT IT WILL HAVE TO BE HEAVILY SCRUTINIZED.
FOR EXAMPLE, FY 20 SILVER LINE WAS STILL, UM, A WORK IN PROCESS.
IT HAD NOT BEEN ALLOCATED AS A SPECIFIC ASSET TO ANY CITY BECAUSE IT WAS NOT IN REVENUE SERVICE.
SO THAT ESTIMATE THAT WE RELEASED FOR ADDISON FOR FY 24 WILL CHANGE BASED ON THE ALLOCATION OF SILVER LINE COSTS, UH, TO ALL OF THE CITIES.
AND AND HOW LONG, FOR HOW LONG WILL ADDISON CONTINUE TO PAY FOR THE SILVER LINE? UH, BASED ON THAT CALCULATION, IT WAS APPROXIMATELY THREE YEARS.
AND THAT WILL VARY BASED ON LIKE ACTUAL SALES TAX COLLECTIONS WITHIN THOSE YEARS AS WELL.
OH, BECAUSE THE CALCULATE, EXCUSE ME, THE CALCULATION IS DONE BASED ON, A LOT OF IT HAS TO DO WITH POPULATION.
UM, AND THEN THE SPREAD OF DART'S, TOTAL DEBT OBLIGATION ACROSS THE CITIES.
ADDISON'S POPULATION AS WELL AS, UH, HIGHLAND PARK, UNIVERSITY PARK ARE, ARE LOW IN COMPARISON TO MANY OF THE OTHER SERVICE AREAS.
I THOUGHT THAT WAS GONNA BE, UH, UH, I THOUGHT IT WAS GONNA BE LONGER.
UM, UH, A COUPLE OTHER QUESTIONS.
ONE IS, UM, IF, IF THEY DO WITHDRAW, UH, FOR THESE CITIES, HOW LONG BEFORE THEY CAN CALL ANOTHER ELECTION, IF THEY CHOOSE TO ASK AGAIN TO GET BACK ON GENE, THAT MAY BE FOR YOU.
SO IF THEY DO WITHDRAW, HOW LONG BEFORE THEY CAN COME BRING THE ISSUE UP AGAIN FOR A VOTE TO, TO DECIDE WHETHER OR NOT TO GET IT BACK INTO DART, UH, DR.
MCGREGOR, WHAT I WANTED TO DO IS, THIS PART WAS AN OPEN SESSION.
THAT WAS ONE OF THE QUESTIONS I WAS GONNA LET ADDRESS IS IN THE CLOSED SESSION.
UH, NOW I'D LIKE TO ASK ABOUT THE, UH, THE TRANSIT FACILITY IN ADDISON.
I ASSUME THAT WHEN HE SHOWED THAT SLIDE, I THINK IT WAS, UH, NINE OR 11, THE, THE THREE SHADED AREAS ARE PROPERTY OF DART, IS THAT RIGHT? UH, YES, THAT IS CORRECT.
HERE COMES KAITLIN TO THE RESCUE.
KAITLYN HALL, VICE PRESIDENT OF REAL ESTATE AND ECONOMIC DEVELOPMENT.
UM, THIS, WE ALWAYS EXPECTED THIS TO BE A TEAM EFFORT.
EVERYTHING SHADED IS DART OWNED.
SO WE COULD USE THAT TO SAY CREATE, UM, I DON'T KNOW, YOU KNOW, OIL CHANGES FOR THE BUSES OR STORAGE OF, WELL, WE CAN DO WHATEVER WE WANT WITH IT.
IS, IS THERE ANY ZONING THERE THAT WOULD NOT ALLOW US TO SAY, USE IT FOR STORAGE? I THINK THIS IS ONE OF THE TOPICS THAT'S GONNA BE ADDRESSED IN CLOSED SESSION.
UH, ALRIGHT, THE LAST QUESTION YOU SHOULD BE ABLE TO ANSWER, SLIDE 11 VERY QUICK.
UM, IT TALKS ABOUT PARATRANSIT AND I THINK, UH, MS. JU THIS IS FOR YOU.
THE, UH, IT SAYS THAT POTENTIAL PARATRANSIT DISCONTINUE WHAT POTENTIAL DOESN'T IT AUTOMATICALLY DISCONTINUE AFTER THE ELECTION? UM, POTENTIAL JUST TO DESCRIBE, THAT'S A POTENTIAL OUTCOME.
SO IF A CITY LEAVES DART, THEN IF THEY OKAY.
THE PARATRANSIT WILL BE DISCONTINUED FOR THAT CITY.
UH, MY ONE QUESTION IS GONNA BE LEGAL, SO I'LL HOLD OFF ON THAT, BUT I DO HAVE A COUPLE COMMENTS.
I, YOU KNOW, I GET THAT THIS IS NOT A HUGE FINANCIAL IMPACT TO THE AGENCY, BUT I CAN'T HELP BUT THINK ABOUT THE PEOPLE WHO RIDE THE SYSTEM TO AND FROM THESE CITIES WITH REGARD TO ADDISON.
YOU KNOW, I'M OLD ENOUGH TO REMEMBER AND BEEN ON THE BOARD LONG ENOUGH TO REMEMBER 2017 WHEN WE DEBATED THE HIGH COSTS OF THE SILVER LINE AND ADDISON FILLED THIS ROOM, UH, THOSE COSTS SINCE DOUBLED AND WE PROVIDE THE SILVER LINE AND A COUPLE MONTHS LATER THEY VOTE TO HAVE AN ELECTION TO PULL OUT
[01:25:01]
WHERE IN 2017 THEY THREATENED, WE'RE GONNA PULL OUT IF WE DON'T GET THIS SERVICE THAT WE HAD BEEN PAYING IN FOR, FOR 35 YEARS AT THE TIME OR WHATEVER THE NUMBER IS.SO IT'S INCREDIBLY DISAPPOINTING IF THEY OR ANY OTHER CITY EXPECTS TO HAVE RAIL SERVICE, EXCUSE ME, AS A NON-MEMBER CITY, AS AN A LA CARTE SERVICE, WELL, THAT'S A HILL I'M GONNA DIE ON.
THAT'S, AND I WOULD ENCOURAGE THIS BOARD TO DRAW A RED LINE ON THAT, THAT WE DON'T DELIVER RAIL AND THE CAPITAL IMPROVEMENTS OF RAIL TO NON-MEMBER CITIES, UH, FOR THE PARK CITIES.
YOU KNOW, I'M NOT TOTALLY SURPRISED.
I'VE, I'VE TAKEN THE BUS UP PRESTON TO THE PRESTON CENTER.
THERE WILL BE A LOT OF FAMILIES IN THE PARK CITIES THAT ARE GOING TO HAVE TO FIGURE OUT TRANSPORTATION FOR THE PEOPLE WORKING IN THOSE, AT THOSE HOMES.
WHETHER IT'S CLEANING STAFF, NANNIES, WHATEVER.
I'VE BEEN ON THOSE BUSES AND I'VE SEEN, AND I HOPE THOSE COSTS DON'T GET PLACED ON THE WORKING CLASS.
UH, YOU KNOW, SOMEBODY WHO TEACHES AT SMU AND WORKED ON EARLY PHASES OF EDISON CIRCLE, WHICH WAS FINANCED AND BUILT ENTIRELY ON THE PROMISE OF BEING A TRANSIT-ORIENTED DEVELOPMENT, BEING A HIGH CLASS WALKABLE NEIGHBORHOOD WHERE YOU HAVE 20 MINUTES OR SO TO DFW AND A 20 MINUTE OR SO RIDE TO THE STATE FARM CORPORATE CAMPUS.
YOU KNOW, THAT WAS ALWAYS THE PROMISE AND POTENTIALLY WE'RE GONNA LOSE THAT.
SO I FIND THIS INCREDIBLY DISAPPOINTING.
UH, AND THE DISCONTINUATION OF SERVICE THE NEXT DAY WILL BE HARSH.
AND SO I ENCOURAGE VOTERS TO CHOOSE WISELY.
WELL, I'LL DIE IN THE HILL TOO.
UH, THE, UH, THE IDEA, AND I'VE HEARD THIS, THIS, UH, PROMULGATED BY SOME OF THE FOLKS WHO ARE URGING FOLKS TO, UH, VOTE OUT OF DAR, DON'T WORRY, WE'RE GOING TO DO THE SAME THING THEY DID FOR A LOT LESS MONEY.
WELL, THEY'RE GONNA HAVE TO PUT THEIR MONEY WHERE THEIR MOUTH IS BECAUSE IT'S NOT GONNA BE AS EASY AS THEY THINK IT IS.
AND IF THEY THINK WE'LL DO TRANSIT P PARATRANSIT, IF THEY THINK WE'LL DO THIS OR THAT ON A LA CARTE BASIS, I'M A HARD, NO.
I'VE BEEN ON THE BOARD FOR A LOT OF YEARS.
I DON'T KNOW OF ANY PLANS TO REPLACE ME ANYTIME SOON AND I'LL BE HERE FOR THAT VOTE AND THEY'RE NOT GONNA GET MY VOTE.
THE SECOND THING I'LL SAY IS WITH RESPECT TO HP, AND SINCE I HAVE A LITTLE HISTORY, I WILL BEAT CHARLES NICE FELLOW, BUT HE IS THE SON OF LOUIS.
BE EAR WHO STARTED OR WAS PART OF THE SMART, UH, SYSTEM BACK IN 1983 THAT ACTIVELY OPPOSED DARK TO BEGIN WITH, THE SMART FOLKS LOST AND THAT YOU ARE WELL HUMAN FOLKS WON.
AND THIS IS A CHANCE, AGAIN, TO GO BACK AND SAY, WELL, OKAY, WE SHOULD HAVE DONE 1983.
HOW MUCH MONEY OF HP AND UP HAVE WE GIVEN BACK TO THEM BECAUSE THEY CHAIR BRIAN, I APOLOGIZE FOR INTERRUPTING.
ARE WE DISCUSSING POTENTIAL SERVICE CHANGES IN MAY OF 26? ARE WE TELLING PEOPLE HOW TO VOTE IN ELECTION HEARING? DO YOU HAVE A POINT OF ORDER? 'CAUSE YOU'RE ASKING ME A QUESTION.
I'M ASKING ARE WE DISCUSSING THE AGENDA ITEM OR ARE WE TELLING PEOPLE HOW TO VOTE? I HAVE NOT HEARD ANYONE JUST, UH, TELL PEOPLE HOW TO VOTE.
UP UNTIL THIS POINT, GENERAL COUNSEL, AS FAR AS I'M CONCERNED, THE THE CONVERSATION IS IN ORDER WITH THE AGENDA ITEM UNLESS THE GENERAL
YEAH, MEMBERS JUST ENSURE THAT THE, UH, CONVERSATION IS LIMITED TO THE ITEM AND ENSURE WE'RE NOT ELECTIONARY.
UM, HP AND UP HAVE RECEIVED THE, THE FINANCIAL EFFECT THAT WE'RE TALKING ABOUT POST-ELECTION.
IF THEY PULL OUT, DOES THAT ACCOUNT FOR THE 37% OF SALES TAX THAT WE'VE PROVIDED BACK TO THOSE CITIES? UH, YES.
SO THE, UM, UPDATED CALCULATION FOR WITHDRAWAL OBLIGATION WOULD INCLUDE PAYMENTS FROM THE TRIP PROGRAM, THE PTI PROGRAM, UM, AND POTENTIALLY THE LAB PROGRAM AS WELL.
AND WE'LL, THIS GOES BACK TO, UH, ENRIQUE'S QUESTION.
I ASSUME THAT WITHIN, UH, WITHIN WHATEVER'S LEGAL WITH ZONING, THE PROPERTY THAT WE HAVE IN ADDISON, WHICH OTHERWISE WOULD'VE BEEN BEAUTIFUL TRANSIT PROPERTY, WE COULD PUT TO WHATEVER USE, WHETHER WE NEED A BUS OPERATING FACILITY, A STORAGE FACILITY, OR WHATEVER IT MIGHT BE, WE COULD DO THAT OR SELL IT OR TO ANY DEVELOPER WE CHOOSE TO CORRECT.
UH, WE HAVE TO OPERATIONALIZE IT.
SO YES, WE COULD USE IT FOR A TRAINING FACILITY, UM, UH, FOR VARIOUS ACTIVITIES FOR THE AGENCY.
COULD WE JUST SELL IT? I'M GONNA DEFER TO COUNSEL.
IF WE NEED TO DISCUSS THAT LATER.
THAT, THAT'S ONE OF THE ITEMS WE'RE GONNA DISCUSS IN COURT.
AND THEN ONE MORE QUESTION, UH, WHAT, WHAT HAPPENS TO THE SMU SHUTTLE IF, IF UP PULLS OUT? YEAH, SO THAT'S, UH, THAT'S A GREAT QUESTION.
UM, INITIAL STAFF REACTION IS DART WOULD NEED TO WITHDRAW FROM PARTICIPATION IN THAT SHUTTLE AGREEMENT.
[01:30:01]
THAT IS AN ACTION THAT WE WOULD HAVE TO COME BACK TO THE BOARD, UM, FOR FINAL DECISION ON.SO WE WOULD BE THEN UNDER THE STATUTE, WE WOULD BE A STOP FROM PAYING, CONTRIBUTING TOWARD THAT SHUTTLE THE DAY AFTER THE ELECTION.
AM I UNDER, DO I UNDERSTAND THAT CORRECTLY? LEGAL ALSO WOULD BE DART FUNDS TOWARD THE SHUTTLE DEFERRING TO LEGAL.
I THINK THIS IS ONE OF THOSE ERRORS, KEN, THAT COMES UNDER THE, THE CALCULATIONS OF CONTRACTUAL OBLIGATIONS THAT WE CAN TOUCH THAT I WAS GONNA TOUCH ON IN CLOSE SESSION.
THAT, THAT, THAT SATISFIED MY QUESTIONS.
I HAVE A, UM, A LEGAL QUESTION THAT I'LL BE ASKING IN CLOSED SESSION.
UM, UH, AND JUST A COMMENT AND A QUESTION.
I 100% AGREE WITH ALL THE COMMENTS OF MY COLLEAGUE PATRICK KENNEDY.
MY CONCERN WITH REGARDING THESE SERVICE CHANGES, UM, IS MY ALWAYS WHAT KEEPS ME UP AT NIGHT ARE, ARE THOSE DIALYSIS PASSENGERS TRULY, TRULY CONCERNS ME WITH THE, WITH THE SYSTEM CHANGES AND HOW OTHER, UM, RIDERS WILL BE AFFECTED WITH THESE, UH, CHANGES.
SHOULD, UM, THE WITHDRAWAL ELECTIONS GO AHEAD.
UM, YOU HAVE DONE ALL THE MEETINGS AND FOR, FOR ALL THOSE THREE CITIES, CORRECT? THAT'S CORRECT.
WE DID, UM, PUBLIC OUTREACH MEETINGS IN ALL 13 CITIES AND HAD A VIRTUAL TOWN HALL AND ALSO HAD A MEETING HERE FOR PEOPLE TO BE ABLE TO PARTICIPATE.
UH, PUT ME ON FOR THREE MINUTES PLEASE.
I HAD A QUESTION ABOUT THE REAL ESTATE THAT SURROUNDS THE ADDISON STATION.
UH, DO WE HAVE ANY, UM, UH, VALUES, UH, THAT ARE ADJACENT TO THOSE THREE PROPERTIES? UH, ANY APPRAISED VALUES? KAITLYN HALL, VICE PRESIDENT OF REAL ESTATE AND ECONOMIC DEVELOPMENT? NO, WE DON'T HAVE, WE HAVEN'T RECEIVED ANY RECENT APPRAISALS.
UM, AND I HAVEN'T HAD MY APPRAISER LOOK AT THAT, SO I CAN'T GIVE YOU A GOOD ANSWER RIGHT NOW.
BALLPARK? NO, YOU DON'T WANNA SPECULATE ON THE BALLPARK.
THAT GOOD ANSWER, THEN THAT WOULD KILL MY LINE OF QUESTION.
ANYONE ELSE? ALRIGHT, UM, JUST HAVE A FEW QUESTIONS.
UM, I THINK, AND THIS IS ABOUT STARTING, LEMME START WITH ADDISON AND, UM, THE PROPERTIES THAT WE OWN THERE.
SO, UH, I BELIEVE IT'S IN OUR CHAPTER 4 52, WE HAVE TO, UM, ESTABLISH FOR, UH, A USE OF THE FACILITIES FOR 15 YEARS.
IS THAT CORRECT? THAT IS CORRECT.
UM, AND ONE OF THE MAIN THINGS THAT WE MUST DO FIRST IS SECURE THIS, UH, THE PROPERTIES THAT WE OWN.
IS THERE ANY MINIMUM STANDARDS OF SECURITY? CAN IT BE JUST A RUSTY CHAIN LINK FENCE? SO WE HAVE TO PUT UP A CEMENT WALL? WHAT ARE, WHAT ARE THE MINIMUM STANDARDS FOR SECURING THESE, UH, FACILITIES? SO I'LL SAY FROM STATUTORY PERSPECTIVE, IT'S NOT A DRESS, BUT FROM A PRACTICAL STANDPOINT, UM, WE TYPICALLY WANT TO FENCE IT WITH A SECURED CHAIN FENCE.
WE ALREADY HAVE LIGHTING ON THE SITE, SO, UM, WE WOULD INSTALL FENCING, CHAIN CHAIN LINK, STRONG FENCE AROUND OUR PROPERTY TO SECURE IT.
AND TO ESTABLISH, UM, THE REQUIREMENTS FOR DART TO CONTINUE TO OWN THE PROPERTY, UM, FOR USES OF OPERATIONS, I THINK MS. MCGREGOR BROUGHT UP, UM, OIL CHANGING OR STORAGES OF BUSES WE COULD USE FOR THAT.
IS THAT A, IS THAT A USE THAT WE COULD USE? YES.
SO WE'VE ALREADY BEEN TALKING TO OUR OPERATIONS TEAMS ON THE MANY USES THAT WE COULD, UM, BENEFIT FROM THAT SITE FOR STORAGE FOR, UM, POLICE TRAINING PURPOSES.
THERE'S, THERE'S A, UM, A VARIETY OF, OF REALLY GOOD OPERATIONAL USES THAT WE COULD HAVE.
SO STORAGE, WHETHER THAT BE EQUIPMENT, WHETHER THAT BE BUSES, POLICE TRAINING FACILITY COULD GO ON AT THAT SITE FOR US.
UH, WHICH IS NOT THE USEFUL AND BEAUTIFUL THING THAT'S GOING ON RIGHT NOW.
AND WHAT ABOUT FOR THE SILVER LINE AND THE SILVER LINE STOP ITSELF? HOW COULD WE SECURE THAT IN A WAY THAT IS INACCESSIBLE WITH THE TRAIN STILL NEEDING TO GO THROUGH IT? SO AGAIN, IT WOULD BE FENCING TO MAKE SURE THAT PEOPLE CAN'T ACCESS THE PLATFORM.
BUT WHAT ABOUT WHERE THE TRACKS ACTUALLY GO THOUGH? WHAT ABOUT HOW, HOW DO WE ENCLOSE THAT PART OF IT? SO, I MEAN, WE'D HAVE TO LOOK AT THAT FROM AN ENGINEERING STANDPOINT, BUT SO FROM AN OPERATIONAL STANDPOINT, THAT PART WOULD HAVE TO REMAIN OPEN.
UM, AND WE WOULD JUST HAVE TO KIND OF SECURE AROUND OUR ACTUAL PLATFORMS AND STATIONS BECAUSE WE WOULD NOT INSTALL SOME KIND OF LIKE MANUAL GATE OR ANYTHING LIKE THAT FOR TRAIN PASSING
[01:35:01]
THROUGH.AND WHATEVER WE DECIDE WE HAVE, WE DON'T HAVE ANY OBLIGATION TO COORDINATE THAT WITH THE CITY OF, OF ADDISON SPECIFICALLY FOR THE CIVIL LINE STOP WHAT? OR, OR THE TRANSIT CENTER ITSELF.
WE DON'T HAVE TO COORDINATE DESIGN STANDARDS OR ANYTHING WITH, WITH THEIR CITY SPECIFICALLY.
UM, I WILL SAY THAT ADDISON HAS LAND USE AUTHORITY AND SO HOW THAT, THAT IMPLICATES WITH RELATION TO THE TRANSPORTATION CODE WOULD BE A LEGAL QUESTION I DEFER TO, TO CLOSED SESSION.
UM, ON THE SMU SHUTTLE SPECIFICALLY, UM, I WANNA MAKE SURE I GET THIS ONE REALLY, REALLY CLEAR BECAUSE EVERYTHING ELSE WE'RE TALKING ABOUT CEASING AND BEING VERY, YOU KNOW, DETAIL ORIENTED ON IT.
SO FOR THE STUDENTS, THE EMPLOYEES GAME DAY RIDER, UM, FIFA, UH, WOULD BE GOERS AS SMU IS A, IS A, UH, A PRACTICE FACILITY.
IF, IF THE CITY OF UNIVERSITY PARK SUCCESSFULLY WITHDREW BECAUSE OF 3.16 THAT STATES THAT POLICY STATES THE SHUTTLE MUST TRAVERSE ON A STREET THAT'S WITHIN A MEMBER CITY, THEN UNLESS THIS BOARD MADE ANY ADJUSTMENTS TO THAT POLICY, THAT SERVICE WOULD END.
IS THAT AM AM I HEARING THAT CORRECT? THAT IS CORRECT.
UM, AND SO, BUT THE SERVICE WOULD END FIRST AND IF IT WERE TO COME BACK, IT WOULD HAVE TO COME BACK THROUGH A BOARD OPTION, THROUGH A BOARD ACTION.
THAT'S THE, THE OPTIONS THAT WE WERE BRINGING BACK TO THE BOARD ALSO.
SO IT'S NOT A MAYBE IT'S, IT'S A DEFINITE.
UM, AND I, AND I FIRMLY STAND WITH, UM, DIRECTORS ENOCH AND, AND, AND, UH, UH, KENNEDY ON ANY, UH, FURTHERANCE OF WHETHER THEY BE OPERATION SERVICES OR, UH, LEASING OF, UH, FACILITIES, UM, THAT I WOULD NOT SUPPORT ON THE, YOU CAN GO AHEAD AND PUT ME ON FOR A TWO MINUTE FOR, UH, THE FINANCIALS.
UM, I THINK DIRECTOR MCGREGOR ASKED THIS AS A FOLLOW UP AND I, AND I MAYBE YOU DIDN'T HEAR PROPERLY, BUT THE CURRENT, UH, UH, ANALYSIS SAID THREE YEARS, AND THEN I THINK HE ASKED IF AND WHEN THE SILVER LINE WAS TO BE ADDED, WHAT WOULD BE THE ESTIMATION FOR THAT THEN? AND YOU SAID THREE YEARS FOR THAT ANSWER ALSO JUST WANTED TO GIVE AN OPPORTUNITY TO CLARIFY THAT.
SO I DON'T, UH, YEAH, APOLOGIES.
SO I DON'T WANT TO ESTIMATE WHAT THEIR CA WHAT THEIR YEARS WOULD BE, UM, WITH SILVER LINE INCLUDED BECAUSE WE HAVE NOT COMPLETED THAT ANALYSIS.
SO, UM, BUT IT WOULD BE HIGHER THAN WHAT WE'VE BEEN STATING UP UNTIL THIS POINT.
UM, AGAIN, THIS IS MY, MY GUT INSTINCT BASED ON THE KNOWLEDGE OF HOW THE CALCULATION IS DONE, THAT YES, IT WOULD LIKELY INCREASE.
AND JUST, UM, FOR THE RECORD, ANY WITHDRAWING CITY IS NOT ELIGIBLE FOR, UH, ANY GMP FUNDS THAT THIS BOARD HAS APPROVED FOR THE CURRENT GMP? UM, PER THE TERMS OF THE CURRENT ILA? THAT IS CORRECT.
AND FOR THE PREVIOUS EITHER TRIP LAP OR PTI FUNDS, THEY WOULD BE RESPONSIBLE FOR, UM, THAT CLAWBACK AS WELL? THAT IS CORRECT.
AND, UM, I, I DID PULL THE NUMBERS FOR, UM, LAP TRIP AND PTI, UM, ADDISON FOR EXAMPLE, RECEIVED 17.8 MILLION THROUGH THE LAP PROGRAM AND 4.4 MILLION THROUGH PTI, UH, HIGHLAND PARK RECEIVED IN THE LAP PROGRAM, UH, 34018.7 MILLION THROUGH TRIP AND 1.786 MILLION THROUGH PTI UNIVERSITY PARK RECEIVED 55,000 THROUGH LAP, UH, 19.1 MILLION THROUGH TRIP AND 2.1 MILLION THROUGH PTI.
AND THOSE SPECIFIC FUNDS ARE, UM, HAVE NOT, ARE NOT IN THE, UM, ASSESSMENTS THAT HAVE BEEN DISCUSSED PUBLICLY AS FAR AS WHAT WE'VE SENT OUT IN 2024.
THEY WERE NOT INCLUDED IN THE FY 24 CALCULATION.
UM, BACK ON OPS, UM, THE VIA CONTRACTS THAT HAVE BEEN DISCUSSED, HAS THERE BEEN ANY, UM, COORDINATION UP UNTIL THIS POINT WITH ANY EITHER WITHDRAWING CITY OR, UM, EVEN CURRENT, UH, NON WITHDRAWING CITY AS FAR AS HOW WE ARE PLANNING TO INTEGRATE IF THOSE CITIES ARE SUCCESSFUL, THOSE MICRO TRANSIT SLASH PARATRANSIT CONTRACTS WITH DART? UM, SO THERE HAS TO MY KNOWLEDGE AND I, I CAN'T SPEAK FOR SERVICE PLANNING, SO JEAN CAN ANSWER THAT PART.
UM, WITH UNIVERSITY PARK, HIGHLAND PARK, NO, ADDISON DID REACH OUT, UM, FOR POTENTIAL ACCESS TO THE GO PASS MOBILE APPLICATION, UH, FOR FAIR PAYMENT AND TRIP BOOKING OF THEIR, UM, ADDISON ORBIT, UH, MICRO TRANSIT SERVICE.
AND ARE WE AWARE FOR THE PARATRANSIT SIDE OF IT, UM, AND IF YOU'RE NOT, IT'S NOT, IT'S NOT YOUR REQUIREMENT TO BE, UM, BUT ARE WE AWARE IF THOSE CONTRACTS THAT THEY ARE ESTABLISHING FOR THE PARATRANSIT IS ONLY FOR WITHIN THEIR CITY, DOES IT GO BEYOND THE BOUNDARIES? DOES
[01:40:01]
IT GO TO THE FULL EXTENT OF THE CURRENT DARK BOUNDARIES? DO WE KNOW, DO WE KNOW OF ANY OF THAT FOR THE PARATRANSIT SIDE? I CANNOT ANSWER THAT.I AM NOT KNOWLEDGEABLE ON THAT.
AND WHAT ABOUT ON THE MICRO TRANSITS SIDE, DO WE KNOW, UM, WHAT'S THE, UM, GEOGRAPHICAL BOUNDARIES OF THE MICRO TRANSIT DO YOU WANNA TALK ABOUT? UM, SO FOR, UH, PLANO AND IRVING, UH, THEY HAVE BEEN RECENTLY REACHING OUT TO US.
I MEAN, THEY ARE NOT ONE OF THE THREE WITHDRAWN CITIES.
UM, BUT BOTH OF THEM HAVE APPROVED A CONTRACT WITH VIA, AND THEY HAVE BEEN RECENTLY ENGAGING US ABOUT USING, UM, VIA FOR, UM, SOME SORT OF A SERVICE IN THEIR CITY AND ALSO, UM, THE COORDINATION WITH DAR REGARDING ACCESS OUR, UM, STATIONS AND ALL THAT AS WELL.
SO WHAT ABOUT ADDISON SPECIFICALLY? UM, THEY HAVE, I BELIEVE THE ADDISON ORBIT.
UM, HOW FAR ARE THE BOUNDARIES OF, OF THAT OR IS IT TIED BACK TO THE SYSTEM? UM, DO WE KNOW OF ANY PRICING, UH, ASSOCIATED WITH THE RIDERS? UM, I BELIEVE THAT'S A, A CITYWIDE MICRO TRANSIT SERVICE WITH ADDISON.
YEAH, I WAS, I'VE K SHELTON CHIEF OF STAFF.
I WAS JUST GONNA MENTION, I'VE, WE HAVEN'T MET WITH ADDISON YET, BUT JUST FROM WHAT I'VE SEEN, UM, ON THEIR WEBSITE, THEY PROVIDE SERVICE ACROSS THEIR CITY AND THEN THEY DO HAVE TRANSIT HUBS OUTSIDE OF THE CITY.
THEY LIST DOWNTOWN CARROLLTON STATION AND NOLL TRAIL STATION AS SOME OF THE HUBS OUTSIDE AS WELL AS SOME, I THINK MAJOR BUS STOPS.
UM, AND THE FAIRES I THINK ARE A, ARE A DOLLAR 50 REDUCED AND $3 FOR A TRIP.
BUT IF YOU'RE CONNECTING TO A DART FACILITY, ONE OF THE TRANSIT HUBS, THEN IT'S FREE.
SO IN THEIR MICRO TRANSIT SOLUTION, UH, ONE OF THE, IF, IF, AND I'M SURE THEY WILL CONTINUE IT IF, IF THEY, UH, SUCCESSFULLY WITHDREW, BUT ONE OF THEIR PERCEIVED BENEFITS AS TYING BACK TO THE DART SYSTEM ULTIMATELY.
ULTIMATELY, BASED ON THE WAY THEY'RE MARKETING IT RIGHT NOW.
SO IF I DON'T EVER SEE IT JUST, UH, CONNECTED TO THE CITY ADJACENT TO YOU AT THIS POINT.
ALL QUESTIONS MS. JUAN KRAUS, TWO MINUTES.
UM, CONSISTENT WITH MY PRIOR STATEMENTS MANY MONTHS AGO, I WILL BE JOINING MY COLLEAGUES, KENNEDY AND ENOCH ON THAT HILL.
UH, WE'VE HAD REQUESTS FROM CITIES FROM TIME TO TIME TO SECURE STATIONS, UH, PUT FENCING AROUND IT, ET CETERA, SO THAT WE COULD CONTROL THOSE WHO GET ON OR, OR OFF OUR TRAINS.
AND THAT PRETTY MUCH HAS BEEN AN EXPENSIVE PROPOSITION ON A PER STATION BASIS IN THE MILLIONS AS I RECALL.
NOW, IT MIGHT BE LESS FOR ADDISON BECAUSE THERE'LL BE NO OPERATING TRAIN THROUGH THE CITY OF ADDISON AT THEIR TRAIN STATION.
BUT UNDER THE STATUTE, CAN WE CHARGE ADDISON FOR THE COSTS OF SECURING THE STATION THAT THEY WANTED OPEN IN THEIR CITY BECAUSE OTHERWISE NON WITHDRAWING CITIES OR PAYING THE COST OF SECURING THAT STATION? I, THAT'S AN EXCELLENT QUESTION.
UM, I'M THINKING, I THINK THAT'S A LEGAL QUESTION THAT SHOULD BE ADDRESSED IN QUESTION.
HOW MUCH DO WE ES HAVE WE ESTIMATED, FOR EXAMPLE, FARMER'S BRANCH WANTED US TO SECURE THE STATION THERE? DO WE HAVE A BALLPARK FIGURE ON WHAT IT TAKES TO SECURE A RAIL STATION ON DAR? SO I THINK WE'RE LOOKING AT SECURING IN TWO DIFFERENT WAYS.
WHAT WE WOULD BE LOOKING AT, UM, FOR ADDISON WOULD NOT REQUIRE, UM, WRITER ACCESS, FAIR GATES, THOSE TYPES OF THINGS.
WOULD BE, AND ADDITIONAL AMENITY CHANGES, IT WOULD BE SIGNIFICANTLY DIFFERENT.
UM, I CAN'T SPEAK TO LIKE A PER STATION COST.
'CAUSE EVEN CLOSING THE SYSTEM RIGHT, IS LIKE THAT LARGER CONVERSATION ABOUT, UM, OTHER STATIONS.
EACH STATION IS GOING TO BE DIFFERENT AND HAVE A DIFFERENT COST.
UM, BECAUSE OF THE ENVIRONMENT OF THAT STATION.
FOR EXAMPLE, AN AERIAL STATION'S GONNA BE CONSIDERABLY DIFFERENT THAN THE AKRON STATION.
UM, JUST BECAUSE OF WHERE THE STATION LIES.
AND I WOULD NOT WANNA VENTURE A GUESS ON TEMPORARY, UM, FENCING.
I THINK WE'RE ATTEMPTING TO GET QUOTES.
DID I HEAR TEMPORARY FENCING? WELL, SO WHAT WE WOULD HAVE TO DO IS TEMPORARY TEMPORARILY.
WITH SOME KIND OF LIKE CHAIN LINK FENCING IMMEDIATELY SO PEOPLE DON'T GET HURT.
UM, AND THEN WE WOULD REPLACE THAT WITH PERMANENT FENCING.
AND, AND SO DO WE HAVE ANY IDEA WHAT THE TEMPORARY PLUS THE PERMANENT FENCING WILL COST TO SECURE THAT STATION? SO WE HAVE A CONTRACTOR LINED UP READY, UM, AND THE INITIAL QUOTES ARE ABOUT 10,000 FOR JUST THE FIRST, BUT THAT'S A, A VERY SOFT QUOTE AT THIS POINT.
BUT BUT NOT FOR THE PERMANENT THEN.
THEN THE NEXT QUE AS YOU GUYS KNOW, FOR, FOR YEARS, I'VE BEEN SUGGESTING THAT FOLKS WHO, UH, OPERATE COMMERCIAL VENTURES AND CONNECT TO OUR STATIONS, WHETHER THEY'RE RAIL OR OTHER WEST END, EAST END, THAT THEY PAY AN EXTRA FEE.
AND WE, YOU'VE HEARD THAT BEFORE AND DO I UNDERSTAND CORRECTLY THAT NOW VIA IS, IS
[01:45:01]
QUOTING THEIR, THEIR SERVICE AS FREE AND NO CONNECT FEE TO THE DART SYSTEM, THE REGIONAL SYSTEM.SO THAT'S A, A, A PROBLEM THAT WE'RE ENCOUNTERING RIGHT NOW.
SO WE HAVE A, A POLICY IN PLACE FOR SHUTTLE ACCESS, WHICH IS DIFFERENT THAN MICROT TRANSIT ACCESS.
AND CURRENTLY WE DON'T HAVE A POLICY THAT ADDRESSES THIS DIRECTLY FROM A REAL ESTATE PERSPECTIVE.
WE'VE ALWAYS CHARGED FOR USE OF OUR REAL ESTATE'S PRIVATE PROPERTY, WE CHARGE FOR ITS USE.
UM, NOW WE HAVEN'T BEEN, UM, PROACTIVE ABOUT POLICING THAT WITH, UM, STAR OR VIA, UM, THAT'S SOMETHING THAT MY TEAM'S WORKING ON TO TRY AND GET A POLICY IN FRONT OF THIS BOARD THAT WOULD, UM, ENSURE THAT WE'RE BEING PAID FOR THAT KIND OF ACCESS APPROPRIATELY.
TO ME IT'S, IT'S ONE THING IF JOE AND MARY WANT TO DRIVE OR WALK TO A STATION TO GET ON, WE DON'T KNOW WHO JOE AND MARY ARE.
THEY COULD BE GREEN BAY FANS HERE FOR A GAME OR WHATEVER THEY MIGHT BE.
AND WE NEED TO TREAT EVERYBODY EQUALLY.
BUT IF IT'S COMPANY THAT'S MAKING MONEY OFF OF SERVING FOLKS AND CONNECTING THEM INTO THE REGIONAL SYSTEM, THEY OUGHT TO BE PAYING A REGIONAL SYSTEM.
AND I, I MEANT, I'M GUESSING I'M NOT ALONE ON THE BOARD.
IS THAT WHAT YOU'RE WORKING ON, CAITLYN? YES, EXACTLY.
CAITLYN, I THINK THIS IS A QUESTION FOR YOU.
UH, ON THE SLIDE THAT'S UP RIGHT NOW, UH, THE YELLOW SHADED SPACE IS SHARED PARKING AGREEMENT.
WHO IS THE PARKING AGREEMENT WITH? SO, AND THIS IS JUST THE DISCUSSIONS WE'VE BEEN HAVING, SO WE DON'T ACTUALLY HAVE AN AGREEMENT IN PLACE, BUT WHAT WE WERE DISCUSSING BEFORE THE PULLOUT ELECTION WAS CALLED, UM, WOULD BE A SHARED AGREEMENT BETWEEN DART AND THE DEVELOPER SO THAT THEIR OVERFLOW PARKING, UH, THEY COULD UTILIZE SOME OF OUR EXTRA PARKING THERE.
UM, AND THEN FUTURE PHASES WOULD BE, WOULD INCORPORATE THAT AREA AND THEN SPILL OVER INTO THE FUTURE PHASE THAT'S IDENTIFIED.
SO THEY KNOW, UM, YOU KNOW, ADDISON HAS, I MEAN, HOW IT WAS PRESENTED TO THEIR COUNCIL WAS THAT THIS HANGAR IS REALLY THE, THE CORNERSTONE OF THE DEVELOPMENT.
UM, AND SO THEY'RE EXPECTING IT TO, UM, REALLY BE THE HEART OF THIS DEVELOPMENT AND THEY DIDN'T ANTICIPATE HAVING ENOUGH PARKING, RIGHT.
WHERE YOU SEE IT RIGHT IN FRONT OF THE HANGAR, WHICH IS AN A EVENT, UM, VENUE.
UM, THE IDEA BEING IT COULD BE, UH, LIVE MUSIC AND THAT KIND OF SPACE.
SO, BUT IT HASN'T BEEN BUILT YET, RIGHT? NO.
AND I ALSO HEARD, UH, THAT UH, WE ALLOW OVERFLOW PARKING FOR SOME OF THE BIG EVENTS THAT THEY HAVE, THAT THE CITY HAS.
UH, SO WE HAVE IN THE PAST, UM, EXECUTED LICENSE AGREEMENTS WITH THE TOWN OF ADDISON TO ALLOW FOR THAT OVER THAT USE OF OUR PARKING.
UM, BUT AGAIN, TO, TO MY POINT EARLIER, WE DON'T ALLOW USE OF OUR PROPERTY WITHOUT IT UNDER A LICENSE AGREEMENT, BOTH FOR PROTECTION OF THE AGENCY FROM LIABILITY PURPOSES, BUT ALSO, UM, TYPICALLY FOR REVENUE.
WE DON'T CHARGE MEMBER CITIES FOR USE.
AND I, I THINK MY, AND YOU MAY NOT KNOW THE ANSWER TO THIS, BUT DOES THIS MEAN, I'M SURE WHEN THE CITY GIVES A PERMIT FOR SPECIAL EVENTS, ONE OF THE REQUIREMENTS IS THAT THEY PROVIDE ENOUGH PARKING.
WITHOUT THIS, THOSE EVENTS MAY NOT BE ABLE TO HAPPEN.
IS THAT A FAIR, IS THAT A FAIR? I THINK THAT'S FAIR.
UM, MY ONLY CAVEAT TO THAT BE THAT THESE ARE TOWN RUN EVENTS, SO THEY ARE MAKING THEIR OWN RULES.
[Additional Item]
IT IS NOW 4:50 PM ON TUESDAY, APRIL 28TH, 2026, AND THE DALLAS AREA RAPID TRANSIT COMMITTEE OF THE WHOLE IS GOING INTO CLOSED SESSION UNDER SECTION 5 5 1 0.071 FOR CONSULTATION WITH ATTORNEY REGARDING AGENDA ITEM 23 EVERYONE, IT IS NOW 6:00 PM ON TUESDAY, APRIL 28TH, 2026, AND THE DALLAS AREA RAPID TRANSIT COMMITTEE OF THE WHOLE IS BACK IN TWO OPEN SESSION.WE HAVE COMPLETED ITEM 23 AND AT 6:00 PM THIS MEETING IS ADJOURNED.
WE WILL RECONVENE QUITE SHORTLY, UH, TO BEGIN OUR UH, BOARD MEETING.