* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:07] GOOD AFTERNOON. UH, GOOD MORNING. GOOD MORNING, EVERYONE. IT IS NOW 1145 ON TUESDAY, JUNE 9TH, 2026, AND THE COMMITTEE OF THE WHOLE IS NOW THE COMMITTEE OF THE WHOLE OF DALLAS AREA. RAPID TRANSIT IS NOW CALLED TO ORDER. OUR FIRST [1. Approval of Minutes: May 26, 2026] ITEM IS THE APPROVAL OF MINUTES FROM THE MAY 26TH, 2026 MEETING. IS THERE A MOTION TO APPROVE? SO MOVED. IS THERE A SECOND? SECOND. IT'S BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION? SEEING NONE, PLEASE INDICATE YOUR VOTES ON THE MACHINE. SPEAKER, NO SPEAKERS? NO, NO COURSE, NO SPEAKERS, CORRECT. WE'RE NOT IN SUPPORT. ZERO IN OPPOSITION. THAT MOTION PASSES. OUR SECOND [2. Items of Interest] ITEM IS ITEMS OF INTEREST, MR. CEO. THANK YOU, MR. CHAIR. GOOD AFTERNOON, CHAIR AND BOARD MEMBERS. UH, MY ITEMS OF INTEREST TODAY INCLUDE FIRST NEWS FROM OUR DEVELOPMENT DEPARTMENT, THE MODERNIZATION OF CITY PLACE UPTOWN STATION CONTINUES TO MAKE PROGRESS WITH THE REOPENING OF THE ESCALATORS ON THE EAST SIDE OF THE MEZZANINE. TWO OF THE SIX ESCALATORS AT THE STATION HAVE NOW BEEN COMPLETELY RENOVATED UNDER THE DARK TRANSFORM PROGRAM IN THE RENOVATED EAST. COORDINATOR IS EXPECTED TO OPEN LATER THIS SUMMER. UH, ONE OTHER ITEM, UH, WOULD BE THAT THE BRIDGES, UH, UH, UH, ARE BEING CAPPED IN, UH, RICHARDSON. THE PORTION OF THAT OCCURRED THIS WEEKEND AND, UH, SUCCESSFULLY. AND, AND SO THEY'LL BE PROCEEDING WITH THE BALANCE OF IT WITHIN A WEEKEND, I BELIEVE ANOTHER WEEK. OKAY. THANK YOU. UH, WE ALSO WANT TO ACKNOWLEDGE SOME OF OUR OUTSTANDING EMPLOYEES OF THE MONTH FOR BOTH APRIL AND MAY. FROM OPERATIONS. STEPHANIE OSE, UH, MOBILITY MANAGEMENT SERVICES ADVOCATE, RUDY PEREZ, SUPERVISOR OF RAIL FLEET MAINTENANCE AT THIS CENTRAL RAIL OPERATING FACILITY. AND PAUL RAMIREZ, UH, RAIL FLEET VEHICLE MAINTENANCE MECHANIC, NORTHWEST RAIL OPERATING FACILITY. SO THANK YOU TO ALL THOSE COMMENDATIONS, AND THANK YOU. THAT COMPLETES THE CEO ITEMS OF INTEREST REPORT. THANK YOU, MR. MCGREGOR. THANK YOU, CHAIR. I JUST WANTED TO TAKE A SECOND TO ACKNOWLEDGE THAT, UH, JUNE IS PRIDE MONTH AND LAST WEEK DART HOSTED A, UH, PRIDE MONTH WORKSHOP, UH, WITH THE, THE OBJECTIVE OF PROMOTING EQUITY INCLUSION AND, UM, BELONGING. AND AS A GAY MAN MYSELF, I KNOW HOW IMPORTANT IT'S TO HAVE THAT, THAT TYPE OF CONNECTION. THAT'S SORT OF KNOWING THAT AT WORK, IT, UH, WORK IS A SAFE PLACE TO, UH, TO BE. UH, SO I'D LIKE TO THANK MICHAEL COLLINS AND, UH, PAULINE ONG. OH, ONG, UH, BOTH FROM THE, UH, CULTURAL ENGAGEMENT, UM, DEPARTMENT. AND I LOOK FORWARD TO A SIMILAR WORKSHOP NEXT YEAR. THANK YOU. THANK YOU. ANY OTHER BOARD MEMBERS ITEMS OF INTEREST? MS. JUAN KRAUS AND MR. LOPEZ. THEN MS. GARCIA, UH, JUST REMINDING, UM, BOARD MEMBERS THAT WE DO HAVE A TRANSIT BOARD MEMBER SEMINAR COMING UP IN JULY, UH, GIVEN APTA AND HOPE AND ENCOURAGE Y'ALL TO ATTEND. IT'S A GREAT WAY TO GET INFORMATION TO DO YOUR JOB BETTER AS A BOARD MEMBER. THANK YOU, MR. LOPEZ. THANK YOU, MR. CHAIR. UH, LAST WEEK I HAD THE HONOR, UH, AND PLEASURE OF SERVING, UH, ON A JURY. UH, AND I WAS, UH, ABLE TO TAKE DART AND I THINK IT'S A GREAT, UH, EXAMPLE OF HOW DART CONTINUES TO SERVE OUR COMMUNITY. UH, I TOOK IT FROM, UH, ACTUALLY THIS PARKING LOT, UH, DOWNSTAIRS, UH, OVER TO THE, UH, UH, COURT, THE COURTHOUSE. AND, UH, IT'S A GREAT BENEFIT, UH, THAT I THINK, UH, CONTINUING IT NEEDS TO BE, UM, MARKETED. AND, UM, I, UH, IT WAS A QUICK AND EASY TRIP DOWN THERE, SO THANK YOU VERY MUCH. THANK YOU, SIR. UM, MS. GARCIA, THANK YOU, CHAIR. UM, I WANT TO, UM, ACTUALLY BOARD, UH, BOARD MEMBER. MICHELLE AND I ATTENDED A PRESS CONFERENCE, UM, AT HERE AT DART TO KICK OFF FIFA AND THE WORK THAT THE, UH, MARKETING DEPARTMENT HAS BEEN DOING. AND THEY DID AN OUTSTANDING JOB. [00:05:01] HEY, HEY, LET'S GO. UM, BUT I WANNA THANK THEM FOR THEIR, THEIR HARD WORK. IT LOOKS AWESOME. THE, THE MERCHANDISE IS JUST ABSOLUTE PHENOMENAL. SO, A, A KUDOS TO THE, UH, MARKETING AND COMMUNICATIONS TEAM FOR DART. THANK YOU. THANK YOU. ANYONE ELSE? UM, JUST WANNA HIGHLIGHT TWO THINGS ALSO, UM, SIMILAR TO MS. GARCIA. WANNA WELCOME ALL THE FANS AND THE TOURISTS AND, UH, THOSE FROM ACROSS THE WORLD AND OUR COUNTRY HERE TO DALLAS. AND HOPEFULLY YOU ALL ARE TAKING TRANSIT AND EVERYWHERE YOU GO, UM, AND WE WANT TO ENSURE YOU HAVE A GREAT, UH, WONDERFUL, SAFE EXPERIENCE ON OUR SYSTEM. AND THEN ALSO, UH, BRING ATTENTION TO, UM, AN OP-ED THAT I PUT IN THE PAPER, UM, ON YESTERDAY. UH, HOPEFULLY YOU ALL READ THAT. OBVIOUSLY WE ARE IN SOME TRANSFORMATIONAL TIMES AS FAR AS SOME, A LOT OF OUR WORK AND A LOT OF, UH, WHO OUR RIDERS ARE AND WHAT THEY UTILIZE OUR SYSTEM FOR, UM, TRAVERSING TO AND FROM THE AMERICAN AIRLINE CENTER, UH, WHICH WILL BE A DISTANT MEMORY IN THE NEXT FEW YEARS. UM, BUT HOPEFULLY WHEREVER, UH, THE STARS AND THE MAVERICKS END UP, UM, DART WILL BE A PART OF, UH, THEIR SOLUTION FOR THEIR FANS. AND SO, UM, WE ARE STILL OPEN FOR BUSINESS AS IT RELATES TO SPORTS TEAMS AND VENUES, UH, AND ALL ENTERTAINMENT DISTRICTS. SO WITH THAT, IF THERE ARE NO OTHER ITEMS OF INTEREST, WE'LL MOVE ON NOW TO ITEM NUMBER THREE, WHICH ARE PUBLIC COMMENTS. WE DO NOT HAVE ANY, WE WILL RESERVE THEN, AS WELL AS READING THE SPEAKER, UH, RULES INTO, UM, THE RECORD. MOVING ON NOW [Consent Items] TO OUR CONSENT ITEMS, THEY WILL CONSIST OF ITEMS FOUR THROUGH 14. IS THERE A BOARD MEMBER WISHING TO, UH, UM, PULL AN ANY ITEMS? YES, CHAIR. I WOULD LIKE TO PULL. AGENDA ITEM NUMBER 11. AGENDA ITEM NUMBER PRESENTATION ITEM 11. ANY OTHERS? HEARING NONE. THE CONSENT AGENDA WILL CONSIST OF ITEMS FOUR THROUGH FOUR, FOUR THROUGH 10, AND 12 THROUGH 14. IS THERE A MOTION TO APPROVE? SO MOVED. IS THERE A SECOND? SECOND. IT HAS BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION? SEEING NONE, PLEASE INDICATE YOUR VOTES ON THE MACHINE. UH, MISSING TWO VOTES. I AT LEAST WITH AID IN FAVOR, ZERO IN OPPOSITION. THAT MOTION IS APPROVED. AGENDA ITEM [11. Approval of an Intergovernmental Agreement between Dallas Area Rapid Transit and the Colorado Department of Transportation for GoPass® Application Licensing (Gary Slagel/Jamie Adelman)] 11 IS APPROVAL OF AN INTERLOCAL AGREEMENT BETWEEN DALLAS AREA RAPID TRANSIT AND THE COLORADO DEPARTMENT OF TRANSPORTATION FOR GO PASS APPLICATION LICENSING. JAMIE AMAN, GOOD MORNING FOR ANOTHER SEVEN MINUTES. UH, JAMIE AMAN, E, VP, AND CFO. I'M ACTUALLY GONNA TURN THIS OVER TO SIL CHRISTIAN, OUR DIRECTOR OF MOBILE FAIR SYSTEMS TO WALK THROUGH THE PRESENTATION. YES, I JUST NEEDED A VERY HIGH LEVEL. MAINLY I'M CONCENTRATING ON, UM, CONTRACTUAL, UM, UH, TERMS AND FINANCIAL TERMS. SURE. SO, UM, VERY HIGH LEVEL, UM, THE PRICING THAT WE ESTABLISHED FOR CDOT IS IN LINE WITH THE STANDARD PRICING THAT WE HAVE DONE FOR ALL OF OUR OTHER AGENCIES BASED ON RIDERSHIP LEVELS. SO SMALL, MEDIUM, LARGE. UM, I DO BELIEVE THEY FALL INTO THE, IS IT, ARE THEY SMALL OR THEY'RE MEDIUM, UH, UH, SIZE AGENCY. SO PRICING FOR THEM THERE IS STANDARD. UM, I KNOW THAT JEAN DID SEND OUT, UM, THE LIKE A, KIND OF LIKE A LEGAL SUFFICIENCY MEMO ASSOCIATED WITH THIS CONTRACT IS OUR FIRST CONTRACT WITH A STATE AGENCY. UM, WE DID, UH, COME TO ACCEPTABLE TERMS ON SEVERAL KEY ITEMS, UH, LIMITATIONS OF LIABILITY, SOME INDEMNIFICATION LANGUAGE, UM, AND, UM, INSURANCE COVERAGE. THERE IS ONE FINAL PIECE OF LANGUAGE, UM, THAT WE ARE GOING, UH, WE'RE ACTIVELY DISCUSSING WITH CDOT. UM, AND THAT HAS TO DO WITH, UM, THE CO THE DISCLOSURE OF ANY PII AND NOT PARTICIPATING, UM, WITH ANY TYPE OF, UM, IMMIGRATION ENFORCEMENT, INCLUDING ENFORCEMENT OF CIVIL IMMIGRATION LAWS. THERE IS LANGUAGE AT THE END OF THAT CLAUSE THAT SAYS, UM, UNLESS WE ARE REQUIRED TO DO SO, TO COMPLY WITH FEDERAL OR STATE LAW, OR TO COMPLY WITH A COURT ISSUED SUBPOENA WARRANT OR ORDER. UM, AND SO REALLY WHAT WE TRIGGER [00:10:01] THERE IS OUR FT A MASTER AGREEMENT. SO IF WE WERE ASKED, WE WOULD HAVE TO COMPLY TO BE IN COMPLIANCE WITH OUR FDA MASTER AGREEMENT, UM, TO BE, UH, UM, AS PRUDENT AS WE POSSIBLY CAN. WE ARE ASKING CDOT TO REMOVE THAT LANGUAGE COMPLETELY, UM, FROM THE AGREEMENT. SO, UM, WE'RE STILL, UM, IN DISCUSSIONS WITH THEM ON THAT PIECE OF LANGUAGE SPECIFICALLY. UM, BUT WE DO FEEL, UM, IN GENERAL, COUNSEL CAN WEIGH IN THAT, UM, WE DO HAVE COVERAGE THERE WITH THE LANGUAGE. IT'S AS IT'S CURRENTLY WRITTEN, UM, BECAUSE WE WOULD HAVE TO COMPLY WITH OUR FTA MASTER AGREEMENT. ALRIGHT. AND, UM, GENERAL COUNSEL, OH, I APPRECIATE SO MUCH THE, UM, THE, UH, MEMO THAT YOU SENT OUT ON THE PARTICULAR TERMS. I MEAN, THIS IS, I BELIEVE THIS IS THE FIRST TIME THAT WE HAVE HAD, UM, A DIRECT CONTRACT BETWEEN OUR AGENCY AND A, UH, A STATE AGENCY. IS THAT CORRECT? UH, GENE GO GENERAL COUNSEL? YES, THAT IS CORRECT. AND THAT COMES WITH ADDITIONAL UNIQUE REQUIREMENTS FOR CONTRACTS THAT ARE DIFFERENT, UM, THAN WHAT WE'VE EXPERIENCED IN THE PAST? YES. IN THIS SITUATION, THERE WAS A, UH, BEING THAT IT'S THE COLORADO DEPARTMENT OF TRANSPORTATION, THEY DO THEIR CONTRACTING FOR THEIR, UH, FOR SOME OF THEIR STATE AGENCIES OR OTHER LOCAL ENTITIES. AND THEY HAVE QUITE A, A LIST OF REQUIREMENTS THAT, THAT ARE DONE THAT WE'VE NOT SEEN BEFORE IN OTHER, IN OTHER GO PASS AGREEMENTS. SO RIGHT NOW, DO WE HAVE A, UM, FINAL, UH, CONTRACT TO, FOR US TO CONSIDER? OR IS IT, WHAT ARE WE TRYING TO, UH, APPROVE TODAY, IS WHAT I'M TRYING TO FIND OUT. JUST MOVE IT TO THE NEXT LEVEL. IF, IF THAT'S IT, THEN I PROBABLY AM OKAY WITH IT, WITH THAT, BUT I STILL, I DON'T THINK THAT I CAN VOTE ON A CONTRACT THAT I DON'T KNOW THE, THE, THE FINAL TERMS OF, I THINK, THINK WHAT I'VE HEARD, UM, UH, MS. HAMAN SAY IS THAT THERE'S 1, 1, 1 AREA THAT WE'RE STILL LOOKING AT, WHICH WAS, UH, MAYBE A, UM, UM, UH, MAY CONTRADICT OR THEY, WE MAY NEED TO BE AWARE OF IT IN TERMS OF, UH, HAVING TO DO WITH, UM, UH, PERSONAL IDENTIFYING INFORMATION. AND THEN, UM, UH, IN TERMS OF WORK RELATED TO, UM, ICE, UH, ENFORCEMENT ASSISTANCE, UM, REQUESTED FROM FEDERAL AGENCIES, FROM, FROM LOCAL ENTITIES. AND AS I HEARD MS. EDELMAN SAY, WE REQUESTED THAT, THAT, THAT THAT BE REMOVED. AND THAT'S STILL ONE AREA THAT, THAT, UH, WE'VE NOT, UH, FINALIZED. OKAY. AND SO BEFORE WE VOTE ON IT, WE WILL HAVE A FI WE WILL HAVE A FINAL CONTRACT DONE, IS THAT CORRECT? THAT'S CORRECT, YES. THEY'RE, THEY'RE REFERRING IT TO AS AN IGA, WHICH WE OFTEN REFER TO AS AN ILA, UH, IN A GOVERNMENTAL AGREEMENT. UH, BUT THERE WILL BE A FINAL, A FINAL ONE, UM, OH, ON, UM, UH, A WEEK FROM TODAY, THE 16TH. YES. SO I WAS JUST GONNA REITERATE, UH, WHAT GENERAL COUNSEL STATED IS THAT THE AGREEMENT THAT WE'VE ATTACHED TO THE AGENDA REPORT IS THE FULL AGREEMENT WITH EVERYTHING THAT WE HAVE AGREED TO DATE. THE ONLY ITEM IN QUESTION IS JUST THE LANGUAGE SURROUNDING SUPPORTING, UM, THE IMMIGRATION ASSISTANCE. I WILL ALSO NOTE THAT WE DO NOT COLLECT PII FROM USERS OF THE GO PASS SYSTEM. SO IT, IT ALSO IS SOMEWHAT OF A MOOT POINT TO HAVE THAT IN THERE BECAUSE PI, I GENERALLY IS A COMBINATION OF LIKE A NAME OF DATE OF BIRTH, A PERSON'S HOME ADDRESS, RIGHT? THOSE KEY VITAL PIECES OF INFORMATION, WE DO NOT REQUIRE THOSE TO USE GO PASS, RIGHT? WE NEED A NAME, WE NEED A PHONE NUMBER OR AN EMAIL ADDRESS AND A PAYMENT METHOD. SO WE DON'T COLLECT A LOT OF THAT VITAL INFORMATION THAT THEY WOULD BE LOOKING FOR. SO STAFF RECOMMENDATION WOULD BE TO, UM, APPROVE THIS AT THE COMMITTEE OF THE WHOLE LEVEL, MOVE IT FORWARD FOR THE 16TH. WHEN WE COME BACK ON THE 16TH, WE WILL HAVE FINALIZATION OF THAT LANGUAGE AND PRESENT THAT TO THE BOARD. AND IT'S MY UNDERSTANDING, SO ONE YEAR, UM, CONTRACT WITH FOUR ONE YEAR OPTIONS. UM, IS THAT CORRECT? THAT'S CORRECT, YES. ALRIGHT. AND FINANCIALLY, IS THIS GOING TO DEVELOP REVENUE FOR DART? YES, MA'AM. OKAY. DO WE HAVE THOSE FIGURES? DO WE HAVE THE SPLIT? SO THE VALUE, TOTAL VALUE TERM IS APPROXIMATELY $1 MILLION FOR THE TOTAL TERM. UH, OUT OF WHICH DART'S PORTION IS GOING TO BE APPROXIMATELY 485,000, AND CUBA'S PORTION IS GOING TO BE APPROXIMATELY 556,000. SO I'M JUST WANTED TO MAKE SURE THAT, UM, UH, OUR AUDIENCE TODAY AND OUR, UM, MEMBER CITIES UNDERSTAND THAT WE'RE WORKING HARD TO DEVELOP OTHER SOURCES OF REVENUE FOR DART TO MAKE UP FOR, UM, OUR, UH, PLANNED, UH, AND EXPECTED, UH, REDUCTION IN REVENUE, UH, UNDER OUR, OUR GMP. AND SO THIS IS JUST AN, UH, ANOTHER EXAMPLE OF HOW DART IS, IS TRYING TO, UM, UH, GAIN ADDITIONAL REVENUE. UM, AND SO, UM, [00:15:01] CHAIR, AS LONG AS WE CAN BRING IT BACK, UM, WITH, UH, TO THE COMMITTEE OF THE WHOLE, JUST TO MAKE SURE THAT WE HAVE THE FINAL TERMS. AND THEN FOR OUR SAME NIGHT ITEM VOTE, I CAN RECCO I CAN VOTE FOR THIS TO GO FORWARD. OKAY. OKAY. THANK YOU. ANYONE ELSE? ITEM, UH, 11 SAYING NONE. I WILL ENTERTAIN A MOTION. SO MOVED. IS THERE, IS IS A MOTION TO BRING BACK, SORRY. EVERYWHERE. MOTION APPROPRIATE. BRING IT BACK TO, IT'S BEEN MOVED IN A SECOND. ANY FURTHER DISCUSSION? ALRIGHT. UH, PLEASE INDICATE YOUR VOTE ON THE MACHINE. NOPE. DOES THIS NEED A SEPARATE, UH, VOTE? NORMALLY WHEN WE DO AN INDIVIDUAL ITEM, WE HAVE TO DO IT BY HAND, RIGHT? DOESN'T NO, NO. THIS IS, THIS IS 11 BY ITSELF. OKAY. WITH NINE IN FAVOR, ZERO IN OPPOSITION. THAT MOTION PASSES. WE ARE [15. Approval of the CentrePort Station/Dallas Fort Worth International Airport SiteSpecific Shuttle Funding Agreement (Patrick J. Kennedy/Trey Walker)] NOW ON AGENDA ITEM NUMBER 15, APPROVAL OF THE CENTER PORT STATION, DALLAS-FORT WORTH, INTER INTERNATIONAL AIRPORT SITE SPECIFIC SHUTTLE FUNDING AGREEMENT. UH, GOOD, GOOD AFTERNOON CHAIR. UH, GOOD AFTERNOON. NOW I'M GONNA INTRODUCE JENNIFER HALL, WHO'S GONNA MAKE THIS PRESENTATION FOR THIS SITE SPECIFIC SHUTTLE AGREEMENT. GOOD MORNING. I AM JENNIFER STEVENS HALL. I'M SENIOR MANAGER OF INNOVATIVE SERVICES, AND TODAY I WILL BE PRESENTING THE APPROVAL OF THE CENTERPORT DFW INTERNATIONAL SITE SPECIFIC SHUTTLE FUNDING AGREEMENT, ALSO KNOWN AS THE TRE LINK. WE ARE REQUESTING APPROVAL OF THE RESOLUTION AUTHORIZING OUR INTERIM PRESIDENT AND CEO TO EXECUTE RENEWAL OF A FIVE YEAR FUNDING AGREEMENT WITH TRINITY METRO AND DFW AIRPORT FOR A TOTAL AMOUNT NOT TO EXCEED 1,251,000 885 8 850 $8 OVER THE FIVE YEAR TERM OF THE PORT OF DARTS PORTION. A LITTLE BACKGROUND, THERE HAS BEEN A CONSISTENT SHUTTLE AGREEMENT WITH DART TRINITY METRO AND DFW AIRPORT SINCE JUNE, 2000, ALMOST 26 YEARS. TRINITY METRO ACTUALLY PROCURES PROCURES THE SERVICE, HANDLES ALL THE OPERATION AND MAINTENANCE IN MAY OF 2024. OUR DART BOARD AUTHORIZED THE CURRENT TWO YEAR AGREEMENT, WHICH EXPIRES THIS SEPTEMBER. THE TR INCS LINK SERVICE, UM, PROVIDES SERVICE FOR DFW EMPLOYEES AND TRAVELERS DAILY TO TERMINAL B AT THE AIRPORT FROM OUR S PORT DFW STATION ON THE TRE, IT IS A MONDAY THROUGH SATURDAY SERVICE. AS THERE IS NO SERVICE SUNDAY SERVICE, SAME AS THE TRE, THERE ARE TWO SHUTTLES THAT OPERATE THE 30 MINUTE INTERVALS DURING PEAK HOURS AND 60 MINUTE INTERVALS, ALL OTHER HOURS. RIDERSHIP IN 2025 WAS STEADY WITH AN AVERAGE OF ABOUT 230 WEEKDAY RIDERS AND APPROXIMATELY 165 ON SATURDAYS. OUR YEAR TO DATE SUBSIDY FOR PASS PER PASSENGER IS $3 AND 46 CENTS. DART'S FINANCIAL OBLIGATION, DFW AIRPORT, TRINITY METRO AND DART DIVIDE THE COST OF THIS SERVICE EQUALLY. HOWEVER, TRINITY METRO HANDLES THE PROCUREMENT, MANAGES THE CONTRACT AND SERVICES FOR THE PROVIDER. DART AND DFW REIMBURSED TRINITY METRO FOR EXPENSES VIA QUARTERLY, UH, INVOICES. DART'S MAXIMUM SHARE FOR THE NEXT FIVE YEARS WILL BE $1,251,858 AND 11 CENTS. CURRENTLY, THE SERVICE IS NOT RECEIVING COG FUNDING. HOWEVER, IF THERE ARE ANY UNFORESEEN OR FUTURE OPERATING EXPENSES OR ANY ADDITIONAL FUNDING BECOMES AVAILABLE, TRINITY METRO WILL APPLY FOR THOSE FUNDS. IF THEY ARE SECURED, THEY WILL BE APPLIED EQUALLY, REDUCING THE COST FOR ALL THREE AGENCIES. THIS CHART DETAILS THE FINANCIAL ARRANGEMENTS FOR THE NEXT FIVE YEARS, UH, OVER THE FIVE YEAR PERIOD OF THE AGREEMENT. UM, THE COST INCREASES BETWEEN TWO AND 3% EACH YEAR. SO OUR RECOMMENDATION TODAY IS TO REQUEST APPROVAL OF THE RESOLUTION AUTHORIZING THE RENEWAL OF THE FIVE YEAR AGREEMENT FOR THE SITE PACIFIC SHUTTLE FUNDING AGREEMENT WITH TRINITY METRO DFW AIRPORT, AND DART WITH DART'S NOT TO EXCEED AMOUNT OF 1,251,858 OVER THE FIVE YEAR TERM OF THE AGREEMENT. [00:20:03] THANK YOU. IS THERE A MOTION ON THIS ITEM? IT'S BEEN MOVED. IS THERE A SECOND? IT'S BEEN MOVED IN SECOND. ANY FURTHER DISCUSSION, MS. GARCIA? THREE MINUTES. THANK YOU SO MUCH FOR YOUR PRESENTATION TODAY. I THINK IT OPENS UP OUR EYES IN TERMS OF, UH, REALLY TAKING A, A HARD LOOK AT THE WAY THAT WE'RE WORKING TOGETHER. UM, HERE I REALLY WANNA LOOK AT SLIDE NUMBER FOUR. AND WHEN YOU LOOK AT THE RIDERSHIP, WHEN AVERAGE WEEKDAY IS TWO 30, BUT THE AVERAGE SATURDAY IS 1 65. AND JUST LOOKING AT THE AIRPORT, A LOT OF PEOPLE TRAVEL ON SUNDAY. MM-HMM . I KNOW IT'S COME UP ONCE BEFORE, BUT I'D REALLY LIKE TO SEE IF YOU COULD MAKE A PRESENTATION TO US TO IDENTIFY THE CHALLENGES, YOU KNOW, THE THINGS THAT WE ENCOUNTER IF WE WERE TO ADD A SUNDAY SERVICE. I JUST FEEL LIKE WE'RE KIND OF MISSING OUT ON THAT OPPORTUNITY. I KNOW IT'S BEEN THERE, IT'S BEEN LIKE THAT FOR A LONG TIME, BUT, YOU KNOW, JUST FOR, UH, CONSIDERATION OR IF YOU HAVE ANY INPUT ON THAT SUNDAY SERVICE. YES. THE, THE TRE DOES NOT OPERATE ON SUNDAYS. RIGHT. SO THERE'S NO CONNECTION TO GET THAT SERVICE TO THE AIRPORT BECAUSE THERE'S NO SERVICE ON THE TRE THAT LINKS IT. WHY CAN'T WE GET SERVICE? SO THAT WOULD BE SOMETHING THAT WE'D HAVE TO DISCUSS WITH THE TRE. YES. YEAH, I, I WOULD REALLY LIKE TO TAKE A LOOK AT THAT JUST BECAUSE IT'S, IT'S BEEN LIKE THAT FOR A LONG TIME. YES. BUT IF WE WANNA TRY TO INCREASE THE RIDERSHIP, WE MIGHT BE LOSING SOME OPPORTUNITIES THERE. TRAY, DID YOU HAVE A RESPONSE TO THAT? OH, I WAS JUST GONNA ECHO THAT. I THINK THE SERVICE PROPOSAL THERE WOULD BE TO CONNECT THE SERVICES, RIGHT? SO YOU WOULD OPERATE, YOU KNOW, CONSIDER OPERATING OPERATIONS OF TRE IN A COMPANION WITH THIS SHUTTLE AS WELL ON SUNDAY. AND I THINK THAT SERVICE PACKAGE WILL MAKE THE TRIPS GENERATE FROM ALONG THE TRE TO DFW AIRPORT. SO I THINK FOR IT TO BE STANDALONE IS A, IS A SERVICE OPTION, YOU'D WANNA LINK IT TO THAT, TO THAT RAIL SERVICE AS WELL. BUT WE CAN PREPARE THOSE, THOSE NUMBERS AND ESTIMATES FOR FUTURE BUDGET CONSIDERATIONS. AND, AND IT'S CERTAINLY SOMETHING AS WE'RE HAVING CONVERSATIONS REGARDING, UH, REGIONAL RAIL INITIATIVES AND ALL THREE PROVIDERS OF THOSE SERVICES, MORE UTILITY OF THE TRE, YOU KNOW, UM, IS DEFINITELY SOMETHING FOR CONSIDERATION. THIS WOULD BE ONE OF THOSE STEPS IN THAT PACKAGE. GREAT. THANK YOU SO MUCH. APPRECIATE THAT. THANK YOU CHAIR. ANY OTHER QUESTIONS? UM, IT'S BEEN MOVED IN. IT IS BEEN MOVED IN SECOND. ANY FURTHER DISCUSSION? SEE NONE. PLEASE INDICATE YOUR VOTES WITH AID IN FAVOR. ZERO IN OPPOSITION. THE MOTION IS APPROVED. WE'RE NOW ON AGENDA [16. Approval of Contracts for Minor On-Call Construction Services (Patrick J. Kennedy/Trey Walker)] ITEM NUMBER 16, APPROVAL OF CONTRACTS FOR MINOR ON-CALL CONSTRUCTION SERVICES. MR. WALKER. SECOND OF THREE INTRODUCTIONS HERE, UH, THIS AFTERNOON. THIS IS YOLANDA HARRISON, OUR A VP, UH, FOR SUSTAINABILITY AND FACILITIES PLANNING. THIS IS ONE OF OUR, UH, BENCH RESERVE CONTRACTS THAT WE UTILIZE TO ADDRESS SMALL STATE OF GOOD REPAIR PROJECTS, UH, OVER THE COURSE OF A PERIOD, UH, COMMENSURATE WITH BUDGET ALLOCATIONS IN EACH CAPITAL BUDGET SESSION. SO WITH THAT, I'LL TURN IT OVER TO YONA HARRISON. GOOD AFTERNOON. GOOD AFTERNOON. AS MR. WALKER STATED, I'M YOLANDA HARRISON AND I WILL BE SEEKING APPROVAL FOR THE MINOR ON-CALL CONSTRUCTION CONTRACT. SO TODAY, PER ACTION FOR CONSIDERATION AND APPROVAL OF A RESOLUTION AUTHORIZING THE INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER OR HIS DESIGNEE TO ESTABLISH A CONTRACT IN THE AMOUNT OF $15 MILLION FOR MINOR ON-CALL CONSTRUCTION SERVICES. THESE SERVICES WILL BE USED TO REPAIR, RENOVATE, OR UPGRADE OUR PASSENGER FACILITIES. MAINTENANCE FACILITIES AND LIGHT RAIL STATIONS IS TO BE AWARDED ON A ROTATIONAL BASIS FOR WORK UNDER $50,000 AND AWARDED IN A B SCOPE FOR WORK BETWEEN 50,300 50,000 TO THE CONTRACT POOL. ESTABLISHED THIS CONTRACT WILL BE ISSUED TO THREE CONTRACTORS FOR A THREE YEAR CONTRACT WITH TWO ONE YEAR OPTIONS TO GIL MAY, DOING BUSINESS AS PHILIP MAYS CORPORATION TO RACO INC. AND TO DALLAS HARMONY CONSTRUCTION. AS I'M SURE YOU CAN IMAGINE, OUR PASSENGER FACILITIES MAINTENANCE FACILITY AND LIGHT RAIL STATIONS NEEDS REPAIR AND RENOVATION FROM TIME TO TIME. SO THIS CONTRACT ALLOWS US TO OFFICIALLY ISSUE TASK ORDERS UNDER THE CONTRACT [00:25:01] TO KEEP THESE FACILITIES IN A STATE OF GOOD REPAIR. ALL TASK ORDERS WILL BE UP TO $350,000. THESE TASK ORDERS COULD BE ANYWHERE FROM REPLACING A HVAC UNIT TO DOING CONCRETE WORK, PLUMBING WORK, OR ROOF PATCHES. SO AGAIN, TODAY OUR RECOMMENDATION IS APPROVAL OF A RESOLUTION AUTHORIZING OUR INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER TO ESTABLISH A CONTRACT FOR $15 MILLION FOR MINOR ON-CALL CONSTRUCTION SERVICES THAT THESE CONTRACTS WILL BE USED TO ISSUE TASK ORDERS TO THE FOLLOWING CONTRACTORS, GILBERT, GILBERT, MAY, DOING BUSINESS WITH PHILLIP MAY ICAL INC. AND DALLAS HARMONY CONSTRUCTION MEMBERS. IS THERE A MOTION? SO MOVED. IT'S BEEN MOVED. IS THERE A SECOND? SECOND. IT'S BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION MS. GARCIA? THREE MINUTES. THANK YOU CHAIR. UM, GREAT PRESENTATION TODAY. I REALLY LIKE THIS EFFORT MOVING FORWARD. CAN YOU TELL ME A LITTLE BIT ABOUT, UH, RECO AND DALLAS HARMONY? ARE THEY BOTH BASED HERE IN DALLAS AREA? YES. I, I KNOW THAT FOR SURE. THEY BOTH HAVE, UM, REPRESENTATION AND FOR, AND, UM, COMPANIES HERE. I DON'T KNOW IF THEIR HEADQUARTERS IS HERE. THAT WAS SOMETHING I HAVE TO LOOK UP. BUT I KNOW, KNOW, THEY BOTH HAVE WORKERS HERE. THEY BOTH ARE LOCAL COMPANIES. AND SO WHEN YOU PUT OUT THAT OPPORT, THIS OPPORTUNITY MM-HMM . UM, WHAT HAS TRADITIONALLY BEEN THE RESULTS IN TERMS OF IDENTIFYING COMPANIES THAT COULD POSSIBLY DO THIS WORK? AND HOW IS THAT PROCESS DONE? YOU JUST REVIEW THEM AND MAKE A DECISION ON BY POINTS. I'M SURE THAT'S HOW YOU DO IT. CORRECT. SO WE ISSUE RP, YOU KNOW, LIKE YOU SAID, AND WE HAD OVER 1300 APPLICATIONS. UM, WE, THEY DO A PRICE SCHEDULE. SO WE HAVE WHAT THEY, WE HAVE A LIST OF DIFFERENT TYPE OF TASKS WE WILL NEED DONE, PLUMBING, ROOF, ALL THAT. AND THEY GIVE A, UM, ESTIMATED PRICE FOR THOSE TASKS. AND SO WE LOOK THROUGH THAT AND THEN WE LOOK THROUGH THEIR QUALIFICATIONS AND MAKE A DECISION. WE, WE DO A TECHNICAL REVIEW AND THEN OF COURSE, PROCUREMENT DOES THE, UM, PRICING EVALUATION AND SO FORTH. WE'RE LOOKING AT YEARS OF EXPERIENCE DOING THAT TYPE OF WORK. YOU KNOW, THE CONCRETE, ALL THAT. UM, THERE, THERE IS A SB EGO, I BELIEVE OF 30% FOR THIS CONTRACT. SO THAT, THAT IS, UM, HANDLED THROUGH OUR EEO OR THROUGH OUR, UH, SBC GROUP. AND THEN WE JUST LOOK FOR YEARS OF EXPERIENCE AND REFERENCES. GREAT. THANK YOU SO MUCH. MM-HMM. THAT, THAT REALLY HELPS ME OUT QUITE A BIT. OKAY. UM, WELL CONGRATULATIONS TO THE THREE COMPANIES IF WE GET THAT APPROVED TODAY. THANK YOU. MM-HMM. ANYONE ELSE? ANA, PLEASE INDICATE YOUR VOTE ON THE MACHINE MOVE. CALL IT. WE HAVE NINE IN FAVOR. ZERO IN OPPOSITION. THAT MOTION IS APPROVED. MOVING ON TO 17 [17. Approval of Contracts for Environmental Services (Patrick J. Kennedy/Trey Walker)] APPROVAL OF CONTRACTS FOR ENVIRONMENTAL SERVICES. ALRIGHT, I'D LIKE TO INTRODUCE, UH, JEFF HAYNES, WHO'S OUR SENIOR MANAGER FOR ENVIRONMENTAL COMPLIANCE. I THINK THIS IS THE FIRST BOARD PRESENTATION FROM OUR ENVIRONMENTAL GROUP IN QUITE SOME TIME. UH, THEY'RE A SMALL BUT MIGHTY TEAM AND IT'S BEST THAT THEY, UH, THEY'RE THE PROS AND TAKE CARE OF THE THINGS IN THEIR COURT. UH, SO I'LL LET JEFF PRESENT ON A, A CONTRACT FOR PROFESSIONAL SERVICES TO SUPPORT THE ENVIRONMENTAL TEAM. WELCOME. THANK YOU, TREY. UH, GOOD, GOOD AFTERNOON. UH, AGAIN, MY NAME'S JEFF HAYNES, SENIOR MANAGER OF ENVIRONMENTAL APPLIANCE HERE AT DART, AND WE ARE HERE FOR APPROVAL OF THE CONTRACT FOR ENVIRONMENTAL SERVICES. TODAY'S CONSIDERATION, APPROVAL OF THE RESOLUTION, THE, UH, FOR INTERIM PRESIDENT, CHIEF EXECUTIVE OFFICER TO, UH, ESTABLISH A CONTRACT FOR ENVIRONMENTAL SERVICES, NOT EXCEEDING, UH, $4 MILLION TO, UH, AN AWARD OF THREE YEARS WITH TWO ONE YEAR EXTENSIONS TO THE FOLLOWING FIRMS, HALF ASSOCIATES IN SAFE, EA ENGINEERING, SCIENCE AND TECHNOLOGIES, V-R-X-L-C-A, ENVIRONMENTAL W-S-P-U-S-A AND FREEZE AND NICHOLS. UH, THE ENVIRONMENTAL SERVICES CONTRACT WILL PERFORM SPILL RESPONSES AND OTHER ENVIRONMENTAL EMERGENCIES. COMPLIANCE TESTING, INCLUDING UNDERGROUND STORAGE TANKS, ABOVEGROUND STORAGE TANKS, ENVIRONMENTAL REMEDIATIONS AT EXISTING AND NEW SITES, TESTING AND DISPOSAL OF WASTE MATERIALS, UH, QUARTERLY EXPOSURE TESTING OF THE BODY SHOP, EMPLOYEES AND INDOORS ASSESSMENTS, UM, AND OTHER ENVIRONMENTAL CONCERNS [00:30:01] THAT ARE IDENTIFIED. THIS CONTRACT IS IN, UH, IN, UH, TASK-BASED, UH, CONTRACT. UM, SO EACH, UM, UM, EACH WORK WILL BE ISSUED REQUEST FOR, UH, A BID. AND THEY WILL, UH, PROVIDE A TECHNICAL, UM, PROPOSAL AS WELL AS COST. AND THEY'LL BE EACH BE EVALUATED AND THEY'LL BE AWARDED, UH, TO THE WINNER. ALL RIGHT. OUR RECOMMENDATION AGAIN IS TO ESTABLISH A CONTRACT PRESERVE ENVIRONMENTAL SERVICES. UH, TOTAL AUTHORIZATIONS NOT TO EXCEED $4 MILLION WITH A THREE YEAR CONTRACT WITH TWO ONE YEAR EXTENSIONS, UH, TO HALF ASSOCIATES. AND SAFE EA ENGINEERING, SCIENCE AND TECHNOLOGIES. V-R-X-L-C-A, ENVIRONMENTAL W-S-P-U-S-A, FRIESA NICHOLS. THANK YOU. IS THERE A MOTION ON THIS ITEM? SO MOVED. SECOND. IT'S BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION? C NNN, PLEASE INDICATE YOUR VOTE WITH NINE IN FAVOR. ZERO IN OPPOSITION. THIS MOTION IS APPROVED. MOVING ON TO AGENDA ITEM [Items 18 & 19] NUMBER 18, APPROVAL OF CONTRACT FOR CIVIL CONSTRUCTION FOR TRINITY RAIL RAILWAY EXPRESS DOUBLE TRACK FROM MEDICAL MEDICAL MARKET TO IH 35 E, MR. WALKER. AND UNFORTUNATELY YOU GET ME FOR THIS PRESENTATION. SO, UH, ACTUALLY THIS IS ITEMS, UH, 18 AND 19 FOR CONSIDERATION. UNDER ONE PRESENTATION, I'LL SHOW THE TWO UH, ITEMS FOR CONSIDERATION. SO WE HAVE AN APPROVAL AUTHORIZING THE INTERIM PRESIDENT, CEO TO APPROVE A CONTRACT WITH SEMA CONSTRUCTION FOR, UH, FOR CIVIL CONSTRUCTION OF THE TRINITY RAILWAY EXPRESS DOUBLE TRACKING PROJECT, UH, THAT THE CHAIR REFERENCED TOTAL NOT TO EXCEED AMOUNT OF THIS CONTRACT IS $33,287,382. AND WE'RE ANTICIPATING, UH, ASKING FOR A SUPPLEMENTAL WORK CONTINGENCY OF 15% ON THAT FOR A CORRESPONDING TOTAL NOT TO EXCEED VALUE OF $38,280,490. THE SECOND CONTRACT EX UH, CONSIDERATION FOR THE BOARD, AND THIS IS ITEM 19 IN YOUR AGENDA PACKETS, IS FOR AN APPROVAL, UH, OF THE INTERIM PRESIDENT, CEO TO EXECUTE A CONTRACT MODIFICATION WITH HERZOG, OUR OPERATIONS AND MAINTENANCE VENDOR FOR THE TRE, UH, FOR TRACK AND SIGNAL WORK CORRESPONDING TO THIS PROJECT. UH, ALONG THE ME, UH, ALONG THE MAIN LINE, UH, BETWEEN MEDICAL MARKET AND I 35 EAST, UM, THIS IS A, THIS TOTAL AMOUNT FOR THIS MODIFICATION IS $10,682,096, WITH A CONTINGENCY OF 764,423 FOR A TOTAL NOT TO EXCEED AMOUNT OF $11,446,519. SO THIS PROJECT AND A LITTLE BIT OF HISTORY, THIS IS A PROJECT THAT'S BEEN IN THE WORKS FOR A WHILE AT DART, OF COURSE. ON THE TRE ONE OF OUR MAIN, UH, RESTRICTIONS THAT WE HAVE TO EXPANDING SERVICE AND, AND ACTUALLY EXPANDED FREIGHT AND GOODS MOVEMENTS ALONG THE CORRIDOR IS THAT SEVERAL PORTIONS OF THE CORRIDOR ARE SINGLE TRACKED. IN TOTAL, THERE ARE ABOUT 12 MILES OF THE 32 MILE CORRIDOR THAT ARE PRESENTLY SINGLE TRACK OPERATIONS WHERE WE HAVE PASSING SIDINGS ON. ON THE DALLAS COUNTY SIDE, WE HAVE ABOUT 2.2 MILES PRESENT DAY THAT IS SINGLE TRACKED. THIS PROJECT ADDRESSES 1.2 MILES OF THAT WORK FROM MEDICAL MARKET, UH, TO I 35. THIS PROJECT INCLUDES THE RECONSTRUCTION OF, UH, UH, INCLUDES SOME REHAB OF TWO BRIDGES, THE EXISTING KNIGHTS BRANCH AND INWOOD, UH, BRIDGE CROSSING, UM, AND ALSO THE CONSTRUCTION OF THREE NEW BRIDGES FOR A SECOND TRACK AT KNIGHT'S BRANCH, A SECOND TRACK AT INWOOD, AND THE FULL REPLACEMENT OF THE PRESENT DAY NOBLE BRANCH BRIDGE, WHICH IS A HISTORICALLY SIGNIFICANT TRUSS BRIDGE THAT'LL BE PRESERVED AND RELOCATED ON SOME HAUNCHES ADJACENT TO THE CORRIDOR ITSELF. SO AT THE WIDENING EMBANKMENT BRIDGE CONSTRUCTION, AND ULTIMATELY TRACK AND SIGNAL WORK TO BRING THIS DOUBLE TRACK FROM THIS SEGMENT OF THE CORRIDOR. ONCE THIS PROJECT IS COMPLETE, THE TRE ON THE DALLAS COUNTY SIDE WILL ONLY HAVE ABOUT ONE MILE OF SINGLE TRACK REMAINING. AND LARGELY THAT'S RELATED TO THE BRIDGE CROSSING OVER I 35. AND WE'RE IN WORK, WE'RE IN, UH, WE'RE IN EFFORTS WORKING WITH COG, UM, AS WELL AS TXDOT ON INCORPORATING THE DESIGN, UH, AND HOLDING THE DESIGN CONTRACT FOR THAT EFFORT AND SOME OTHERS ON THE TRE CORRIDOR. UM, AND ULTIMATELY ACCOMMODATING BOTH THE, THE WIDENING OF I 35 AS WELL AS DOUBLE TRACKING THAT BRIDGE AND HAVING FULLY CONNECTED DOUBLE TRACK SERVICE. SO THIS PROJECT IN AND OF ITSELF WILL, UM, INCREASE OUR RAIL CAPACITY THROUGH THE CORRIDOR. UM, IT WILL CREATE, UH, OPPORTUNITIES FOR NEW FREIGHT AND PASSENGER SERVICE. I REFERENCED EARLIER SOME OF THE REGIONAL RAIL CONVERSATIONS, [00:35:01] AND ONE OF THE, SORT OF THE EARLY, UH, PROJECT WIND AND INITIATIVES THAT ARE BEING IDENTIFIED FOR, UH, POTENTIAL EXPANSIONS OF SERVICES WOULD BE THE, UH, CREATION OF EXPRESS TRIPS FROM DOWNTOWN FORT WORTH TO DOWNTOWN DALLAS. UH, PROJECTS LIKE THIS WILL ENABLE THAT WORK, UH, TO MAKE THAT TRAVEL TIME VERY COMPETITIVE ALONG THE CORRIDOR. UM, AS WITH MOST TRANSIT PROJECTS, THERE'S AN INCREASED IMPROVED AIR QUALITY WITH INCREASED, UM, UH, VEHICLE SAVINGS, UH, AND CONVERSION ON THE TRANSIT. AND THEN WE HAVE ENHANCED SAFETY WITH HAVING THE OP OPERATIONAL FLEXIBILITY ON THE CORRIDOR TO DISPATCH ON BOTH LINES. SO ALL THESE THINGS, UH, WERE DETERMINED TO BE SUCH A GOOD IDEA. THE FEDERAL GOVERNMENT DECIDED TO INVEST IN IT, UM, WHEN A 2020, UH, BUILD GRANT AWARD TO COG WITH SUBRECIPIENTS BEING, UH, DART AND TRINITY METRO. UH, THE TOTAL BUILD GRANT WAS $25 MILLION AWARDED WITH SEVEN AND A HALF MILLION OF THAT COMING TO DART. WE'VE WORKED WITH COG AS WELL AS OUR ANNUAL APPROPRIATIONS ON THE CAPITAL BUDGET SIDE TO, UH, CREATE A, UH, FUNDING SPLIT FOR THIS OVERALL PROJECT. UH, THE TOTAL PROJECT ITSELF IS ABOUT $72 MILLION WITH THE FUNDING SPLIT BEING ABOUT 43% FEDERAL, 34 LOCAL, AND THEN WORKING WITH THE RTC AS THE GRANTEE ON, ON BOTH SIDES TO RIGHT SIDE THE BUDGET OF ABOUT 23 ADDITIONAL PERCENT COMING, UH, IN THE FORM OF, UH, ASSISTANCE ON OTHER DART CAPITAL PROJECTS. A LITTLE BIT ABOUT OUR PROJECT SCHEDULE. WE'VE RECEIVED NEPA CLEARANCE ON THE ENVIRONMENTAL SIDE, SO OUR ENVIRONMENTAL PROTECTION ACT, UH, CONSIDERATIONS ARE MET ON THIS PROJECT. WE'VE ALSO RECEIVED, UH, US ARMY CORPS OF ENGINEER NATIONWIDE PERMITTING, UH, CLEARING THE WAY FOR CONSTRUCTION ON THIS. WE, UM, ISSUING OUR INVITATION TO BID OR, UH, INVITATION FOR BID, UM, SUBMITTAL, UH, IS COMPLETE. AND OUR IFC CONSTRUCTION DOCUMENTS ARE, UH, BEING COMPLETED RIGHT NOW BY OUR DESIGN TEAM READY TO HIT THE GROUND RUNNING POST, UH, FIFA FOR CONSTRUCTION. THE, UM, THE TRACK AND SIGNAL WORK, UH, AS I MENTIONED IN THE RECOMMENDATION IS GONNA BE PERFORMED BY OUR OPERATIONS AND MAINTENANCE, UM, CONTRACTOR ON TRE. THE SIGNALING SYSTEM ITSELF IS SOMEWHAT PROPRIETARY IN WORKING WITH WATECH ON OUR POSITIVE TRAIN CONTROL SYSTEM, UH, AND THE TRACK WORK. WE, UH, WE PRICED, UH, COMPETITIVELY THROUGH HERZOG, UH, AND COMPARED IT TO A BID OPTION NUMBER PROVIDED ON THE CIVIL CONTRACT NUMBERS. UM, WE ISSUED OUR SOLICITATION EARLIER THIS YEAR, AND WE'RE LOOKING TO ISSUE A NOTICE PROCEED IMMEDIATELY FOLLOWING FIFA. THIS IS ABOUT AN 18 MONTH CONSTRUCTION DURATION. SO CLOSING OUT THE PROJECT IN Q2 OF 2028. AND JUST AS A REMINDER ON OUR GRANT CONTINGENCIES THAT BUILD GRANT FUNDS EXPIRE ON SEPTEMBER 30TH, 2027. WE DON'T ANTICIPATE THIS BEING AN ISSUE, UH, TO LIQUIDATE THESE FUNDS AS WE WILL DIRECT EARLY PROJECT SPEND. UH, ON THE BILL GRANT DRAW, UH, A LITTLE BIT ON OUR PROCUREMENT PROCESS. WE DID ISSUE A REQUEST FOR PROPOSALS, UH, IN DECEMBER OF 2025. WE HAD FOUR RESPONSES. WE, UH, SCORED THE CRITERIA OF THE RESPONSES BASED ON THE, UH, EXPERIENCE OF THE FIRM AS WELL AS PRICING. UM, WE ARE ISSUING A, WE'RE RECOMMENDING A FIRM FIXED PRICE TO THE GENERAL CONTRACTOR SELECTED ON THE CIVIL SIDE, WHICH IS SEMA. AND THEN AGAIN, ON THE HERZOG O AND M SIDE, WE, UH, WE WERE ABLE TO CREATE A BID OPTION, UH, WITHIN THE CIVIL CONSTRUCTION AND COMPARED THAT TO A BID FROM HERZOG TO ENSURE THAT WE HAD FAIR AND REASONABLE PRICING ON THE TRACK WORK PIECE. UH, AND THEN THAT SIGNAL WORK, UH, SHOULD, SHOULD SIT WITH THE O AND M CONTRACTOR AS IT, IT GETS Y TECH AND INTEGRATES INTO OUR POSITIVE TRAIN CONTROL SYSTEM. SO IN SUMMARY, UH, ASKING FOR APPROVAL OF, UH, RECOMMENDATION ONE ITEM 18 IN YOUR PACKETS FOR TRE DOUBLE TRACK, UH, PROJECT CONSTRUCTION, CIVIL CONSTRUCTION TO SEMA, UH, FOR A NOT TO EXCEED AMOUNT OF THREE $3,287,382 WITH A 15% SUPPLEMENTAL WORK CONTINGENCY AND A TOTAL NOT TO EXCEED OF 38,280,490. AND THEN ITEM NUMBER 19 IN YOUR PACKETS, RECOMMENDATION NUMBER TWO FROM STAFF TO AWARD THE TRACK AND SIGNAL WORK ASSOCIATED WITH THIS AS A MODIFICATION TO OUR TRE OPERATIONS AND MAINTENANCE CONTRACT TO HERZOG TRANSIT SERVICES, UH, FOR A TOTAL NOT TO EXCEED AMOUNT OF $10,682,096, UM, WITH A, UH, SUPPLEMENTAL CONTINGENCY OF SEVEN 64,004 $23 FOR A TOTAL NOT TO EXCEED VALUE OF 11,446,519. THANK YOU CHAIR. I'LL TAKE ANY QUESTIONS. OKAY, WE'RE GONNA DO THIS ONE DIFFERENT, UH, WE'LL TAKE QUESTIONS ON 18 AND 19 AND THEN TAKE, UH, INDIVIDUAL MOTIONS SO WE'RE NOT TAKING A MOTION FIRST ON IT. SO ARE THERE QUESTIONS ON EITHER 18 OR 19? MAYOR STOFFER THREE MINUTES. THANK YOU. UH, I AGREE WE NEED TO TAKE ADVANTAGE OF THE DOLLARS THAT ARE THERE, BUT I THINK REALISTICALLY WE PROBABLY NEED TO REALLY LOOK AT WHAT IS THE USAGE THAT WE'RE GONNA HAVE ON THE TRE BASED UPON WHAT WE'RE SEEING. UH, WE HAD THIS DISCUSSION LAST MEET, UH, LAST WEEK AT TRIAC WITH, UH, THE AMERICAN AIRLINES ARENA NOT BEING UTILIZED. AND THAT WAS ONE OF THE MAIN, OR NOT THE MAIN, IT WAS ONE OF THE USES THAT REALLY PUMPED UP THE RIDERSHIP ON THAT RAIL LINE. SO ONCE THAT DISAPPEARS, THAT BRINGS A WHOLE DIFFERENT PERSPECTIVE TO IT. AND ALSO THERE'S [00:40:01] BEEN SO MANY ARTICLES I'VE READ THE LAST WEEK ABOUT THE $2 BILLION, $3 BILLION CONNECTION TO FROM DALLAS TO ARLINGTON TO FORT WORTH. AND SO MY POINT IS, AT SOME POINT WHERE ARE WE AT WITH SPENDING MORE AND MORE MONEY ON THIS RAIL LINE TO REALLY SEE WHERE WE ARE GONNA END UP? UH, BECAUSE IF YOU HAVE THAT HIGH SPEED CONNECTION, THAT'S GONNA REDUCE THE USAGE. NOW, I DOUBLE TRACKING DOES GIVE US A BETTER OPPORTUNITY TO UTILIZE THAT AND HAVE A DIRECT CONNECT OR, UH, OR A ONE STOP OR SOMETHING OF THAT NATURE TO, TO, TO UTILIZE IT. BUT AGAIN, I THINK IT'S GOOD TO HAVE THE FEDERAL DOLLARS, BUT WE'RE STILL ALSO SPENDING 30 SOME MILLION DOLLARS OF OUR MONEY, UH, ON THIS AS WELL. AND, UH, WHAT WE REALLY END UP WITH AT THE END OF THE DAY, WHAT, YOU KNOW, THIS, AND I UNDERSTAND YOU LOOK AT THESE THINGS FOR 25, 30 YEARS DOWN THE ROAD, WHAT IT'LL BE. BUT IN THE MEANTIME, I JUST GET CONCERNED ABOUT LOOKING TOO MUCH AT THE 25, 30 YEAR DOWN THE ROAD RIDERSHIP AND EFFICIENCY VERSUS THE DAY-TO-DAY OPERATION WHERE WE HAVE TO CANCEL ROUTES BECAUSE WE DON'T HAVE RIDERSHIP THAT WE MAY SHOULD BE TRYING TO FIGURE OUT HOW TO BUILD. SO, UH, WHILE I'M IN FAVOR OF BOTH, I THINK WE HAVE TO TAKE A REALISTIC PERSPECTIVE ON SOME OF THESE THINGS THAT WE'RE SPENDING THIS MUCH MONEY ON, IS TO SEE WHAT'S OUR REAL RETURN IN RIDERSHIP VERSUS UNFORTUNATELY, SOMETIMES YOU HAVE TO MAKE THE DECISION THAT WE SPEND THOSE, THAT 30 SOME MILLION DOLLARS MAYBE SHOULD HAVE BEEN BETTER SPENT ON PROBLEMS WE HAVE TODAY OR TOMORROW IN THE NEXT FIVE YEARS, VERSUS SOMETHING THAT WE CAN SEE THE BENEFIT 30, 40 YEARS FROM NOW. BUT I AM IN SUPPORT OF BOTH OF THEM. THANK YOU. ALRIGHT, MS. MILLIGAN. MS. TREY, YOU AND I GOT A CHANCE TO TALK ABOUT THIS, BUT THE OTHER WEEK AT THE TRE ADVISORY BOARD MEETING, BUT, UM, IS THERE THE ABILITY TO HAVE EXPRESS SERVICE BETWEEN FORT WORTH AND AND DALLAS RIGHT NOW, OR THE DOUBLE TRACKING IS NEEDED TO MAKE THAT HAPPEN RIGHT NOW IS SOMETHING THAT BOTH AGENCIES NEED TO EVALUATE WITH RESPECT TO THE PRESENT DAY SCHEDULE THAT WE RUN AND IDENTIFYING WHAT THOSE EXPRESS TRIPS ARE. UM, IT, IT WOULD BE CHALLENGED IN THE CURRENT ENVIRONMENT, BUT IT'S SOMETHING THAT BOTH, BOTH AGENCIES ARE, HAVE A DESIRE IN JUST BECAUSE THAT, IF WE CAN, IF WE CAN LOCK IN A 35 TO 40 MINUTE DOWNTOWN TO DOWNTOWN TRIP, I THINK TO THE, TO THE MAYOR STOFFER'S POINT, THAT'S, THAT'S A DRAW, THAT'S A CATCH THAT WITHOUT, YOU KNOW, WITHOUT AN EVENT ARENA OR AN ENTERTAINMENT DISTRICT, YOU NOW ARE BEING ABLE TO BE COMPETITIVE WITH THE HIGHWAY. UM, AND SO, AND YOU AND YOU'RE CREATING DIFFERENT DESTINATIONS. SO IT'S NOT SOMETHING, UM, THAT WE HAVE FULL EVALUATION ON RIGHT NOW, BUT IT'S SOMETHING THAT BOTH AGENCIES ARE, ARE EAGER TO KIND OF DIG INTO AS WE START LOOKING AT SHORT TERM IMPROVEMENTS IN THE COMMUTER RAILROAD NETWORK. BUT JUST TO BE CLEAR, THE THE FULL DOUBLE TRACKING BETWEEN THE TWO CITIES, IS THAT NECESSARY FOR THERE TO BE A POTENTIALLY A 40 MINUTE TRIP? MY DIRECTOR OF THE TRE SAYS YES. SO, AND, AND, AND IT WOULD DEFINITELY, IT WOULD BE THE, IT WOULD BE THE MOST, UM, IT WOULD BE THE MOST BENEFICIAL SCENARIOS TO HAVE THE FULL DOUBLE TRACKING AND THE OPERATIONAL FLEXIBILITY. 'CAUSE WE ARE JUGGLING FREIGHT ON THE CORRIDOR AS WELL. SO WE'D HAVE, WE'D HAVE LOCAL TRIPS, EXPRESS TRIPS AND FREIGHT ALL BEING DISPATCHED ON THE CORRIDOR. SO HAVING THE FULL DOUBLE TRACK IS, IS DEFINITELY, UM, THE DESIRED POSITION. OKAY. AND THEN YOU SAID THERE'S ABOUT A MILE LEFT OF DOUBLE TRACKING THAT'S NOT, NOT FUNDED AND NOT PART OF THIS, UM, ITEM THAT WE'RE APPROVING. UM, UNDERSTOOD. I'M PUTTING YOU ON THE SPOT, BUT ANY GUESSTIMATE OF THE POTENTIAL FOR ONE, THAT ONE MILE COULD BE FUNDED AND COMPLETED? IN THE BEST CASE SCENARIO, IT'S THE HARDEST MILE, WHICH IS WHY IT'S LAST. IT'S, IT'S THE CROSSING OVER 35. AND SO, UM, COG HAS A, HAS APPROPRIATED $4 MILLION, UH, TO DART, UH, IN AN ACTION LAST YEAR TO BEGIN DESIGN AND EXPLORATION WORK, UM, OF THAT CROSSING DESIGN AS WELL AS A COUPLE OTHER, UH, DESIRED IMPROVEMENTS ON THE CORRIDOR THAT WOULD ACCOMMODATE FREIGHT, UH, AND SAFETY IMPROVEMENTS AT, UH, MEDICAL MARKET, UH, INTERSECTION. AND SO WE'RE, UM, WE'RE GONNA BE ISSUING A DESIGN SOLICITATION TO UTILIZE THAT $4 MILLION THAT WILL NOT GO THE FULL LENGTH. UM, BUT WE'RE REALLY LEANING ON, UH, ON RTC AND COG, UH, TO FUND THAT EFFORT AND I THINK IN THEIR LONG-TERM RAIL PLAN. SO ZOOM OUT 25 YEARS, IT'S IN THERE TO, TO MAKE THESE IMPROVEMENTS. IT'S JUST A MATTER OF WHERE ARE THE ANNUAL APPROPRIATIONS AND WE, WE DON'T HAVE A LINE OF SIGHT ON THAT, UH, AT THIS POINT, BUT ARE WE THINKING, I MEAN, A DECADE OR MORE OR, I BELIEVE I 35 IS LIKE A MID 2030S, SO WE WOULD BE, YOU KNOW, COMING IN, COMING IN WITH THAT. OKAY. ALRIGHT. THANK YOU. IN THAT WINDOW, MR. RON KRAUS. THANK YOU VERY MUCH. WELL, I'M LOATHED TO EVER QUESTION, UM, FEDERAL FUNDING. WE DO HAVE 43% OF FEDERAL FUNDING, WHICH I THANK YOU. BUT, UM, I DO SHARE SOME OF, UM, [00:45:01] MAYOR STOVER'S CONCERNS ON OUR LONG RANGE PLAN, HOW IS IT AFFECTED BY WHAT'S GOING ON AT AMERICAN AIRLINES? AND I ALSO LOOK AT BALANCING THE WONDERFUL OPPORTUNITY OF HAVING A 45 MINUTE CITY CENTER TO CITY CENTER. BUT AGAIN, THAT'S DEPENDENT, IT SOUNDS LIKE ON FULL DOUBLE TRACKING AND A LOT OF THE DOUBLE TRACKING IS OUT OF OUR CONTROL BECAUSE IT'S IN TRINITY METRO'S BACKYARD, NOT OUR BACKYARD. SO, UM, THOSE ARE ISSUES THAT, UM, I HAVE CONCERN WITH. UM, SO IF, WHAT IS THE TIMELINE ON APPROVING THIS? IF, IF WE DO NOT DO THIS, THEN WE'RE GONNA LOSE THAT 43% OF FEDERAL FUNDING, CORRECT? CORRECT. AND, AND I'LL DRAW YOUR ATTENTION TO, UM, JUST THAT SCHEDULED TIMELINE. THE, THE GRANT EXPIRATIONS, UH, KICK IN IN, UH, TOWARDS THE END OF NEXT YEAR. AND WE DO HAVE AN ILA EXECUTED WITH, UH, COG FROM 2023, UH, FOR CONDUCTING THIS WORK AS WELL AS THEY'RE THE, AS THEY'RE THE, UM, UH, WERE THE AWARDEE FROM FTA, DO WE HAVE ANY COMMITMENTS OR TIMELINES FROM TRE REGARDING, UH, EXCUSE ME, TRINITY METRO REGARDING THEIR FUTURE PLANS TO DOUBLE TRACK TRE? THEY HAVE A SHARE IN THIS PROJECT. SO THEY ARE, UH, THEY'RE ALSO A SUB, I'M CALLING A SUB RECIPIENT. THEY'RE ACTUALLY THE ILA ALLOWS US TO BE THE DIRECTOR RECIPIENT OF FTA, BUT THEY'RE A PARTNER IN THIS PROJECT AS WELL. THEY HAVE, UM, THEY HAVE ABOUT TWO AND A HALF MILES THAT ARE BEING DOUBLE TRACKED TO PROVIDE THE ADDITIONAL OPERATIONAL FLEXIBILITY ON THEIR SIDE. UH, THAT'S UNDERNEATH THE SAME BUILD GRANT AWARD. UM, AND SO THAT IS MOVING FORWARD PRESENTLY, THEIR BOARD APPROVED THE SAME TRACK AND SIGNAL, UH, AMENDMENT THAT WE'RE APPROVING, THAT WE ARE HAVE UP FOR CONSIDERATION TODAY. THEY APPROVED THAT ABOUT TWO MONTHS AGO AND THEY'RE BRINGING THEIR CIVIL CONTRACT TO THEIR BOARD, UH, IN, IN SUCCESSION THE REMAINING EIGHT MILES. I, I DON'T KNOW, I DON'T HAVE A SCHEDULE FROM THEM, UH, ON THAT RIGHT NOW. SO THEY, THEY DO HAVE SOME SKIN IN THE GAME. ABSOLUTELY. THEY DO. ABSOLUTELY HAVE SOME COMMITMENT. YEAH. UM, TO THE FUTURE OF DOUBLE TRACKING AND HAVING THAT 45 MINUTE CENTER DESCENTER YEAH. UM, CAPABILITY IN THE FUTURE. THAT'S RIGHT. ALRIGHT, THANK YOU. ANYONE ELSE? MS. GARCIA? THANK YOU TREY, FOR THAT PRESENTATION TODAY. UM, I KNOW THAT WE'RE GONNA BE, UM, TRE WILL BE GREATLY AFFECTED BY THE MOVEMENT OF THE MAVS AND STARS. UM, I RIDE THE TREA LOT TO FORT WORTH AND , MY FELLOW COLLEAGUE OVER HERE, SHE AND I WENT TO THE TRE, THE TRIAC MEETING IN FORT WORTH AND THERE WERE A LOT OF PEOPLE ON THE TRAIN. I MEAN, THEY, THERE ARE A LOT OF PEOPLE THAT DO USE A TRE TO GO TO FORT WORTH OR VICE VERSA. UM, SO I WOULD LIKE TO JUST PUT ON THE TABLE, DO SOME TYPE OF A REALLY GOOD MARKETING PACKAGE TO REALLY BECAUSE OF THE GAS INCREASES AND THOSE KINDS OF THINGS, AND WORKING WITH SOME OF THE CORPORATIONS, WHICH I KNOW YOU ALREADY DO WITH ALL THE ENTITIES CLOSE TO THE SYSTEM THAT, YOU KNOW, WE JUST REALLY WORK AT THAT A LITTLE BIT HARDER. YEAH. UM, NOT, NOT SAY WE'RE GONNA MAKE UP THE WHOLE ENTIRE RIDERSHIP TO THE GAMES, BUT THERE'S GOTTA BE SOME WAY THAT WE COULD PROBABLY, YOU KNOW, JUST THINK OUTSIDE OF THE BOX. YEAH. BECAUSE I REALLY STILL FEEL LIKE, YES, WE ARE INVESTING A LOT IN THE TRE, BUT WE HAVE WRITERS AND THAT'S MY CONCERN. YEP. AND THANK YOU SO MUCH. AND AS A, IF, IF THAT NODE AT AMERICAN AIRLINES IS, IS REMOVED, YOU KNOW, IT'S INCUMBENT ON BOTH AGENCIES, JUST AS YOU AND MAYOR SOFFER SAID, UM, TO DOUBLE DOWN ON OUR EFFORTS TO, TO PROMOTE UTILIZATION OF THAT CORRIDOR. AND THAT LOOKS LIKE, YOU KNOW, CASTING RADIUSS AROUND BUSINESSES THAT CAN FUNNEL INTO THE CORRIDOR TALK AS, AS WE LOOKED AT THE D-F-W-I-A, UH, AGREEMENT, UH, PREVIOUSLY LOOKING AT HOW TO FUNNEL THOSE SERVICES THAT COMPLIMENT ONE ANOTHER, UM, AND LOOKING AT THAT FOR THE RIDERSHIP ON THIS CORRIDOR. WHAT ELSE? I I JUST HAVE A FEW QUESTIONS YOU CAN PUT ME ON FOR THREE. UM, ON PAGE THREE, THE, FORGOT I HAVE THE CLICKER. SORRY. YEAH. WHAT ACTUALLY IS THE, NOT, NOT IN A NUMBER FORM, BUT WHAT IS THE APPROVAL, I GUESS, OR WHAT IS THE PROGRAM OR THE PROJECT THAT'S ACTUALLY IDENTIFIED BY THE $750 MILLION NUMBER? THAT IS THE FULL OPERATIONS OF THE TRE UH, CONTRACT. THAT'S THE OPERATIONS AND MAINTENANCE AGREEMENT. UM, THERE ON AN ANNUAL BASIS OVER, UH, THE CURRENT NOT TO EXCEED VALUE. SO IT'S, IT'S 10 YEARS OF O AND M PLUS EVERY REMODIFICATION THAT WE'VE EXECUTED ON THAT OVER THE 10 YEAR CYCLE. SO, OKAY. SO IT'S, IT DATES BACK TO, I BELIEVE, UH, 2015, UH, WAS THE AWARD, THE AWARD OF THIS ONE AND HAS A REMAINING FIVE YEAR OPTION? THE, THE BOARD SELECTED AN OPTION IN 2025. UM, LOOK AT MY PROCUREMENT TEAM AND THEN, UH, WE HAVE A REMAINING FIVE YEAR OPTION [00:50:01] ON IT. SO IT COULD BE FOR A TOTAL OF 20. OKAY. SO THIS, THAT SEVEN 50 IS RELATED TO HERZOG? CORRECT. OKAY. THIS IS THE OPERATIONS AND MAINTENANCE OF THE, OF THE TRE DAY TO DAY PLUS SUPPLEMENTARY SERVICES SUCH AS THIS THAT WE'VE ASKED THEM TO DO ALONG THE CORRIDOR. OKAY. I JUST WANTED, MAKE SURE I UNDERSTOOD THAT PART SPECIFICALLY. AND THEN, UM, COUPLE OTHER QUESTIONS END UP KIND OF GETTING ANSWERED. WHAT COULD THE MAXIMUM SPEED BE ON A DOUBLE TRACK FROM DALLAS TO FORT WORTH? SE REGULATORILY, I BELIEVE WE'RE AT 79. UM, NOT THAT, NOT THAT GEOMETRY SUPPORTS THAT THE FULL DIRECTION, UH, THE FULL DISTANCE, BUT FROM A REGULATORY PERSPECTIVE, I BELIEVE WE COULD MAX OUT AT 79. SO WHAT WOULD THE AVERAGE BE IF YOU COULD GET A, IF YOU COULD, IF YOU COULD SQUEEZE A 40 MINUTE TRIP OUT OF IT, YOU'RE DOING MATH ON THE FLY, YOU'RE AVERAGING 55 60 AND WOULD THAT REALLY BE, WOULD THAT BE A COMPETITOR TO PROPOSED HIGH SPEED RAIL? I'M NOT FAMILIAR WITH THE, THE PROPOSED HIGH-SPEED ROUTER CORRIDOR BETWEEN THE TWO. I BELIEVE THAT, I BELIEVE IT'S PROBABLY 30% ADDITIONAL, UH, SAVINGS ON THAT. 'CAUSE I BELIEVE THOSE VEHICLES COULD GO, COULD PUSH LIKE A 1 20, 1 29, UH, IN THEORY SPEED BETWEEN THE AREA. YEAH. UM, BUT YEAH, YOU'RE, YOU'RE DEFINITELY COMPETITIVE AND CERTAINLY MORE CONSISTENT THAN I 30 AT THAT 40 MINUTE, 40 MINUTE TIMELINE. OKAY. OKAY. ANY OTHER QUESTIONS? ALL RIGHT, WE'LL TAKE 18 FIRST, IS THERE A MOTION TO APPROVE? SO MOVED. IS THERE A SECOND? SECOND. IT'S BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION? SEEING NONE, PLEASE INDICATE YOUR VOTE. 8 9 1 WITH AID IN SUPPORT ZERO IN OPPOSITION 18 PASSES NUMBER 19 TO READING THE RECORD. APPROVAL OF CONTRACT MODIFICATION TO THE TRINITY RAILWAY EXPRESS OPERATIONS AND MAINTENANCE CONTRACT TO INCLUDE TRACK AND SIGNAL CONSTRUCTION FOR TRE DOUBLE TRACK PROJECT FOR MEDICAL MEDICAL MARKET TO IH 35 E. IS THERE MOTION TO APPROVE MOVE POOL? I'M GONNA GIVE IT TO MR. SLAGEL AND I'M GONNA HEAR MS. GARCIA ON THE SECOND. SECOND. ANY DISCUSSION? SEE YOU NOW. PLEASE INDICATE YOUR VOTE WITH NINE IN FAVOR. ZERO IN OPPOSITION. THAT MOTION PASSES. WE ARE NOW ON AGENDA ITEM 20 [20. *Briefing on Fiscal Year 2026 Second Quarter Ridership & Route Performance (Patrick J. Kennedy/Trey Walker)] IS A BRIEFING ON FISCAL YEAR 2026, SECOND QUARTER RIDERSHIP AND ROUTE PERFORMANCE. AND I'LL TURN IT OVER TO RALPH PARKER. ALRIGHT, GOOD AFTERNOON EVERYBODY. RALPH PARKER, DIRECTOR OF DIRECT RESEARCH AND SERVICE ANALYSIS AND THIS IS YOUR BRIEFING ON SECOND QUARTER RIDERSHIP AND ROUTE PERFORMANCE. SO A COUPLE OF NOTES FOR QUARTER TWO. UH, WE'RE GONNA LOOK AT DATA FROM JANUARY TO MARCH OF THIS YEAR. UH, WE DID HAVE SOME MAJOR SERVICE CHANGES IN FEBRUARY THAT WE'LL REVIEW, UM, IN THIS PRESENTATION. WE ALSO HAD SOME SEVERE WEATHER, UH, AT THE END OF JANUARY THAT DID HAVE AN IMPACT ON SOME OF OUR OPERATIONS. SO LOOKING AT OUR TOTAL SYSTEM RIDERSHIP, WE HAD A TOTAL SYSTEM RIDERSHIP OF 12.6 MILLION RIDER. UH, THAT IS A DECREASE FROM LAST YEAR OF AROUND 3.4%. LOOKING AT THE SUMMARY OF OUR 2026 FEBRUARY CHANGES, UM, AND I'LL GO BY CATEGORY HERE. SO FOR OUR FREQUENT SERVICE, WE UH, DECREASED OUR FREQUENCY. UH, DURING THE PEAK FROM 15 TO 20 MINUTES. WE TOOK THREE OF THOSE ROUTES THAT WERE IN THE FREQUENCY CATEGORY. WE REDUCED THOSE TO LOCAL STATUS. SO THEY ARE NOW 100 SERIES ROUTES. SO THEIR FREQUENCY DECREASED FROM 15 IN THE PEAK TO 20 MINUTES AND THEY DECREASED FROM 20 TO 30, UH, DURING THE MIDDAY AND THE EVENINGS FOR OUR LOCAL ROUTES ALL AROUND, UH, WHICH IS OUR A HUNDRED SERIES ROUTES, WE DECREASED THE FREQUENCY TO 20 MINUTES FOR OUR LOCAL COVERAGE, WHICH IS OUR 200 SERIES ROUTES. WE DID NOT CHANGE ANY FREQUENCIES. HOWEVER, WE DID DECREASE, OR I'M SORRY, DECREASE. WE DISCONTINUED FOUR ROUTES. THOSE ARE ROUTES, 2 0 9, 2 25, 2 54 AND 2 55. FOR THE EXPRESS ROUTES. WE DID DISCONTINUE THREE OF THOSE ROUTES, ROUTES 3 0 5, 3 78 AND 3 83. WE REDUCED THE FREQUENCY ON ROUTE 3 0 6 FROM 15 TO 20 MINUTES. AND THEN FOR LIGHT RAIL, WE DID REDUCE THE FREQUENCY DURING THE PEAK FROM 15 TO 20 MINUTES AND WE MADE NO OTHER CHANGES TO THE RAIL SYSTEM. SO THIS IS A MAP OF ALL THE DISCONTINUED ROUTES. YOU CAN SEE WHERE THEY ARE IN THE SYSTEM. UH, ROUTES 2 25, 2 55 OUT NERVING THE EXPRESS ROUTES, UH, 3 0 5 3 78, 3 83 GOING FROM DOWNTOWN DALLAS OUT TO ADDISON, DOWN INTO UH, SOUTHERN DALLAS AT REDBIRD AND THEN OUT TO GARLAND TO LAKE RAY HUBBARD AND ALSO ROUTE 2 54 IN PLANO AND ROUTE 2 0 9 SERVING THE, UH, DALLAS, UH, TO MOCKINGBIRD STATION CORRIDOR ALONG COAL AND MCKINNEY AVENUES. LOOKING AT THE FEBRUARY ROUTE REDUCTION, UM, FREQUENCIES, YOU CAN SEE THOSE ROUTES HERE. UH, [00:55:01] ROUTE 3 0 6, THE EXPRESS ROUTE GOING FROM DALLAS TO GLEN HEIGHTS. UM, AND THEN ROUTES 1 41, 1 47 AND 1 28 SERVING DALLAS. THIS IS A COMPARISON. LOOKING AT THE, UH, RIDER, UH, THE RIDERSHIP FOR ROUTES THAT WE DECREASED. UM, THE FREQUENCY, SO THAT WAS ROUTES 1 28, 1 41 47 AND ROUTE 3 0 6. UH, THE LOCAL ROUTES, UH, ALL HAD A DECREASE IN RIDERSHIP. UH, 16, 17 POINT HALF AND 11.8%. ROUTE 3 0 6, THE RIDERSHIP WAS UP, UH, 5%. WHAT I THINK HAPPENED HERE, UM, IS THAT COMMUTERS JUST SHIFTED, UM, TO THE FOLLOWING BUS SINCE IT WAS JUST A 5% OR FIVE MINUTE DECREASE THERE. UH, SO THE RIDERSHIP WAS UP 5.1%. UM, I CAN ALSO TELL YOU AS A RIDER OF THAT ROUTE, UM, RIDERSHIP, UH, IS INCREASING. UH, AND IT WAS VERY BUSY THIS MORNING, SO I'M GLAD TO SEE THAT ROUTE IS PERFORMING AMONG OUR EXPRESS ROUTES. LOOKING AT THE RIDERSHIP BY MODE, 50.6% OF OUR RIDERSHIP IS STILL ON BUS, FOLLOWED BY LIGHT RAIL, MICRO TRANSIT, COMMUTER RAIL, PARATRANSIT, AND THEN THE STREETCAR. LOOKING AT, UH, QUARTER TWO RIDERSHIP BY CITY DALLAS LEADS AWAY AT OVER 9 MILLION, FOLLOWED BY IRVING PLANO, I'M SORRY, IRVING GARLAND, PLANO. AND THEN RICHARDSON IS OUR TOP FIVE. LOOKING AT THE RIDERSHIP BY CITY ANNUAL COMPARISON. THIS IS A VERY BUSY SLIDE, UH, BUT IT DOES SHOW ALL THE PERCENTAGES BY MODE FOR EACH CITY. SO OVERALL, AND AGAIN THIS IS FOR QUARTER TWO. UM, OVERALL WE HAD SIX CITIES IN A DECREASE, UM, OUT OF OUR 13 AT THE TIME. UM, IN SILVER LINE RIDERSHIP YOU SEE HERE IN THE COMMUTER UH, RAIL CATEGORY, YOU DON'T SEE THE RIDERSHIP COMPARISON, UH, FOR CERTAIN CITIES LIKE CARROLLTON AND ADDISON BECAUSE WE DIDN'T HAVE THE SILVER LINE RIDERSHIP AT THAT TIME. UM, IRVING IS MAINLY TRE AND THEN THE DALLAS, UM, IS ALSO TRE. LOOKING AT BUS AVERAGE DAY OF THE RIDERSHIP, WE CARRIED 6.4 MILLION RIDERS IN QUARTER TWO. UH, WE WERE DOWN ACROSS THE BOARD. WEEKDAYS WAS DOWN 2.9%, SATURDAYS DOWN 12.9% AND SUNDAYS DOWN 7.4. UH, WE WERE UP IN JANUARY, ALMOST A FULL PERCENT, BUT FEBRUARY AND MARCH WERE ALSO DOWN. LOOKING AT LIGHT RAIL, UH, WE CARRIED 4.9 MILLION RIDERS ON THE LIGHT RAIL SYSTEM. WE'RE DOWN 3.9% DURING THE WEEK. SATURDAYS DOWN 11.2%, SUNDAYS DOWN 8.4%. WE DID SHOW THAT, UM, THAT SERVICE DISRUPTION ON THE RAIL SIDE, WHICH DID HAVE AN IMPACT. THERE WE'RE DOWN 4.5% IN JANUARY. LOOKING AT THE COMPUTER RAIL AVERAGES HERE, WE WERE UP 33% COMPARED TO LAST YEAR. DURING THE WEEK. SATURDAYS UP 30% SUNDAYS DON'T HAVE A COMPARISON 'CAUSE NORMALLY TRE DOESN'T RUN. SO WHAT YOU'RE SEEING HERE MOSTLY IS SILVER LINE RIDERSHIP AND THEN ALSO SOME OF THE UH, TRE SPECIAL EVENT TRAINS THAT UM, THAT RAN DURING THAT QUARTER. TRE RIDERSHIP. OVERALL WE CARRY 307,000 RIDERS. WE WERE DOWN 3.6% DURING THE WEEK. SATURDAYS DOWN 6.8% SILVER LINE RIDERSHIP. WHAT YOU'RE SEEING HERE IS JUST, UH, WHAT WE'VE DONE FOR THE QUARTER. UM, AND THEN YOU CAN SEE HERE WE, UH, HAD A TOTAL OF 130,000 RIDERS. FOUR QUARTER TWO. WE AVERAGE DURING THE WEEK 1,600 RIDERS. SATURDAY IS 1.1 AND SUNDAY IS JUST AT A THOUSAND RIDER. I WILL SAY RIDERSHIP IS INCREASING. UM, ON THE SO LINE, YOU CAN SEE THAT HERE, UH, FOR THE SLIDES FROM JANUARY, FEBRUARY INTO MARCH AND APRIL IS, UH, TRENDING, UH, HIGHER AS WELL AS MAY. LOOKING AT A COMPARISON FOR QUARTER TWO, GOING BACK TO FY 22, UH, WE HAD 9.4 MILLION RIDERS IN 22. UH, WE PEAKED AT 13.2 RIDERS IN FY 24. UH, WE SLID DOWN A LITTLE BIT IN FY 25 TO 13.1 AND FOR FY 26 WE WERE AT 12.6 MILLION RIDERS FOR OUR SERVICE PERFORMANCE. PERFORMANCE FOR EACH DART BUS ROUTE IS ASSESSED OVER THREE MEASURES. THAT'S RIDERS FOR REVENUE HOUR, PASSENGER MILES PER REVENUE MILE, AND SUBSIDY PER RIDER. OUR PERFORMANCE FOR GOLINK IS ASSESSED OVER TWO OF THOSE MEASURES, WHICH IS RIDERS PER REVENUE HOUR AND SUBSIDY PER RIDER. LOOKING AT OUR QUARTER TWO BUS PERFORMANCE BY ROUTE TYPE. SO THAT'S FREQUENT LOCAL, LOCAL COVERAGE EXPRESS MICROT, TRANSIT AND SHUTTLE. OVERALL, WE CARRIED 11.339 RIDERS PER HOUR. PASSENGER MILES, REVENUE MILES 4.32 AND OUR SUBSIDY OVERALL WAS $12 AND 56 CENTS. LOOKING AT OUR HIGHEST RIDERSHIP, UH, THIS WILL SHOW OUR BUS AND GOLINK ZONES HERE. SO TOP FIVE FOR AVERAGE WEEKDAY RIDERSHIP WAS ROUTES 22 57 8 83, WHICH IS UTD SHUTTLE, FOLLOWED BY ROUTES ONE AND NINE, TOP FIVE GOLINK ZONES. NORTH CENTRAL IRVING, FOLLOWED BY INLAND PORT ROULETTE, PASSPORT PARK, AND CYPRUS WATERS. AND YOU CAN SEE WHERE THEY ARE IN OUR SYSTEM HERE. UH, ON THE MAP, LOOKING AT OUR QUARTER TWO HIGHEST RIDERSHIP, LOCAL AND LOCAL COVERAGE ROUTES, YOU SEE ROUTE 1 47. THIS IS A ROUTE THAT WE, UM, ALSO DECREASED IN FEBRUARY. SO IN THIS CATEGORY IT DOES VERY WELL. 1700 RIDERS FOLLOWED BY ROUTES 1 0 1 2 41, WHICH IS LA DECOY CORRIDOR FROM DALLAS TO PLANO, ROUTE 1 0 4, [01:00:01] UH, GOING ACROSS ILLINOIS, EAST TO WEST, AND THEN ROUTE TWO 30, WHICH GOES FROM DALLAS TO IRVING. SO AS OUR PERFORMANCE MEETING TARGETS, SO EACH ROUTER SERVICE IS COMPARED TO PERFORMANCE FOR OTHER ROUTES OF THE SAME TYPE. IF PERFORMANCE IS LESS THAN 75% OF THE AVERAGE FOR ROUTE SERVICE TYPE, UH, 133% ABOVE SUBSIDY PER RIDER, THAT SERVICE IS DEFICIENT FOR THAT MEASURE. IF ALL APPLICABLE MEASURES ARE DEFICIENT, THEN THAT ROUTE FAILS TO MEET, UM, PERFORMANCE TARGETS. FOR QUARTER TWO, WE HAD NINE BUS ROUTES, THREE GO LINK ZONES AND THREE SHUTTLE ROUTES THAT WERE DEFICIENT. THE IMPORTANT TO NOTE HERE AS WELL, THAT, UH, WITH SOME OF THESE ROUTES, UH, WE DID DISCONTINUE THAT AND I'LL SHOW YOU THAT ON THE NEXT SLIDE. BUT ALSO AS A COMPARISON, WE COMPARE ROUTES TO EACH OTHER. SO FREQUENT SERVICE TO FREQUENT LOCAL TO LOCAL, SO ON AND SO FORTH. SO HERE'S OUR DEFICIENT PERFORMANCE FOR QUARTER TWO. THE ROUTES IN BLUE HAVE BEEN DISCONTINUED. UM, SO YOU CAN SEE THOSE HERE. WE WENT OVER THOSE EARLIER. YOU CAN ALSO SEE THE GO ZONES, WHICH WAS GLEN HEIGHTS, MOUNTAIN CREEK, AND WEST DALLAS. NOW, LIGHT RAIL PERFORMANCE BY LINE. OVERALL, WE CARRY 75.58 RIDERS PER HOUR WITH A SUBSIDY PER RIDER OF $8 AND 50 CENTS. OUR PARKING LOT UTILIZATION, UH, WE DID GO UP, UH, HALF A PERCENT FROM, UM, FY 25 QUARTER TWO. WE WENT FROM 13.2 TO 13.7%. AND JUST TO KIND OF RECAP, UH, THIS PRESENTATION, MICROT TRANSIT CONTINUES TO SHOW SOME STRONG GROWTH. WE DID HAVE SOME DIPS, BUT OVERALL MICROT TRANSIT IS VERY STRONG. CIVIL LINE RIDERSHIP IS TRENDING UPWARDS, WHICH IS FANTASTIC TO SEE. TRE AND LIGHT RAIL RIDERSHIP WERE DOWN, BUT, UH, WORLD CUP RIDERSHIP SHOULD INCREASE THOSE NUMBERS FOR JUNE AND JULY. THAT'S WHAT WE'RE LOOKING FOR. BUS RIDERSHIP DOES CONTINUE TO STRUGGLE. HOWEVER, STABILITY AND SERVICE AND FREQUENCY WILL SLOW DOWN THOSE DECLINES. ALSO, LOOKING AT WORLD CUP'S SHUTTLE SERVICE, UH, TO IMPROVE OUR BUS RIDERSHIP NUMBERS. AND THAT IS THE END OF MY PRESENTATION. MEMBERS. ANY QUESTIONS? MAYOR SOFFER, WE STILL CALLING YOU? MAYOR SOFFER, CALL ME RICK. ALRIGHT, RICK, YOU GOT IT. NO, . WE'LL GO BY. MY GOD-GIVEN NAME, RICK . UH, UH, I, I THINK, YOU KNOW, IT'S HARD TO LOOK AT THESE FOR THE FIRST TWO MONTHS BECAUSE WE'VE CHANGED UH, TIMES. WE'VE CHANGED ROUTES AND THINGS OF THAT NATURE, BUT, BUT, UH, I THINK WE REALLY NEED TO TAKE A GOOD HARD LOOK TO SEE. WE'RE, WE'RE HOPING THAT WE'RE GONNA GET UPBEAT BECAUSE OF, OF THE RIDER, BECAUSE OF THE, UH, FIFA, BUT THAT'S A ONE TIME DEAL. SO I THINK WE REALLY NEED TO LOOK AT IT FROM THE PERSPECTIVE OF WHAT WE'RE DOING. I ALSO THINK THAT, UH, IT'LL BE INTERESTING TO SEE, I KNOW I MET WITH SEVERAL MAYORS LAST WEEK THAT, UH, WE'RE TALKING ABOUT, UH, THEY'RE IMPLEMENTING OUR, OUR, UH, OWN INTERNAL TRANSIT THROUGH VIA, UH, ADDISON, UH, PLANO AND MYSELF, WHERE HAD A MEETING TO TALK ABOUT WHERE WE'RE AT WITH, WITH WHAT WE'RE DOING IN THOSE AREAS, TO, TO, TO SUBSIDIZE THE, UH, THE RATES AND, AND, UH, TO SUBSIDIZE THE RIDERSHIP. AND SO, WE'LL, I THINK IT, IT'S A CHALLENGE. I MEAN, YOU LOOK HERE, THERE'S NINE DEFICIENT ROUTES AND THERE'S EIGHT HERE, THERE, THERE'S, THEY DON'T MEET THE NUMBERS, BUT I THINK WHAT I'VE LEARNED IS WE'RE PROBABLY NOT THE BEST OFF TO JUST SAY, WELL, THEY DON'T MEET THE NUMBERS, SO WE'RE GONNA GET RID OF 'EM. I THINK WE NEED TO STEP BACK AND SAY, LOOK, WE'RE OBVIOUSLY THE PEOPLE THAT ARE RIDING ON THOSE ROUTES ARE DEPENDENT RIDERS, UH, FROM WHAT WE'RE SEEING. AND SO WE CAN'T JUST, UH, DI UH, NOT LOOK AT IT FROM THE PERSPECTIVE OF HOW DO WE FIGURE OUT SOME WAY TO DO THAT. SO I WOULD THINK IN THE FUTURE, MAYBE WE NEED TO LOOK AT WHAT WE CAN DO AS A AGENCY TO DO SIMILAR TO WHAT THEY'RE DOING WITH THE SMALLER FACILITIES WITHIN CERTAIN AREAS, WHATEVER CITY THEY'RE IN, THAT WE SEE THIS CHALLENGE. MAYBE DART COULD BE THE ONE THAT COMES IN WITH THE SMALLER VEHICLES AND PICKS UP THE ROUTES AND REALIZES THAT IT'S NOT GONNA BE AS BIG A RIDERSHIP. BUT MAYBE WE CAN START BUILDING ON THAT RIDERSHIP BECAUSE, UH, I MEAN, WE'LL SEE IT FROM THE PERSPECTIVE OF PEOPLE WILL MOVE FROM APARTMENTS IN OUR AREA WHERE THE, THOSE TWO ROUTES WERE REMOVED. THOSE ARE DEPENDENT RIDERS. THEY, THEY DO NOT HAVE VEHICLES. AND SO THAT YOU SAW THE OUTCRY AND THAT WAS THEIR CONCERN. AND SO THAT MEANS THEY MOVE SOMEPLACE WHERE THERE IS, WHICH IS I GUESS THE OTHER OPTION THAT THEY HAVE. BUT, BUT, UH, HOPEFULLY THAT WE DON'T LOSE THOSE RIDERS. I ALSO WOULD LIKE TO KIND OF SEE OF THE ROUTES THAT WE'VE REDUCED AND THE TIMES THAT WE'VE REDUCED WHAT THE REDUCTION OF PEOPLE IS AND IF WE'VE MADE IT UP IN OTHER AREAS. IN OTHER WORDS, ARE THEY BO ARE THEY USING THE GOAL LINK NOW INSTEAD, ARE THEY REALLY WHAT WE HOPE THEY WOULD DO? ARE THEY ACTUALLY DOING THAT? ARE NUMBERS FROM THAT AREA? UH, CALLS FOR GOAL LINK WHERE WE HAD RIDERS. ARE THEY, IS IT WORKING OUT? SO, AND NOW ALL THIS IS GONNA TAKE MORE THAN TWO MONTHS OR THREE MONTHS OF LOOKING AT A QUARTER. IT'S GOING TO TAKE US PROBABLY AT THE END OF THE YEAR TO HAVE A REAL SERIOUS LOOK AT THE NUMBERS TO UNDERSTAND AND THE [01:05:01] BEST. BUT I THINK IT'S SOMETHING WE SHOULD REALLY LOOK FORWARD INTO THE FUTURE TO SEE HOW WE CAN COME UP WITH A WAY TO CONTINUE TO SERVICE THOSE DEPENDENT RIDERS. NO, NO MATTER HOW SMALL THEY ARE. THANK YOU. THANK YOU, MAYOR. TOUGHER. ANYONE ELSE? MS. GARCIA? THREE MINUTES. THANK YOU, RICK, FOR YOUR COMMENTS. . ALRIGHT, EVERYONE GETS TO DO IT ONCE. . UM, I AGREE WITH THE STATEMENT THAT WAS MADE BY RICK EARLIER THAT, UM, IF WE COULD TAKE A LOOK AT SOME OF THOSE ROUTES THAT WE ELIMINATED, ONE IN PARTICULAR IN MY NEIGHBORHOOD IN, UH, UPTOWN MCKINNEY, UM, IF WE COULD GET SOME SMALLER BUSES, MAYBE JUST TO DO A TEST TO SEE IF THAT'S REALLY MAKING A DIFFERENCE OR NOT, YOU KNOW, BECAUSE, UM, IT IS LACKING IN THAT SPACE AND IF WE HAVE SOME NEW BUSES COME IN, PERHAPS, OR OTHER BUSES, I DON'T KNOW WHAT OUR FLEET LOOKS LIKE, BUT, UH, PERHAPS WE MIGHT WANNA TAKE A LOOK AT THAT AND, AND LOOK AT THE SMALLER BUSES IN THOSE ROUTES THAT WE, YOU KNOW, HAVE ELIMINATED JUST A RECOMMENDATION. YES, MA'AM. AND I'LL, I'LL TOUCH ON ONE THING AND I, I CAN'T DO IT. MAYOR STOFER, UM, SAID, UM, FOR, UM, PAST, YEAH, PAST MAYOR. UH, SIR, SIR, UM, ONE OF THE THINGS THAT I, I CAN SAY WE DID DO SOME EARLY LOOKING AT, UM, THE IMPACT OF THE, UH, ROUTES 2 25 IN NURSERY IN THE, IN THE 2 55 IN STORY. AND WHAT WE'VE SEEN SO FAR, UM, IS AN INCREASE IN THE GOLINK, UM, BY 23%. AWESOME. SO I DO BELIEVE IT IS A LONGER TERM THING THAT WE'LL CONTINUE TO LOOK AT FOR THE MCKINNEY COAL CORRIDOR. UM, I, AND I, I WANNA SAY THIS, AND I KNOW, YOU KNOW, WE TALK ABOUT LOOKING AT SMALLER VEHICLES AND, AND THINGS LIKE THAT. SOME OF IT ALSO IS WHERE PEOPLE ARE GOING. SO, AND I'LL, I'LL USE AN EXAMPLE THAT WE'VE HAD FOR A WHILE WITH, UM, ROUTE 2 0 7. THIS WAS ROUTE FOR A WHILE, UM, A COUPLE YEARS AGO THAT WAS DEFICIENT FOR QUITE SOME TIME. INSTEAD OF ELIMINATING THE ROUTE, REDUCING THE FREQUENCY, WHAT WE DID WAS, IS THAT WE MODIFIED TWO ROUTES, AND THAT WAS PART OF THE 2 0 7. WE EXTENDED IT TO COVER A PORTION OF FORMER ROUTE 2 22, AND THEN WE SHORTEN THE 2 22 TO COVER ONE PORTION WITH ROUTE 1 22. AND BOTH ROUTES HAVE BEEN RELATIVELY SUCCESSFUL SINCE WE WE'VE DONE THAT. SO SOME OF IT ISN'T JUST LOOKING AT SMALLER VEHICLES IN THAT PARTICULAR VACUUM, IT'S ALSO LOOKING AT HOW WE CAN COMBINE OUR ROUTES TO SAVE SOME OF THOSE, UH, AND HAVE SOME OF THOSE EFFICIENCIES AND MAKE SURE WE'RE GETTING PEOPLE TO WHERE THEY'RE GOING AS WELL. ANYONE ELSE? OKAY. THANK YOU, SIR. THANK YOU. UM, LOOKS LIKE WE HAVE SOME ENTHUSIASTIC YOUTH IN THE BACK. WELCOME TO OUR MEETING. HOPEFULLY YOU'RE LEARNING HOW NOT TO DO THINGS WHEN YOU GROW UP. NO, I'M PLAYING , UH, BUT TRACY AND DON, THANK YOU FOR, I GUESS WE HAVE SOME INTERNS. ALL RIGHT, WELCOME. THIS IS OUR COMMITTEE OF THE WHOLE BOARD MEETING. WE ARE MOVING ON [Items 21 & 22] TO ITEM 21, IS THE APPROVAL OF CONTRACT FOR KAHUA ENTERPRISE PROJECT MANAGEMENT INFORMATION SYSTEM, MS. ALMAN. THANK YOU. NOW, GOOD AFTERNOON. UM, JAMIE ALMAN, EVP AND CFO, AND I AM HERE TO WALK THROUGH THE KAHUA PRESENTATION WITH YOU. AND I'LL BE JOINED BY TREY WALKER HERE IN A MOMENT. SO TODAY'S CONSIDERATION, UM, WE'RE DOING THE PRESENTATION, A SINGLE PRESENTATION FOR TWO ITEMS. UM, THE FIRST ONE IS APPROVAL OF A THREE YEAR CONTRACT WITH TWO ONE YEAR OPTIONS FOR THE ENTERPRISE PROJECT MANAGEMENT INFORMATION SYSTEM, EPM, UM, TO KAHUA FOR AN AMOUNT NOT TO EXCEED, UH, APPROXIMATELY 5.1 MILLION AND THEN A TWO YEAR CONTRACT FOR ENTERPRISE PMIS IMPLEMENTATION SERVICES. ALSO TO KAHUA FOR AN AMOUNT NOT TO EXCEED 1.9 MILLION. SO DART IS ADVANCING THE EFFORT TO SUNSET THE EXISTING PROJECT MANAGEMENT SYSTEM AND TRANSITION TO KAHUA PHASE. ONE OF THE PROJECT BEGAN AFTER THE BOARD DIRECTED STAFF, EXCUSE ME, IN OCTOBER OF 2024 TO REPLACE MASTERWORKS. WE CREATED A CROSS-FUNCTIONAL TEAM AND EVALUATED 13 PMIS SOLUTIONS AGAINST DARTS CONSTRUCTION PROJECT, FINANCIAL AND CONTRACT MANAGEMENT REQUIREMENTS. UM, IT WAS AN EXTENSIVE PROCESS THAT INCLUDED MARKET RESEARCH, VENDOR INTERVIEWS AND ONSITE DEMONSTRATIONS. UM, THIS INCLUDED PARTICIPATION, EXECUTIVE PARTICIPATION FROM OPERATIONS DEVELOPMENT, FINANCE, PROCUREMENT AND TECHNOLOGY. PHASE ONE IMPLEMENTATION WAS APPROVED BY THE BOARD IN JUNE OF 25. AND WE ARE BACK TODAY TO BEGIN PHASE TWO, WHICH IS THE AGENCY WIDE DEPLOYMENT. UM, WITH THIS TRANSITION, WE ARE ACHIEVING COMPLIANCE WITH THE 2024, UM, INTERNAL AUDIT OBSERVATIONS RELATED TO THE USE OF THE PMIS, OF THE CURRENT PMIS AND WILL ENSURE COMPLIANCE [01:10:01] WITH RECORD RETENTION REQUIREMENTS FROM THE STATE OF TEXAS. UM, WE DID TAKE AI DEVELOPMENT INTO CONSIDERATION BASED ON PREVIOUS CONVERSATIONS, AND WE OBTAINED A QUOTE FOR A FIVE YEAR TERM, A THREE YEAR BASE PLUS TWO ONE YEAR OPTIONS. THE FIVE YEAR COST FOR THE SUBSCRIPTION BASED SYSTEM, UM, IS 5.1 MILLION. THE ANNUAL COST DOES INCLUDE UNLIMITED LICENSES USE OF THE SYSTEM AND MAINTENANCE. THIS IS COMPARED TO AN ESTIMATED, UH, 2.6 MILLION FOR THE EXISTING SYSTEM. MASTERWORKS. WHILE THIS SEEMS LIKE A LARGE INCREASE, I DO WANT TO NOTE THREE ITEMS. ONE, THE PRICE FOR KAHUA INCLUDES MANY FEATURES THAT OUR CURRENT CONTRACT DOES NOT, SOME OF WHICH THE EXISTING SYSTEM CAN'T DO, AND TREY WILL HIGHLIGHT SOME OF THESE ON, UH, THE UPCOMING SLIDES. NUMBER TWO, IF WE WERE TO STAY WITH THE CURRENT SYSTEM, WE WOULD HAVE TO PERFORM A MAJOR SOFTWARE UPGRADE, AND WE GOT A QUOTE FROM THAT IN 2024, AND THAT QUOTE CAME IN AT 1.5 MILLION. SO WE WOULD LIKELY SEE AN INCREASE IN THAT COST AS WELL. FINALLY, WITH THE EXECUTION OF THIS CONTRACT, WE WOULD CANCEL, UM, THE EXISTING CONTRACT GENERATING APPROXIMATELY 1.3 MILLION IN SAVINGS, BRINGING OUR TOTAL FIVE YEAR INVESTMENT IN KAHUA TO 5.7 MILLION. UM, I DO WANNA POINT OUT THAT IT'S IMPORTANT TO REMEMBER THAT THE SYSTEM BECOMES THE BOOK OF RECORD FOR ALL CAPITAL PROJECTS AT THIS AGENCY. HAVING A SOPHISTICATED SYSTEM THAT CAN TRACK COSTS, BUDGETS AND DOCUMENT RETENTION FOR MULTIMILLION DOLLAR PROJECTS, UM, IS VITAL TO PROJECT ADMINISTRATION AND EFFICIENCIES. SO NOW I WILL TURN IT OVER TO TREY. ALL RIGHT, THANK YOU, JAMIE. UM, SO AS JAMIE MENTIONED, UH, THE KAHUA SYSTEM OFFERS SOME ADVANTAGES OVER OUR EXISTING SYSTEM. UM, THE MOST IMPORTANT ONES THERE THAT IT ALLOWS US TO DO IS IT ALLOWS US TO INTEGRATE A BUNCH OF OUR PROCESSES INTO THE SYSTEM ITSELF. SO WE'RE ABLE TO CREATE STANDALONE APPS AND PROCESSES WITHIN KAHUA, UM, THAT ARE DART BASED PROCESSES, UM, RATHER, AND WE WERE ABLE TO DO THAT OURSELVES AND BE ABLE TO GENERATE THOSE SOLUTIONS IN-HOUSE WITHOUT HAVING TO GO OUTSIDE OF HOUSE AND HAVE IT CONFIGURED BY THE SOFTWARE PROVIDER. IT ALSO PROVIDES MUCH MORE INTUITIVE AND CUSTOMIZABLE, UH, UNITS OR INTERFACE COMPARED TO OUR EXISTING SYSTEM, UH, WHICH, UH, TRANSLATES INTO EMPLOYEES USING THE SYSTEM MORE REGULARLY. UM, AND THESE ARE HIGHLY CONFIGURABLE, UM, APPLICATIONS THAT, THAT WE CAN USE. UM, FROM SORT OF THE HIGH LEVEL SIDE ON THE PROGRAM MANAGEMENT PERSPECTIVE, UH, THIS ALLOWS US TO CREATE INDEPENDENT DASHBOARDS, UH, TO HIGHLIGHT ITEMS SUCH AS RISK, OUR PROJECT COSTS, OUR PROJECT SCHEDULES, AND OUR PROJECT SCOPES AT A HIGH LEVEL TO BE ABLE TO UNDERSTAND IF WE'VE GOT, YOU KNOW, THINK OF A, A GREEN, YELLOW, RED STATUS AT ANY POINT ON ANY GIVEN PROJECT AND BE ABLE TO DI DIVE DOWN AND ADDRESS THAT. UH, AND THEN LASTLY, UH, KAHUA IS THE PROJECT MANAGEMENT, UH, SYSTEM THAT IS UTILIZED AND DEPLOYED BY THE FEDERAL GENERAL SERVICES ADMINISTRATION. UH, MEANING THAT IT'S WIDELY USED ACROSS THE US, UM, BY MANY OF OUR EXISTING CONTRACTORS. SO AS JAMIE NOTED, UH, THE DEVELOPMENT TEAM AND THEN SPECIFICALLY THE DART TRANSFORM TEAM IS, UM, THE GUINEA PIGS FOR BEING ABLE TO TRY KAHOOT. WE'VE BEEN IN IT FOR ABOUT 12 MONTHS NOW, UM, AND BEING ABLE TO LOOK AT, UH, THE USAGE AND ACCLIMATION OF IT AS WE DELIVER OUR DART TRANSFORM PROGRAM OF PROJECTS. UH, AND WE HAVE NOTED THAT THIS SYSTEM IS AN IMPROVEMENT OVER THE STATUS QUO. SO SOME OF OUR EARLY OBSERVATIONS INCLUDE SPECIFICALLY THAT WE ARE ABLE TO, UH, CONDUCT DESIGN REVIEWS MORE COLLABORATIVELY AS A PROJECT TEAM. THESE SYSTEMS, UH, INTEGRATE AND MATRICULATE THROUGH THE ENTIRE PROJECT TEAM FROM THE DART STAFF TO OUR PROGRAM MANAGEMENT TEAM, OUR CO OUR DESIGNERS, AND THEN EVENTUALLY OUR CONTRACTORS. UH, AND SO AS WE'RE CONDUCTING THESE DESIGN REVIEWS, WE'RE ABLE TO DO IT ALL LOOKING AT THE SAME SCREEN AS OPPOSED TO THE PREVIOUS LEGACY SYSTEM. WE WERE, UH, CONDUCTING DESIGN REVIEWS ON ONE SCREEN AND THEN COLLATING ALL OF OUR NOTES AND COMMENTS AND AN EXCEL SPREADSHEET, UH, THAT THEN HAD TO BE, UH, UH, ADJUDICATED AND SOLVED THROUGH THAT. SO WE'RE ABLE TO DO IT, UH, COLLABORATIVELY AND HAVE ONE LINE OF SIGHT AND ONE RECORD DOCUMENT THROUGHOUT THE ENTIRE PROJECT. UM, KAHUA ALSO, UH, OFFERS FOR US SOME MORE SOPHISTICATED FINANCIAL TREND ANALYSES. AS YOU CAN IMAGINE ON SOME OF OUR LARGER PROGRAMS, WE CURRENTLY HAVE PERSPECTIVE COST AND BUDGET CHANGES RUNNING CONCURRENTLY. UM, AND SO WHAT KAHUA ENABLES US TO DO IS TO BE ABLE TO ALLOCATE THOSE POTENTIAL CHANGES, UM, AS OPPOSED LEADING UP TO THEIR EXECUTION. SO WE'RE ABLE TO DO SOME MORE SOPHISTICATED FINANCIAL TREND ANALYSES RATHER THAN JUST THE EXECUTION OF THOSE CONTRACT CHANGES AS A RECORD DOCUMENT, UH, IN THE LEGACY SYSTEM. UH, AND THEN AS I, AS I MENTIONED ON THE PREVIOUS SLIDE, UM, UH, THIS IS JUST A, A MUCH SIMPLER USER INTERFACE, UM, AND THAT WE ARE ABLE TO, UH, REALLY LOOK AT MORE DEPLOYMENT AND, AND HIGHER LEVERAGING, UH, PERCENTAGES ACROSS OUR PROJECT TEAMS, UH, THROUGHOUT MANAGING THE ENTIRE CAPITAL PORTFOLIO. AND WE'RE LOOKING FORWARD TO THAT, UH, EXTENDING IT BEYOND, UH, THE TRIAL PERIOD. SO THE RECOMMENDATION FOR Y'ALL TODAY, UH, [01:15:01] OR TWOFOLD, UH, ACTION ITEM ONE IS THE THREE YEAR CONTRACT, UH, TWO ONE YEAR OPTIONS, UH, FOR THE SYSTEM, UH, TO KAHUA AND THE AMOUNT NOT TO EXCEED 5,000,009 $2,111. AND THE SECOND IS THE IMPLEMENTATION SERVICES WITH KAHUA AND THE AMOUNT NOT TO EXCEED $1,938,000. THANK YOU DOTE QUESTIONS, QUICK QUESTION IS, ARE ITEMS ONE AND TWO ONLY RELATED TO 21 OR IS THE FIRST 1 21 AND THE SECOND ONE? 22, 21 AND 22 CHAIR? SO, UH, THE SYSTEM ITSELF, THE $5 MILLION ITEM IS RELATED TO AGENDA ITEM 21. MM-HMM . AND THEN THE $1.9 MILLION ITEM IS AGENDA ITEM 22. GOT IT. OKAY. SO WE'LL TAKE QUESTIONS ON 21 AND 22 COLLECTIVELY, AND THEN WE'LL TAKE A MOTION ON 21 AND 22 INDIVIDUALLY. COOL QUESTIONS, MS. GARCIA AND MS ONE KRAUS, THANK YOU FOR YOUR PRESENTATION TODAY. UM, MY QUESTION HAS TO DO WITH THE COMPANY IN ITSELF. SO EXPLAIN TO ME WE ALREADY HAD A CONTRACT WITH THEM BEFORE WE'RE ENTERING INTO ANOTHER CONTRACT. UH, THAT'S CORRECT. SO WE HAD A CONTRACT WITH KAHUA THAT THE BOARD EXECUTED LAST JUNE, UM, TO START KIND OF OUR PILOT PROGRAM OF THE SYSTEM, UH, SPECIFICALLY FOR DART TRANSFORM. AND NOW WE ARE COMING BACK AND EXECUTING, UH, THIS SUCCESSOR CONTRACT. OKAY. SO IN TERMS OF THE PROCESS IN ITSELF, ALLOWING OTHERS TO COME AND BID THAT WAS SENT OUT, YOU LOOKED AT OTHER COMPANIES THAT, SO WHAT WE DID ORIGINALLY, UM, WHEN WE MADE THE INITIAL SELECTION, UM, IS WE REVIEWED 13 DIFFERENT PMIS SYSTEMS. WE DID EXERCISE THROUGH A COOPERATIVE, BUT WE DID, UM, DO THAT EXTENSIVE REVIEW THE VENDORS RESEARCH, MARKET RESEARCH DEMONSTRATIONS OF 13 DIFFERENT SYSTEMS, UH, BEFORE WE MADE THE DECISION LAST JUNE TO MOVE FORWARD WITH KAHUA. SO WE'RE SAYING THE PROCESS WAS A CO-OP PROCESS LAST YEAR? YES. OKAY. 'CAUSE I DIDN'T THINK DARK HONORED THAT TYPE OF A SYSTEM HERE. UM, BUT COOPERATIVE PURCHASES, WE USE COOPERATIVE PURCHASES, UH, FREQUENTLY AS AN AGENCY AND THAT'S WHY WE DID SUCH AN EXTENSIVE, UH, REVIEW AND DEMONSTRATION PROCESS WITH ALL OF THOSE VENDORS. UM, PROBABLY ENDED UP DOING MORE THAT WAY THAN WE WOULD HAVE THROUGH AN RFP 'CAUSE AN RFP WE WOULD NORMALLY NARROW DOWN TO, UM, YOU KNOW, WITHIN COMPETITIVE RANGE, USUALLY TWO OR THREE. UM, BUT WE ACTUALLY DID DO FULL DEMONSTRATIONS AND REVIEWS OF 13 SYSTEMS BEFORE MAKING THIS DECISION. THANK YOU MS. RON KRAUS. THREE MINUTES. THANK YOU, CHAIR. FIRST OF ALL, I WANTED TO COMMEND YOUR PRESENTATION, UM, FOR THE TRANSPARENCY, UM, COMPARISON BETWEEN MASTERWORKS AND KAHUA, WHICH, UH, SPECIFICALLY SLIDE FIVE, I THINK THAT HELPED ME UNDERSTAND WHAT THE DIFFERENCE IS. AND THEN THE NEXT, UM, SLIDE ALSO EXPLAINED WHAT YOU'RE GETTING FOR THAT EXTRA $1 MILLION THAT YOU ARE, THAT YOU ARE SPENDING. ALL RIGHT. SO I THINK THAT'S VERY HELPFUL. UM, THE OTHER THING IS, I'M A BIG BELIEVER IN PROS AND CONS. IT CAN'T BE ALL PROS. ARE THERE ANY CONS FROM LEAVING MASTERWORKS? I MEAN, ARE WE LOSING ANY FUNCTIONALITY, UM, BY SWITCHING FROM MASTERWORKS? AND OBVIOUSLY A CON IS THAT IT'S A MILLION DOLLARS LESS, BUT OTHER THAN THAT, I I LIKE TO HAVE A BALANCED APPROACH. SORRY. I WAS JUST GONNA SAY FROM A TECHNOLOGY PERSPECTIVE, NO, WE THINK THAT THE KAHUA, UH, SYSTEM IS SUPERIOR FROM MY PERSPECTIVE, FROM LIKE A FINANCE STANDPOINT. I ALSO PREFER KAHUA. UM, I FOUND MASTERWORKS DIFFICULT TO WORK WITH, UM, BUT I CAN LET TRE SPEAK TO THE DEVELOPMENT TEAMS. I WAS JUST GONNA SPEAK TO, WE'RE GOING TO BE IN INSTITUTING AN ENTERPRISE WIDE CHANGE. AND SO JUST MANAGING THAT CHANGE AS WE STAND THIS UP, UH, AND IN AND INTEGRATE IT INTO IT. RIGHT NOW IT'S KIND OF BEEN SOMEWHAT SEQUESTERED TO THE TRANSFORM TEAM. UM, BUT AS WE GO TO A WIDER AUDIENCE, WE JUST HAVE TO GO THROUGH THE MECHANICS OF, OF USHERING THAT CHANGE THROUGH OUR TEAMS AND PROJECTS. IT'S NOT A, WE'D HAVE TO DO THAT WITH ANY OF THE 13 VENDORS. JAMIE MENTIONED. THANK YOU. AND I, I ENCOURAGE YOU TO PUT PROS AND CONS EVEN IF THE CON IS A MILLION DOLLARS, UM, CHEAPER. SURE. CHEAPER. ALRIGHT. THANK YOU. THANK YOU. ANYONE ELSE? ALRIGHT, SO WE WILL TAKE AN A MOTION ON 21 BY ITSELF RIGHT NOW. IS THERE A MOTION TO APPROVE MOVE APPROVAL? SECOND. IT'S BEEN MOVED. SECOND. ANY FURTHER DISCUSSION? SEEING NONE, PLEASE INDICATE YOUR VOTE. NINE IN FAVOR, ZERO IN OPPOSITION. THAT MOTION IS APPROVED. WE'LL TAKE UP 22 FOR THE READING OF IT INTO THE RECORD. IT'S APPROVAL OF CONTRACT FOR KAHUA IMPLEMENTATION SERVICES. IS THERE A MOTION TO APPROVE MOVE [01:20:01] APPROVAL? IS THERE A SECOND? SECOND. IT'S BEEN MOVED. AND SECOND. ANY FURTHER DISCUSSION? SEEING NONE, PLEASE INDICATE YOUR VOTE NINE IN, SORRY, WITH EIGHT IN FAVOR, ONE ABSTENTION, ZERO IN OPPOSITION AND MOTION IS APPROVED. WE WILL NOW [23. *Briefing on FY 2027 Operating Budget Outlook (Gary Slagel/Jamie Adelman)] MOVE ON TO AGENDA ITEM 23, WHICH IS A BRIEFING ON FY 2027 OPERATION OPERATING BUDGET OUTLOOK. WELCOME AGAIN, . THANK YOU. OKAY, JANE MAILMAN. UH, EVP AND CHIEF FINANCIAL OFFICER. SO, UM, TODAY WE'RE PROVIDING AN UPDATE ON THE FY 26, UM, ACTUAL PERFORMANCE TO BUDGET AS OF MARCH 31ST IN THE MIDPOINT OF OUR FISCAL YEAR. WE ARE OPERATING A VERY TIGHT TO BUDGET IN THE CURRENT YEAR, BUT WE'RE ON TRACK TO STAY WITHIN OUR APPROPRIATION. WE WILL ALSO PROVIDE AN UPDATE ON THE PREPARATION OF STAFF PROPOSED FY 27 OPERATING BUDGET. AND I DO WANNA PREFACE THAT CONVERSATION TODAY WITH A FEW POINTS. SO FIRST, FY 27 WILL BE A STATUS QUO BUDGET. THE BOARD WORKED HARD DURING FY 26 BUDGET DEVELOPMENT TO REDUCE OPERATING COSTS, UM, AND FUND THE FIRST TWO YEARS OF THE GENERAL MOBILITY PROGRAM, UM, AND TO COVER OTHER COST INCREASES THAT WE WERE FACING WHEN WE PRESENT THE PROPOSED 20 YEAR FINANCIAL PLAN IN JULY. YOU WILL SEE REDUCTION ASSUMPTIONS TO SUPPORT REMAINING FOR REMAINING, EXCUSE ME, TO SUPPORT THE REMAINING FOUR YEARS OF THE GMP, BUT WE DON'T HAVE TO MAKE THOSE DECISIONS THIS YEAR. WE'RE ALSO IN A GOOD PLACE BECAUSE AS I'VE MENTIONED BEFORE, FY 27 IS A ZERO SALES TAX GROWTH YEAR PER THE FINANCIAL PLAN. THE PRACTICE OF BUDGETING FOR ZERO SALES TAX GROWTH EVERY THIRD YEAR KEEPS OUR FINANCIAL PLAN FROM GROWING UNSUSTAINABLY. AND WHAT THIS MEANS PRACTICALLY IS THAT WE'RE NOT PROPOSING ANY SIGNIFICANT SERVICE OR STAFFING CHANGES GOING INTO FY 27. ALTHOUGH WE PLAN FOR A ZERO GROWTH YEAR, WE KNOW THAT THIS IS NOT REALITY. UM, FROM A SALES TAX PERSPECTIVE, AS WE PRESENTED IN APRIL, THE ECONOMIST IS PROJECTING OVER 4% GROWTH AND WE DO NOT ANTICIPATE BUDGETING A 4% INCREASE IN SALES TAX. HOWEVER, WE WILL LIKELY BUDGET A MODEST INCREASE OF UP TO 3% TO COVER THE INFLATIONARY COST DRIVERS WE'RE EXPERIENCING OVER THE LIFE OF THE PLAN. DURING THE BUDGET PROCESS, WE DID INSTRUCT DEPARTMENTS TO HOLD THEIR BUDGETS FLAT TO FY 26. THIS WAS POSSIBLE FOR SOME DEPARTMENTS, BUT FOR OTHERS, UH, NOT NOT ACHIEVABLE, UH, JUST BECAUSE OF MANDATORY CONTRACTUAL INCREASES AND INCREASING COSTS FOR VITAL SOFTWARE SYSTEMS. WE'RE ALSO MOVING THE TRANSIT SECURITY OFFICER OR TSO CONTRACT INTO THE OPERATING BUDGET. THIS WAS PREVIOUSLY FUNDED WITH RIDERSHIP IMPROVEMENT FUNDS AND CAPTURED IN THE CAPITAL AND NON-OPERATING LINE ITEMS OF THE BUDGET. MOVING THE BASE CONTRACT INCREASES OPERATING COSTS BY AT LEAST 8.5 MILLION ANNUALLY, AND WE'VE ALSO RECEIVED DIRECTION TO INCREASE THE TSO PRESENCE ON THE SYSTEM, WHICH WILL DRIVE AN ADDITIONAL 3 MILLION UH, DOLLARS IN COSTS IN FY 27 ABOVE THE 8.5 THAT I MENTIONED. ADJUSTING THE SALES TAX GROWTH ASSUMPTION FOR FY 27 AS THE AGENCY DOES EVERY YEAR, WILL HELP US REDUCE THIS OPERATING GAP. SO I WANNA GO OVER THE, THE CALENDAR AGAIN QUICKLY. HERE WE ARE IN JUNE. UM, THE NEXT TIME WE MEET ON JULY 14TH, WE WILL HAVE RELEASED, UH, THE FULL BUSINESS PLAN THAT INCLUDES THE OPERATING BUDGET, THE CAPITAL AND NON-OPERATING BUDGET, AND THE DEBT SERVICE BUDGET. THAT WILL ALSO INCLUDE, UM, THE FIVE YEAR CIP. WE WILL ALSO BE PROVIDING THE BOARD WITH THAT GL DETAIL WITH VARIANCE ANALYSIS ON BUDGET CHANGES FROM YEAR TO YEAR OF $50,000 AND 5%. UM, AND THEN WE'LL WORK THROUGH THE REST OF THE PROCESS, HOLD THE WORKSHOP ON THE 31ST WHERE WE CAN DO A DEEPER DIVE, UM, AND THEN WORK THROUGH AUGUST AND SEPTEMBER FOR APPROPRIATE, UM, BOARD ACTIONS AND APPROVALS. WITH THAT, I'M GOING TO TURN IT OVER TO SENATOR TO WALK THROUGH THE PRESENTATION. THANK YOU JAMIE. SO HERE ARE SOME OF THE HIGHLIGHTS OF THE CONSIDERATION, THE DECISIONS AND, UH, CONSIDERATION DECISIONS THE BOARD APPROVED DURING THE FY 2026 OPERATING BUDGET CYCLE. THE FY 2025, UH, FINANCIAL PLAN ONLY INCLUDE OPERATING EXPENSES FOR EIGHT MONTHS OF SILVER LINE SERVICE. AND AS YOU KNOW, WE OPENED, UH, THE SILVER LINE FOUR MONTHS AHEAD OF TIME. UH, SO WE UPDATED THE FINANCIAL PLAN TO INCLUDE THAT CONTRACTUAL INCREASES FOR GOLD LAKE AND PARA TRANSIT WERE INCLUDED ALONG WITH ADDITIONAL GOLD LINK AND SHUTTLE SERVICES, UH, [01:25:01] REQUESTED BY THE CITIES. UH, THERE WERE HEAD COUNT REDUCTIONS OF 137 IN BUS OPERATORS, RAIL OPERATORS IN ADMIN POSITIONS, UH, DRIVEN PRIMARILY BY BUS AND LIGHT RAIL FREQUENCY ADJUSTMENTS AND DISCONTINUED BUS ROUTES. UH, SO AS YOU CAN SEE, LASH'S BUDGET CYCLE BROUGHT SOME SIGNIFICANT ADMIN, UH, AND DISCONTINUED AND, UH, SERVICE REDUCTION TO THE AGENCY. JUST ALSO WANTED TO MENTION THAT WE DO HAVE IN THE APPENDIX OF THIS PRESENTATION SOME HISTORICAL INFORMATION RELATED TO THE OPERATING EXPENSES BY CATEGORY AND HISTORICAL HEADCOUNT INFORMATION BY DEPARTMENT. SO DURING THE CAPITAL AND NON-OPERATING PRESENTATION TO THE BOARD IN MAY, WE RECEIVED A REQUEST, UH, AROUND A QUESTION, UH, FROM MAYOR STOFER REGARDING THE REDUCTIONS THAT WERE REALIZED FOR THE SERVICE ADJUSTMENTS. HERE, UH, YOU SEE THE ACTUAL REDUCTIONS IMPLEMENTED DURING THE FY 2026 OPERATING BUDGET PROCESS, WHICH GOT US TO THE FINAL OPERATING BUDGET TARGET OF 7 5 7 0.9 MILLION. YOU CAN SEE THE APPROVED FY 2026 FINANCIAL PLAN INCLUDES 7 81 0.4 MILLION FOR OPERATING IN FY 2027, UH, VERY SIMILAR TO THE CAPITAL NON OPS BUDGET PROCESS WE DISCUSSED IN MAY. UH, WE TYPICALLY RECEIVE MORE OPERATING BUDGET REQUESTS THAN AVAILABLE FUNDS. UH, IN THE PLAN, AS YOU'LL SEE LATER IN THE PRESENTATION REGARDING FY 2027, THE GAP IN FY 2027 IS SMALL, UH, BUT WE KNOW OPERATING EXPENSES IN FY 2028 WILL NEED TO BE FLAT TO FY 2027 TO FUND THE GMP SO REDUCED FROM THAT 8 0 4 0.1 MILLION YOU SEE, UH, FOR FY 2028. WHILE THOSE DECISIONS WILL BE MADE AS PART OF THE NEXT YEAR'S BUDGET PROCESS, YOU'LL SEE SOME OF THOSE ASSUMPTIONS WHEN WE BRING YOU THE PROPOSED FINANCIAL PLAN IN JULY. THIS SLIDE DETAILS HOW THE OPERATING BUDGET IS FUNDED. UH, SALES TAX BY FAR IS THE LARGEST FUNDING SOURCE OF THE OPERATING BUDGET AT 76.6% SALES TAXES USED FOR OPERATING CAPITAL AND THE ONLY SOURCE OF FUNDING FOR DEBT, THE REMAINING 23.4% THAT FUNDS THE OPERATING BUDGET IS 8.9% FROM FEDERAL FORMULA FUNDS ABOUT 8% IN OPERATING REVENUES. SO THAT INCLUDES THINGS LIKE PASSENGER REVENUES AND ADVERTISING REVENUES. UH, THE INTEREST INCOME THAT'S GENERATED FROM OUR INVESTMENT PORTFOLIO AND PARTNER CONTRIBUTIONS, UH, THAT WOULD INCLUDE, UH, TRINITY METRO FOR THEIR SHARE OF TRE AND ALSO THE CITY OF DALLAS. THIS SLIDE SHOWS THAT WE ARE PROJECTING TO END THE YEAR FOR OUR OPERATING WHERE WE, WHERE WE'RE GONNA END THE YEAR FOR OUR OPERATING BUDGET. TOTAL BUDGET FOR THE YEAR IS 7 5 7 0.9 MILLION. YEAR TO DATE THROUGH MARCH. WE ARE 2.5% UNDER, UH, PRIMARILY IN SERVICES DRIVEN BY SECURITY AND CONSULTING. UH, THERE ARE SOME HEADCOUNT, OPEN HEADCOUNT POSITIONS THAT'S DRIVING THAT VARIANCE AS WELL AND SOME OTHER SMALLER VARIANCES. SO WE ARE FORECASTING IN TOTAL TO BE 5.6 MILLION UNDER PLAN FOR THE YEAR, WHICH IS LESS THAN A 1% VARIANCE WHERE WE EXPECT TO SEE PURCHASE TRANSPORTATION PICK UP A BIT DUE TO FUEL AND SHUTTLE SERVICES. ULTIMATELY, WE STILL EXPECT TO END THE YEAR TIGHT TO BUDGET JUST THROUGH A BINDER. LAST YEAR, FY 2025, WE PERFORMED AT ALMOST 99% OF OUR OPERATING BUDGET FOR THE PAST, UH, TWO YEARS. THE AGENCY HAS REALIZED A STEADY DECLINE IN HEAD COUNT, A TOTAL HEAD COUNT REDUCTION OF 45 FROM THE FY 24 25, AND A TOTAL REDUCTION OF 137 AND FY 2026. THE OPERATIONS HEADCOUNT, WHICH INCLUDES BUS AND LIGHT RAIL OPERATORS AND MECHANICS HAS DECREASED IN RECENT YEARS, PRIMARILY DUE TO SERVICE ADJUSTMENTS. AND AS YOU CAN SEE WITH THE DECLINE OF OUR ADMINISTRATIVE HEADCOUNT THE PAST COUPLE OF YEARS, WE'VE CONSISTENTLY MAINTAINED COMPLIANCE WITH A 12% ADMINISTRATIVE RATIO STANDARD. THE NEXT FEW FEW SLIDES COVER THE LARGER CONSIDERATIONS FOR THE OPERATING BUDGET THAT STAFF IS CURRENTLY CONSIDERING. INCLUDED IN THE APPROVED FFY 2026 FINANCIAL PLAN IS 23.5 MILLION OR 3.1% ANNUAL OPERATING EXPENSE INCREASE FOR FY 2027. THAT INCLUDES INCREASES FOR SALARIES AND WAGES, INCREASES FOR MEDICAL CONTRACT ESCALATIONS, FOR COMMUNAL RAIL AND PURCHASE TRANSPORTATION, AND OTHER CONTRACT INCREASES. THAT GETS US TO THE PLAN BUDGET OF 7 81 0.4 MILLION THAT YOU PREVIOUSLY SAW. DEPARTMENTS WERE TOLD, UH, TO HOLD TO THEIR F TOLD THEIR FY 2027 BUDGET FLAT TO FY 2026 WAS OPERATING BUDGET, BUT SOME DEPARTMENTS SUBMITTED ADDITIONAL REQUESTS RESULTING IN ABOUT $30 MILLION IN OPERATING BUDGET REQUEST ABOVE THE TARGET. THAT PUTS US AT 811.2 MILLION IN OPERATING NEEDS FOR FY 2027. THAT IS NOT THE FINAL NUMBER. UH, JUST LIKE CAPITAL, WE HAVE BEEN WORKING WITH DEPARTMENTS TO REDUCE THAT GAP AND WE WILL CONTINUE ALONG THIS PATH. THE APPROVED FY 2026 FINANCIAL PLAN, AS YOU KNOW, CALLS FOR [01:30:01] FY 2027 SALES TAX AT 937.5 MILLION, UH, WHICH IS 0% YEAR OVER YEAR GROWTH. AS AMY MENTIONED IN HER INTRODUCTION, UH, MANAGEMENT IS ESTIMATING ABOUT A TWO TO 3% GROWTH OVER FY 2026 FOR SALES TAX. IT'S TYPICAL FOR THE AGENCY TO ADJUST ANNUAL SALES TAX GROWTH ASSUMPTIONS BASED ON CURRENT TRENDS AND OUR ECONOMIST FEEDBACK. OUR PRACTICE HAS BEEN TO BUDGET ON THE LOW END FOR SALES TAX AND WE STILL INTEND TO FOLLOW THAT PRACTICE. HOWEVER, WE ALSO KNOW THAT GROWTH CANNOT BE FLAT. UH, THIS SLIDE SHOWS THE ECONOMIST PROJECTION OF CPI, UH, WHICH FINANCE PRESENTED TO THE BOARD IN THE FINANCIAL OUTLOOK PRESENTATION BACK IN APRIL. UH, CPI IS THE CAP THAT GOVERNS THE ANNUAL OPERATING GROWTH RATE OF OUR FINANCIAL PLAN. UH, THE BLUE LINES ARE THE ECONOMIST PROJECTION AND THE ORANGE ARE THE FINANCIAL PLAN ASSUMPTIONS. THE SOLID LINES REFLECT THE 90% CAP FROM OUR STANDARDS. UH, IF YOU LOOK AT THE SOLID BLUE AND ORANGE LINES IN FY 2027, WE PLAN FOR A 2% INCREASE AND IN REALITY, WE'RE LOOKING AT ALMOST A 3% INCREASE. SO WE KNOW THAT WE'LL EXPERIENCE SOME INCREASES GOING INTO FY 2027 . THIS SLIDE SHOWS THE DETAIL FOR THE $30 MILLION IN OPERATING BUDGET REQUESTS ABOVE THE TARGET, INCLUDING ADDITIONAL FUNDING FOR SECURITY. UH, TECHNOLOGY CONTRACT INCREASES, INCREMENTAL DOLLARS FOR MECHANICS AND LIGHT RAIL OPERATORS. SUPPLEMENTAL NEEDS FOR SAFETY REGULATIONS, EXTRA DOLLARS FOR PURCHASE TRANSPORTATION AND COMMUTER RAIL. AGAIN, THIS IS NOT THE FINAL NUMBER AND WE'RE WORKING TO REFINE THESE NUMBERS TO CLOSE THE FUNDING GAP. THERE ARE A FEW FACTORS THAT COULD IMPACT THE FY 20 27 71 $0.4 MILLION TARGET THAT IS INCLUDED IN THE APPROVED FY 20 26, 20 YEAR FINANCIAL PLAN. ANY ADJUSTMENT IN SALES TAX GROWTH, UH, AS DISPLAYED EARLIER, SALES TAX ACCOUNTS FROM MORE THAN THREE FOURTHS, UH, OF THE FUNDING FOR THE OPERATING BUDGET. THE GENERAL MOBILITY PROGRAM, AS YOU KNOW, WE ARE ALREADY, WE ALREADY HAVE YEARS FY 20, 26 AND 27 FUNDED IN THE FINANCIAL PLAN. BUT YEARS FY 2028 THROUGH 31 ARE CURRENTLY ESTIMATED TO BE AN ADDITIONAL 270 MILLION. THAT 270 MILLION COULD CHANGE BASED ON ACTUAL SALES TAX AND FY 26 THROUGH 29. THE HOLLY PARK WITHDRAWAL OBLIGATION COULD HAVE AN IMPACT ON THE AVAILABILITY OF FUNDS FOR OPERATING EXPENSE AND AS I MENTIONED PREVIOUSLY, THE FY 28 OPERATING EXPENSE GROWTH NEEDS TO BE FLAT TO FY 2027. HERE'S WHERE WE ARE FOR NEXT STEPS. UH, FINANCE NEEDS TO CONTINUE TO WORK WITH DEPARTMENTS TO CLOSE FUNDING GAPS IN OPERATING AND CAPITAL. WE NEED TO INCORPORATE RIDERSHIP AND OPERATING OPERATING REVENUE ASSUMPTIONS IN THE FINANCIAL PLAN. WE NEED TO FINALIZE SALES TAX GROWTH ASSUMPTIONS, COMPLETE NORMAL INPUTS INTO THE FINANCIAL PLAN. AND IN JULY PRESENT THE PROPOSED FI 2027 BUDGET AND 20 YEAR FINANCIAL PLAN TO THE BOARD. ALSO AT THAT TIME PROVIDE LINE ITEM DETAIL OF THE OPERATING BUDGET. AND THAT CONCLUDES OUR PRESENTATION. WE'LL BE HAPPY TO TAKE QUESTIONS AND COMMENTS, MEMBERS QUESTIONS. MAYOR STOFFER, I DON'T KNOW WHY I DID THAT EXACTLY. MAYOR SLAGEL, HOW ABOUT THAT? ALRIGHT, IN YOUR SLIDE, IF YOU COULD GO BACK TO SLIDE 10 PLEASE. I JUST WANT TO ASK A QUESTION. I, SO THE 2026 BUDGET INCLUDES WORLD CUP DOLLARS FOR OPERATING DOLLARS, WHICH, UH, INCREASE. HOW DO WE HANDLE THAT IN 2027 WHEN WE MAKE THE COMPARISON? UH, WE'RE REDUCING, WE'RE INCREASING SERVICES DURING THAT MONTH AND A HALF OF THE WORLD CUP. SO IT'S GONNA, IT'S COSTING US MORE DOLLARS AND WE'RE PLANNING ON TAKING THE SERVICES BACK TO THE ORIGINAL LEVEL AFTER WORLD CUP'S OVER. YES. SO WHAT IS THE COST OF THE WORLD CUP IN THAT 2026 NUMBER? SO THE WORLD CUP COSTS ARE NOT IN THE 757.9 MILLION. OKAY. WE CAPTURED THE WORLD CUP COSTS IN THE CAPITAL AND NON-OPERATING BUDGET BECAUSE WE KNEW, TO YOUR POINT, THEY'RE ONE, ONE-TIME ACTIVITIES. THEY'RE NOT ONGOING OPERATING COSTS. SO THEY ARE NOT FACTORED IN HERE. OKAY. OKAY. ALRIGHT. THANK YOU. MM-HMM . YES. OKAY, THANK YOU CHAIR. UH, PAGE 17, THE PARATRANSIT MOBILITY CONTRACT INCREASES OF 8 MILLION. UM, NOW THESE ARE THE ONES THAT ARE THE ONE YEAR OPTIONS. IS THAT PART OF THAT INITIAL CONTRACT WITH FRIENDS [01:35:01] DEV OR HOW ARE YOU CALCULATING THAT? SO THIS IS BASED ON THE, THE PLANNED CONTRACT GROWTH, UH, FOR HERZOG AND FOR FOR STALER. UM, SO WE WANNA MAKE SURE WE CAPTURE THAT. UM, IN THE INCREASES FOR THE NEXT YEAR, THE PARATRANSIT WOULD BE FOR TRANSDEV SPECIFICALLY? YES. AND IT INCLUDES CONTRACTUAL, MANDATORY CONTRACTUAL INCREASES. AND IF Y'ALL REMEMBER THE, THE INITIAL YEAR OF THAT CONTRACT CO CONTRACT WAS LOWER AND IT HAD SIGNIFICANT PRICE INCREASES INTO THE OUT YEARS. AND I THINK WE'RE GOING INTO YEAR, I WANNA SAY YEAR THREE, UM, AT THIS POINT WITH THAT CONTRACT. AND THEN I THINK, I BELIEVE, CINDY, YOU CORRECT ME IF I'M WRONG, THERE'S ALSO SOME ESTIMATES IN THERE FOR INCREASED RIDERSHIP, UM, IN PARATRANSIT AND GOLINK BECAUSE THERE ARE ALSO INCREMENTAL COSTS ASSOCIATED WITH THOSE AS WELL. UNDERSTAND. BUT THOSE ARE FOR THE UH, OPTIONS, WE HAVE THAT NUMBER ALREADY FIGURED IN. UM, FOR THE TRANSIT PARATRANSIT CONTRACT PART OF IT YES. THAT WE'RE USING, YES. OKAY. DOESN'T INCLUDE ANY INCREASE IN RIDERSHIP THE, THE PART THAT WE HAVE BUILT INTO LIKE THE PLANNED GROWTH. RIGHT. SO WE SHOWED TWO NUMBERS, KIND OF THE 23.5 MILLION ON A PREVIOUS SLIDE, WHICH IS PLANNED GROWTH. WE HAD LIKE BASE CONTRACTUAL INCREASES INCLUDED IN THAT PLANNED GROWTH. UM, HERE WE'RE SEEING ADDITIONAL COST INCREASES FOR RIDERSHIP, INCREASES ON PARATRANSIT AND UM, INCREASES IN GOLINK COSTS AS WELL. MM-HMM BOTH FROM A TRANSDEV COST AND FROM A TNC PROVIDER PERSPECTIVE. AND SO THAT'S WHAT WE'RE WORKING ON. WE DO THINK THAT WE CAN GET THIS NUMBER DOWN SOME AND WE'RE ACTIVELY WORKING WITH MMS TO REFINE THIS. UM, THIS WAS JUST KIND OF THE ORIGINAL REQUEST THAT CAME IN. RIGHT? I WAS JUST FOCUSING TO ON THE WORD CONTRACT INCREASES. OH SURE. OKAY. SO WE KNOW THAT AMOUNT. YES. WE KNOW THE BASE CONTRACT INCREASE. YES. AND WHEN, WHEN IS THE LAST OPTION? WHAT YEAR DOES THAT? I BELIEVE WE SIGNED A FLAT SIX YEAR, EIGHT YEAR CONTRACT. OKAY. IT'S A SOLID EIGHT. THANK YOU. NO FURTHER QUESTIONS. ANYONE ELSE? ALRIGHT. ALRIGHT, WELL THANK YOU ALL VERY MUCH AND WE WILL SEE YOU IN JULY. AND AGAIN, JUST A REMINDER THAT WE CAN, UM, MYSELF AND NU WILL MAKE OURSELVES AVAILABLE, UM, FOR ONE-ON-ONE MEETINGS SHOULD YOU WANT TO TAKE ADVANTAGE OF THAT. THANK YOU. WE'LL, OKAY. MEMBERS, IT IS NOW 1 24 AND WE ARE ON RECESS ALWAYS RIGHT. IT'S TODAY, IT IS NOW SIX 20 AND WE ARE, WE HAVE RETURNED FROM RECESS OF THE COMMITTEE OF THE WHOLE MEETING AND IT IS NOW [Additional Item] 6:21 PM ON TUESDAY, JUNE 9TH, 2026. AND THE DALLAS AREA RAPID TRANSIT COMMITTEE OF THE WHOLE MEETING IS GOING INTO CLOSED SESSION UNDER SECTION 5 51 0.074 OF THE TEXAS OPEN MEETINGS ACT, WHICH ALLOWS FOR THE DELIBERATION OF A PERSONNEL MATTER TO DISCUSS. AGENDA ITEM 24, REVIEW OF APPLICATIONS AND SELECTION OF CANDIDATES FOR POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER. OKAY, WE'RE GOOD THERE. IT IS NOW 7:57 PM ON TUESDAY, JUNE 9TH, 2026 IN THE DALLAS AREA. RAPID TRANSIT COMMITTEE OF THE WHOLE MEETING IS BACK INTO OPEN SESSION. WE DID NOT, UM, TAKE ANY ACTION ON AGENDA ITEM 24 AND NOW IT IS 7 57 AND WE ARE ADJOURNED. THANK YOU ALL. THANK YOU ALL. WOO. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.