[0:01] >> good morning, everyone. We welcome

[0:04] you to the regular meeting of the

[0:05] board of

[0:07] trustees for the utah

[0:10] transit authority. Today is

[0:13] wednesday, september the 24th

[0:16] of 2025. Just a couple matters of business

[0:19] to share with you. This meeting is

[0:20] being held

[0:22] in person

[0:25] but being broadcast live through our uta

[0:26] board

[0:27] meeting webpage, and for the public

[0:28] who may be viewing it and

[0:30] would like to make comment, there

[0:31] is a feature in zoom known

[0:34] as raise the hand, and when we

[0:36] get to public comments, if you'll

[0:37] raise that hand, then that will

[0:39] allow our staff to know you'd like

[0:40] to make comment. If

[0:43] you're here in person, we'd ask that

[0:44] you

[0:46] fill out a card when we get to that

[0:47] section in both

[0:49] cases, we'll ask you to limit

[0:50] your comments to three minutes. With

[0:52] that, we want you to stand and join

[0:57] us in the pledge of allegiance. I

[1:01] pledge allegiance to the flag of the united states of america, and to

[1:04] the republic for which it stands, one nation under

[1:08] god, indivisible, with

[1:14] liberty and justice for all.

[1:20] >> with that we'll turn to

[1:23] our safety first minute,

[1:26] and we'll welcome our

[1:27] chief people officer, ann green barton. Ann.

[1:28] >>

[1:29] good morning. All right. As we

[1:31] move into the fall and winter months, the

[1:35] sun is setting earlier, and

[1:36] that means reduced visibility during

[1:38] later commutes and evening

[1:39] work. Whether you're behind the wheel, walking

[1:41] through a

[1:42] building or moving between parking

[1:44] areas, stay

[1:47] alert and take extra time to look

[1:48] around, wear reflective gear when

[1:49] appropriate, and avoid distractions

[1:50] like your

[1:53] phone. The shorter days don't have

[1:54] to mean greater risks. By staying

[1:56] aware, we can keep ourselves

[1:59] and each

[2:01] other safe. Thank you.

[2:02] >> thanks,

[2:03] ann. With

[2:04] that, we'll turn to public comment. Curtis,

[2:05] do we have any

[2:07] cards? Is there anybody here that

[2:08] came in person

[2:11] to make comment that we

[2:12] missed? Okay. How about online? And

[2:13] then online. If there are others that

[2:14] would like

[2:17] to make comment

[2:20] after the fact, we certainly welcome

[2:22] those. With that we'll go to our consent

[2:23] agenda

[2:26] which is minutes from

[2:28] a prior meeting.

[2:29] >> motion to apleuv

[2:30] the

[2:31] cob sent agenda.

[2:32] >> second. >> I have

[2:33] a motion seconded

[2:34] by jeff to approve the consent. All

[2:35] in

[2:38] favor say aye.

[2:39] >>

[2:40] aye.

[2:41] >> any opposed? That motion passes. With

[2:42] that we'll

[2:44] go to our executive director jay fox

[2:46] for his report. Good morning, jay.

[2:47] >>

[2:48] good

[2:49] morning, trustees. Well, if you haven't

[2:50] heard the good news yet, and I'm

[2:53] sure you have

[2:56] since you were with me, the utah transit

[2:57] authority was named the outstanding

[2:58] public transportation --

[2:59] >> we probably

[3:00] should

[3:01] have you hold that just a tad closer.

[3:02] >>

[3:04] closer?

[3:05] >> there we go. Thank you. >>

[3:06] we have been

[3:07] named --we announced this previously,

[3:08] but we

[3:11] received the award

[3:13] this week for the 2025 outstanding

[3:14] public transportation

[3:17] system for agencies of our size

[3:20] in north america. So I just

[3:22] note is a remarkable honor, one made

[3:23] possible by

[3:26] our dedicated employees,

[3:29] support from our

[3:31] customers, our partners, contractors,

[3:34] porters, taxpayer investors, really

[3:35] it reflects

[3:37] a unified recognition. That's a picture

[3:38] of us from -- at

[3:41] boston where we received the award

[3:44] last week where

[3:47] 96% of us were dressed

[3:50] in red. [

[3:52] laughter ]

[3:53] >> I just think --if I

[3:54] sum

[3:55] this up in one sense, just a reflection

[3:56] of how far

[3:59] this agency has

[4:02] come since

[4:05] 2020, we really have rebounded

[4:06] very well, and far I think exceeding

[4:08] the hopes of this area in

[4:11] terms of how we're providing service now. So

[4:13] I want to thank you, trustiest, for

[4:14] your trust in me and

[4:15] giving me the opportunity to lead

[4:17] this agency. I want

[4:19] to thank my executive team for their

[4:20] leadership

[4:21] and making this possible. And most

[4:23] of all,

[4:26] thank you to what I call the we, all

[4:27] 3,000

[4:29] of the amazing uta employees who move

[4:30] our

[4:31] customers and drive economic growth

[4:32] everyday for our region

[4:35] and the state of utah. So just

[4:37] one last note on this, this award

[4:38] will

[4:41] make its rounds around the

[4:44] agency. We have our comps team is preparing

[4:45] a

[4:46] lot of really cool stuff to celebrate

[4:47] this

[4:49] --you know, this really prestigious award

[4:50] for this agency.

[4:51] >> jay,

[4:52] as a board, we want to express our

[4:53] thanks

[4:56] to you as the executive

[4:59] director for your leadership.

[5:00] >>

[5:01] thanks.

[5:02] >> and working and making

[5:03] it inclusive we, and I think

[5:04] that's deserving of a round of applause. [

[5:08] applause ]

[5:09] >> appreciate

[5:11] it.

[5:12] >> thank you so much. All right. I

[5:13] actually

[5:14] don't have anything else on my

[5:16] report for this week. I think that

[5:17] was good,

[5:19] as a single item. But if you're okay,

[5:20] I'll move right into

[5:22] the strategic plan minute

[5:23] >> that

[5:24] would be great. Thanks.

[5:25] >> let me

[5:26] just

[5:29] bring up my notes on that. So

[5:32] this strategic plan

[5:34] minute focuses on our priority of generating

[5:35] economic

[5:38] return, and it is --

[5:41] it highlights the campaign that

[5:44] we've kicked off on the value

[5:47] that we create to our

[5:50] community. So this initiative is led

[5:51] by

[5:52] our communications marketing department. We

[5:53] had a

[5:55] really great kickoff on july 16th. Tom

[5:56] cruise was there, although we never

[5:58] got to see his face, but I know he

[5:59] was there. And

[6:01] it's focused on deploying --

[6:02] >> I

[6:04] thought that was brad pitt.

[6:05] >> oh. Was

[6:06] it brad

[6:07] pitt? I'm sorry.

[6:08] >> it's okay. You

[6:09] were star

[6:10] struck. I get it.

[6:11] >> I'm pretty sure. [

[6:14] laughter ]

[6:15] >> and

[6:16] it's focused on, you know, forming

[6:17] stakeholders

[6:20] of all of our value, including

[6:23] a $5.11 return

[6:25] for every $1 invested. The media engagement

[6:26] metics, they're

[6:29] really well ahead of

[6:32] our goals. We had 336

[6:35] articles published versus

[6:38] a 240 target, and our coverage

[6:41] would appoint an evaluation that's

[6:42] pretty high, versus 648 target, if

[6:44] you really want to

[6:47] know what that means, I can bring

[6:50] coms up. We're doing well,

[6:52] we're recovering well. We've done

[6:53] social storytelling, social

[6:55] media, podcast appearances, so we

[6:56] are getting this

[6:59] out. All that work is

[7:02] supported by metro

[7:05] analytics who study influence the

[7:06] campaign messaging. And

[7:08] so thanks again

[7:09] to our coms team, our creativity, leadership,

[7:11] and I would say one of

[7:13] the things they've done really well

[7:14] is continue to

[7:15] cycle the message. We're not just

[7:17] putting in a message and then

[7:20] leaving it there for somebody to potentially

[7:23] read, that, you know, we're

[7:26] regularly reminding --you know, our customers,

[7:27] our

[7:28] constituents, our stakeholders of

[7:29] what we're doing and how

[7:31] we're doing it and how we're doing

[7:32] it well. Really

[7:35] thank you for that

[7:38] work. Looking forward to expanding this

[7:41] discussion and reinforcing this maybe

[7:42] even

[7:44] during our legislative session and

[7:45] every opportunity

[7:47] we have.

[7:48] >> well, thanks, jay. And

[7:49] obviously

[7:50] we need to have you

[7:52] watch f1 with us.

[7:53] >> yeah. Yeah. I wanted

[7:54] to see that one

[7:56] instead of "how to train

[7:59] your dragon."

[8:00] >> that's

[8:01] great. Thank you, though. With that,

[8:03] why don't we move to item c

[8:05] on our agenda which is our pension

[8:09] committee report. We'll turn

[8:10] to our colleague jeff acerson. Jeff.

[8:11] >>

[8:12] thank you, chair christensen. We've

[8:13] got

[8:15] a couple slides we want to show

[8:17] you. One of the things that we've made

[8:18] a

[8:20] commitment to over the long term is

[8:21] to

[8:23] move some of our allocation of global

[8:27] equities into what we

[8:28] call the private equity arena. And

[8:30] just

[8:33] an update on that. That's a

[8:34] year-over-year time frame. It's not

[8:36] a short-term transition,

[8:39] but we've got about 1.3% of

[8:41] the 10% that we've allocated to go

[8:42] into that. And so

[8:45] probably in the next

[8:48] two, maybe three years we'll

[8:50] start to see how that responds and

[8:51] how that

[8:53] returns on the investment. But we

[8:54] have

[8:55] high hopes and good expectations that

[8:57] that will

[9:00] be

[9:03] a very positive move for

[9:05] the pension allocations. So --and

[9:06] one more

[9:09] update. In the next slide maybe

[9:11] it'll show it. Yes. We're about a

[9:15] 10% return year to date on

[9:16] the pension, so that's --we're doing

[9:18] all right. You know, we

[9:19] had quite a discussion the previous

[9:21] time we met

[9:24] about tariffs

[9:25] and how that might react or respond

[9:27] to

[9:28] how it does in the marketplace. But

[9:30] at least up

[9:33] to this point, we haven't really

[9:34] seen a negative impact on that. Hold

[9:36] our breath. You know, knock

[9:39] on wood, whatever we need to do

[9:40] to make sure that doesn't happen. But

[9:42] --so this

[9:45] year to date is up

[9:48] to july 31st, 2025. And quite

[9:50] honestly, the market has responded

[9:51] quite

[9:54] well, even after july. So

[9:55] we have a pretty positive expectation

[9:57] that that

[10:00] return will even increase a little bit. So

[10:02] --

[10:03] >> any questions for jeff? Thanks,

[10:04] jeff.

[10:05] >> it's kind

[10:06] of nice to have a good report

[10:07] >>

[10:08] yeah.

[10:09] >> it's doing well. There isn't

[10:10] much to say. Just keep going.

[10:11] >>

[10:12] that's great, though. Nice to see

[10:13] that

[10:14] progress. With that, we'll move to resolutions. And

[10:15] the

[10:18] first item before us is a

[10:21] resolution approving the

[10:24] first amendment to the

[10:25] authority's 2025 to 2029 five-year

[10:27] capital plan. And

[10:30] with that we welcome vi miller,

[10:33] as well as dan hofer. Vi.

[10:34] >>

[10:39] >> good morning, trustees. Good

[10:41] morning, jay. So we have brought this

[10:42] forward for

[10:44] discussion, and then we took it to

[10:45] l.a.c. For discussion,

[10:48] and we are back to

[10:51] request approval of this

[10:53] amendment to the 2025 through 2029

[10:56] five-year capital plan. You'll see

[11:00] there's also a request for a

[11:01] 2025 budget amendment. This increases

[11:03] the five-year plan amounts for

[11:06] two projects. It's the light

[11:08] rail vehicle replacements and the

[11:09] mount ogden folding expansion. One

[11:11] of the discussions we'll have today

[11:12] is to talk

[11:15] to you about what happened with our bonding

[11:16] and

[11:17] our bonding program that we did back

[11:18] in august was to

[11:21] support these two projects. And so

[11:23] this adds $39.9 million to the five-year

[11:27] plan,

[11:30] and these are

[11:32] all bond funds. So, again, we had

[11:33] a discussion with the board

[11:36] on july 23rd, and then we had a

[11:39] consultation with the

[11:40] local advisory council on august 27th. Academy

[11:42] I'll have

[11:45] dan walk you through.

[11:46] >> thanks, vi. We'll walk through

[11:48] the individual projects so you can see

[11:49] the

[11:50] differences between the current planning

[11:51] and

[11:54] the proposed plan. These are the same

[11:56] as what was already discussed. But

[11:57] for the light rail

[12:00] project, overall it adds the two

[12:02] critical points, adds $67 million

[12:03] to this year's budget. This

[12:06] will be for the exercising of

[12:09] the options so we can

[12:12] get the additional 20 vehicles

[12:14] started. And then --

[12:15] >> 40 all together,

[12:16] right, which is all

[12:17] the rolling stock that we initially

[12:20] wanted to replace?

[12:21] >> that's correct. It

[12:22] will replace

[12:24] both of those two --all those

[12:26] fleets. So --and then as mentioned,

[12:27] the $67 million

[12:30] this year, there's some shifting

[12:33] in the middle years,

[12:36] and then some

[12:37] additional added almost $27 million

[12:39] in 2029. The overall

[12:42] net addition

[12:45] to this project alone is $23.4 million.

[12:46] >>

[12:47] and can

[12:48] I ask a question on that slide?

[12:49] >>

[12:50] sure.

[12:51] >>

[12:52] and maybe this is to you, vi. When

[12:53] we bonded, we knew

[12:54] we would go back

[12:56] and, you know, tentatively in '28

[12:57] further the additional funding. Does

[12:59] the exercise under this option change the

[13:00] horizon of that

[13:01] need for additional bonding?

[13:02] >> we

[13:03] are still planning to

[13:06] go back out in '28.

[13:07] >> okay. >> the

[13:08] dollar amount

[13:09] is an estimate right now that we

[13:10] have built into this plan amendment change,

[13:12] as well as into the tentative

[13:15] budget

[13:18] that we'll be discussing later.

[13:19] >> okay. Thanks. >>

[13:20] I

[13:21] just wanted to --

[13:24] sorry, dan. My brain just totally

[13:25] clicked into this. I

[13:26] think --and as we have these discussions,

[13:27] and as we

[13:29] continue to look at these improvements and

[13:30] these investments, I think one of

[13:33] the things I wanted

[13:36] to kind of just re-rearticulate

[13:38] is that these strategic investments are

[13:39] actually going to be long-term transformational for our

[13:40] community. And I know

[13:42] that it is --I know people always

[13:43] question

[13:46] how

[13:48] do you navigate the whole bonding strategy. And

[13:49] as

[13:51] we all know, grants are subjective

[13:52] and competitive. And

[13:54] so I think as we continue to have

[13:56] these discussions, and we strategize

[13:58] for our

[14:00] finances, I think it's always good

[14:01] to

[14:02] have that as that reference point because

[14:04] we're not always going to be

[14:06] in a situation where we would --we'll

[14:07] simply just get money

[14:08] just because we asked for it. And

[14:10] so as we

[14:11] continue to do this, I think that

[14:13] it's --you guys have

[14:16] done an excellent job in really

[14:17] trying to navigate this and work out

[14:18] strategies so that we can continue

[14:22] to be effective as we go out to

[14:23] that market. We just don't know how everything

[14:24] is going to go. But infrastructure,

[14:27] again, I think is one of the most critical

[14:28] things. And as

[14:30] we look at that, and we look at our

[14:31] growth,

[14:33] I think this is such a worthy investment

[14:34] in not

[14:35] just our system but our communities. So

[14:37] I just wanted to

[14:40] say that because I know

[14:42] you have a very challenging task ahead

[14:45] of you.

[14:46] >> thank you, beth. And I

[14:47] also would

[14:49] like to reiterate for the public

[14:52] that we did receive $60 million

[14:56] towards this project from the federal government.

[14:57] >>

[15:01] okay. The

[15:04] mount ogden project, the changes

[15:06] are highlighted here. Overall we were

[15:07] adding

[15:08] $16.5 million to this project, bringing

[15:13] it to a total

[15:15] of $26.2 million. This amount does

[15:16] include

[15:19] about $3.7 million in formula

[15:21] grant funds that we receive annually. And

[15:22] what

[15:24] this will do --you'll notice that

[15:25] there's no change in 2025,

[15:27] but the changes occur in the out years

[15:29] by doing this amendment now it allows

[15:31] us to proceed with the

[15:34] procurement of a contractor to get

[15:35] started earlier on this project. The

[15:37] overall differences between the

[15:38] plans are highlighted here. The top

[15:40] row has

[15:42] the existing plan where it's about

[15:43] $1.2 billion

[15:45] overall, and then the individual yearly

[15:48] totals are highlighted in the middle. The

[15:50] project lines show the net difference

[15:52] that was the

[15:55] bottom line

[15:57] in the previous tables that we discussed. You

[15:58] can

[16:01] see the totals

[16:02] there. The new proposed plan captures the $67

[16:04] million addition

[16:07] in 2025, as well as the

[16:08] changes in the remaining outyears

[16:10] as well with the overall

[16:13] new total

[16:14] for the proposed plan being $1.24 billion. And

[16:16] as you can

[16:19] see at the bottom, it

[16:20] gives a net change year over year, and

[16:22] in the bottom

[16:25] right, you can see the $39.9

[16:30] million that vi alluded to earlier. Any

[16:34] questions?

[16:35] >>

[16:36] any questions from the board?

[16:37] >> chair,

[16:38] I'm prepared

[16:40] to make

[16:43] a motion

[16:44] to approve the resolution r-25-09-05,

[16:46] resolution

[16:49] approving the first

[16:51] amendment to the authority's 2025-2029

[16:52] five-year capital

[16:53] plan as presented.

[16:54] >> second. >> I

[16:55] have a motion from

[16:57] jeff, seconded by beth to approve

[16:58] the resolution. With

[17:01] that,

[17:04] I'll ask for

[17:07] roll call.

[17:08] >> trusteeaceeerson aye. >>

[17:09] trustee.

[17:10] >> aye. >> chair christensen. >>

[17:11] aye.

[17:12] >> it's a resolution

[17:13] approving the first

[17:16] amendment to the authority's

[17:17] 2025 capital budget. And, vi and dan.

[17:18] >>

[17:19] so we can get

[17:20] through this one pretty quickly as

[17:22] the capital budget

[17:25] is the first year of the

[17:28] capital plan. And so, of course,

[17:30] we are previously discussing of amending

[17:31] the

[17:34] plan, this

[17:38] is amending specifically the 2025 budget

[17:40] year. We, again, had this discussion with

[17:43] the board and

[17:45] with the consultation with the local advisory

[17:46] council. This

[17:49] is going to increase

[17:51] the 2025 budget authority by $67 million. And,

[17:52] again,

[17:55] dan just took

[17:58] you through some of

[18:00] those details.

[18:01] >> here's a snapshot

[18:02] of the overall budget overview

[18:04] for the change. As you can see,

[18:07] the current budget

[18:10] is on top

[18:11] with our $332.million budget, the

[18:13] 67 we're seeking to add is

[18:16] all with the sd light rail vehicle replacement

[18:19] project, and

[18:22] the new total will be

[18:23] $397.2 million. Any questions?

[18:24] >>

[18:25] only

[18:28] question I had was on mount ogden. So

[18:30] the change and then the change in

[18:31] the capital plan allow us

[18:34] to go out

[18:36] for procurement of the actual contractor. I

[18:37] assume you have a design

[18:40] firm on board and they're working.

[18:41] >>

[18:42] yeah. Design

[18:43] --final design should be done --if

[18:44] it's

[18:46] not done already, done

[18:49] very shortly.

[18:50] >> okay. All right. Questions

[18:51] for anybody? Seeing

[18:52] none, I'd entertain a motion on

[18:55] the

[18:57] resolution.

[18:58] >> motion to approve resolution r2025-09-06,

[18:59] the

[19:00] resolution approving the first amendment

[19:01] to the

[19:03] authority's 2025 capital budget as

[19:04] presented.

[19:05] >> second. >> I have a

[19:07] motion from beth, seconded by jeff

[19:10] to approve the resolution. With that,

[19:11] I'll

[19:13] ask for roll call.

[19:14] >>

[19:15] trustee holbrook.

[19:16] >> aye. >> trustee

[19:18] acerson.

[19:19] >> aye. >> c >> aye. Thanks

[19:20] for

[19:21] your work on it. Exciting to see those

[19:22] projects move forward.

[19:23] >> thank

[19:24] you very much.

[19:25] >> yes, thank you. Item

[19:26] c

[19:27] before us is a resolution accepting

[19:28] the

[19:31] conveyance of a real property interests associated

[19:34] with the frontrunner 2x and frontrunner

[19:35] point improvement projects. And with

[19:37] that we

[19:39] welcome jared scarbrough , paul drake,

[19:40] and we don't

[19:42] see janelle, so I'm guessing jared is

[19:43] covering for

[19:46] the team.

[19:47] >> I will

[19:49] do my best. Jared

[19:52] scarbrough chief acts capital services

[19:53] officer. Janelle

[19:55] is at a mandatory meeting with udot

[19:57] for an upcoming procurement and could not

[19:58] make it

[20:00] with us this morning.

[20:01] >> understandable. >>

[20:02] yeah. We

[20:04] are here seeking approval of resolution

[20:07] of for the conveyance of property

[20:08] from

[20:10] frontrunner 2x and frontrunner point improvement

[20:11] project, also

[20:13] known as fpi. We did come to the board

[20:16] in october of 2023

[20:18] with a frontrunner cooperative agreement

[20:19] between udot

[20:22] and

[20:24] uta which discusses the purchasing of

[20:26] property. And udot

[20:28] will purchase land. Basically this

[20:30] is land within the alignment. It's not

[20:32] in large chunks of,

[20:33] you know, parking lots or anything. That's

[20:35] smaller

[20:37] slivers of land along the corridor. And

[20:41] then uta will still manage the

[20:42] purchase of property through union

[20:43] pacific. So this will cover the private property

[20:44] piece. But

[20:47] I'll turn it over to paul

[20:50] to walk through

[20:52] the resolution.

[20:53] >> great. Thanks,

[20:54] jared. And thanks, trustees. So

[20:55] anyway, excuse me, like jared said,

[20:56] we've

[20:58] worked buying all these properties

[20:59] for the improvements

[21:00] for frontrunner. There are 11 key

[21:02] locations where we're

[21:05] looking to buy

[21:07] right of way, plus a new station. All

[21:08] of

[21:09] that requires new right of way. Like

[21:11] jared said, there's

[21:14] a lot of slivers that we're picking up. Here's

[21:17] the

[21:18] data. The number of parcels is 190

[21:20] for a total of

[21:23] about 40 acres. The budget for udot

[21:24] is $70 million. This is going to be

[21:26] used or is anticipated

[21:29] to be used

[21:32] as local match for

[21:33] a future federal grant. And the resolution

[21:36] that we're talking about today actually allows

[21:38] us --or it allows

[21:39] udot to purchase the property in uta's

[21:41] name. And

[21:42] this was something that was contemplated

[21:44] over

[21:47] a lot of conversations between us

[21:50] and our partner that

[21:53] was actually formalized

[21:55] in a 2023 agreement, frontrunner cooperative agreement. Going

[21:56] to

[21:57] --sorry. Was there a question?

[21:58] >>

[21:59] sorry. I didn't

[22:02] want to interrupt

[22:03] your flow. Sorry. Go ahead.

[22:04] >> no,

[22:05] no. That's fine. We

[22:08] can go into the

[22:11] various segments. We've got a

[22:13] 3.8-mile segment north of clearfield

[22:17] station. We've got 2.1

[22:20] miles

[22:22] north of woods cross. We've got 1.8

[22:23] miles in

[22:26] beck yard, two miles south

[22:29] of salt lake

[22:31] central between 17th south and 3300

[22:32] south,

[22:35] 1.6 miles south of murray central,

[22:37] 3.1 miles south of draper station. So

[22:38] these

[22:40] are all segments where we're going

[22:41] to buy

[22:44] slivers on either side. We're not

[22:45] calling

[22:46] out any specific at this point. That

[22:47] station in

[22:49] bluffdale that will serve the new development and

[22:53] the growth going on

[22:56] at the point,

[22:58] 2.1 miles north of leohio station,

[23:02] 4.4 just north of american

[23:05] fork, 3.8 between american fork

[23:08] and vineyard station, 1.7

[23:11] miles north of orem. And then

[23:14] a segment just north

[23:16] of provo. So those are the areas. Any

[23:17] questions on

[23:20] that? We can

[23:22] review it. Go ahead.

[23:23] >> so obviously

[23:24] you hope to

[23:25] only buy a sliver. Sometimes a property

[23:26] owner will say you gotta

[23:28] buy it all because it's not worth

[23:31] anything to me at that point. Does

[23:32] udot

[23:35] just dispose of the remaining portion through

[23:38] their own program or does any of

[23:41] it enter into like a potential t.o.d.

[23:42] kind of

[23:43] thing?

[23:44] >> right now all the properties are

[23:45] just contemplated

[23:47] to be part of this

[23:48] project. So we're not contemplating

[23:50] any future t.o.d.

[23:52] at this point.

[23:53] >> okay. >> yup. >>

[23:54] and I guess at

[23:56] this point they may or

[23:58] may not have agreements to purchase

[24:02] it, just go through the normal procurement

[24:03] process,

[24:05] I assume?

[24:06] >> they are working on them right

[24:07] now. They

[24:08] have a contractor that's out there

[24:09] talking to these property owners right

[24:11] now. There's some

[24:13] that are actually ready to go which

[24:14] is

[24:16] why we're hoping to have this resolution passed

[24:17] because it

[24:19] does help us to close those transactions. I'm

[24:20] sorry. Does

[24:23] that answer

[24:24] your question?

[24:25] >> yeah. No. It does. That's

[24:26] helpful. Thanks. Were there other

[24:27] question?

[24:28] >> so I

[24:29] just wanted to kind

[24:31] of, like, reiterate because I think that

[24:32] it is --people

[24:35] and land always get a little

[24:37] heightened in their excitement over

[24:38] these issues. But,

[24:41] really, this is -- according to the

[24:42] discussion strategy, really, this

[24:44] is just active corridor, and the desire, of

[24:46] course, is to just be getting that

[24:47] corridor in

[24:50] and of itself for the

[24:53] actual operational pieces

[24:56] only. And I just wanted to talk about what

[24:57] --

[24:59] how long do you

[25:01] think that this process will take overall? You

[25:02] mentioned that you have several

[25:03] that are ready to close. But I was

[25:05] just curious how

[25:08] long you think this

[25:11] would take?

[25:12] >> well, good

[25:14] question. The resolution does

[25:16] have a end to 2027. It's anticipated

[25:17] that

[25:20] it might go longer than that. There's

[25:21] always some lingering property transactions,

[25:23] but hopefully we're getting the

[25:26] bulk of those within that time frame.

[25:27] >>

[25:29] I know that it is always hard to actually

[25:30] pin

[25:31] some of that down. But I appreciate

[25:32] that because I did notice that

[25:35] there's

[25:38] a timeline on that. So thank you.

[25:39] >>

[25:40] there

[25:41] is also some parameters within the

[25:42] resolution that

[25:44] I would cover if I could. The properties

[25:45] that are

[25:46] over a million dollars, this would

[25:47] not cover

[25:50] those. Those would come to

[25:51] the board individually. We're also

[25:53] --we're also making sure

[25:54] that uta staff are working with udot

[25:56] to make

[25:59] sure that the properties are environmentally cleared. We're

[26:01] also consistent with utah code in

[26:03] requiring an

[26:06] affidavit with each of these

[26:08] properties. And then we'll come back

[26:09] to the board

[26:11] quarterly to report on the status

[26:12] of

[26:15] these acquisitions. And like I

[26:18] was mentioning, the deadline

[26:21] in 2027. Any

[26:23] further questions for us?

[26:24] >> seems

[26:25] like

[26:26] an efficient process to do these important transactions.

[26:27] >>

[26:28] chair,

[26:30] if I could make a comment. You

[26:33] know,

[26:36] I was impressed with how udot

[26:37] approaches this purchase of property

[26:39] to

[26:41] preserve that right of way to move forward

[26:42] frontrunner. Just in

[26:44] the discussions I listened to, as

[26:47] they addressed the public and the

[26:50] community, the council, they've got

[26:53] this down. They know what they're

[26:57] doing. They really plan

[26:59] for every possible outcome and challenge that's

[27:00] there, and it's -- anyway,

[27:03] it was --I think as I listened to

[27:04] that meeting with brian allen, it

[27:06] was very impressive to

[27:09] see they

[27:11] really cover all the bases and make sure

[27:12] as

[27:15] we have

[27:18] impact on the community we're

[27:19] fair, we're understanding because

[27:21] the dollar amount isn't the only

[27:24] thing. It's the impact that it has on individuals,

[27:27] and I just want to applaud udot's

[27:30] process and the partnership that

[27:33] we have with them. So thank you.

[27:34] >>

[27:35] okay. Unless there's other questions, I'd

[27:36] entertain a motion.

[27:37] >> okay. I'll

[27:38] make

[27:42] the motion to approve the

[27:43] resolution r2025-09-07, resolution

[27:45] accepting the conveyance of

[27:46] real property interests associated

[27:48] with the frontrunner 2x

[27:50] and frontrunner point improvements

[27:51] projects as presented.

[27:52] >> second. >>

[27:53] I have a motion from jeff, seconded

[27:56] by beth to approve the resolution. With

[28:00] that, I'll ask

[28:03] for roll call.

[28:04] >> trustee

[28:05] acerson.

[28:06] >> aye. >> trustee holbrook. >>

[28:07] aye.

[28:08] >> chair christensen. >>

[28:09] aye. Thanks for your work on it. Let's

[28:10] see. Making

[28:15] sure I'm in the

[28:18] right place. Okay. That is the

[28:20] right place. We're down to contracts, disbursements

[28:21] and grants. The first item before

[28:24] us is a change order for

[28:26] outside legal services modification

[28:27] to increase

[28:28] the not-to-exceed amount for outside

[28:30] legal services

[28:33] pool

[28:36] with

[28:39] chapman and cutter,

[28:42] fabian

[28:45] vancott, gilmore bell, jackson,

[28:47] lewis. Anyway, nossman, parsons, bailey and

[28:49] latimer and spencer fane and venable

[28:51] llp.

[28:52] >>

[28:54] a lot of

[28:56] law firms. Yes. Good morning. I'm

[28:57] david

[28:58] wilkins an assistant attorney general

[29:00] with the utah office of

[29:03] attorney

[29:05] general. Just for a brief background. What

[29:06] we've done

[29:08] with outside legal services is we've

[29:09] created a pool

[29:11] contract of expertise, and that allows

[29:12] when uta does have

[29:13] a need for outside legal services,

[29:15] it's as simple as picking up

[29:18] the phone and initiating the call. If

[29:20] the agency didn't do that, and we

[29:21] needed to

[29:22] figure out outside legal services

[29:23] through my office, we would actually have

[29:24] to

[29:26] do a procurement every time. And often

[29:27] when we need

[29:29] outside legal services, it's a very important

[29:30] issue, and that

[29:32] saves us a lot of time. Back last

[29:33] year when

[29:36] mike bell and I worked

[29:38] on renewing this pool contract, we

[29:39] got the advocates

[29:42] out and worked really hard to

[29:44] determine what the not-to-exceed value

[29:45] would be based

[29:47] on based on previous usage and needs. Of

[29:51] course what happened is after we

[29:54] did that, the agency

[29:56] we started using outside legal services

[29:57] and non-conventional needs, and a

[30:00] good example of that is the

[30:02] policy project. We have fabian van

[30:03] cott working with

[30:05] the agency on revamping its policies

[30:09] and doing a very good job at it. Even

[30:10] though

[30:11] that money doesn't come out of the

[30:12] legal services budget, it still

[30:13] goes against the contract. And so

[30:15] we found

[30:17] ourselves running up against the original $500,000

[30:18] not to exceed,

[30:20] and so we're just coming to you today to

[30:21] bump that up for

[30:24] the rest of the remaining

[30:25] four years of the contract. Hopefully

[30:27] we won't get close

[30:30] to it. But it's

[30:33] just issues like that.

[30:34] >> makes

[30:35] sense. And it's nice to have access

[30:36] to some

[30:38] of that expertise as well. Any other

[30:39] questions?

[30:40] >>

[30:44] not a question, just a comment. It's

[30:45] unfortunate

[30:48] that we've already spent almost a half

[30:50] a million just on some of these issues. And

[30:51] some of these

[30:54] issues that are being

[30:56] addressed by these law firms is our

[30:57] --obviously critical to

[31:00] how

[31:03] we operate. You've got railroad law, officer-involved

[31:04] incidents, labor

[31:06] and employment, construction,

[31:09] et cetera, and pension, and I think, unfortunately, we are

[31:11] also expanding, and there's all these other

[31:12] things. And so I

[31:15] do think that as

[31:18] we continue to look forward,

[31:20] this is a good strategy to scalpellize

[31:21] and fine tune whatever

[31:23] the issue is with these particular

[31:24] law firms

[31:26] and then be able to navigate from

[31:27] there. So I

[31:30] just wanted to make that comment

[31:33] because it's never inexpensive to

[31:34] expand.

[31:35] >>

[31:36] no. And that's a good comment, trustee

[31:37] holbrook. You

[31:38] know, outside attorneys can get very

[31:39] expensive very quickly. And we

[31:42] do try to minimize our use of outside

[31:43] counsel for

[31:45] that because I like to be a good steward

[31:46] of

[31:47] the taxpayers' money and the money

[31:48] that you all put in

[31:49] your legal budget every year. It's

[31:51] just that we've had

[31:53] some weird issues this year or unusual

[31:54] issues. And we will

[31:55] continue to always scrutinize our

[31:57] use of outside counsel in order to

[31:58] make

[31:59] sure that we're getting the most bang for

[32:00] the buck for the

[32:04] agency.

[32:05] >> I agree. And I

[32:06] don't know if scalpellize is a word,

[32:07] but I'm going

[32:08] to call it one. With that, I'm happy

[32:10] to

[32:11] make a motion.

[32:12] >> sure. >> motion

[32:13] to

[32:14] approve the increase to the not-to-exceed amount

[32:16] for the

[32:18] outside legal services pool with the above-listed

[32:19] firms as presented.

[32:20] >> second. >>

[32:22] I have a motion from

[32:23] beth, seconded by jeff to approve

[32:25] the change order. All

[32:28] in favor say aye.

[32:29] >>

[32:30] aye.

[32:31] >> any opposed? That motion passes. Thanks,

[32:34] david. Item b before us is

[32:37] a change order for the

[32:38] on-call infrastructure maintenance contract

[32:40] task order number 25-043. This

[32:43] for the maintenance of

[32:46] way training yard

[32:49] construction with stacey

[32:50] and witbeck. Dave osborn. Dave.

[32:51] >>

[32:54] did the microphone turn on? Okay. Yes. We're

[32:58] here today seeking approval of

[33:01] a contract task order, number

[33:04] 25-043, the maintenance

[33:07] training

[33:09] yard for stacey and witbeck, incorporated. And

[33:13] this is for the

[33:15] civil grading, drainage, track work for

[33:18] the maintenance away training yard. It's

[33:19] behind the t-tech

[33:21] building over there on eighth west. And

[33:22] so

[33:23] this is maintenance yard for employees. It

[33:25] enables them to train

[33:26] on various systems and other things that

[33:28] they do outside of

[33:31] the system which is safer

[33:34] for them, as well

[33:37] as being

[33:40] safer for our trains and

[33:43] passengers. The amount

[33:49] of the task

[33:52] order is $3,160,902. Is

[33:54] there any questions?

[33:55] >> maybe just

[33:56] approach --

[33:57] stacey and witbeck do a good job. A

[33:58] lot of people could

[33:59] do grading. Is there a reason you

[34:01] go with them for the other aspect

[34:02] of that?

[34:03] >> on this one, I think one

[34:04] of the key things on

[34:05] this is there is track work which

[34:07] we're putting in

[34:08] which is kind of specialized. So for

[34:10] that it makes

[34:13] sense to use them for

[34:16] this.

[34:17] >> any other

[34:18] questions?

[34:19] >> okay. I'd entertain

[34:20] a motion.

[34:21] >>

[34:22] I'm make the motion

[34:24] to approve the task order 25-043 with

[34:28] stacey and witbeck inc. For the maintenance

[34:30] training yard construction as presented.

[34:31] >>

[34:32] second.

[34:33] >> I have

[34:34] a motion from jeff, seconded by beth. One

[34:35] question

[34:37] I have before I ask for

[34:39] a vote. Dave, this was always contemplated,

[34:40] I assume, as

[34:43] part of the project in the budget, correct?

[34:44] >> yes. >>

[34:46] this is we're just at that phase,

[34:47] I assume.

[34:48] >> yes. >> that's great. With

[34:49] that, all

[34:52] in favor say aye.

[34:53] >> aye. >> any

[34:55] opposed? That motion

[34:56] passes. Thank you.

[34:57] >> thank you. >>

[34:58] with item c, change order

[35:01] for the state and

[35:04] local external relations

[35:07] services with

[35:10] asg consulting. And with that, welcome

[35:11] annette royle.

[35:12] >> good morning. I'm

[35:13] annette royle, chief of board

[35:14] strategy and governorrance, and government relations

[35:16] is one of

[35:19] the functions that reports

[35:21] through our office. We utilize lobbyists

[35:22] and government relations consultants for

[35:23] the work

[35:25] that we do to help us

[35:26] advocate with both our state and federal

[35:28] partners. And

[35:30] we have one partner, asg consulting,

[35:31] who was

[35:34] procured in 2022 through a competitive process

[35:36] for three years. And we would like

[35:37] to execute

[35:40] a change order that

[35:41] would extend another year under that agreement. We

[35:43] will still have one more year remaining

[35:45] that we could execute under our policies. We

[35:46] can go up

[35:49] to five years. So right now we're

[35:50] just executing

[35:52] one additional year. The cost of

[35:54] that year is $60,000, and the cumulative

[35:58] for the

[36:01] term of the agreement

[36:02] is $257,500.

[36:03] >> any questions for

[36:04] annette? Seeing none,

[36:06] I'd entertain a motion.

[36:07] >> motion

[36:08] to approve

[36:09] change order number 2 with asg consulting

[36:13] llc for state and local external relations services as

[36:14] presented.

[36:15] >>

[36:16] second.

[36:17] >> I have a motion from

[36:18] beth, seconded by jeff to approve

[36:19] the change order. All

[36:22] in favor say aye

[36:23] >>

[36:25] aye.

[36:26] >> any opposed? That motion passes. Thanks,

[36:27] annette.

[36:28] >> that

[36:29] brings us to item 9

[36:31] on our agenda, for

[36:32] budget and other approvals. The first

[36:37] item before

[36:39] us is a technical budget adjustment 2025-09-03,

[36:40] a

[36:43] technical

[36:44] budget adjustment for the 2025 operating

[36:46] budget. Vi miller

[36:49] and then joined by brad armstrong.

[36:50] >>

[36:51] hello again. This technical budget

[36:52] adjustment is

[36:55] for the additional of 11fte positions

[36:57] for mvx service activation. So we

[36:58] have a plan for service, and

[37:01] this is just to

[37:04] add the people to

[37:07] the plan. This 11fte increases for maintenance

[37:08] staffing for

[37:10] mvx that is slated to start

[37:12] next year. It's staffed to be based

[37:15] at depot district garage and this will

[37:16] be nine

[37:18] for vehicle maintenance and two for facilities. It's

[37:19] net neutral to the

[37:22] budget, as we said. It's going to

[37:25] be funded out

[37:28] of chief operating officer contingency,

[37:29] and

[37:31] it's $242,000 of

[37:33] the existing $500,000 to be used. This

[37:34] is

[37:37] --we generally don't do ongoing cost out

[37:38] of

[37:40] contingency, but this is, in fact,

[37:43] already a part of the 2026

[37:45] tentative budget plan. And so the

[37:49] ongoing cost is planned for next

[37:50] year.

[37:51] >> and I just -- I wanted to add to that

[37:52] because I do think it

[37:53] is important for people to understand

[37:55] that we have to ramp up

[37:58] to get to that space, and that's

[38:00] that difference in contingency versus

[38:01] just

[38:03] your standard budgeting. And I just

[38:04] think that as we shifted this

[38:07] around, that was part of the

[38:09] discussion. So I just wanted to put

[38:10] that out there.

[38:11] >> absolutely. >>

[38:12] and

[38:13] as to timing, even

[38:15] though it's anticipated for service next

[38:16] year, I assume or presume that

[38:18] the timing of this is just that it

[38:19] takes

[38:22] a while to hire these kinds of individuals,

[38:23] and it'll take

[38:25] --

[38:26] >> absolutely. And we also have

[38:27] to be

[38:28] cognizant of some

[38:31] things going on internally with

[38:34] our systems with planning for recruitment. We

[38:37] are going to have a blackout period

[38:40] coming up as far

[38:42] as our changeover to our new hris system.

[38:43] >>

[38:44] and then the other question I had

[38:47] for you is

[38:48] what about the operators anticipated

[38:50] for mvx? Is that

[38:51] in this year's budget? Is that anticipated

[38:53] next year or how are

[38:56] we

[38:57] planning to hire for those?

[38:58] >> do we

[38:59] want to bring up --

[39:00] >>

[39:02] because I realize this doesn't

[39:03] include the operators, right?

[39:04] >> yeah. But we're

[39:05] ramping up at the same time to make

[39:06] sure

[39:07] we have our operators as well, so

[39:08] --

[39:09] >> but

[39:10] are they in our current year budget?

[39:11] >>

[39:12] yeah. The

[39:13] ramp-up is all in our current year,

[39:16] same thing for the operators.

[39:17] >> yes. So

[39:18] we

[39:20] had ramp, of course,

[39:22] when we switched, we always had operators

[39:24] in for planned new service.

[39:25] >> okay. >>

[39:26] we just now know that

[39:29] that planned new service

[39:32] is for mvx.

[39:33] >>

[39:34] gotcha. That's helpful. Thank you. Any

[39:35] other questions?

[39:36] >> no. I'll make

[39:37] the

[39:41] motion.

[39:42] >> sure. >>

[39:43] to approve the tba2025-09-03 technical

[39:44] budget

[39:46] adjustment 2025 operating budget as

[39:47] presented.

[39:48] >> second. >> I

[39:49] have a motion from jeff, seconded

[39:50] by

[39:51] beth to approve the technical budget

[39:53] adjustment. All

[39:56] in favor say aye.

[39:57] >>

[39:58] aye.

[39:59] >> any opposed? That motion passes. >>

[40:00] I'll

[40:02] also note we have an operator

[40:05] and maintenance graduation

[40:06] today.

[40:07] >> that's great. That's awesome. Now

[40:08] our

[40:10] monitor went away. Is that intentional? Okay. I

[40:12] didn't know if I kicked it -- did

[40:14] we kick

[40:17] a

[40:18] plug down there?

[40:19] >> yeah. Powered

[40:20] off. Is that

[40:23] it?

[40:24] >>

[40:28] yeah. I think it's that switch. There

[40:29] we

[40:31] go.

[40:32] >> it's on. >> jeff has a lot

[40:33] more

[40:35] dexterity in his foot than I do. We're

[40:36] waiting until eric comes back. With

[40:40] that, we'll move to our discussion

[40:41] items. The next

[40:44] one is the next generation fare collection system

[40:46] update. And we were teased yesterday

[40:47] in a

[40:50] meeting, but we're excited

[40:51] to find out the real information today. So

[40:53] we'll look forward to this.

[40:54] >>

[40:56] thank you and

[40:59] good morning, trustees and

[41:02] jay. Brian reeves here,

[41:04] associate chief financial officer.

[41:05] >>

[41:06] monica howe, fares director.

[41:07] >>

[41:08] so today we are here to talk to you

[41:11] about --to share

[41:14] an update with our next

[41:15] generation fare collections system

[41:17] update. Just as kind of a

[41:19] staging point to think about this,

[41:20] we've actually just over

[41:22] two years into this project. As you

[41:26] know, this is a fairly large

[41:27] massive project transitioning from

[41:29] a fare collection system that's been

[41:30] in place

[41:32] for some time and

[41:33] moving to something that's modernized with,

[41:34] you know, the changes that we see

[41:38] in the world and how people interact

[41:41] between, you know, just technology with your phones,

[41:44] how you, you know, board our different transit,

[41:46] and so we've been working through that. As

[41:47] you

[41:50] can see here, this is kind of

[41:53] --we had

[41:56] a multi-phased approach,

[41:59] right, across multiple years. And just point the phase one, that

[42:02] was largely the

[42:05] ticket vending machine

[42:07] transition and installation which

[42:08] is

[42:11] 100% complete. Moving

[42:13] forward we're mostly through phase two, probably pin it right now

[42:14] at 88%. That

[42:17] was largely our bus station validator

[42:18] replacements. And

[42:20] then, of course, we've got the remaining

[42:21] pieces

[42:23] of phase three and phase four which

[42:24] we'll talk

[42:26] about a bit more in depth.

[42:27] >> brian,

[42:28] can I ask a question? We noticed on

[42:29] a

[42:30] couple occasion, and I just didn't

[42:32] know if it's

[42:35] a timing or a blackout or they were

[42:38] all validators but some of the

[42:40] validators weren't working like on

[42:43] platforms. And obviously when you're switching

[42:44] things over, there's sometimes

[42:47] a time period where you maybe go

[42:48] dark.

[42:49] >> sure. No. And I think we'll

[42:50] kind of illustrate some of

[42:53] that in talking about in phase two, right? Some

[42:54] of

[42:56] the priorities --and maybe I'll move

[42:57] on

[42:58] to part of -- you know, what I wanted

[42:59] to explore in the next slide.

[43:00] >>

[43:01] you keep coming to it.

[43:02] >> no. It's

[43:03] a fair point. And I think

[43:04] when we look at even our project,

[43:05] right,

[43:08] this is a multi-year project. And

[43:09] so setting the priorities I would

[43:11] say is

[43:12] looking at the customer impact and

[43:14] how that -- you know, how we

[43:15] deliver our service. And then, of

[43:17] course, how we are delivering our

[43:18] service. So we

[43:20] want to make

[43:23] sure that we are dropping in to and

[43:24] making those

[43:26] changes in a pinpointed way but also appear

[43:27] seamless. And

[43:28] so if there are potential hiccups

[43:29] or bugs that do

[43:32] show up, the team is able to

[43:35] respond

[43:38] and pull back, work with our vendors,

[43:40] sheinboardwalkman and address that. I have

[43:41] to say the team

[43:44] --I'll share a quote from

[43:46] bachman, but the team internally here

[43:49] at uta because you're reaching across operations,

[43:53] I.t. And interacting with the customer

[43:56] that that definitely pinpoints

[44:00] so that we're minimally impacting the customer.

[44:01] >> I was

[44:02] just wondering before you proceed,

[44:03] and, again, if this isn't

[44:04] part of your presentation moving forward,

[44:05] no worries. But can you

[44:08] give us an idea of the scope of the

[44:11] number of tvms that were

[44:13] installed and completed on that process? I just

[44:14] --just for context,

[44:16] I think it's really helpful for the

[44:17] public

[44:20] to understand the scope of

[44:22] that.

[44:23] >> monica. >> there were about

[44:24] 133, between 133 --I know

[44:26] we've added a few, but just off the

[44:29] top of my head at

[44:32] least 133, between

[44:35] 133 and 136.

[44:36] >> and do you anticipate

[44:38] that's as many as we'll add

[44:41] for now or future expansion that you

[44:42] can see

[44:45] needed that --

[44:46] >> we do have

[44:47] extra inventory in stock. So we did

[44:48] order --I

[44:49] think there's probably seven more that can

[44:51] go, so

[44:54] we'll look at the different

[44:56] --

[44:57] >> where demand is? >> uh-huh,

[44:59] correct.

[45:00] >> certainly look at the location. If

[45:01] you say,

[45:02] for instance, by a school, and we

[45:04] have institutional contracts, you know,

[45:05] the ticket vending machine may not

[45:06] be --even

[45:08] though there's a lot of traffic there, it

[45:09] would not be

[45:10] as widely used versus somewhere else

[45:12] that we see a

[45:15] decent amount of activity but is

[45:18] not going

[45:21] to

[45:22] be necessarily, you know, institutional

[45:23] transit passholders.

[45:24] >> okay. >> so

[45:25] looking, I do want to point out that

[45:26] you

[45:27] can see some of the shifts that

[45:29] we are were forecasted in the timeline. And,

[45:30] again,

[45:32] this was a multi-year project that obviously

[45:33] when you

[45:36] put the lines in

[45:39] the sand, you're doing best efforts. So

[45:41] we have projected ourselves to have

[45:42] a slight moving

[45:44] back, and, again, that's, you know, doing

[45:45] the piloting,

[45:47] the planning and trying to minimize

[45:48] that impact

[45:50] to the customer. And so that we respond to

[45:51] that so

[45:54] we rely upon the service. I

[45:55] would point out that budget obviously

[45:57] is also

[45:59] very important to that. So these are

[46:01] not necessarily budget delays but time

[46:03] delays. And then, of course, you

[46:06] know, how do we account

[46:08] for what the future, and so we'll

[46:09] be talking the

[46:12] different phases specifically,

[46:14] but we're about midway through that

[46:15] phase

[46:18] three in those design documents.

[46:19] >>

[46:21] and how does --

[46:23] when it's back end stuff, the customers, you

[46:26] know, paying that much attention obviously. At

[46:27] what

[46:30] point do changes in how it

[46:33] operates become more of

[46:34] a communications piece with the customer

[46:36] in your timeline? Do you have

[46:39] to -- is there

[46:42] an education need

[46:44] or is it relatively seamless and intuitive?

[46:45] >>

[46:48] seamless, no.

[46:49] >> we've

[46:51] done a

[46:52] lot of communication with customers throughout,

[46:54] informing them of what they will

[46:57] see on the platforms or what

[46:59] they might see happening. And we've

[47:02] been working with communications on

[47:03] an

[47:06] overall strategy for phase

[47:08] three specifically that we will begin communicating. So

[47:09] it

[47:10] is very nuanced because there's different

[47:12] phases. Again, phase one

[47:14] and two just replacing the equipment

[47:15] but communicating that here's

[47:17] what's happening. So we've kind of

[47:18] been communicating throughout, but

[47:19] I do

[47:21] think our ramp-up with the communication

[47:22] will start for phase three. You'll

[47:24] start to see that

[47:25] here over the next few months.

[47:26] >>

[47:27] I mean I think

[47:30] --it probably goes without

[47:32] saying, but that communication actually

[47:33] is beneficial because when

[47:34] you've been using something for a

[47:36] long time, and it's maybe a

[47:38] little tired, and you get something new,

[47:39] you

[47:40] think, oh, that's kind of cool. And

[47:45] I think sort of that value-added piece

[47:48] to their -- anyway, I think there's

[47:49] an opportunity

[47:52] there that would come from it.

[47:53] >>

[47:54] so he wants to

[47:55] say we're hip and cool.

[47:56] >> yes. I just

[47:57] want to use my credit card on

[48:00] the thing.

[48:01] >> and

[48:03] that definitely is on our future.

[48:04] >>

[48:05] that is the segueway that I thought

[48:06] would be valuable to explain. I know

[48:08] that we know what the open payment

[48:09] system means, but what

[48:11] does that mean to the user? And if

[48:12] you could just talk

[48:14] about that for a wee bet. That was

[48:17] a great segueway, by the way.

[48:18] >> certainly. We'll

[48:19] go through the

[48:20] phases, the different status, and

[48:21] we'll certainly

[48:24] talk about that.

[48:25] >> sounds

[48:27] good.

[48:28] >> phase two. So phase

[48:30] two is the

[48:32] replacement of our validators, and

[48:33] this includes equipment on frontrunner

[48:35] and trax, and this is what you're

[48:36] seeing here

[48:39] in the lower left hand

[48:42] corner is a new shiny

[48:45] sleek

[48:46] validator. They look really good. We

[48:48] are

[48:51] 25% of the way installing these. So

[48:52] there

[48:53] will be about 370 of them in total,

[48:54] so quite a

[48:56] few that we need to go through. Also

[48:57] pictured

[49:00] here is one of our validators

[49:03] being installed. This is a large

[49:06] installation and requires strong

[49:09] teamwork

[49:10] across multiple departments, including I.t.,

[49:13] network, facilities, fares, rel and

[49:15] safety. Kenzie kunkle

[49:18] as the project manager done an amazing

[49:19] job coordinating

[49:20] installations, and the teams are collaborating

[49:21] very well together. So a big thanks

[49:22] to

[49:24] them for the success

[49:26] we are seeing with these replacements. Brody

[49:27] ricketts,

[49:29] he is a uta field tech and has also

[49:30] worked on the

[49:32] stawls. He did share that customers

[49:33] are excited about the new equipment, so

[49:34] we

[49:36] are seeing that

[49:38] out on the platforms. And to follow

[49:39] up, the

[49:42] sound issue has been identified and shein

[49:45] bachmann is working towards a solution

[49:46] that we do expect

[49:48] to roll out toward the end of the

[49:49] month, so

[49:50] that's great news. We also, just to

[49:51] note,

[49:53] have a brief pause on these installations. We're

[49:54] resolving

[49:56] a technical issue related to remote monitoring,

[49:57] so our

[50:00] ability to be able to see their performance, customers

[50:03] are still able to tap, there is not an

[50:05] issue with them tapping or us receiving

[50:06] the data. If

[50:08] there are instances of these being

[50:09] offline or

[50:11] the old not working, we do expect

[50:12] a little bit of a

[50:14] transition, but it is important that

[50:15] we continue to know those

[50:17] things so that we can troubleshoot

[50:21] and

[50:24] investigate as we

[50:27] hear about them.

[50:28] >> so focusing

[50:30] on bus validators, you can see the blue,

[50:31] again, the

[50:32] blue shiny validator in this photo. We

[50:33] are

[50:36] nearing the finish line with bus validator

[50:39] replacements, so we have depot, meadowbrook and

[50:40] ogden garages

[50:41] done, and we're currently waiting

[50:42] for

[50:46] an additional delivery of the

[50:48] 142 validators so we can finish these

[50:49] installations,

[50:50] and that's expected to be finished

[50:55] next quarter. So those will

[50:56] go pretty quickly. Couple of things

[50:58] to note,

[51:00] the leadership and support from I.t. Communication

[51:01] bus

[51:03] garage maintenance and fares operations have

[51:05] all powered this milestone win, and

[51:07] operators have commented

[51:08] that the new validators are making

[51:10] customers happy, whether

[51:12] it's the look, the sound, the feel,

[51:13] we're not sure,

[51:15] but we do know happy customers make

[51:16] happy operators. And

[51:19] so this is a win-win. We have

[51:20] received feedback from the operators

[51:22] and taken that into account. I

[51:25] just want to

[51:26] highlight an example. When the validators

[51:28] were first rolled out, there were

[51:29] several concerns about the brightness and

[51:31] the light being too

[51:34] intense, and so kenzie and the

[51:36] team immediately jumped on it which included

[51:37] visiting

[51:40] the buses at night, getting

[51:41] photos, seeking more operator feedback

[51:43] to understand the issue,

[51:46] having the safety team do an

[51:47] assessment, measure the brightness,

[51:49] and this was immediately brought

[51:50] to the attention of our vendor. A

[51:52] temporary work around

[51:53] was put in place, multiple meetings

[51:55] were held to resolve

[51:57] the issue and expedite a hot fix,

[51:58] and

[51:59] the validator brightness is now reduced,

[52:01] and we're working

[52:02] on aadaptive feature that will adjust

[52:03] the brightness based on time of day,

[52:04] so

[52:05] that will be nice when we can actually

[52:07] roll that out. But I

[52:09] do want to emphasize that feedback

[52:10] and

[52:13] patience are two key elements

[52:15] to successful collaboration and implementation of

[52:16] this

[52:18] project. When we get feedback from operators,

[52:19] customers

[52:22] or stumble upon issues that we didn't anticipate,

[52:23] we are committed to resolving them,

[52:25] and we are resolving

[52:27] them, and it does take time. But I'm definitely

[52:28] pleased

[52:30] and proud of the team because everybody

[52:31] is

[52:34] going above and beyond with this project in

[52:35] many instances. I just highlighted

[52:37] a small one. And

[52:40] so a big thanks for the team on

[52:42] the bus validators.

[52:43] >> if I could

[52:44] just

[52:45] add on this too, just to kind of pinpoint the

[52:46] effort,

[52:47] right, the planning stages that we

[52:49] had,

[52:52] we set a schedule, we communicated

[52:55] that with, you know, our

[52:57] team of shein bachmann and operations and

[53:00] the different bus centers and then

[53:01] coordinated with

[53:03] those managers because each night

[53:04] when the buses

[53:05] came in, then the team would jump

[53:07] on that, you know, it was

[53:09] kind of like a nascar transition,

[53:10] and everybody

[53:12] was working around and changing it to

[53:13] bring out this new

[53:15] equipment so that the next day the

[53:18] buses were out and ready to operate. And I

[53:21] think that showed if there was any

[53:22] pause, you

[53:23] know, somebody could throw in a towel and

[53:25] say

[53:27] we need to stop, let's re-evaluate,

[53:28] and once those,

[53:31] you know, types of iterations

[53:32] came through, the project moved, I would

[53:34] say, very quickly. But it

[53:36] had that kind of initial stage that

[53:37] everybody needed to be

[53:40] aware and then, you know, getting

[53:41] that

[53:43] feedback if we needed to

[53:45] pivot.

[53:46] >> I think sam poleon loved

[53:47] the fact that

[53:48] we learned from things and hopefully

[53:49] makes it better, and maybe the vendor

[53:50] learned some

[53:51] things from it as well.

[53:52] >> I also

[53:54] want to acknowledge this morning the

[53:55] excellent work that

[53:57] has not only been clear to me and

[53:58] many

[54:01] of us here at uta but one that's been

[54:03] highlighted by our vendor shein bachmann has noted

[54:04] that uta's team

[54:05] is one of the best they've worked

[54:07] with here in north america. And specifically

[54:10] here is what mark had to say, I've

[54:11] been a part

[54:12] of all projects in north america in

[54:13] my current

[54:15] role since 2017 and have not had a

[54:16] customer site team

[54:19] report back with the quality,

[54:20] consistency and detailed information

[54:22] that we have seen here at uta. We

[54:24] appreciate it and look forward to seeing

[54:25] the updates coming

[54:27] in. A big thank you to those who have

[54:28] train and given them the tools to

[54:31] do so as well which

[54:34] is what brian was referring

[54:37] to earlier. Phase three, this is the

[54:38] most transformative

[54:39] phase, and it's just over the halfway

[54:40] mark, as you

[54:42] saw on the earlier slide. It is the

[54:43] back end system

[54:45] that will drive new functionality

[54:47] on our ticket vending machines and our

[54:49] validators, and these are the three

[54:50] areas. This

[54:52] will move us closer to our goal

[54:55] of simplifying the customer fare experience. We

[54:56] have

[54:58] the fare pay that will be available

[54:59] at

[55:01] ticket vending machines, the ability to purchase

[55:02] new

[55:04] or reload old, as well

[55:06] as check balances, in addition to

[55:07] new screen flow, we'll

[55:09] have a new integrated customer platform

[55:10] that customers can log

[55:12] in and have everything in one place,

[55:13] and then

[55:16] we'll also have new fare inspection devices

[55:19] that the officers and fare inspectors

[55:22] can use to support inspections

[55:26] on the new back end software. I want

[55:28] to share a few

[55:29] more details about phase three. It's

[55:31] a big lift.

[55:32] >> can I ask a

[55:33] question?

[55:34] >> yes, absolutely. >> on the

[55:37] fare pay and atm

[55:40] --or the

[55:43] tvm integration, does that reduce

[55:44] the

[55:46] reliance on retail operations to

[55:49] load those? Does it

[55:51] create better opportunities for user, including

[55:54] bus users from the key transfer point? I

[55:55] was just wondering

[55:58] how do you see that evolving?

[55:59] >> sure. This

[56:01] is really big. I

[56:03] mean, we've wanted, you know, these

[56:04] tvms and vend

[56:06] fair pay cards since we introduced

[56:07] fair pay cards. So we are happy to

[56:08] finally see this come to fruition. But

[56:10] I think the experience

[56:11] for the customers will definitely not

[56:13] be scaling back on any of our

[56:15] retailers. If anything, we'll probably

[56:16] be boosting that network

[56:18] to just make sure that all individuals can

[56:19] get

[56:22] good access to be able to

[56:24] reload and purchase for pay cards. But

[56:25] I

[56:30] do think that it'll be easier for

[56:31] at least our rail users when

[56:33] they do get on the platform and realize

[56:34] they want to either pay

[56:37] as they go or they are reminded I

[56:38] need

[56:39] to add new funds and maybe didn't

[56:40] remember to begin with. But

[56:43] we also have a very robust online

[56:44] you can do

[56:46] that. So a lot of people either from their

[56:47] phone

[56:48] or when they're at home are able to

[56:49] reload. So I think this

[56:52] is just another option for us

[56:54] to make it easier for the customer,

[56:55] whether it's, you're right,

[56:58] the transfer base for buses, but I

[57:02] do see this a big

[57:05] advantage for our rail users. So

[57:08] phase three,

[57:11] a big lift, but as this slide

[57:14] --the little bus driving down the

[57:17] road, we are moving towards

[57:18] big wins, and we kicked off this phase

[57:20] [ inaudible ]

[57:22] there on the left in march of 2024. And

[57:23] since then

[57:25] we have completed the review and approval

[57:26] of the design documents. And I just

[57:29] want to give you an idea

[57:32] of the magnitude of the design

[57:35] documents. There were over 22

[57:36] documents that averaged 55 pages

[57:37] each. That's about four revisions

[57:38] per document. If you

[57:40] can imagine reading through it every

[57:43] single time. And this equates to reading

[57:47] the entire harry potter series

[57:50] twice for each version. [

[57:53] laughter ]

[57:54] >> where is platform

[57:55] dime and 3/4? Just need to know.

[57:56] >>

[57:57] so

[57:59] put simply, the shear volume of documents,

[58:00] versions and attachments highlight

[58:02] not only just the workload but

[58:05] the strength of the team

[58:06] that carried through it. And, again,

[58:08] this is an addition above

[58:09] and beyond their current job responsibilities. So very

[58:11] impressive. But we're

[58:13] here, we're at the end of q3. The

[58:14] development

[58:17] has started, and we are on our

[58:18] way to transition from our current

[58:20] efc

[58:23] back office system to our new

[58:24] sche idt bachmann office system which will

[58:26] happen next

[58:29] year with those three key

[58:32] system functionalities that

[58:34] I mentioned. Any questions at this point?

[58:35] >>

[58:36] my understanding, monica,

[58:37] is that this is really the bridge, that

[58:38] phase three is the bridge to

[58:41] what we're about

[58:43] to talk about.

[58:44] >> yes. >> yes. No. That's

[58:45] right. Thank

[58:46] you. And so when you ask about, you know,

[58:50] what is the open payment or

[58:52] mobile payment, and I'll say that

[58:53] those are

[58:55] kind of the same but also different,

[58:56] right, because when

[58:58] you think of open payment, you can

[58:59] think of that physical

[59:00] card, right, our credit cards we have

[59:02] in our

[59:04] wallet and certainly we've seen some transit

[59:06] agencies that have adopted that and

[59:08] utilized that. But many

[59:11] users have

[59:14] their cards also on their

[59:15] phones. And so that there is that feature,

[59:17] but then there is the feature of

[59:18] our fair pay card going digital from

[59:20] a physical form to a

[59:23] digital form on the phone. And so

[59:26] this past summer we actually

[59:28] worked with a consultant, clever,

[59:29] and we

[59:32] had

[59:34] a large roundtable, if you will, across

[59:35] the agency. And getting

[59:37] all that feedback of trying to understand,

[59:40] like, okay, this is where our customers,

[59:41] and I'll even

[59:42] say some of our institutional customers

[59:44] like students

[59:46] now have their student I.d. On their phone, that

[59:47] that

[59:50] is the way of the future.

[59:52] and so adapting and adopting to that

[59:53] sounds great, we can just put

[59:55] it on our phone and move on, but there's

[59:56] a

[59:59] lot to take into that. You know, there's

[1:00:02] the transactional costs and the fees and

[1:00:05] deploying that, working

[1:00:07] with google and apple. So those design

[1:00:08] conversations actually

[1:00:10] are --have been happening and kind

[1:00:11] of laying that

[1:00:14] out, and we have actually in --in

[1:00:15] the next couple weeks, we actually

[1:00:17] have more

[1:00:20] formal discussions on what those scopes are. But

[1:00:24] essentially what we're moving towards

[1:00:26] is having that multiple ways so

[1:00:28] we minimize the dwell time, and when

[1:00:29] people

[1:00:30] have that functionality, whether it be

[1:00:32] from their wallet or

[1:00:35] from

[1:00:38] the mobile wallet on their phone. Any

[1:00:42] questions about the open payment?

[1:00:43] >>

[1:00:44] I think

[1:00:46] --I agree with you. Figuring out how to

[1:00:47] meet

[1:00:50] that challenge is going to be a

[1:00:53] huge thing

[1:00:56] long term. So thank you.

[1:00:57] >> certainly. >>

[1:00:58] I

[1:00:59] actually equail it with the fact that

[1:01:00] we're getting

[1:01:01] all of these level boarding vehicles, right? The

[1:01:05] smoothness and the ease of usage,

[1:01:06] that

[1:01:07] just makes our system more efficient. So

[1:01:08] I

[1:01:10] just appreciate how that's coming

[1:01:11] >>

[1:01:12] no. Certainly. You know, again, you're

[1:01:13] thinking of

[1:01:14] the customer, and then you have to

[1:01:15] think

[1:01:16] about how do we deliver that service

[1:01:17] as well

[1:01:20] so that we're doing it effectively and

[1:01:21] in

[1:01:23] a -- you know,

[1:01:26] a financially stewardship way,

[1:01:28] if that's a word. Lastly, I just want

[1:01:29] to finish here. We talked

[1:01:31] about, you know, the communications

[1:01:32] that we put out there. This

[1:01:35] was an example of one when we were

[1:01:36] on --

[1:01:38] we put out on social media when

[1:01:41] we were transitioning

[1:01:44] to the new validators, and so taking

[1:01:45] that proactive

[1:01:46] messaging and trying to get out in

[1:01:47] front of

[1:01:50] the customers as much as we

[1:01:52] could, again, that also meant, you know,

[1:01:53] educating people internally, right,

[1:01:55] letting them know about the transition, putting

[1:01:59] the plan

[1:02:01] in place that everybody could have

[1:02:02] an input even

[1:02:04] when we went active through those

[1:02:05] transitions so that

[1:02:07] we could regroup and react. So I would

[1:02:08] say seeing how

[1:02:10] the response has been from the public,

[1:02:11] it seems

[1:02:14] that

[1:02:18] it's been a pretty effective transition. And

[1:02:23] that concludes the presentation. If

[1:02:24] there's

[1:02:25] any final words.

[1:02:26] >> any questions? I

[1:02:27] take it you're having no buyer's remorse

[1:02:29] at this

[1:02:32] point with the system that you

[1:02:35] chose?

[1:02:36] >> definitely not,

[1:02:38] no.

[1:02:39] >> very excited about it. [

[1:02:40] inaudible ] I'm excited about the next

[1:02:41] phases coming

[1:02:43] to fruition, so --

[1:02:44] >> yeah. >> yeah. I just

[1:02:45] want

[1:02:46] to thank the entire team. This is a lot

[1:02:47] of work. I mean, you can see

[1:02:50] it, but it's going to have a wonderful end state

[1:02:52] for us, and we're very excited. So

[1:02:53] thank you.

[1:02:54] >>

[1:02:56] thank you, jeff.

[1:02:57] >>

[1:02:59] thanks for the

[1:03:00] great presentation. With that we'll go

[1:03:02] to item b which is

[1:03:04] the uta insurance program and renewals. And

[1:03:05] looks like

[1:03:08] you don't get to go anywhere, brian.

[1:03:09] >>

[1:03:10] yes. Now

[1:03:11] I'm here to talk about

[1:03:14] the exciting world

[1:03:16] of insurance and risk. Whoa. Thank

[1:03:20] you. So brian reeves, associate chief financial

[1:03:21] officer. So as

[1:03:23] you may know or recall,

[1:03:26] we have a board policy

[1:03:29] that addresses our managing of our risk

[1:03:32] and called it the risk transers, so

[1:03:33] the risk management area. So, number

[1:03:35] one, we're here to give you an annual

[1:03:38] update on our program

[1:03:41] and how we've been managing that. Also

[1:03:42] we'll

[1:03:44] address the public officials errors

[1:03:45] and

[1:03:46] owe missions insurance in that we have

[1:03:47] procured that, so we can show that

[1:03:48] is

[1:03:50] in place. And then, of course, discuss

[1:03:51] the other insurance products that

[1:03:54] we have procured to

[1:03:57] put

[1:04:00] in place for protecting the

[1:04:03] authority. So the

[1:04:05] first policy is addressing our public

[1:04:06] officials errors

[1:04:07] and omissions insurance. This is an

[1:04:08] annual renewal. We've had this policy

[1:04:12] in place for a

[1:04:13] number of years now. So this was a

[1:04:16] pretty --I'll say pretty easy one

[1:04:18] to secure as far as

[1:04:20] we had no change in premium which

[1:04:23] was great, as we'll see there were

[1:04:25] some changes in premiums that affected some

[1:04:27] of our other policies

[1:04:30] that I'll talk about. But

[1:04:32] this one in particular still maintained

[1:04:33] the

[1:04:34] same premium. Also having that first

[1:04:36] policy limit at $2 million,

[1:04:37] and then, of course, our blanket policy

[1:04:39] to pick up

[1:04:44] any excess up to $10 million.

[1:04:45] >> can

[1:04:46] I just ask

[1:04:47] a quick question on the previous? I'm,

[1:04:48] like, my

[1:04:51] brain kind of just froze

[1:04:53] on this one. Public entity, what's

[1:04:54] d&o?

[1:04:55] >>

[1:04:57] directors and

[1:05:02] officers.

[1:05:03] >> directors. Thank you. Appreciate that. >>

[1:05:04] sure. So this is our

[1:05:06] --a

[1:05:07] look at our blanket excess policy. We

[1:05:09] did experience, as you can see,

[1:05:11] a pretty significant increase of excess

[1:05:12] policy premium. Part

[1:05:15] of it was related to some good

[1:05:17] actions that happened here, right? We

[1:05:21] saw a tremendous growth in our ridership

[1:05:22] which

[1:05:24] is a bob. We appreciate

[1:05:25] that. But, unfortunately, that also enhanced

[1:05:27] our

[1:05:29] risk profile so that the chance of occurrences

[1:05:33] --and we did see that occur. Also

[1:05:36] on top of that we had

[1:05:37] some transes going on that's outside of

[1:05:39] uta,

[1:05:42] and that is just

[1:05:45] the market appetite for taking

[1:05:46] these types of excess risks. The lead

[1:05:48] carrier, munich reed has been

[1:05:51] a big

[1:05:52] player in that, but they've experienced, I'd say,

[1:05:54] a couple of incidents that have

[1:05:57] been greater than what they had anticipated. And

[1:06:00] so last year

[1:06:02] they took a look at their business,

[1:06:04] and they actually made the choice

[1:06:06] to actually cut

[1:06:09] the amount

[1:06:10] of coverages they were applying. So

[1:06:12] to pivot and for us to

[1:06:14] manage through that, we actually -- we're

[1:06:15] still able

[1:06:17] to secure -- initially they told us

[1:06:18] a much lower limit, but we were

[1:06:20] able to commence them to keep their limits

[1:06:21] up to about

[1:06:23] $8 million, and then we placed a second

[1:06:24] -- or

[1:06:27] another tier above

[1:06:29] that with a new carrier, I'll call

[1:06:30] it metis, and

[1:06:33] that is more

[1:06:34] of a structured insurance product. So

[1:06:36] that one, they are from a player

[1:06:39] that I would

[1:06:41] say is fairly new into the insurance space,

[1:06:42] but they've

[1:06:44] been managing risk through pools I

[1:06:45] think since it was the

[1:06:48] early '90s for

[1:06:50] a lot of municipalities and government

[1:06:54] agencies. So they

[1:06:57] understand the risk profile for government entities. For

[1:06:58] us

[1:07:00] and what I felt

[1:07:02] prudent was instead of transitioning

[1:07:03] our entire blanket, we thought it would be

[1:07:04] a

[1:07:06] good approach to learn more about

[1:07:07] them

[1:07:08] and their structure. While they check

[1:07:09] all the boxes as

[1:07:11] far as what is substantial coverage,

[1:07:12] it's

[1:07:15] a new entity. And so still

[1:07:17] having munich reed in between there,

[1:07:18] they were willing to

[1:07:20] increase their limit to what they originally

[1:07:21] proposed but then putting

[1:07:24] an

[1:07:28] additional layer on top of that. And

[1:07:30] the next

[1:07:32] noted increase I would also point

[1:07:35] out is in their railroad liability. Again,

[1:07:36] the positive effects

[1:07:38] of increased ridership was, you know,

[1:07:39] something we're

[1:07:42] all for, but, of course, that

[1:07:44] increases your risk profile again. This

[1:07:45] is an

[1:07:48] area that has a couple of the

[1:07:50] market for other transit agencies. There's

[1:07:51] been

[1:07:54] a push to increase limits

[1:07:56] which has pushed up against opportunities

[1:07:59] for us to procure that coverage. Now,

[1:08:00] I can

[1:08:02] save our $100 million limit is probably

[1:08:03] --is in a solid place,

[1:08:05] that we are able to still continue

[1:08:06] to be able

[1:08:09] to secure that coverage, but

[1:08:11] now you're competing against other transit

[1:08:12] agencies across

[1:08:15] the nation, right, that have had increased

[1:08:16] demands of putting out more coverages. So

[1:08:18] we then, of

[1:08:21] course, have to complete compete

[1:08:24] with that premium. So we did see

[1:08:27] an increase

[1:08:30] across the board. Again, we've continued to educate. There

[1:08:31] was a higher increase that was being

[1:08:33] proposed, and so we were able to

[1:08:35] work with those carriers, educate

[1:08:36] them on how we manage

[1:08:39] that risk and how our operation safety

[1:08:40] plans are

[1:08:42] in place and respond to those

[1:08:45] and how we

[1:08:50] transfer those risks across different

[1:08:51] organization. The

[1:08:54] next increase that we noted, and this

[1:08:55] was

[1:08:58] more of a normalization. This

[1:08:59] was in our workers' compensation area. This

[1:09:01] is procured

[1:09:02] to the utah local government trust. And

[1:09:04] so the

[1:09:06] first million we manage internally,

[1:09:07] right? We

[1:09:09] have our self-insurance retention

[1:09:10] because we own

[1:09:12] that risk, we are required to purchase

[1:09:14] an excess coverage, so we have $2

[1:09:16] million in excess. I will

[1:09:17] say last year's did not -- was not

[1:09:19] increased. I would say it

[1:09:21] was probably -- this is probably a

[1:09:23] normalization of them kind of reunderwriting. We

[1:09:25] kind of got lucky last year that

[1:09:27] they did not increase our premium,

[1:09:30] but we're in a catchup place. There

[1:09:33] has been increase in wages across

[1:09:34] the organizations,

[1:09:35] so that has contributed to obviously

[1:09:37] a higher dollar

[1:09:39] amount that you would be exposed to, and

[1:09:42] also we had some significant claims

[1:09:46] this year that heightened some

[1:09:48] of that.

[1:09:49] >> brian, I'm just going to insert

[1:09:50] one thing

[1:09:52] there that's -- I

[1:09:54] was approached about a month ago by

[1:09:55] local

[1:09:58] governments trust to

[1:09:59] represent special districts on their

[1:10:01] board. They've not --

[1:10:04] that action doesn't take place

[1:10:06] until november. I've reviewed it with

[1:10:07] folks. Obviously

[1:10:10] if we have procurement that

[1:10:11] comes before us, I'll recuse myself. And

[1:10:13] so I'm not in

[1:10:15] that position now, but just more from

[1:10:16] a disclosure standpoint.

[1:10:17] >>

[1:10:19] thank you for sharing that.

[1:10:20] >>

[1:10:21] there's an issue I need to separate

[1:10:22] myself

[1:10:24] from, I'm happy to do that. But it

[1:10:28] hasn't

[1:10:31] taken place yet.

[1:10:32] >>

[1:10:33] okay. Thank you. I'll try to move

[1:10:34] through some more of the --

[1:10:36] all the other coverage. This is our

[1:10:37] property

[1:10:38] liability which is also procured through the

[1:10:40] local government

[1:10:43] trust. We

[1:10:45] have a billion dollars in coverage

[1:10:46] there,

[1:10:49] benefit from a slight decrease

[1:10:50] in that premium, but probably close

[1:10:52] to

[1:10:55] near [ inaudible ] for

[1:10:56] that. Next here is our cyber. And

[1:10:58] I would say there is

[1:11:00] two things that contributed to our decrease

[1:11:04] in that premium, part of which is

[1:11:06] the programs that we have in place

[1:11:07] as

[1:11:10] far as updating patches and a

[1:11:11] very proactive I.t. Department, making

[1:11:13] sure that our system

[1:11:15] is secure. And then coupled with the

[1:11:16] fact that

[1:11:19] this space probably had a lot of

[1:11:22] growth as far as on

[1:11:24] the insurance space, and so with that

[1:11:25] increase in

[1:11:28] supply,

[1:11:31] we benefited from that decrease

[1:11:34] in pricing. Vanpool is kind of interesting. We

[1:11:36] actually had a nice improvement in

[1:11:37] the premium, but when I

[1:11:40] --we were pivoting

[1:11:42] with our excess coverage because that was

[1:11:43] also,

[1:11:46] we were able

[1:11:48] to position the vanpool separately

[1:11:49] from how we were pricing our blanket. And

[1:11:50] so

[1:11:51] even though we had the increase on

[1:11:52] the

[1:11:55] blanket, we actually were

[1:11:58] able to increase our

[1:11:59] limits significantly for the vanpool

[1:12:01] liability. That also added that

[1:12:03] new carrier on top of that. So, in

[1:12:04] fact,

[1:12:07] I want to say the limit here to munich

[1:12:09] is $5 million, and the new carrier came

[1:12:12] in with an additional $2 million. Overall

[1:12:16] reduction in that premium risk there. Again,

[1:12:19] another well-managed program. So we

[1:12:22] were

[1:12:25] able to demonstrate that

[1:12:28] in reduction. This is our railroad

[1:12:29] protective liability for small contractors. So

[1:12:30] we have for different contractors

[1:12:31] that may not

[1:12:33] have the ability to precure these larger

[1:12:34] policies, we can

[1:12:37] offer them kind of

[1:12:39] like a pass-through and so that they

[1:12:40] --for a period of time,

[1:12:42] they may be near a rail, within 50

[1:12:43] feet, they can access

[1:12:46] this insurance so that it's only for that

[1:12:47] particular period of time as opposed

[1:12:49] to some --if

[1:12:52] they were to buy it themselves, it

[1:12:53] would

[1:12:54] an annual premium or exposed risk,

[1:12:55] but that

[1:12:59] may not be their primary business. Fiduciary

[1:13:01] liability,

[1:13:04] had a slight

[1:13:07] increase. This is

[1:13:10] for all our pension risks

[1:13:13] as far

[1:13:18] as the -- risk-related activities there. Crime

[1:13:19] liability. This is due

[1:13:22] to any financial loss like embezzlement. This

[1:13:25] was kept in

[1:13:28] with no change. Terrorism

[1:13:30] liability, we actually had a decrease. Again,

[1:13:31] this was just more

[1:13:33] I would say about the market capacity,

[1:13:34] was able

[1:13:35] to lend to that improvement. And then

[1:13:37] here it

[1:13:40] gives you just the overall breakdown. So if you

[1:13:43] look at it, you can see our --you

[1:13:45] know, premiums this year were almost

[1:13:46] $350,000 more than what they

[1:13:49] were of last year that

[1:13:52] we presented. And as I mentioned, the

[1:13:53] railroad liability

[1:13:55] was a large --about half

[1:13:57] of that contribution, also with the excess

[1:13:58] liability. The other

[1:14:00] ones you can see the kind of small

[1:14:01] minor

[1:14:04] ins and outs of

[1:14:07] those total dollars.

[1:14:08] >> when you think

[1:14:10] of the property casualty

[1:14:12] demands placed on the industry over

[1:14:13] the last couple

[1:14:16] years, it's actually pretty amazing

[1:14:17] that

[1:14:18] those rates have stayed relatively

[1:14:19] in a reasonable place. I

[1:14:20] mean, with the exception of the liability

[1:14:22] coverage which I don't know

[1:14:24] how you get around.

[1:14:25] >> yeah. No. I

[1:14:26] mean, you

[1:14:27] can see the different pinpoints of

[1:14:28] risk management, right,

[1:14:31] as far as all those different areas

[1:14:34] so each one has its own nuance. But, yeah, you're

[1:14:37] right. As far as on the

[1:14:40] whole, you know, we're

[1:14:42] still maintaining. I'm just amazed

[1:14:43] at cyber

[1:14:46] not being an increase. That is I think

[1:14:48] --I would have thought that would

[1:14:49] have gone the other

[1:14:52] way. So that's fantastic.

[1:14:53] >> we hear

[1:14:54] a lot

[1:14:55] of headlines, right, of different

[1:14:56] large systems that

[1:14:57] are being accessed with private information. I

[1:14:58] think the

[1:15:01] response time and the management of

[1:15:02] that

[1:15:04] has improved greatly so that we're probably

[1:15:07] seeing

[1:15:10] more headlines than actual pain, financially speaking.

[1:15:13] all

[1:15:15] right. Thank you.

[1:15:16] >> yeah, thank you. I

[1:15:19] assume no other questions

[1:15:21] for brian? Okay. Thanks for that update,

[1:15:22] brian. Why don't we

[1:15:25] go forward with next item, and

[1:15:28] then we'll maybe take a break. The

[1:15:32] summary of

[1:15:34] the series 2025 bond issuance and

[1:15:35] welcome,

[1:15:38] vi miller, as well as

[1:15:39] brian baker and then, of course, brian reeves. Vi,

[1:15:41] am I

[1:15:44] looking to you first?

[1:15:45] >>

[1:15:47] no. We have a

[1:15:50] plan. Brian, brian, vi.

[1:15:51] >> good

[1:15:52] morning, trustees. Brian reeves, chief

[1:15:53] associate financial officer here to

[1:15:55] talk to you about the conclusion of our

[1:15:57] series 25 bond issuance that we started

[1:15:59] off this year. So just to

[1:16:02] give you kind of

[1:16:04] the high-level summaries, we issued on

[1:16:08] july 29th, the series

[1:16:11] 2025 sales tax refunding

[1:16:12] bonds. We generated $492 million in

[1:16:14] par amounts. If you look

[1:16:16] at the overall yield for the transactions,

[1:16:17] we

[1:16:19] had an all-in yield of just under

[1:16:23] 4%, and that goes across

[1:16:25] our different maturity schedule of 2026

[1:16:26] to 44. And this

[1:16:29] was the purpose of

[1:16:30] this financing three-fold, right,

[1:16:32] as far as funding

[1:16:33] two finance projects, capital projects,

[1:16:35] the light

[1:16:36] rail vehicle and the administrative

[1:16:38] building. This also had an

[1:16:39] opportunity that came about as far

[1:16:41] as a tender,

[1:16:44] and then,

[1:16:47] of course, the refunding

[1:16:50] of

[1:16:53] with tax-exempt opportunity for refunding taxable

[1:16:55] bonds. So overall how did we do? Our

[1:16:56] debt

[1:16:59] service coverage is still in a

[1:17:00] great position. The senior leaned

[1:17:02] at 2.9 in our total lien coverage,

[1:17:04] so this looks at our sales tax coverage that

[1:17:05] we

[1:17:08] collect, and then it goes out

[1:17:11] across the entire debt service and

[1:17:13] looks at the -- where I'd see the

[1:17:15] highest point. So the 2 1/2 times

[1:17:17] represents that

[1:17:19] overall way out in the future. And then

[1:17:20] our total

[1:17:22] debt outstanding, you can see that breakdown

[1:17:26] between our subordinate and

[1:17:28] senior lien. We actually refunded

[1:17:29] and refinanced some

[1:17:30] of our subordinate liens and moved

[1:17:32] them up into

[1:17:33] that senior lien position. You get

[1:17:35] better pricing when you are

[1:17:38] able to do that.

[1:17:39] >> so the figure's

[1:17:40] been thrown around a few times about

[1:17:41] what our debt is

[1:17:42] and obviously you're paying interest

[1:17:44] on it, but roughly

[1:17:47] we have

[1:17:50] about $2

[1:17:51] billion left remaining?

[1:17:52] >> principal outstanding,

[1:17:53] yeah. And that as you can see is --

[1:17:54] we pay off

[1:17:55] portions of that each year, and that's

[1:17:56] what's captured in

[1:17:58] that debt service of that principal

[1:18:01] and interest.

[1:18:02] >> can I just clarify

[1:18:03] that that's

[1:18:04] $2 billion?

[1:18:05] >> what's that? >> $2

[1:18:06] billion.

[1:18:07] >> I

[1:18:08] did say billion, yeah. But it's

[1:18:10] always good to clarify when I say

[1:18:11] something.

[1:18:12] >>

[1:18:14] and then not to steal

[1:18:16] vi's thunder because she'll be able to

[1:18:17] share her results, but getting

[1:18:20] right to it, we saved through this

[1:18:23] transaction $18 million and

[1:18:26] that was represented about a 4% mpv

[1:18:27] savings for the transaction. And so

[1:18:29] --but, yeah. As you

[1:18:32] can see the debt service, that

[1:18:33] small line there shows you what the

[1:18:35] previous, and so we were able

[1:18:38] to kind of sculpt it and

[1:18:40] share that across our --so it would

[1:18:41] have

[1:18:43] a minimal impact on our ratios, and

[1:18:44] that 2343

[1:18:46] and 44 which is where we still have a

[1:18:47] small amount of

[1:18:49] debt outstanding is where we put bigger

[1:18:50] portions of that which makes

[1:18:53] sense when you consider the

[1:18:56] assets that we were funding for.

[1:18:57] >>

[1:18:58] I'd mentioned --or you mentioned it. So

[1:18:59] 10 years

[1:19:01] ago, you still had about $2 billion worth

[1:19:02] of debt. You actually had

[1:19:05] more than that, and more

[1:19:08] than half of it was subordinate

[1:19:10] lien which has less favorable cost

[1:19:11] for investors and cost you more because

[1:19:12] that

[1:19:13] is what fit with the coverage ratios

[1:19:14] you had in place in order to be

[1:19:16] able to fund the capital projects

[1:19:17] you were doing. And so it's fun

[1:19:20] to look at that chart that was just

[1:19:22] shown that shows that subordinate

[1:19:23] lien portion becoming smaller and smaller,

[1:19:26] and when we talked to the

[1:19:28] rating agencies, essentially we don't

[1:19:29] see

[1:19:31] a time where you'd need to issue subordinate

[1:19:32] lien debt in

[1:19:34] the future, and so that will slowly

[1:19:35] go away. And

[1:19:36] as that number becomes smaller, you

[1:19:38] might get an upgrade

[1:19:41] to the ratings on your subordinate

[1:19:42] lien because it's so overcapitalized

[1:19:44] based on how little there

[1:19:46] will be remaining, and it'll just

[1:19:47] eventually converge with your senior

[1:19:49] lien because you're in a much, much healthier

[1:19:50] financial

[1:19:52] position now which is great.

[1:19:53] >> although,

[1:19:54] brian, you

[1:19:56] just depressed me

[1:19:59] because it's like the accuary --or

[1:20:00] the

[1:20:01] payment on your home mortgage, when

[1:20:02] you said 10

[1:20:04] years ago we still had $2 billion,

[1:20:05] and now we

[1:20:07] still have $2 billion.

[1:20:08] >> you had

[1:20:09] a good bit

[1:20:10] more than that.

[1:20:11] >> okay. >> but you have

[1:20:12] borrowed for other things

[1:20:13] in the intermittent time.

[1:20:14] >> that's

[1:20:15] true. That's true.

[1:20:16] >> in fact, I

[1:20:17] think you peaked out at like

[1:20:19] 2.3 or 4.

[1:20:20] >> okay. Thank you. >> so

[1:20:21] just

[1:20:23] to recap as well the timing, right? We

[1:20:24] came

[1:20:25] in april as a discussion point, and

[1:20:29] then we went and

[1:20:32] met with the

[1:20:34] different state finance commission,

[1:20:35] introducing them, the refunding and

[1:20:36] the

[1:20:37] barnes that we were talking on. And

[1:20:38] being that there was new money

[1:20:41] attached to this, we did have

[1:20:44] a public comment period that took us

[1:20:45] through the

[1:20:46] summer, and then, of course, then

[1:20:47] you had

[1:20:50] a tender that was

[1:20:51] being participated simultaneously

[1:20:53] with that. So we had that

[1:20:56] notification period. So a lot of steps

[1:20:57] for, --

[1:20:58] you know, obviously for transparency but

[1:20:59] also

[1:21:01] making sure that we're educating through the

[1:21:03] --the public through this process. And

[1:21:05] so we

[1:21:08] reached to that culmination

[1:21:11] on

[1:21:13] july 25th, we completed that transaction.

[1:21:26] >> as this process

[1:21:28] began, and we talked to you about

[1:21:29] what was going on, you probably heard

[1:21:31] us say a couple of times that, really,

[1:21:32] the absolute

[1:21:35] rates that you were paying were

[1:21:37] less important for the refinancing portion

[1:21:38] than what was the

[1:21:41] spread between what the treasury rate and

[1:21:43] the mmd was and that the wider that

[1:21:45] spread was,

[1:21:46] the better it was for the transaction. And

[1:21:48] so from

[1:21:49] the time we started talking to you,

[1:21:51] things got -- you

[1:21:52] know, we first showed numbers, and

[1:21:53] numbers got a little bit worse, and

[1:21:54] then the numbers

[1:21:55] got a little bit worse, but right

[1:21:56] before the transaction happened leading

[1:21:57] into

[1:22:00] the transaction, we actually

[1:22:01] had a lot of positive momentum in

[1:22:03] our favor. And so that got

[1:22:06] us back to where we had again

[1:22:08] a very healthy refinancing with great opportunities

[1:22:09] there. And

[1:22:11] if you look at the ratios where they

[1:22:12] are now,

[1:22:14] they are less favorable than they

[1:22:15] were

[1:22:17] at the time of the transaction which

[1:22:19] is good. This shows specifically the ratios

[1:22:22] and kiep of how they changed, both

[1:22:24] that top line, the green

[1:22:26] one is over the 20-year period and

[1:22:27] the

[1:22:28] 10-year period is the lower one. The

[1:22:30] 10-year period was more important

[1:22:31] to your transaction, and that's the

[1:22:33] one

[1:22:35] that actually you can see came down

[1:22:36] more. We've seen

[1:22:38] that also in the last little while

[1:22:42] with just interest rates in

[1:22:45] general. You've seen the 10-year

[1:22:47] is sticking more, generally lower, and

[1:22:48] the 30-year treasury

[1:22:50] has drifted up more and has moved more. And

[1:22:51] so those are

[1:22:53] both favorable things that contributed

[1:22:56] to the positive outcome of the transaction. And

[1:22:57] then these were

[1:23:00] the rates. So over the

[1:23:02] life of the transaction, we typically

[1:23:03] have an

[1:23:04] upward sloping yield curve. That's

[1:23:06] not exactly what the treasury yield

[1:23:08] curve looks like right now, but when

[1:23:09] you're borrowing

[1:23:11] in the municipal market, the tax exempt,

[1:23:12] you

[1:23:13] have higher rates out further, so

[1:23:15] the green

[1:23:18] level, the green line is what

[1:23:21] aaa, mmd, meaning the bond buyer

[1:23:23] index that is pure aaa general obligation,

[1:23:24] so everything that is

[1:23:27] different from being a pure

[1:23:28] general obligation, full, faith and credit

[1:23:30] aaa, you usually

[1:23:31] pay a slight spread above that. Uta

[1:23:33] over

[1:23:34] the years has paid a not negligible,

[1:23:36] but a

[1:23:38] very small spread to aaa, and we feel

[1:23:39] like we got

[1:23:40] excellent pricing from wells fargo

[1:23:42] is the underwriter on the date that

[1:23:43] the

[1:23:45] transaction happened, you

[1:23:47] can see that those are relatively

[1:23:48] consistent. Typically they're a

[1:23:49] little bit closer in the early years,

[1:23:51] and then they tend to

[1:23:52] spread out in the later years. But

[1:23:54] I think we did a

[1:23:57] good job of keeping them in line.

[1:23:58] >>

[1:23:59] if I could just add to what I think

[1:24:00] it

[1:24:01] can be somewhat hard to see the difference

[1:24:03] in that line, and that is

[1:24:06] kind of part of

[1:24:07] the point, right? The benchmark is

[1:24:09] a

[1:24:11] aaa rated. And so seeing how close our

[1:24:12] -- along the

[1:24:14] point of that curve where we ended

[1:24:15] up pricing

[1:24:16] really demonstrates the financial strength

[1:24:18] that the market --

[1:24:19] the investor market views of uta. And

[1:24:21] so that we

[1:24:24] were

[1:24:25] very pleased with that outcome there.

[1:24:27] >> you know, I know we don't

[1:24:28] -- this is just a uta thing, but I

[1:24:30] think when

[1:24:31] you look at the broaders and some

[1:24:33] other transit agencies, this is not

[1:24:36] what they can say at all. And I think

[1:24:37] as we continue to refine not just

[1:24:39] what it is that we are doing as

[1:24:42] an agency but also in

[1:24:43] partnership with the communities and

[1:24:45] those investments in sales tax, that is

[1:24:47] going to be a continued value add as we

[1:24:50] go out to this market moving forward

[1:24:51] or

[1:24:54] paying it off, whatever that

[1:24:57] looks like.

[1:24:58] >> we didn't extend

[1:25:00] the debt horizon, so this debt really is

[1:25:01] --

[1:25:03] am I looking at that right, 19-year

[1:25:04] debt?

[1:25:05] >> that is correct. And I'll

[1:25:06] be talking that in a bit.

[1:25:07] >> which

[1:25:08] is a lot better position on these

[1:25:09] newer

[1:25:12] vehicles than

[1:25:15] the original ones purchased, yeah. So

[1:25:18] --

[1:25:19] >> so just to

[1:25:20] summarize, right, that we our results

[1:25:21] were fantastic for this bond deal. And

[1:25:23] it was in three parts, right? So we

[1:25:24] had

[1:25:27] --we issued sales tax revenue bonds. We

[1:25:30] also did a tender,

[1:25:33] and then we did a refunding. And

[1:25:35] with the sales tax revenue and refunding

[1:25:36] bonds,

[1:25:39] the new series that we did, the

[1:25:41] par amount, as brian said, $4 noot.5 million,

[1:25:45] we had a premium

[1:25:48] of $44.3 million with 5% coupon rate. All

[1:25:50] in, what's important, I think, is

[1:25:51] to

[1:25:54] recognize that point

[1:25:56] that beth just made and that made

[1:25:57] as well

[1:25:59] is that call option is going to be

[1:26:00] here in another

[1:26:03] 10 years, and

[1:26:04] then we'll have another opportunity

[1:26:06] to refinance. And one of the things,

[1:26:09] what brian baker was speaking

[1:26:11] to earlier about the fact that, yes,

[1:26:12] our total debt

[1:26:15] has been around the $2 billion mark for years,

[1:26:16] it

[1:26:18] has gone up and down in some areas, but

[1:26:19] the

[1:26:21] thing is that as we do this work,

[1:26:24] as we continue to refinance

[1:26:26] our debts, as we continue to bake

[1:26:27] savings into

[1:26:29] our forecast amount while still investing

[1:26:32] in our infrastructure, we are doing

[1:26:33] a wonderful

[1:26:36] balancing act here. And I think

[1:26:38] that's important to speak to is that,

[1:26:39] yes, we have this large debt,

[1:26:42] but look at everything

[1:26:45] we're doing with it. And

[1:26:46] that is something that wells fargo

[1:26:48] remarked about how

[1:26:51] --the strength of uta's

[1:26:54] bond program and

[1:26:57] also what we do, right? That's why

[1:26:58] these rating

[1:26:59] agencies continue to give us high

[1:27:00] ratings is because we are doing

[1:27:03] well with balancing our

[1:27:06] debt and keeping up our asset

[1:27:07] management piece, as well as our infrastructure. So,

[1:27:09] of course, with the

[1:27:12] tender and

[1:27:15] the refunding we sent out for

[1:27:18] $980.4 million, we

[1:27:20] got a 27% success rate. We tender

[1:27:21] $251.2

[1:27:24] million at

[1:27:27] par, and we refunded $203.7

[1:27:29] million in debt. And right now that meant

[1:27:30] that -- you heard

[1:27:33] brian say earlier we had a net present

[1:27:36] value savings of $18

[1:27:39] million. And that savings is about

[1:27:40] 4%. So one

[1:27:42] of the things I

[1:27:45] wanted to highlight

[1:27:46] was our investor makeup. And we were

[1:27:48] in new york

[1:27:51] -- you know, brian had a day getting there,

[1:27:52] but

[1:27:54] we were in new

[1:27:57] york, the investor names scroll across the

[1:27:58] screen

[1:28:00] was really a highlight of, again,

[1:28:01] the strength

[1:28:03] of uta and how we have these

[1:28:06] major investors

[1:28:07] interested in investing in uta. You'll

[1:28:09] see

[1:28:12] blackrock financial, we had goldman sachs,

[1:28:14] jpmorgan, vanguard group, all of these

[1:28:17] are major investors in the bond markets. And

[1:28:19] the fact

[1:28:21] that they wanted to invest in uta

[1:28:22] says

[1:28:25] something about

[1:28:26] what we're doing here. We were oversubscribed

[1:28:28] by

[1:28:31] almost four times which is

[1:28:34] amazing, right? So we had 68

[1:28:35] institutional investor orders, most

[1:28:37] of it was in

[1:28:40] our smas, our separately managed

[1:28:42] accounts. These are high net worth investor

[1:28:43] groups,

[1:28:46] and then, of course, our

[1:28:47] proprietary trading, that was another

[1:28:49] 19.5%. So

[1:28:51] really the kinds of investors that

[1:28:54] are willing --these are high money

[1:28:55] investors, and so

[1:28:57] the fact that they're interested in investing

[1:28:58] in

[1:29:00] uta and that we were so oversubscribed, we

[1:29:01] put it out there,

[1:29:02] we put the offer out there, and everyone

[1:29:04] came in and said, yes,

[1:29:07] we

[1:29:08] want to do business with you. And,

[1:29:10] again, as we

[1:29:13] alluded to on the

[1:29:15] rating agency views, we are not going

[1:29:16] past

[1:29:18] 2044. And even though we continue

[1:29:19] to rebalance,

[1:29:22] we are staying to that. We

[1:29:24] have not extended past 2044. We've,

[1:29:25] again,

[1:29:28] had some ups and downs within

[1:29:31] that time horizon, but

[1:29:34] we are continuing to save and

[1:29:36] refinance when possible. And so that

[1:29:39] mixture of debt is a balanced debt,

[1:29:41] and we continue to be stable. What

[1:29:43] brian baker

[1:29:45] was speaking to about our subordinate

[1:29:46] liens, that,

[1:29:47] again, every single rating agency

[1:29:49] has rated us

[1:29:52] as stable in that area, and

[1:29:54] we are at at least aa. So all good

[1:29:58] things. We have a strong

[1:29:59] tax revenue performance, supported

[1:30:01] by our size, maturity and

[1:30:04] diversity. I I wanted to

[1:30:05] highlight that from s&p global. And,

[1:30:07] really,

[1:30:09] we continue to look for opportunities. Wells

[1:30:10] fargo has

[1:30:13] for the last

[1:30:14] two years been bringing us fantastic options

[1:30:16] and opportunities to go back

[1:30:19] to the market and save

[1:30:20] us money. So appreciate working with them. I

[1:30:22] just want to

[1:30:24] add that to the record. Any questions?

[1:30:25] >>

[1:30:26] I

[1:30:28] don't know if this question is for

[1:30:31] brian --brian baker or --

[1:30:32] we've done a lot of tendering. Is

[1:30:34] that market going to

[1:30:37] be

[1:30:38] there in three years or does it depend

[1:30:40] --and is

[1:30:41] there much left to realistically tender?

[1:30:42] >>

[1:30:43] the best bonds

[1:30:45] to take advantage of the tender option were

[1:30:46] the

[1:30:49] taxable bonds that you had with

[1:30:50] really, really low coupons where investors

[1:30:52] were -- I think that slide

[1:30:54] showed that the average investor,

[1:30:55] you paid them 88

[1:30:57] cents on the dollar to buy their bonds

[1:30:58] back because rates had gone

[1:31:00] down, and they were under water. And

[1:31:01] so

[1:31:04] we have refinanced

[1:31:06] a lot of your outstanding taxable bonds. And so

[1:31:07] we'd have

[1:31:09] to look and evaluate whether --I doubt

[1:31:12] we would bring you a tender opportunity

[1:31:13] on those old set

[1:31:15] of bonds and just say let's just try

[1:31:16] it again

[1:31:18] and see what happens, but when you

[1:31:19] do

[1:31:20] borrow again, we could re-evaluate

[1:31:22] and see does it make sense to

[1:31:23] ask again, do we think on some of these

[1:31:25] you might have had enough bonds

[1:31:26] change hands or your time has passed,

[1:31:28] and you might get a different

[1:31:31] reception. But that was --

[1:31:33] it is interesting --the tenders were set

[1:31:34] up by

[1:31:36] you taking advantage of the opportunity

[1:31:37] to

[1:31:39] refinance debt that wasn't yet callable

[1:31:40] at taxable rates when

[1:31:42] taxable rates got really, really low. And

[1:31:43] because you had

[1:31:45] those done, wells fargo brought the opportunity

[1:31:46] and said, hey,

[1:31:49] by the way, because you have

[1:31:50] these really, really low taxable coupon

[1:31:52] bonds, you could do this, and investors

[1:31:53] would

[1:31:54] unlock the call feature and let you buy them

[1:31:55] back

[1:31:57] now, you know, at a deep discount,

[1:31:58] and that would save

[1:32:01] you money again. And we've used

[1:32:04] a lot of that up. And as demonstrated,

[1:32:05] even

[1:32:06] though you got good responses at about 27%,

[1:32:07] there are some of those bonds that

[1:32:09] are just not going to be tendered

[1:32:10] at any point because of the

[1:32:12] types of investors that want to own

[1:32:13] them and

[1:32:16] hold them until they pay

[1:32:19] off.

[1:32:20] >> thank you. Any other questions? >>

[1:32:22] no.

[1:32:23] >> thanks, everyone, for

[1:32:24] your efforts on that.

[1:32:25] >> thank you. >>

[1:32:26] so great outcome.

[1:32:27] >> thank you. >> well,

[1:32:28] why

[1:32:29] don't we take a short

[1:32:30] break and come

[1:32:31] back roughly

[1:32:31] at around 10:40 or so.

[1:32:33] having just completed our bond discussion,

[1:32:35] we'll

[1:32:38] move to

[1:32:41] a discussion about the

[1:32:44] revised 2026, 2030 five-year capital plan

[1:32:46] overview. Welcome both jared scarbrough

[1:32:49] as well as dan hofer. Jared.

[1:32:50] >> thank

[1:32:51] you. Jared

[1:32:52] scarbrough chief capital services

[1:32:53] officer here with

[1:32:56] dan hofer

[1:32:59] to

[1:33:02] go over the revised 2026-2030 five-year

[1:33:05] capital plan. After the budget

[1:33:06] workshops that were held last month,

[1:33:08] trustee holbrook, I'm

[1:33:11] not sure if

[1:33:12] I'm using this word correctly, was it

[1:33:14] scalpelling?

[1:33:15] >> thank

[1:33:17] you for creating a

[1:33:19] new word? I appreciate that so much. Scalpelling,

[1:33:20] that's

[1:33:22] correct.

[1:33:23] >> refinements that have

[1:33:24] been made

[1:33:25] since the last budget working session. So

[1:33:26] dan

[1:33:29] is

[1:33:31] going to walk through the numbers

[1:33:32] here this morning

[1:33:33] in a little bit more detail, and then we'll

[1:33:35] go to

[1:33:38] a summary at the end here.

[1:33:39] >>

[1:33:41] thanks, jared. For the record, dan

[1:33:42] hofer, director of capital programming and

[1:33:43] support. As jared mentioned, we're

[1:33:44] here to show you

[1:33:46] some of the changes that have been

[1:33:47] brought into the five-year

[1:33:50] plan since

[1:33:51] we talked last month about it. So

[1:33:53] this first

[1:33:55] part of the presentation we'll go

[1:33:56] through and just

[1:33:59] will highlight the changes

[1:34:02] that

[1:34:03] had occurred to the projects. So the

[1:34:05] first one was a

[1:34:08] request to update the project

[1:34:10] named to the farmington station ped bridge. That

[1:34:11] was done. There

[1:34:14] was no change to

[1:34:17] the budget. The rev238,

[1:34:19] that's the light rail vehicle replacement project. There

[1:34:20] was some

[1:34:23] contract milestones that were updated, and

[1:34:24] so we basically preprogrammed another

[1:34:26] $700,000 that would

[1:34:28] have been paid this year forward to

[1:34:32] next year. Preprogramming also occurred

[1:34:33] on the

[1:34:34] clearfield trail project. They think

[1:34:35] that has

[1:34:38] potential to slip in to

[1:34:39] next year. The layton station improvements, that

[1:34:41] one we removed

[1:34:44] the funding for right

[1:34:46] now. We left the project, but if more progress

[1:34:47] is made on that project,

[1:34:50] we can add

[1:34:53] funding to it to progress it

[1:34:56] along. The ogden

[1:34:59] fueling system replacement added

[1:35:02] $85,000 to that

[1:35:03] one. And then continuing on, the ici214

[1:35:05] automatic

[1:35:08] passenger counter, that one had

[1:35:11] a reduction of $1 in

[1:35:12] 2027. The reason being they think they'll

[1:35:14] finish that phase --

[1:35:15] you know, they'll finish the current phases

[1:35:17] they're working on

[1:35:20] next year and then

[1:35:23] evaluate that future

[1:35:25] project moving forward. Ici226, also

[1:35:26] they removed

[1:35:29] -- asked to remove $2 million

[1:35:31] in 2027 for that as well. So that

[1:35:32] one they're

[1:35:33] planning on finishing it next year,

[1:35:35] so that's the

[1:35:38] reason for that.

[1:35:39] >>

[1:35:41] so is the cost

[1:35:44] less or did 2026 get

[1:35:47] increased?

[1:35:48] >> 2026 in this version

[1:35:49] stayed the same. We are going to increase

[1:35:50] it later,

[1:35:52] but it'll be from a preprogramming

[1:35:53] of this year moving forward. So

[1:35:56] I think this is mostly

[1:35:58] a contingency value that was held there,

[1:35:59] so --

[1:36:00] >>

[1:36:01] can I ask a question?

[1:36:02] >> yeah, please. >>

[1:36:03] and I'm

[1:36:04] sorry, I was a little slow on this. But

[1:36:05] I just wanted

[1:36:08] to ask you, like, what are the time

[1:36:09] frames? Do

[1:36:10] any of these dollar figure impacts,

[1:36:11] like for the

[1:36:13] farmington ped bridge or for the clearfield trail,

[1:36:17] do any of those get impacted as far

[1:36:20] as timing or is that

[1:36:23] at this stage

[1:36:24] still unchanged?

[1:36:25] >> yeah. At this

[1:36:26] stage they're unchanged. The clearfield project

[1:36:29] is nearing completion, so this is just

[1:36:31] in case it'll lead into next year. But

[1:36:32] no cost increase

[1:36:35] on those two

[1:36:36] that you mentioned.

[1:36:37] >> okay. Thank

[1:36:38] you.

[1:36:39] >>

[1:36:41] uh-huh. Other changes that

[1:36:43] had occurred also, the I.t. Managed

[1:36:45] reserve project was removed. That

[1:36:47] represents

[1:36:50] a five-year total figure for that. The

[1:36:52] fare box portion --

[1:36:53] >> I presume if

[1:36:54] an issue comes up, then

[1:36:56] we would just

[1:36:59] look

[1:37:01] at our contingency --

[1:37:02] >> yes. >> management. Okay. >>

[1:37:03] the fare system project,

[1:37:05] we removed the

[1:37:08] fare box portion of that, so

[1:37:11] that gave a $3.6 million

[1:37:13] reduction. The 5310 projects, we lumped these

[1:37:14] all together in one

[1:37:16] and kind of showed it as a general lump

[1:37:17] sum

[1:37:20] there. But the timing of those

[1:37:22] awards occurs kind of in between that sweet

[1:37:23] spot of when

[1:37:25] we're getting ready for the budget

[1:37:26] workshops, and so now

[1:37:29] they've gone in and reconciled

[1:37:32] those projects with their award amounts, and

[1:37:34] another thing we're doing is instead

[1:37:35] of programming that out

[1:37:37] into future years, we're going to

[1:37:38] move that into the current

[1:37:41] year so they have that funding available

[1:37:44] to them, and they can

[1:37:47] use it there. So that added

[1:37:48] about $4.3 million. But those are

[1:37:50] all pass-through funds.

[1:37:51] >> I was

[1:37:52] gonna ask, are those grant funds only

[1:37:53] --

[1:37:54] >> yes. >>

[1:37:55] --or is there a local match?

[1:37:56] >> there

[1:37:59] could be a very small local in there,

[1:38:02] but the

[1:38:05] local majority of all pass-through funds.

[1:38:06] >>

[1:38:07] the

[1:38:08] enhancement, that's mostly payback

[1:38:09] grant.

[1:38:10] >> so here's

[1:38:11] some more exchanges that we did. I'll

[1:38:14] just go through these really quickly. Added

[1:38:15] $210,000, this

[1:38:16] is to the wheel turning machine. That

[1:38:17] was a

[1:38:20] result of a tariff impact letter that

[1:38:23] we got from them. The

[1:38:25] optical detection project was removed. The

[1:38:26] one-time innovative

[1:38:30] mobility zone

[1:38:31] funds project was removed. The one-time

[1:38:33] mobility

[1:38:36] solutions for capital expenses

[1:38:39] was lowered by $338,000. The

[1:38:41] big one was the rev233 commuter rail

[1:38:43] vehicle procurement for used, that

[1:38:45] was the

[1:38:47] purchase of the san diego cars. Sounds

[1:38:51] like the strategy has changed on

[1:38:53] that, and so that project has been

[1:38:56] removed.

[1:38:57] >> and so was this anticipated revenue

[1:38:58] to

[1:38:59] be received or to be expended to renovate,

[1:39:02] I guess?

[1:39:03] >> it would be to expend

[1:39:04] it. Right, yeah.

[1:39:05] >>

[1:39:06] I was just trying to

[1:39:07] figure out what rev stands for.

[1:39:08] >>

[1:39:09] yeah.

[1:39:10] >> looks like

[1:39:12] a revenue.

[1:39:13] >> general code

[1:39:14] for vehicles usually.

[1:39:15] >> can I ask

[1:39:17] a question? Because technically the

[1:39:18] vehicle procurement

[1:39:19] is already completed, but I'm just

[1:39:21] curious as to why it's under

[1:39:23] that title. Is that just because it's connected

[1:39:24] to that vehicle,

[1:39:25] even though the proare current is already

[1:39:27] done? I just wanted to

[1:39:28] understand how that --

[1:39:29] >> anticipated

[1:39:30] as part of the procurement that

[1:39:31] we'd be doing this work.

[1:39:32] >> okay. Thank

[1:39:33] you. That's

[1:39:36] why it's

[1:39:39] tied in that way. Thanks.

[1:39:40] >>

[1:39:41] yeah. On the meadowbrook electrification

[1:39:42] project, we've preprogrammed $500,000

[1:39:43] from this year forward to

[1:39:45] next year

[1:39:46] to help with the design contract there,

[1:39:48] anticipating

[1:39:51] completion of that contract

[1:39:54] in march. Here's

[1:39:55] some other changes. The lab building

[1:40:00] demo and parking lot, we

[1:40:01] moved to $375,000 forward from this budget to

[1:40:03] next

[1:40:06] year to allow for the paving,

[1:40:07] they've been working through the design,

[1:40:09] and that's taken longer than

[1:40:12] anticipated.

[1:40:13] >> so we'll

[1:40:14] see gravel through the winter?

[1:40:15] >>

[1:40:16] probably. Yeah.

[1:40:17] >> my

[1:40:18] shoes are not happy about that.

[1:40:19] >> very

[1:40:20] easy

[1:40:21] to clear snow off of gravel.

[1:40:22] >>

[1:40:24] yeah.

[1:40:25] >> it gives

[1:40:27] us the good

[1:40:30] country feel.

[1:40:31] >> yes. Next

[1:40:32] year we have preprogrammed $760,000

[1:40:33] for the salt lake

[1:40:36] hq office

[1:40:39] building to finish their schematic

[1:40:40] design. The 5600 west project, this

[1:40:42] one basically what happened is

[1:40:43] the opening of that service was pushed

[1:40:45] back a

[1:40:48] year, so they were able

[1:40:49] to reshuffle the schedule on that. And

[1:40:53] so this represents that where we've

[1:40:54] added --

[1:40:57] where we didn't add, but we

[1:40:59] put $3.9 million nor in next year's

[1:41:00] to help with some construction there.

[1:41:01] >>

[1:41:02] can

[1:41:03] I

[1:41:06] ask a question on

[1:41:08] this project? There was in state law

[1:41:09] on

[1:41:11] the enacting of the salt lake county fifth

[1:41:14] fifth, a portion that went to 5600

[1:41:15] west. Are

[1:41:18] those numbers --is that revenue coming

[1:41:21] --potentially coming to us, is it

[1:41:24] coming through the ttf to fund additional pieces? I just

[1:41:27] wasn't sure how --I can't

[1:41:29] really remember the fraction of it,

[1:41:30] but it allowed

[1:41:33] --and when the thing got enacted I

[1:41:34] would

[1:41:35] imagine it enabled it. And I just wondered

[1:41:36] how we're looking

[1:41:38] at those dollars or generally even

[1:41:39] look at them. To be

[1:41:42] honest, I'm not sure what our options

[1:41:43] are there.

[1:41:44] >> I would

[1:41:45] have to get back to you on that. I

[1:41:48] mean, I know that they're there, they're

[1:41:50] authorized, but how that money's going

[1:41:51] to come to us is

[1:41:54] --

[1:41:55] >> yeah. Maybe we have to get

[1:41:56] our legislative friends to help us figure

[1:42:00] that out or our friends in the gopb office. It

[1:42:02] would be good to figure that out.

[1:42:03] >>

[1:42:04] I'm going to check

[1:42:06] as this discussion

[1:42:09] is going on.

[1:42:10] >> all

[1:42:11] right. The rail replacement program,

[1:42:14] we added $2.25 million to that project

[1:42:15] to next year, and then so in

[1:42:18] order to do that, we took a little

[1:42:19] bit from the great crossing replacement

[1:42:21] program, and we were able to

[1:42:22] add some additional formula funds

[1:42:24] to that to

[1:42:27] make up that number. The grade crossing

[1:42:28] replacement project

[1:42:30] speaks

[1:42:32] to the reduction I just mentioned

[1:42:33] there.

[1:42:34] >> so did

[1:42:36] you not do the grade crossing projects?

[1:42:37] >>

[1:42:38] we'll

[1:42:39] still do them. I think there's

[1:42:40] $2 million in that budget still. We've

[1:42:42] done a really good

[1:42:45] job keeping up on those, and so

[1:42:48] at this time rather put the

[1:42:50] money towards the rail replacement effort

[1:42:51] there.

[1:42:52] >>

[1:42:54] we'll be doing two larger ones

[1:42:57] next year still, 621 south and

[1:43:00] 600 south. 600 is in need

[1:43:02] of repair, as well as 2100. 2100 was

[1:43:03] also chosen because

[1:43:05] it is directly linked to other shutdowns

[1:43:06] we'd

[1:43:07] be doing in that area.

[1:43:08] >> yeah. >>

[1:43:09] so instead of having

[1:43:11] three shutdowns there, we shuffled around

[1:43:12] to just have one do all the

[1:43:15] work.

[1:43:16] >> at the same time. >> in that

[1:43:17] same area,

[1:43:18] yeah.

[1:43:19] >> okay. That makes sense. >>

[1:43:20] I think we need to

[1:43:21] advertise that a lot or talk about

[1:43:22] that because

[1:43:24] I --from the city perspective, when

[1:43:25] I was

[1:43:27] with the city, that was always the biggest

[1:43:28] complaint

[1:43:29] people had is, like, you just barely

[1:43:30] laid

[1:43:33] down the asphalt, and now you're tearing

[1:43:34] it up

[1:43:36] again. So like

[1:43:39] that we are

[1:43:40] articulating that.

[1:43:41] >> thank you. So

[1:43:42] this should be the

[1:43:43] last of the project adjustments. But

[1:43:45] the top

[1:43:47] one, the facilities rehab and replacement,

[1:43:51] there's a pretty major

[1:43:53] floor project going on at midvale

[1:43:54] right now expected to

[1:43:57] go into quarter one,

[1:44:00] so we preprogrammed $260,000

[1:44:03] forward to

[1:44:06] finish that work up. Msp270 added

[1:44:07] about

[1:44:08] $140,000 to keep those numbers consistent, so

[1:44:09] they have that to

[1:44:11] work with. And then just some general

[1:44:12] items that you

[1:44:14] may have seen in the previous documents

[1:44:15] but just wanted to

[1:44:18] call them out here, we removed

[1:44:20] the yellow highlights on the grant-dependent

[1:44:21] projects. So the labels are still

[1:44:23] there, but the highlights are gone. And

[1:44:24] then we'll talk to these

[1:44:27] a little bit later, but

[1:44:30] we replaced the temporary np project

[1:44:31] codes with the

[1:44:33] actual project codes

[1:44:36] that they'll have moving forward pending approval.

[1:44:37] >>

[1:44:39] np stands for what?

[1:44:40] >> just new project. >>

[1:44:41] new projects,

[1:44:42] okay.

[1:44:43] >> can I ask you on the

[1:44:44] previous slide?

[1:44:45] >> yeah. >> there

[1:44:46] was

[1:44:47] the transit signal priority onboard

[1:44:49] units. Is that for

[1:44:51] a brt project or is it for just general

[1:44:54] buses, if you could just clarify that?

[1:44:55] >>

[1:44:56] general, general buses.

[1:44:57] >> thank you. >>

[1:44:58] and

[1:45:03] then as part of that general items,

[1:45:04] not that

[1:45:06] --the descriptions of the projects themselves,

[1:45:08] is that what you're referring to? There

[1:45:10] was a

[1:45:11] conversation about maybe aside from

[1:45:13] you,

[1:45:15] dan, nobody would understand what

[1:45:16] the project was, that's

[1:45:18] not to speak that you went, you're

[1:45:19] just

[1:45:21] so detailed and in depth. And just

[1:45:23] from the general public perspective.

[1:45:24] >>

[1:45:25] yeah. I've been talking with

[1:45:28] jan about that. So we won't

[1:45:29] see any in today's discussion, but

[1:45:31] we'll

[1:45:32] visit with the project managers and

[1:45:34] see if there's

[1:45:37] some that we can look to modify

[1:45:38] before the end of the year, so have

[1:45:40] those.

[1:45:41] >> that would

[1:45:43] be great. You know, I just think

[1:45:46] it helps everybody understand

[1:45:48] what the project actually is.

[1:45:49] >> yeah. >>

[1:45:51] and so anyway.

[1:45:52] >> no. Thank you. Yeah. So

[1:45:53] these are

[1:45:54] the new projects that were added. These

[1:45:55] are the

[1:45:57] same ones that you've seen before. So

[1:45:58] I won't go through

[1:45:59] them in general, but the main point

[1:46:01] of this

[1:46:03] slide is just to highlight the new

[1:46:04] codes

[1:46:07] and what the previous

[1:46:09] ones were in case there was some going back and

[1:46:10] wanting to

[1:46:12] check and see what they were. So these

[1:46:13] next few slides have just

[1:46:16] like the new codes

[1:46:17] in the plan moving forward. I'll go

[1:46:19] through slowly. If

[1:46:22] you have any questions, let me

[1:46:24] know.

[1:46:25] >> the escalator replacement,

[1:46:26] we talked

[1:46:28] about it, but we made some observations. It's

[1:46:31] at the end of

[1:46:32] its useful life?

[1:46:33] >> yes. >> and there

[1:46:34] a way to protect it better

[1:46:36] in the weather? I mean, is that --

[1:46:37] or is it

[1:46:40] fine and that's just how fast they wear

[1:46:41] out?

[1:46:42] >>

[1:46:43] go ahead, jared.

[1:46:44] >> I know that's

[1:46:46] something we're looking in to

[1:46:49] right now. But I know

[1:46:51] there was some previously rating issues

[1:46:55] with the escalator, maybe not being rated for

[1:46:56] the outdoors, something

[1:46:58] that's being looked at now this

[1:47:01] time around is actually getting the

[1:47:03] appropriate rating to install and

[1:47:04] when

[1:47:05] this is addressed.

[1:47:06] >> okay. >> yeah. They

[1:47:07] were rated indoor

[1:47:09] when they were originally put in. Am

[1:47:10] I

[1:47:11] correct?

[1:47:12] >> yeah. That is correct. >>

[1:47:13] so we need to --and that's part of

[1:47:15] what we're looking at in that replacement,

[1:47:16] so that

[1:47:17] number we're still looking at, and we'll

[1:47:18] probably be getting back to you on

[1:47:19] that one because

[1:47:21] we need to have it rated outdoor.

[1:47:22] >>

[1:47:23] yeah. That

[1:47:25] makes a lot more

[1:47:27] sense. Does that include the general maintenance

[1:47:28] of

[1:47:31] the area or just the escalator

[1:47:32] replacement itself? I'm just curious

[1:47:34] because there's a lot of

[1:47:36] other areas that probably could be

[1:47:37] improved.

[1:47:38] >> just

[1:47:40] the escalators

[1:47:41] on this one, yeah.

[1:47:42] >> thanks. >> uh-huh. Here's

[1:47:46] the

[1:47:49] next slide for the new projects.

[1:47:58] question?

[1:47:59] >> on the low or

[1:48:00] no emissions battery electric buses,

[1:48:01] we just got a notification

[1:48:02] of an award, is that those? These

[1:48:04] are ones

[1:48:07] that were

[1:48:10] already in the works? Remind me

[1:48:13] what --and does low no mean

[1:48:14] we're going after natural gas? Because

[1:48:16] I knew we were sort of avoiding

[1:48:19] electric, at least as far as a grant

[1:48:20] proposal goes.

[1:48:21] >>

[1:48:22] I believe that that

[1:48:23] project number --and alternative,

[1:48:25] vi, for this one, for

[1:48:27] the low no, you just nod your head,

[1:48:28] that's at

[1:48:31] teens

[1:48:34] zero are the buses that we --[

[1:48:35] inaudible ] is that correct?

[1:48:36] >> yes. >>

[1:48:37] so, yes, that is

[1:48:42] correct. We'll have to make that correction.

[1:48:43] >>

[1:48:44] is that

[1:48:46] --so 15

[1:48:49] buses in to $21 million

[1:48:52] is 1.4 per vehicle, is that due to

[1:48:53] tariffs, et cetera, is

[1:48:55] that an issue or --

[1:48:56] >> or did you

[1:48:57] get more

[1:48:58] buses when you went to

[1:49:01] natural gas?

[1:49:02] >> that was

[1:49:03] the electric price before.

[1:49:04] >> okay. >> so

[1:49:05] we'll have to look

[1:49:06] at the c&g, but we'll check with the grants

[1:49:07] team to see

[1:49:10] if any of the award amount has

[1:49:13] changed,

[1:49:16] and if so, update it accordingly.

[1:49:22] >> can I ask

[1:49:24] on the planning grants, there was a

[1:49:25] question about --half

[1:49:28] of it

[1:49:31] was

[1:49:32] sort of obligated in their planning numbers,

[1:49:34] others have --or just studies. And

[1:49:37] I'm trying to remember from our discussion

[1:49:38] whether there

[1:49:40] was ever an explanation to what those

[1:49:41] studies would actually be.

[1:49:42] >>

[1:49:43] if you could give

[1:49:45] us a moment, I'll make sure that we

[1:49:46] --you

[1:49:48] want to -- do you have the answer

[1:49:49] or

[1:49:52] would you like to bring

[1:49:54] in the call?

[1:49:55] >> [ inaudible ] >> I

[1:49:56] just was trying

[1:49:58] to get an idea of what we were studying because at

[1:49:59] one

[1:50:01] time there was -- at least in the

[1:50:02] preliminary stuff

[1:50:03] I'd seen, there was a large number

[1:50:04] for the 10-year plan. And

[1:50:07] so I was, like, are we spending that

[1:50:10] much money to go back and,

[1:50:12] like, totally revamp our 10 year,

[1:50:13] and I was just trying to understand

[1:50:14] that a little bit.

[1:50:15] >>

[1:50:16] we'll get that answer in a moment.

[1:50:17] >>

[1:50:18] if

[1:50:19] you have it, kim.

[1:50:20] >>

[1:50:21] sorry. I haven't used these microphones yet. Kim

[1:50:22] shanklin, chief

[1:50:25] of staff for the record. So

[1:50:27] for the 2026 capital expenses for

[1:50:28] planning,

[1:50:31] there's a day finding

[1:50:34] plan creation of $600,000. Ly

[1:50:37] have to get clarification on what

[1:50:40] our bsrp plan is for $100,000 and

[1:50:41] just general planning studies for

[1:50:42] the 300,000. And we were planning

[1:50:43] to

[1:50:46] send the board a list

[1:50:48] of all of those. We have that being

[1:50:49] compiled, but I don't

[1:50:51] have it here for you right here at

[1:50:52] this moment.

[1:50:53] >> that's

[1:50:54] okay for this moment. But if we could

[1:50:56] get

[1:50:59] that, that would

[1:51:00] be beautiful.

[1:51:01] >> absolutely. Yeah. >>

[1:51:04] bsrp, right, bus speed and reliability program,

[1:51:05] so that's

[1:51:06] --

[1:51:07] >> oh. >> --the financially efficient ways

[1:51:08] to move

[1:51:11] our buses along without major

[1:51:14] capital investments working with

[1:51:16] local partners like udot to utilize either

[1:51:19] shoulders or new ways to get through

[1:51:20] the

[1:51:21] intersection quicker with priorities

[1:51:23] on

[1:51:26] our buses. So that's what that

[1:51:27] project means.

[1:51:28] >> okay. You get the

[1:51:29] snickers bar today, jared,

[1:51:31] for not only knowing the acronym but

[1:51:34] being able to explain it.

[1:51:35] >> I had

[1:51:36] a question on the floor restoration

[1:51:38] for

[1:51:39] mount ogden. This is for the maintenance phase

[1:51:44] or --right,

[1:51:47] is that correct? I see

[1:51:50] andreas nodding.

[1:51:51] >> uh-huh. >> all

[1:51:53] right. Sorry. Is

[1:51:55] everyone done? Good to move on? Okay. All right.

[1:51:56] >>

[1:51:57] if we can hold

[1:51:59] for just one second because

[1:52:02] I want to go back to 5600

[1:52:04] west.

[1:52:05] >> please. >> so 5600 west funds

[1:52:07] would come out of counting the first

[1:52:11] class highway funds, and those

[1:52:14] funds would come from the fifth

[1:52:16] fifth, 10% over the first three years goes

[1:52:17] to

[1:52:19] construct and express bus facility

[1:52:20] on

[1:52:21] 5600 west, 90% into the county of

[1:52:23] the

[1:52:24] first class infrastructure bank fund. So

[1:52:26] we'll track that with the county

[1:52:29] as those funds come in.

[1:52:30] >>

[1:52:31] they go --they are now directed through

[1:52:32] the state. I

[1:52:35] mean, the county imposed it, but

[1:52:36] then they gracious --the state graciously

[1:52:38] took it over after that.

[1:52:39] >>

[1:52:41] right. We'll

[1:52:44] have to

[1:52:45] apply for those funds.

[1:52:46] >> okay. So

[1:52:47] gone through the adjustments, now

[1:52:50] just show the

[1:52:53] impacts to the total numbers

[1:52:54] overall. So here's the yearly breakdown in

[1:52:56] the

[1:52:57] overall plan. Overall there wasn't

[1:52:59] a big change in terms

[1:53:02] of a net change, but with the new

[1:53:04] five-year plan total, we're looking

[1:53:08] at about 100 --

[1:53:11] or $1 billion,53,400,000 as

[1:53:14] the total

[1:53:17] plan amount. Next years budget

[1:53:20] being $331,7 38,000, and then the

[1:53:22] sources are listed out after that

[1:53:23] total column

[1:53:26] going left to right. But to

[1:53:28] highlight the big ones, our grants

[1:53:29] makes

[1:53:32] up the largest portion of the

[1:53:34] five-year plan amount at a little

[1:53:38] over

[1:53:41] $343. The uta portion is about $271.5 million. And

[1:53:46] then bonding makes up about $169.7

[1:53:47] million. So

[1:53:50] this is just the more graphical

[1:53:53] version of the table we just viewed. As

[1:53:56] you

[1:53:59] can see, again, the total is

[1:54:04] $1,053,404,000 and shows a little

[1:54:05] bit

[1:54:07] of magnitude in terms of the sources

[1:54:08] there. [ inaudible

[1:54:11] ] we did add the ttif

[1:54:12] funds as its own separate source. That's

[1:54:15] the first time we've done that.

[1:54:16] >>

[1:54:17] and you should show it this way, but

[1:54:18] I

[1:54:20] think --I was just thinking

[1:54:23] when I looked at

[1:54:25] the $271 million, and even though the

[1:54:26] bond funds

[1:54:28] are the source of funding, the reality

[1:54:29] is we get to pay,

[1:54:31] you know, from the last discussion,

[1:54:32] we

[1:54:33] pay for that too.

[1:54:34] >> yeah. >> so if

[1:54:35] --I mean, I only

[1:54:37] think this is probably when people ask,

[1:54:40] well, what's uta got into it? We probably

[1:54:41] should

[1:54:44] figure out a way

[1:54:46] to say we actually, up, are doing,

[1:54:47] what,

[1:54:49] $300 or $400 over the course of that

[1:54:50] time. But definitely this

[1:54:53] is a great way

[1:54:56] to track it. I'm not suggesting that somehow

[1:54:57] --whatever

[1:54:58] our real dollars coming out of our

[1:54:59] --

[1:55:00] >> especially when talking

[1:55:01] to our state partners and comparing that.

[1:55:02] >>

[1:55:03] yeah.

[1:55:04] >> like we do

[1:55:05] still have skin in the game where

[1:55:06] obviously --

[1:55:07] >> yeah, significant

[1:55:08] skin.

[1:55:09] >> --going to

[1:55:11] pay it

[1:55:13] out over 19 years. Yeah.

[1:55:14] >> thank

[1:55:15] you. So seen

[1:55:17] this slide before. Not much has

[1:55:18] changed overall since we visited in

[1:55:20] august about this. But

[1:55:23] here's the funding amounts by project

[1:55:26] categories. Just to highlight again

[1:55:29] that our vehicles makes

[1:55:31] up the significant majority of our five-year

[1:55:32] plan,

[1:55:35] just coming in at under $515

[1:55:38] million over the five years.

[1:55:39] >>

[1:55:41] and, dan, this

[1:55:44] one --

[1:55:46] this doesn't include whatever vehicles

[1:55:47] udot

[1:55:48] procures as part of the frontrunner

[1:55:50] 2x?

[1:55:51] >> I don't believe

[1:55:52] so.

[1:55:53] >> that's correct. >> okay. These

[1:55:54] are just --

[1:55:55] at some point we'll have nine new

[1:55:56] car sets that

[1:55:59] we get

[1:56:02] to maintain,

[1:56:05] right? Yeah. Okay.

[1:56:06] >> I appreciate

[1:56:07] the add-on.

[1:56:08] >> so

[1:56:09] seen this slide before

[1:56:10] as well, but our repair efforts are a

[1:56:11] major focus, they've been a major

[1:56:12] focus in the past and continue to

[1:56:14] be, and they

[1:56:17] make up about 73%

[1:56:19] of the five-year plan totals.

[1:56:20] >> can

[1:56:21] I just

[1:56:23] ask you on that, I completely

[1:56:24] agree with state of repair. I think

[1:56:26] you repair your infrastructure in

[1:56:27] a timely way just

[1:56:29] to maintain it and keep it in

[1:56:31] good working order. But when we have

[1:56:32] some of

[1:56:34] these larger projects that we're trying

[1:56:35] to get accomplished,

[1:56:37] like six south, 2100, et cetera, does that

[1:56:40] then over time change that percentage

[1:56:41] at all of state

[1:56:43] of good repair or do other things crop up

[1:56:44] that have

[1:56:47] that same cost structure, if not the

[1:56:50] same exact project? Does that make

[1:56:51] sense?

[1:56:52] >> yeah. I'll take a shot,

[1:56:53] and let me know if

[1:56:56] I didn't answer it correctly.

[1:56:57] >> thanks. >> but

[1:56:59] we kind of

[1:57:01] fluctuated I think between roughly

[1:57:02] 65% and 75% of the budget or plan amounts

[1:57:05] over the last three or four

[1:57:07] years. So it'll definitely always

[1:57:08] be there to some degree. It's

[1:57:11] a little higher right now because

[1:57:14] we have a major light rail vehicle

[1:57:15] replacement project that's

[1:57:16] going in or a major facilities replacement

[1:57:18] project that's going in right now. So

[1:57:20] those might skew it a

[1:57:22] little more to show that greater percentage

[1:57:23] than what

[1:57:26] we might see where we're just kind

[1:57:27] of

[1:57:28] in a maintain and standard maintenance

[1:57:29] where it'll

[1:57:32] be about the 65% that we've seen,

[1:57:33] so

[1:57:35] --

[1:57:36] >> dan alluded to it, and correct

[1:57:37] me if I'm

[1:57:38] wrong here, dan, but this is not just infrastructure

[1:57:39] gr. So you'll

[1:57:42] see a lot of these numbers

[1:57:45] are related to

[1:57:46] vehicles as well.

[1:57:47] >> okay. Yeah. And

[1:57:48] that's helpful because,

[1:57:50] I mean, it completely makes sense to

[1:57:52] do that investment strategy, in state

[1:57:53] of good repair, but I would imagine

[1:57:56] when you address those big ticket

[1:57:58] items that it would then fluctuate. But

[1:58:00] I

[1:58:02] didn't think 65%, I thought we'd are

[1:58:03] more on

[1:58:04] the 50-50. But thank you for that. I

[1:58:06] appreciate it.

[1:58:07] >>

[1:58:08] this is, though, the five-year total

[1:58:09] because we have projects that will

[1:58:10] come online that are not sgr that

[1:58:12] will balance that out. So

[1:58:14] if you look at just the '26 number,

[1:58:15] I

[1:58:16] think we're closer to the 50-50 number.

[1:58:17] >>

[1:58:18] we'll see

[1:58:21] that here in

[1:58:23] a little bit. Couple more slides. And

[1:58:24] so

[1:58:25] here's the sgr project categories. You

[1:58:27] can

[1:58:33] see that in

[1:58:36] the plan. So $770

[1:58:37] million total, our revenue vehicles,

[1:58:38] our vehicles make up a significant

[1:58:39] portion of that, and

[1:58:40] you can see the other categories that

[1:58:42] things are spread out throughout as

[1:58:44] well. And we are excited to see the facilities

[1:58:45] number has

[1:58:48] been ticking up, getting

[1:58:51] closer now to that $90 million

[1:58:54] mark. So here's some of the main

[1:58:57] -- sorry.

[1:58:58] >> and as you know,

[1:58:59] we did a facilities-wide assessment. We're

[1:59:01] working on an emplementation plan,

[1:59:03] so ultimately that number will be

[1:59:05] --where we're going with that will

[1:59:09] inform as we look

[1:59:10] at '27 to '31.

[1:59:11] >> all right. So here

[1:59:12] are the top

[1:59:15] 10 projects that we have

[1:59:17] in terms of overall plan amounts. So

[1:59:21] they make up over

[1:59:24] half of the plan at 55%. We've

[1:59:27] talked about these, but

[1:59:30] if there's any

[1:59:33] questions, please feel free to

[1:59:36] ask. Okay. And so just a

[1:59:37] quick focus on 2026. We'll talk about this

[1:59:39] a lot more in

[1:59:42] detail here in the next presentation. But

[1:59:45] here's the funding

[1:59:48] sources for the 2026 plan

[1:59:49] amount. Again, $331.7 million with

[1:59:51] the grants

[1:59:57] making up the bulk of that.

[2:00:00] here's the project categories. Again, no

[2:00:03] surprise the vehicles making

[2:00:06] up the

[2:00:07] largest portion of that. And then

[2:00:09] the sgr focus as

[2:00:12] it relates to 2026 is

[2:00:13] just under $200 million. So to your

[2:00:15] point, we'll get to the

[2:00:17] percentage in just a second on the

[2:00:18] next slide. Oh, sorry. I

[2:00:21] guess we took

[2:00:23] that out. But it's less than the 73

[2:00:24] that we've

[2:00:27] had in the past or we

[2:00:29] just talked about. As far as next

[2:00:30] steps go, turn

[2:00:33] it back to

[2:00:36] jared

[2:00:39] for that.

[2:00:40] >> yeah. Thanks, dan. Just

[2:00:42] moving to adoption,

[2:00:45] we have the approval

[2:00:48] of the 2026 capital budget,

[2:00:50] october 8th, local advisory consultation

[2:00:51] on november 5th,

[2:00:54] excuse me, and then,

[2:00:57] of course, the board adoption on 12/3. Dan

[2:00:58] alluded

[2:01:00] to it earlier, there are a few, you

[2:01:01] know,

[2:01:02] tweaks and refinements, obviously

[2:01:03] a couple things we'll check in to

[2:01:06] from this meeting as well as

[2:01:09] we move towards

[2:01:12] the next steps plan. Any other questions

[2:01:15] on the five-year

[2:01:18] plan?

[2:01:19] >> no. The one question

[2:01:20] I have is we're looking potentially

[2:01:21] to have a tentative

[2:01:23] budget adoption in our first meeting

[2:01:24] in october. Will we have

[2:01:27] sort of a

[2:01:29] draft of that tentative budget before submission,

[2:01:30] I mean, to

[2:01:33] look at, or are we subject to, you

[2:01:35] know, the three days or whatever?

[2:01:36] >>

[2:01:37] I'm getting a resounding

[2:01:39] yes from our chief financial officer in

[2:01:40] the

[2:01:42] back.

[2:01:43] >> okay. Because

[2:01:45] that would give me some comfort of

[2:01:46] whether or

[2:01:48] not personally I'd be ready to approve

[2:01:49] a

[2:01:50] tentative budget. Slides are great,

[2:01:51] but, like --

[2:01:52] >> of course. >> --

[2:01:53] the details would be helpful, and

[2:01:54] that would

[2:01:56] be almost really too late to feel comfortable.

[2:01:57] >> yeah. And

[2:01:58] rather

[2:02:00] than waiting on -- and I know nicole

[2:02:01] went

[2:02:03] over this during the budget work sessions on

[2:02:05] the planning studies, but rather than

[2:02:09] giving you another document, she's

[2:02:10] on her

[2:02:11] way, the budget discussion that vi

[2:02:12] is about to kick off for

[2:02:15] us, if you have any questions, she'll

[2:02:16] be here

[2:02:17] for that.

[2:02:18] >> sure. Okay. >> I wanted to

[2:02:19] just

[2:02:21] compliment you on your --on

[2:02:23] the full report that is in there. It

[2:02:24] is really

[2:02:25] good and really, really helpful.

[2:02:26] >>

[2:02:27] thank you.

[2:02:28] >> so I just want to thank

[2:02:29] you so much for

[2:02:30] the work you did in getting all of

[2:02:33] these projects aligned with the dollar

[2:02:34] figures and everything else. It's

[2:02:36] just excellent. So thanks.

[2:02:37] >> thank

[2:02:38] you for

[2:02:39] saying that, trustee. I want to thank

[2:02:40] dan because he put a lot of

[2:02:42] time into the key that was attached

[2:02:43] as

[2:02:45] well there. So if there's any

[2:02:47] questions about any of the codes,

[2:02:48] he put a pretty

[2:02:50] comprehensive key in there for you.

[2:02:51] >>

[2:02:52] yeah. Just

[2:02:53] want to give a public shoutout to

[2:02:54] mr. Hofer as

[2:02:57] well. He put as lot of time

[2:03:00] into this, weekends, nights, and I certainly

[2:03:01] appreciate him being by my

[2:03:03] side, so --

[2:03:04] >> thank

[2:03:05] you. And I'll pass your comments along

[2:03:06] to those that helped

[2:03:09] build that out

[2:03:12] to you. So thank you.

[2:03:13] >>

[2:03:15] any other questions on this one? Okay. Thank

[2:03:18] you. I think we're

[2:03:22] going then

[2:03:25] to

[2:03:28] the tentative

[2:03:30] operating and capital budget for '26.

[2:03:40] >> so I'll just start

[2:03:42] out by saying that the document is

[2:03:43] in the system, it's ready. I

[2:03:45] spoke to jan about it last night so

[2:03:49] you guys can get it today.

[2:03:50] >>

[2:03:52] okay.

[2:03:53] >> so here we go

[2:03:55] again. Before I start this, I

[2:03:58] want to say that

[2:04:01] we

[2:04:02] received from the government finance

[2:04:04] officers association a letter

[2:04:07] to commemorate the fact that

[2:04:09] we have achieved another medallion for

[2:04:10] last year's budget book. So I just

[2:04:13] want to say thank you to the

[2:04:16] budget team and to everyone who supported

[2:04:19] and

[2:04:22] had input

[2:04:24] for last year's budget book.

[2:04:25] >> congratulations. Nicely done. >>

[2:04:27] if I could jump in for just one second. I'm

[2:04:28] going

[2:04:29] to try to steal as much thunder as

[2:04:31] I can from vi right

[2:04:32] now.

[2:04:33] >> at least you're consistent, jay. >>

[2:04:34] well, this meeting is

[2:04:36] sort of to share the thunder. It's

[2:04:37] everybody's thunder.

[2:04:38] >> just

[2:04:40] briefly, I

[2:04:41] just want to --well, obviously thanks

[2:04:43] in advance for the entire budget team

[2:04:46] and the executive team of all the

[2:04:47] work they've done since the budget

[2:04:48] sessions to bring you the discussion

[2:04:50] today on the proposed tentative budget. We

[2:04:52] have

[2:04:55] done a really good job. I

[2:04:58] want use

[2:05:00] scalpelling, I'll use refining --

[2:05:01] actually, scalpelling is a body piercing term,

[2:05:04] but we'll leave

[2:05:05] it at that. But we've done a really nice job,

[2:05:07] I think

[2:05:10] you'll see when you look at both

[2:05:12] the operating side and capital side,

[2:05:13] we've really

[2:05:16] a great job by dan, by jared,

[2:05:19] the entire capital team

[2:05:20] to refine that budget but maintain

[2:05:22] our priorities, and as

[2:05:24] well as making sure our system remains safe

[2:05:25] and

[2:05:27] in a state of good repair. So, you

[2:05:28] know, we'll

[2:05:30] be going through this today, but a

[2:05:31] lot of what

[2:05:33] we're going to talk about today has

[2:05:34] rolled in

[2:05:37] to all the feedback that we've got

[2:05:39] during the budget work sessions and focused

[2:05:40] on

[2:05:43] how we can be

[2:05:45] as responsible as we can with this budget

[2:05:46] given the --

[2:05:47] you know, the challenges and the constraints

[2:05:49] that

[2:05:52] we

[2:05:54] see in the coming years ahead.

[2:05:55] >>

[2:05:58] okay. So just wanted

[2:05:59] to give initially an overview, of

[2:06:01] course reiterating how

[2:06:03] we do our budget process here, starting

[2:06:04] with

[2:06:06] the development of the strategic initiatives

[2:06:07] that align

[2:06:08] with our strategic priorities and

[2:06:09] plan. That is, of course, informed

[2:06:13] by discussions with the board and with

[2:06:14] the

[2:06:15] executive team. We're going to go

[2:06:16] through

[2:06:19] that in a minute. Just a

[2:06:20] streamline of our overall budget schedule, we've

[2:06:22] --this is the second

[2:06:24] year that we are doing this streamline

[2:06:27] process where it allows purchasing

[2:06:28] and talent acquisition to start sooner

[2:06:30] in the year, so the sooner we get

[2:06:33] through the tentative budget process,

[2:06:34] the sooner

[2:06:36] we can start working to prepare for

[2:06:37] next

[2:06:40] year. And then having

[2:06:41] that capital budget improvements,

[2:06:43] we started with the base budget. This year was

[2:06:44] a

[2:06:45] little choppy. It was the first time we came into

[2:06:48] the budget season --into the budget

[2:06:51] year without a carry forward from

[2:06:52] the previous

[2:06:54] year. As you can see throughout the year,

[2:06:56] we've had to make some refinements. But

[2:06:58] now going into the

[2:07:00] budget season for 2026, we knew that going

[2:07:01] in, that we're

[2:07:04] not planning to have

[2:07:05] a carry forward next year, whereas

[2:07:07] last year the decision

[2:07:11] was made later in the process. So

[2:07:13] syncing up the capital

[2:07:16] budget with the operating

[2:07:19] budget schedules has really helped

[2:07:20] as well.

[2:07:21] >> sure. I'll take it from

[2:07:22] here. As part of our

[2:07:25] work on the budget, we're

[2:07:27] creating a strategy document. This

[2:07:28] is part of our one

[2:07:31] page throughout the agency, but

[2:07:33] the executive team has their one-pager,

[2:07:37] all their targets and initiatives

[2:07:38] are

[2:07:40] tied to our strategic priorities

[2:07:43] and success outcomes for our strategic plan. It's

[2:07:44] an I-chart

[2:07:45] on the screen in front of you, but I

[2:07:46] guess you guys have

[2:07:48] seen this document. But I'll just

[2:07:49] take you through the targets. And

[2:07:51] if you want to go through -- have

[2:07:52] --I

[2:07:54] have kim here to review any of the

[2:07:55] initiatives

[2:07:58] if you're so interested

[2:08:01] in the particular

[2:08:02] initiatives that we're doing. On the

[2:08:04] quality-of-life side, we want to

[2:08:06] continue to increase ridership. We've

[2:08:07] set a

[2:08:09] very conservative goal this year given

[2:08:10] that our -- the refinement

[2:08:13] of our service plan and just moving

[2:08:16] at the forward right now to

[2:08:19] 2% next year. I think it's a very conservative goal

[2:08:20] because

[2:08:22] if you look at the success of ogx,

[2:08:23] I

[2:08:25] think we're going to see

[2:08:28] a very good -- we'll see

[2:08:29] really good ridership right away. We

[2:08:31] want to

[2:08:33] maintain access to all-day service. We've

[2:08:34] achieved 54% in

[2:08:36] 2025. We're looking to maintain that. There's

[2:08:37] nothing that

[2:08:40] we're offering in terms of additional service

[2:08:41] because

[2:08:43] of

[2:08:45] the xs actually within the defined service area

[2:08:46] already or existing service to

[2:08:48] raise that, but at the same time,

[2:08:49] we want to maintain that

[2:08:52] as a goal. And reduce our carbon footprint by

[2:08:53] 5%,

[2:08:54] and there's a number of initiatives

[2:08:55] around that. And

[2:08:58] I think you've heard and will hear more

[2:08:59] about the sustainability efforts and

[2:09:01] the work that we're

[2:09:03] doing in that area. For customer experience,

[2:09:04] we're looking to

[2:09:06] increase our net promoter square by

[2:09:07] 10%. This

[2:09:10] has been a very simple question, would

[2:09:14] you recommend the uta service

[2:09:16] to family and friends? I will thank

[2:09:17] our comps team to --

[2:09:20] you know, for

[2:09:23] all

[2:09:24] their work around this, making -- making

[2:09:26] our service --you

[2:09:29] know, communicating our service

[2:09:31] in a way that promotes positive feelings

[2:09:32] about our service and, of

[2:09:34] course, part of that is the service

[2:09:37] itself. But some of it is actually communication

[2:09:38] because

[2:09:40] for those who ride our service, we

[2:09:42] find that they're very supportive of us. For

[2:09:43] those who may not ride our service,

[2:09:44] we

[2:09:45] want to reach out to them and show

[2:09:47] them

[2:09:49] the value of what we're doing. Perceived

[2:09:51] safety which captures the customer

[2:09:52] sentiment, how safe they feel while

[2:09:53] waiting for a service

[2:09:55] on stops and platforms, as well as riding

[2:09:56] our vehicles. As

[2:09:59] you know, we recently met with administrator

[2:10:01] molinaro to talk about a lot of our

[2:10:02] efforts around this. And

[2:10:04] so we want to increase that safety

[2:10:05] score by 5%. We

[2:10:07] want to improve access to all-day

[2:10:08] frequent service

[2:10:10] by 1%. That may seem like a small amount,

[2:10:11] but, actually,

[2:10:13] when you think about that system wide, it's

[2:10:14] actually

[2:10:16] a nice increase, and that will be

[2:10:17] very

[2:10:19] much tied to the mpx service. And

[2:10:20] finally,

[2:10:21] increasing our customer informational

[2:10:23] score by 2%. This

[2:10:26] is a target that we had

[2:10:28] in 2025. And this is just our customers' understanding

[2:10:31] of what's happening in our system,

[2:10:32] having good information

[2:10:35] to access

[2:10:36] our system and plan around our system,

[2:10:38] and this --as well as part

[2:10:40] of the cx work we're doing.

[2:10:41] >> and

[2:10:42] how

[2:10:44] do you measure

[2:10:45] that, I guess?

[2:10:46] >> so that is part -- it's

[2:10:47] --I don't

[2:10:50] know if you have

[2:10:51] that information.

[2:10:52] >> yeah. >> okay,

[2:10:53] great.

[2:10:54] >> I didn't know if

[2:10:56] it's through a

[2:11:01] survey or --

[2:11:02] >> yeah. >> self-assessment

[2:11:05] or -- I think you got to push that

[2:11:08] button once. As long as it's

[2:11:10] green.

[2:11:11] >> good morning, trustees and jay. Nicole, chief

[2:11:12] planning

[2:11:13] and engagement officer for the record. The

[2:11:14] question

[2:11:17] was how do you measure that customer information

[2:11:18] score. So if you remember back, we

[2:11:20] came to you all

[2:11:23] on the cx plan, the customer

[2:11:26] experience plan maybe a year

[2:11:29] ago, and we

[2:11:32] set some targets based on our abbg

[2:11:34] and our goal customer surveys that go

[2:11:35] out

[2:11:38] yearly. And please don't ask

[2:11:40] me what those letters stand for. Alisha

[2:11:41] can. But what

[2:11:43] we do is take those questions about

[2:11:44] views, information, and

[2:11:47] that's all rolled up to a focus area

[2:11:50] which is ease of use. We take that

[2:11:51] as

[2:11:52] an aggregate and then each year say

[2:11:53] how are we moving the needle

[2:11:56] on that. So we have a

[2:11:58] baseline from 2024. We'll evaluate

[2:11:59] where we

[2:12:02] are in 2025, and then our 2% increases for

[2:12:05] 2026.

[2:12:06] >> so that comes out

[2:12:07] of that survey. Is that something

[2:12:08] prior to the plan that

[2:12:11] you did a year ago? Do we

[2:12:13] have any historical data?

[2:12:14] >> yes. So

[2:12:15] that's

[2:12:17] what the 2024 was a situational assessment.

[2:12:18] >>

[2:12:19] okay.

[2:12:20] >>

[2:12:21] that's in the actual plan baseline. And

[2:12:22] then

[2:12:23] has a goal for the year for

[2:12:26] 2025, and we're in

[2:12:27] the process of evaluating that with our

[2:12:29] data

[2:12:32] analysis team,

[2:12:34] and then we will move to 2026, as

[2:12:35] a goal, 2%,

[2:12:38] as we get that information in the

[2:12:41] spring of '26.

[2:12:42] >> okay. Thank

[2:12:44] you.

[2:12:45] >>

[2:12:47] thank you.

[2:12:48] >> great. Thank

[2:12:49] you, nicole. One organizational excellence, we

[2:12:50] want to

[2:12:53] continue to increase our organizational

[2:12:56] improvement scores, improve our organizational

[2:12:57] system maturity by 50%. So what does

[2:12:59] that mean? That

[2:13:01] means all of our organizational excellent systems,

[2:13:02] so that's our

[2:13:04] one pagers, our visual boards, our idea

[2:13:05] boards,

[2:13:07] our daily huddles, continue to move

[2:13:08] that out into our system. They've

[2:13:09] done

[2:13:10] a fantastic job. All you have to do

[2:13:11] is walk around here at

[2:13:12] headquarters, and you see that. But

[2:13:14] we want to continue to

[2:13:16] move that out into the operating team.

[2:13:17] >>

[2:13:18] and

[2:13:19] so is --I assume alisha's group or

[2:13:20] somebody's tracking

[2:13:22] who actually has those board?

[2:13:23] >> yeah. They're

[2:13:24] not only tracking

[2:13:25] it, but they're directly supporting it.

[2:13:26] >>

[2:13:27] okay.

[2:13:28] >> because we want those behavers

[2:13:29] --

[2:13:30] we want to be able to support those

[2:13:31] behaviors and not just simply, you

[2:13:32] know, the board lands, and, you

[2:13:34] know, what do we do with this. And

[2:13:35] they've done a really nice job

[2:13:37] of that and bringing teams together so

[2:13:38] they

[2:13:40] understand how they're --you know,

[2:13:41] how they engage

[2:13:44] in these

[2:13:45] kinds of working together. We have

[2:13:47] a safety metric this year

[2:13:50] as part of

[2:13:53] organizational excellence to reduce osha reportables by

[2:13:54] 10%. Travis

[2:13:55] king, our director of safety is coordinating

[2:13:56] with our workers'

[2:13:59] comp team and set that target for,

[2:14:00] and

[2:14:02] it'll be working, you know, with

[2:14:04] the operating units to --on initiatives

[2:14:05] to reduce

[2:14:08] that number. And then we have an employee promoters

[2:14:09] score,

[2:14:11] so we

[2:14:14] have an inside score on, you

[2:14:15] know, people engaging their satisfaction

[2:14:16] among the workplace, sand so we have

[2:14:19] a number of initiatives around that

[2:14:20] as

[2:14:23] well.

[2:14:24] >> I assume that comes

[2:14:26] from the employee

[2:14:29] survey?

[2:14:30] >> that's correct, yeah. On

[2:14:31] a community support side, we've already

[2:14:32] had

[2:14:34] great success and want to increase

[2:14:35] to continue to increase

[2:14:37] our public relations score by 8%. That's

[2:14:38] a measure we have

[2:14:40] seen significant move on and, you know,

[2:14:41] that's

[2:14:43] really a function of our campaign,

[2:14:44] storytelling and the work

[2:14:47] we're

[2:14:49] doing through our social media platforms. And

[2:14:50] as well as the

[2:14:52] community bench park improvement and

[2:14:53] our improvement of community

[2:14:55] value, those are metrics that were captured

[2:14:56] in 2024 as

[2:14:58] part of our community satisfaction

[2:14:59] survey. And so we want

[2:15:01] to increase those scores. We're excited

[2:15:02] to demonstrate that progress that

[2:15:05] we made over the last two years,

[2:15:07] and we do that survey again. So we're

[2:15:08] hopefully that's actually

[2:15:11] a conservative number, and we've

[2:15:14] actually gone up

[2:15:16] more than that. Economic return. Achieving our

[2:15:17] annual budget,

[2:15:19] and that may -- that may seem that straightforward,

[2:15:20] but at the

[2:15:23] same time, you know, vi and her

[2:15:26] team have done

[2:15:29] a really nice

[2:15:32] job of compressing that --you know, that

[2:15:33] number

[2:15:35] one that's more realistic rather than

[2:15:38] padded. I think I probably

[2:15:40] used the word was similar to scalpelling. But

[2:15:41] --so, you know, each

[2:15:44] of our chiefs wanted to set that as

[2:15:45] a target to demonstrate

[2:15:46] the importance of budget management as

[2:15:47] we go into next year. I don't know

[2:15:48] if you want

[2:15:49] to add anything on that or not.

[2:15:50] >>

[2:15:51] I want

[2:15:54] to say when

[2:15:57] I first got

[2:16:00] here, we had

[2:16:01] a very favorable budget, right ?fer year

[2:16:03] prior

[2:16:06] to my arrival, we were having favorability

[2:16:09] of, you know, 20 plus

[2:16:12] percent. And now we are under

[2:16:14] 10%. For the fact that we're even

[2:16:15] -- you know,

[2:16:18] this last month when you

[2:16:21] see the new report, we're getting

[2:16:23] close to vi anxiety levels. That's just

[2:16:24] an inside joke in that

[2:16:26] we are aligning our budget with our actual

[2:16:27] needs

[2:16:32] and the improvement there has been amazing.

[2:16:33] >> and

[2:16:34] finally,

[2:16:35] we have set a target of improving

[2:16:37] our perceived economic value by 3%. Again

[2:16:39] this, is

[2:16:40] part of the community satisfaction

[2:16:41] survey. So we'll get that number. And

[2:16:42] I

[2:16:43] think the important point to make

[2:16:45] on this because some of the

[2:16:47] numbers we're going to see this year

[2:16:48] as part of our targets,

[2:16:51] but these are --some of them

[2:16:52] are multi-year efforts. You know,

[2:16:54] we're looking at survey numbers,

[2:16:56] looking at long term trying to improve

[2:16:57] them. So the initiatives around

[2:16:59] those are focused not just simply

[2:17:04] on one year movement but multi-year movement.

[2:17:12] >> questions on that? >>

[2:17:15] no. So

[2:17:18] this is --

[2:17:20] will these flow to the --our [ inaudible

[2:17:21] ] page? I

[2:17:22] mean, is it something that the public

[2:17:24] could

[2:17:26] track us on, I guess?

[2:17:27] >> yeah. No. >>

[2:17:28] since this is an overall strategy?

[2:17:29] >>

[2:17:30] and avoid need alisha here

[2:17:32] to talk a little bit about how we're messaging

[2:17:34] that and, of course, but, you know,

[2:17:36] not only do we

[2:17:39] have the targets and

[2:17:42] what we're doing on

[2:17:43] the strategic webpage --or website

[2:17:45] or a portion of our website,

[2:17:48] but also the storytelling around

[2:17:49] those successes.

[2:17:50] >> yeah. No. The

[2:17:51] combination of both.

[2:17:52] >> but we have

[2:17:54] --we have a -- we have a

[2:17:55] dashboard on all this. And, in fact,

[2:17:57] that's the dashboard that we

[2:18:00] are reviewing when you guys walk

[2:18:02] by our board at one time. So --

[2:18:03] >>

[2:18:04] okay.

[2:18:05] >> I

[2:18:06] did want to add something while we

[2:18:07] were still on the previous

[2:18:08] subject, mostly because I know you're going

[2:18:09] to segueway in

[2:18:12] a different area. So I represent

[2:18:13] uta on the housing transit reinvestment zone

[2:18:15] committee, and they met on money

[2:18:17] with sandy city doing an application. And

[2:18:20] as you know, those applications are

[2:18:21] all

[2:18:24] city

[2:18:27] driven in partnership with uta,

[2:18:29] wfrc and the development partner of whomever that

[2:18:30] is. One of the

[2:18:32] things that really came up that I

[2:18:33] thought was a very interesting dynamic

[2:18:34] is

[2:18:35] I talked about the fact that we had

[2:18:36] just

[2:18:39] won an

[2:18:40] award, and everybody was very appreciative. And

[2:18:42] then seguewayed into the quality of

[2:18:45] life which I equated to them as, you

[2:18:48] know, part of that is this if I can

[2:18:50] --you know, if I have frequency continuity,

[2:18:51] right,

[2:18:53] if I know that I can get on the system, and

[2:18:56] there's this level of frequency that

[2:18:57] adds so

[2:18:59] much value, and it really delved into a

[2:19:00] conversation that

[2:19:03] then went to the economics which is where

[2:19:04] is that

[2:19:05] value add going to be? Because all

[2:19:06] of those projects are

[2:19:09] considered density projects with 50

[2:19:11] units an acre or higher. In sandy's

[2:19:15] case, it's 60 units per acre. And

[2:19:18] I think that it

[2:19:20] is really been acknowledged outside

[2:19:21] of the agency how much

[2:19:23] work goes into all of these components

[2:19:26] that you have listed out here. And

[2:19:27] so I

[2:19:29] want to compliment you from that perspective

[2:19:30] because

[2:19:32] it is actually being recognized to a

[2:19:33] certain

[2:19:35] extent. There's a couple legislators

[2:19:36] on that committee,

[2:19:38] and they were very appreciative of understanding

[2:19:39] that and getting that type of

[2:19:41] feedback I think is really critical. So

[2:19:42] that

[2:19:44] is a tribute to everybody who has done

[2:19:45] so much work. And I just wanted

[2:19:48] to

[2:19:53] share that out there.

[2:19:54] >> thank you. >>

[2:19:55] okay. So now

[2:19:57] the development of

[2:20:00] our annual service plan for 2026. For

[2:20:03] 2026, april change day, we will

[2:20:06] be doing advance midvalley express

[2:20:09] and the corresponding route changes

[2:20:10] from

[2:20:12] '27 to '26, so original plan

[2:20:15] was for mvx

[2:20:18] to be started in

[2:20:21] '27. But due to our snap, crackle, capital

[2:20:24] team, we got there early. And so now

[2:20:26] we're going to implement a service

[2:20:27] in '26. And

[2:20:30] this has cost us, of course, to re-evaluate

[2:20:32] some of the priorities in the upcoming five-year

[2:20:33] service plan, but we'll

[2:20:36] do that figuring out what's going

[2:20:39] to happen next. But for '26, we have

[2:20:42] mvx which is

[2:20:45] an additional cost of $2.9 million.

[2:20:46] >>

[2:20:47] and

[2:20:48] this has been discussed with you before,

[2:20:49] as

[2:20:52] well as the local advisory council.

[2:20:53] >>

[2:20:57] okay. [ laughter

[2:20:59] ]

[2:21:00] >> that was some nice walkup music. >>

[2:21:01] I

[2:21:03] don't know if that's

[2:21:06] the intro music for the five-year financial

[2:21:07] forecast.

[2:21:08] >> a little excitement. >>

[2:21:09] I think that

[2:21:12] was return of the mac,

[2:21:15] if I'm not mistaken. Thank

[2:21:18] you.

[2:21:19] >> absolutely

[2:21:21] was. So the five-year

[2:21:24] financial forecast, again,

[2:21:27] rolling the mvx into 2026, our

[2:21:30] operating expenses are going to

[2:21:33] be $487.5 million and capital expense $331.7. You

[2:21:34] can

[2:21:36] see those two numbers on rows d and

[2:21:37] e. And then

[2:21:39] we have our

[2:21:43] debt service on row f of

[2:21:46] $176.5 million. So this

[2:21:49] is a total

[2:21:51] of $995.8 million. So when we look

[2:21:54] at our bottom line there at 2026,

[2:21:55] we

[2:21:58] see that our

[2:22:01] ending balance

[2:22:04] is still positive at $121 million. Head

[2:22:09] noddings. Good. So this is our tentative

[2:22:10] --

[2:22:11] >> can

[2:22:12] I just go back for a second? I'm sorry. I

[2:22:13] just want to note when

[2:22:15] we look ahead, you know, we want to

[2:22:16] know what

[2:22:17] the numbers are looking like, but

[2:22:19] we've already made nice

[2:22:20] steps. The ending balance in the original

[2:22:22] documents that

[2:22:25] you got, that

[2:22:26] you had in 2030 was 366.8 million in

[2:22:28] the red, so we are working

[2:22:29] very hard to continue to roll this

[2:22:31] in as we, again, look at

[2:22:33] our revenue picture and look at ways

[2:22:34] to, you

[2:22:35] know, support us getting to a balanced

[2:22:37] budget all the

[2:22:40] way through the projection.

[2:22:41] >>

[2:22:43] absolutely. And you'll see as I continue

[2:22:45] on that -- in a few slides just how much work

[2:22:46] we've done

[2:22:49] to bring down

[2:22:52] the rate of

[2:22:55] growth over time. So, again, our

[2:22:56] sales tax revenue, I'll have brad speak

[2:22:58] to that a bit

[2:23:01] on what our plan

[2:23:03] is right now. We are working with dr.

[2:23:07] banister, of course.

[2:23:08] >> just

[2:23:10] with regard to our sales tax for

[2:23:13] 2026, we have been, as you know,

[2:23:16] continuing to work with dr.

[2:23:19] steve banister

[2:23:21] of the university of utah, economics department. And

[2:23:22] currently we

[2:23:25] see --his current forecast is

[2:23:28] that we see low growth

[2:23:30] relative to our long-term growth rates. We

[2:23:32] are actually working with him right

[2:23:34] now taking

[2:23:35] the latest information we've received through

[2:23:37] half of the year,

[2:23:40] and we'll be doing an

[2:23:42] updated forecast of that coming up.

[2:23:43] >>

[2:23:46] I know we

[2:23:49] were originally in a

[2:23:51] sort of conservative position, at

[2:23:52] least in

[2:23:53] our forecast. Has that got more dismal

[2:23:55] yet or you don't

[2:23:58] know yet?

[2:23:59] >> you know, it has,

[2:24:00] and I think we've been fortunate that

[2:24:01] the forecast is pretty

[2:24:03] close to what we're actually seeing.

[2:24:04] >>

[2:24:05] okay.

[2:24:06] >> you know,

[2:24:07] we do see a

[2:24:08] lot of economic uncertainty in the numbers. It's

[2:24:10] interesting if you

[2:24:13] dig down in the details how much

[2:24:15] it appears that people have been doing

[2:24:16] behavior

[2:24:19] that's outside of the

[2:24:24] normal range because of uncertainty.

[2:24:25] >> yeah. Okay.

[2:24:31] >> okay. So this highlights the operating budget. But

[2:24:34] one of

[2:24:36] the things I wanted to highlight on this

[2:24:37] and jay alluded to is

[2:24:40] the work that we've been doing to

[2:24:43] bring down the expenses. And so if

[2:24:46] you'll notice that bottom

[2:24:49] line number that says that our

[2:24:52] year-over-year change is

[2:24:54] 5%, last year's year-over-year change was

[2:24:55] 9.2%. So we are

[2:24:58] working hard to make sure that we are

[2:24:59] refining

[2:25:00] our efforts, taking a strong look

[2:25:01] at our budget to make sure

[2:25:04] that what is in there are things that are

[2:25:07] in line with what our strategic

[2:25:10] initiatives

[2:25:13] are and what our needs are.

[2:25:19] so

[2:25:22] just to, of course, call

[2:25:25] out a couple of the

[2:25:28] operating increases here, we'll

[2:25:31] see that in

[2:25:33] operations that increase is bus for

[2:25:36] mvx, paratransit, a small increase

[2:25:37] for

[2:25:40] vanpool,

[2:25:45] as well as light rail maintenance. And

[2:25:46] this is

[2:25:49] just a different view of the same

[2:25:52] information, but you'll see

[2:25:54] our parts are going down, mainly because

[2:25:58] of making sure that

[2:26:01] we are aligning with

[2:26:04] our current inventory, and the

[2:26:06] minor reductions in utility are just a

[2:26:07] rebalancing of

[2:26:10] the budget,

[2:26:12] as well as our capitalized cost. And

[2:26:13] everything

[2:26:16] else is going up slightly, but,

[2:26:19] again, an average of 5% increase

[2:26:22] is

[2:26:27] actually really good considering last year's

[2:26:28] increase. And

[2:26:31] this is just

[2:26:32] a year-over-year change for our head

[2:26:34] count. Of course operations as we prepare

[2:26:37] to go in to mvx service. You asked

[2:26:38] earlier when

[2:26:40] we were doing the technical budget adjustment

[2:26:43] about the positions that were built

[2:26:44] into the '26,

[2:26:46] so that is built into the

[2:26:48] '26 budget for mvx service.

[2:26:49] >> okay. >>

[2:26:50] and

[2:26:52] then there are minor

[2:26:54] fte changes throughout the organization.

[2:26:55] >> when

[2:26:56] does that hiring

[2:26:58] like of operators take place for

[2:27:01] mvx service? I realize somebody else

[2:27:04] might get the bid, but sort

[2:27:06] of to backfill the operators that

[2:27:07] take that route?

[2:27:08] >> when does

[2:27:10] the hiring of them --the

[2:27:12] hiring is ongoing right now, but I'll

[2:27:13] bring up --

[2:27:14] >> I'm

[2:27:15] just trying to get a sense of, like, when

[2:27:16] do you have bodies --

[2:27:18] and I realize you also have ski service.

[2:27:19] >>

[2:27:20] and

[2:27:22] that's part of the equation.

[2:27:23] >> right. >>

[2:27:24] so I

[2:27:25] got to think that that at some point

[2:27:26] plays into

[2:27:28] it a little bit.

[2:27:29] >> yeah. So the hiring

[2:27:30] has been

[2:27:31] taking place. We've been ramping up

[2:27:32] this year.

[2:27:33] >> okay. >> so we're

[2:27:34] actually in a position where we

[2:27:36] are sustaining our operator staffing

[2:27:37] numbers. We're in a

[2:27:39] good position going into operating

[2:27:40] mvx. On the

[2:27:42] maintenance side, with the approval

[2:27:43] of the

[2:27:45] technical budget adjustment today,

[2:27:49] we'll proceed to hire those maintainers

[2:27:50] quickly.

[2:27:51] >> okay. So

[2:27:52] you already have then the operators

[2:27:55] you need to add mvx?

[2:27:56] >>

[2:27:57] that is correct. We need to maintain

[2:27:58] and grow just a tiny bit,

[2:28:01] but we're

[2:28:03] in a very good position.

[2:28:04] >> okay. And

[2:28:05] last year you used them

[2:28:07] kind of --well, for the april

[2:28:11] change day, those operators I

[2:28:12] think helped you during ski season. Are

[2:28:14] you anticipating

[2:28:15] --you don't have quite the same numbers,

[2:28:17] so

[2:28:19] are you looking at more overtime?

[2:28:20] >>

[2:28:21] the service level with ski service

[2:28:23] and the amount of operators it takes

[2:28:25] is very comparable to the addition

[2:28:26] of the service

[2:28:29] in april of mvx, so it

[2:28:30] allows us to transition comfortably.

[2:28:31] >>

[2:28:32] okay. That's

[2:28:35] helpful to

[2:28:37] understand. Thank you.

[2:28:38] >> and that's

[2:28:39] andres coleman,

[2:28:40] chief operating officer for the record.

[2:28:41] >>

[2:28:42] thanks, vi.

[2:28:43] >>

[2:28:44] that's good clarification.

[2:28:45] >> if I

[2:28:46] could

[2:28:47] --one more moment. I'm sorry, vi. We

[2:28:48] don't have to go back to

[2:28:49] the slide. But I think it's important

[2:28:50] to note the work

[2:28:53] on the operating budget is, you

[2:28:54] know, changed or transferred a uta

[2:28:56] fund balance from what

[2:28:59] was a red number which minus

[2:29:02] $4.2 million to now a positive

[2:29:04] $8.5 million.

[2:29:05] >> that's good. I missed

[2:29:06] that. Thank you.

[2:29:07] >> sure. >> thank

[2:29:08] you, jay. Okay. So then we

[2:29:10] wanted to just go over a few of the

[2:29:11] changes that we've

[2:29:14] put in since the

[2:29:17] budget work sessions and just go through,

[2:29:19] again, this fte changes were minimal. One

[2:29:23] of the

[2:29:26] things is you recently approved

[2:29:28] transitioning a contractor to a full-time employee

[2:29:29] from the procurement. This

[2:29:32] is the capital of procurement work

[2:29:33] that

[2:29:34] we'd been doing over the last year,

[2:29:35] and it's been going

[2:29:38] so well that we recognize we

[2:29:39] need to have this person on board, at

[2:29:41] least one of the two contractors. And

[2:29:43] so we are out recruiting for that. We

[2:29:44] want

[2:29:47] to fold that into the budget. We

[2:29:50] have an

[2:29:53] offset for a part-time to full-time

[2:29:54] position within

[2:29:55] community engagement, and then there's

[2:29:56] equal

[2:29:57] offset of that and customer service consolidation,

[2:29:59] so that was

[2:30:02] a net zero within the

[2:30:05] planning department. And then we had

[2:30:07] refinement of some head count within operations. This

[2:30:08] is

[2:30:11] not that we're

[2:30:12] losing any operators or anything like that. It

[2:30:14] was --

[2:30:16] we're trying to align with how the

[2:30:17] budget

[2:30:20] office counts our ftes and how operations counts

[2:30:23] their ftes. And so, again, it

[2:30:25] was just a net reduction. And then

[2:30:26] our insurance premium, you

[2:30:28] heard a discussion earlier from brian

[2:30:29] reeves, about changes in

[2:30:32] our premiums, and we have

[2:30:35] to add

[2:30:39] in additional $420,000 to cover that.

[2:30:44] you looked like

[2:30:47] you were

[2:30:48] headed to your button. Okay. Okay. So our

[2:30:50] total

[2:30:53] request, as you can see, with operating

[2:30:54] capital

[2:30:56] and our debt service along with our reserves

[2:30:59] we have now hit

[2:31:02] the billion dollar

[2:31:05] mark for 2026. That changeover year over

[2:31:08] year is $33 million,

[2:31:11] and

[2:31:14] it

[2:31:17] is a net 3.4% change. So just to

[2:31:19] walk you through where our major sources

[2:31:20] continue to be,

[2:31:23] we get over half of

[2:31:26] our revenue from sales tax revenue through

[2:31:27] the

[2:31:29] state. We get additional

[2:31:32] support for capital

[2:31:35] sources, as well as our federal pm

[2:31:38] --[ inaudible ] and then

[2:31:41] we use our fund balance, 7%. So that

[2:31:44] is a

[2:31:47] continuation of the sourcing

[2:31:49] plan for our budget uses. Majority

[2:31:50] of our

[2:31:52] use is actually neck and neck with

[2:31:53] capital and operations. So they

[2:31:56] build it, we

[2:31:59] have to operate it. And

[2:32:02] those two are again alignment. I see

[2:32:05] that the cycle is that we have capital

[2:32:06] build

[2:32:08] it, we have operations run it, and

[2:32:09] then it goes

[2:32:10] back around to capital to maintain

[2:32:11] it through

[2:32:14] our sgr state of good repair

[2:32:16] programs. So those two major parts. And

[2:32:17] then, of course, debt service

[2:32:20] is the next largest part of

[2:32:23] our

[2:32:26] uses, and then management and support.

[2:32:27] >> I will

[2:32:29] say, you know, as far as

[2:32:32] tracking, I think when

[2:32:35] we started back in

[2:32:38] 2018, debt service was more like 22%

[2:32:39] or 23%. So

[2:32:41] I realize the debt

[2:32:43] service itself has probably not gone down

[2:32:44] and our revenues gone

[2:32:47] up, but as a percentage of revenue, it's

[2:32:48] actually

[2:32:50] encouraging to see it get down there

[2:32:51] a little

[2:32:52] bit a ways. So --

[2:32:53] >> so percentages

[2:32:54] are such

[2:32:56] a funny little math

[2:32:59] thing, right?

[2:33:00] >> yeah. It's all relative,

[2:33:01] right?

[2:33:02] >>

[2:33:03] 10% of $10,

[2:33:05] you know, but 10% of

[2:33:08] $10 million, big difference. But,

[2:33:11] yes, as

[2:33:13] a whole, it is smaller as a whole

[2:33:14] as it's a slice of the

[2:33:17] pie. But a raw number.

[2:33:18] >> getting

[2:33:19] it

[2:33:20] closer to where it's a little more

[2:33:21] proportionate to

[2:33:23] where it

[2:33:26] should be. But

[2:33:29] anyway.

[2:33:30] >> it's all

[2:33:31] celebration.

[2:33:32] >> okay. And so these

[2:33:33] are the 2026

[2:33:35] budget initiatives that are included

[2:33:38] in our budget. And it --

[2:33:41] again, the fact that we have scaled

[2:33:44] down what we need to

[2:33:47] align with

[2:33:50] what the strategy is, $1.1 million in initiatives, I was

[2:33:51] gonna say

[2:33:52] --I can't remember exactly what the initiative

[2:33:53] number was last

[2:33:56] year, but it

[2:33:59] was far larger

[2:34:01] than this, but, again, every department

[2:34:02] has gone down, and a

[2:34:05] lot of them are working with what

[2:34:06] we

[2:34:09] have. And this is

[2:34:12] the result

[2:34:14] of changes needed. I would say the

[2:34:18] only focus here is that we are

[2:34:21] getting two new roadway worker

[2:34:22] protection specialists, and we are

[2:34:24] getting a compliance manager,

[2:34:27] all things that are in alignment

[2:34:30] with

[2:34:33] what our strategy is moving

[2:34:35] forward. I hit the button there. Oh,

[2:34:39] sorry. And so

[2:34:41] this goes back to, again, full circle. At

[2:34:42] the beginning of this process, we

[2:34:45] meet and sit down with

[2:34:48] the board and discuss

[2:34:50] what key assumptions are going into the

[2:34:53] budget as we move forward into setting

[2:34:54] the strategy

[2:34:55] and then setting budget target with executive

[2:34:57] team,

[2:34:59] we always start out here. What does

[2:35:00] the

[2:35:01] market look like, what, you know,

[2:35:03] what we expect from sales

[2:35:06] tax revenue, we get that

[2:35:08] input from dr. Banister, we look at

[2:35:09] our

[2:35:12] fuel and see what the average

[2:35:15] rates are, and we look at expense

[2:35:17] growth in the market. Now, when we

[2:35:18] first started out, everything

[2:35:21] was kind of up

[2:35:24] in the air about what might

[2:35:27] come, right, what tariffs might

[2:35:28] come, those implementations might

[2:35:29] mean for uta. And so we feel like

[2:35:33] we've taken a good stab at

[2:35:36] aligning all of the

[2:35:38] chaos that's going on in the market

[2:35:42] and set good assumptions for our

[2:35:45] budget growth.

[2:35:46] >> just

[2:35:47] because it's a pretty significant

[2:35:48] part of our

[2:35:49] probably fringe, I imagine it's in

[2:35:53] your fringe number, and it's probably too

[2:35:57] early because --

[2:35:58] but with the pension fund, is there

[2:36:00] --at what point

[2:36:03] would we look at

[2:36:08] how much we're putting into it versus

[2:36:09] theacuaryial demand

[2:36:12] and kind of still hitting

[2:36:13] the marks? Obviously their original

[2:36:15] --I think

[2:36:17] it's 16% was needed to stabilize and

[2:36:18] get it

[2:36:20] there. So I'm not talking about shortchanging. I'm

[2:36:21] just, like,

[2:36:23] is there a point in time that we'd

[2:36:24] relook at what those

[2:36:25] numbers should actually be?

[2:36:26] >> so

[2:36:27] thank

[2:36:29] you for bringing that up. Obviously

[2:36:30] with

[2:36:32] our pension committee, report earlier

[2:36:33] today, we

[2:36:36] are doing very well, and there

[2:36:39] is room, and as we continue

[2:36:42] to balance what happens as we move forward

[2:36:43] through our five-year financial forecast

[2:36:45] --

[2:36:46] >> yeah. >> --that

[2:36:48] will be

[2:36:50] a consideration about reduction in that

[2:36:52] area. There are multiple plates that we

[2:36:54] are juggling here

[2:36:57] to figure out what goes up,

[2:37:00] what goes down. The pension is very

[2:37:03] strong right now, and I,

[2:37:05] you know, expect it to continue. But

[2:37:06] using that

[2:37:09] as a --one of the many

[2:37:12] factors in

[2:37:13] figuring out how we're going to have

[2:37:18] -- continue to have a

[2:37:19] balanced budget, right? So where that

[2:37:21] point is, I get out my crystal

[2:37:23] ball, but, yes, it is an option.

[2:37:24] >>

[2:37:26] and you'd want to be cautionary toward

[2:37:27] --I don't mean

[2:37:30] to --I just --at some point --and

[2:37:31] to be

[2:37:32] honest, you probably are getting a

[2:37:33] good enough return there that the money

[2:37:35] is probably just as well or better

[2:37:36] off there right

[2:37:39] now.

[2:37:40] >> if I

[2:37:41] may, there's a possible upside to

[2:37:42] that

[2:37:43] if the private equity performs like

[2:37:45] we anticipate, you know, that

[2:37:48] could give us a little bit more head room

[2:37:51] needed there. But

[2:37:53] I think your point, carlton, to --

[2:37:54] or best advisory response, I think

[2:37:57] as an agency, we have to look

[2:37:59] at everything and just see what is

[2:38:03] in the best

[2:38:05] interest of this agency staying solid and solid,

[2:38:06] and I think that's

[2:38:08] wise. And I think pension is one area we

[2:38:09] can

[2:38:15] take a

[2:38:17] really good look at. So --

[2:38:18] >> sorry. Obviously

[2:38:21] there's a discussion that could

[2:38:24] still come about fare box increase. You're

[2:38:25] not anticipating in this budget that

[2:38:27] increase at

[2:38:29] this point, is that true?

[2:38:30] >> that would

[2:38:31] be true.

[2:38:32] >>

[2:38:33] at least in your budget numbers.

[2:38:34] >>

[2:38:35] yeah.

[2:38:36] >> definitely not

[2:38:37] in the

[2:38:39] budget we're submitting for discussion.

[2:38:40] >>

[2:38:41] okay. Obviously it

[2:38:42] could change things. And it's been

[2:38:43] --

[2:38:44] >> yeah. >>

[2:38:45] --more than a decade, right?

[2:38:46] >>

[2:38:48] oh, no, no, no.

[2:38:49] >> 13 years. >> we've

[2:38:50] been working on

[2:38:51] this, and we're going to present. But

[2:38:52] it

[2:38:54] has its own process, and so we wouldn't

[2:38:55] project into

[2:38:57] this budget until

[2:38:59] this process is complete.

[2:39:00] >> gotcha. Okay. >>

[2:39:01] so, again, multiple leisures, and

[2:39:02] we can

[2:39:03] look at all of them to see

[2:39:06] what makes

[2:39:09] the best choice,

[2:39:12] best mix of options. And so

[2:39:15] I'll let brian go back through some

[2:39:16] of

[2:39:18] this.

[2:39:19] >> and we've already touched

[2:39:20] on this

[2:39:21] a number of times, but we've seen

[2:39:22] that our

[2:39:23] --you know, half of our revenue comes

[2:39:24] from sales tax, and

[2:39:27] what we've seen is we saw

[2:39:30] the

[2:39:33] big boom during the covid years of

[2:39:35] stimulus money coming in in various

[2:39:36] ways and how

[2:39:39] that's wained over

[2:39:41] the years. And our long-range trim,

[2:39:42] we tended to assume around 5%, the green

[2:39:45] line, and

[2:39:48] we've been below that since,

[2:39:50] you know, mid-2023. And so that's

[2:39:51] something we're keeping really

[2:39:54] close eye on. Is

[2:39:57] there a paradigm change in our economic

[2:39:58] situation, is growth slowing down? Right

[2:40:00] now we're --I think

[2:40:02] we've been conservative in terms of our

[2:40:03] forecast but

[2:40:06] reasonable. And as it is, we've been pretty darn

[2:40:08] close. And so we're keeping a close

[2:40:09] eye on this because, of course, it makes

[2:40:12] a big difference in terms of how

[2:40:14] we budget and how we plan on how much

[2:40:18] money we say

[2:40:19] we have available.

[2:40:20] >> thank you, brad. So before

[2:40:21] I turn this

[2:40:23] over to dan to kind of enumerate some

[2:40:24] of the things

[2:40:27] we've changed in capital since

[2:40:30] the budget work session, I just want

[2:40:31] to just

[2:40:33] put a bow on

[2:40:37] that previous two-second

[2:40:39] conversation is that the math problem

[2:40:43] of revenue minus expenses, minus

[2:40:45] debt service, that is a stagnant stable math

[2:40:49] problem. But what we can do

[2:40:51] within the different parts and different levers,

[2:40:52] how we can

[2:40:54] generate revenue, how we can cut expenses,

[2:40:55] how we

[2:40:58] can save on our debt

[2:41:00] service, how we can reduce particular

[2:41:01] projects

[2:41:04] in capital, those are all things

[2:41:07] that we can discuss to come

[2:41:10] up with what makes the

[2:41:11] math problem work, right? And so I

[2:41:13] don't --I continually tell jay

[2:41:16] this, I look

[2:41:19] at this as an opportunity,

[2:41:21] right? Whatever financial risk that

[2:41:22] are embedded in

[2:41:24] our format of how we do business here

[2:41:27] at uta, these are all things that

[2:41:29] are opportunities for us to face. So I

[2:41:31] just wanted

[2:41:34] to say that before

[2:41:37] I moved on to

[2:41:38] capital.

[2:41:39] >> it's almost quotable, vi. We'll

[2:41:40] just have

[2:41:43] it on this side of our

[2:41:46] office while --

[2:41:49] to remind us.

[2:41:50] >> thanks,

[2:41:51] vi. We'll go through the 2026 tentative

[2:41:52] capital budget. Kind

[2:41:54] of the same format as what we went

[2:41:58] through over

[2:41:59] the five-year plan, and we'll proceed

[2:42:00] accordingly. So these are project

[2:42:01] adjustments. I

[2:42:02] won't go through these all individually,

[2:42:04] as we've

[2:42:06] done a lot of them, just call out

[2:42:09] some of the numbers on the right may seem

[2:42:10] a little different as

[2:42:11] the previous slide show was in the context

[2:42:13] of the

[2:42:16] full plan,

[2:42:19] and these just represent

[2:42:21] changes in 2026. So the list is shorter,

[2:42:22] but you can kind

[2:42:25] of --we already visit a lot of

[2:42:28] them. If there's

[2:42:30] any questions, please let us know.

[2:42:31] >>

[2:42:32] we'll

[2:42:33] give you a few seconds on this slide,

[2:42:34] because we're

[2:42:37] not going

[2:42:40] to climb through this all again.

[2:42:52] >> out of curiosity,

[2:42:55] where does the wheel

[2:42:57] train machine originate from?

[2:42:58] >> where

[2:42:59] we

[2:43:00] buy them?

[2:43:01] >> where the tariff hit? >>

[2:43:02] I believe

[2:43:03] it's germany, but I'll follow up.

[2:43:04] >>

[2:43:05] okay.

[2:43:06] >> I will

[2:43:07] follow up

[2:43:10] with

[2:43:12] them on that.

[2:43:13] >> just more curious.

[2:43:34] here are

[2:43:35] the project categories we've addressed

[2:43:37] already.

[2:43:38] >> that

[2:43:40] represented a total reduction

[2:43:41] of $13 million. So --thanks.

[2:43:42] >> as

[2:43:43] you can see the total budget

[2:43:46] at the bottom

[2:43:49] is that $331.7 million I alluded to. And,

[2:43:51] again, our revenue vehicles is the

[2:43:55] largest category

[2:43:58] coming in at just

[2:44:01] under $120 million. So here's some more

[2:44:04] as it relates to

[2:44:07] the project categories

[2:44:09] and their respective funding sources. So,

[2:44:13] again, the $331.7 million at the bottom, the

[2:44:18] grant is the largest again I believe

[2:44:19] --

[2:44:21] I can't see them, but $110.7 million. Thank

[2:44:22] you. And

[2:44:24] then we have combined the state and

[2:44:25] local partner here to show

[2:44:28] that the uta funds and the lease funds are

[2:44:29] shown together here, so

[2:44:31] there's -- and then the bonds

[2:44:37] are shown at the end.

[2:44:40] >> irk I know

[2:44:42] this, but rail system expansion, the

[2:44:43] $31 million,

[2:44:45] is that a udot thing?

[2:44:46] >> so let me

[2:44:47] pull

[2:44:49] my list real quick. But part of

[2:44:52] that

[2:44:56] would include the s-line extension.

[2:44:57] >> okay.

[2:45:01] >> so the frontrunner 2x program is

[2:45:02] in

[2:45:04] there, the orange and red line

[2:45:05] realignment project is in there, the

[2:45:07] s-line extension is the largest

[2:45:10] of that group for sure

[2:45:13] at just over $31

[2:45:15] million. And then the frontrunner

[2:45:16] south extension from

[2:45:18] the pro to payson study is also included

[2:45:19] in that, and

[2:45:22] then the last one

[2:45:23] is the frontrunner point improvement.

[2:45:24] >>

[2:45:25] and I

[2:45:28] imagine by system enhancement, is

[2:45:31] that

[2:45:34] 5600 west mostly

[2:45:36] or --

[2:45:37] >> yes. Min valley has still a pretty big budget

[2:45:38] in there next

[2:45:40] year

[2:45:41] as well, so --

[2:45:42] >> okay. >> yeah. >>

[2:45:43] and

[2:45:46] I think --I'm sorry. He got the snickers

[2:45:47] bar answered on the planning question. We

[2:45:49] have nicole here if you have any further

[2:45:52] questions on it.

[2:45:53] >> I was

[2:45:55] interested --

[2:45:56] >> okay. >> --

[2:45:58] to know sort of how those

[2:45:59] -- had some local planning things,

[2:46:01] and is that just

[2:46:04] stuff when things come up that you

[2:46:05] can respond

[2:46:07] to it or --

[2:46:08] >> specifically

[2:46:10] on the $1.3, it's broken out in

[2:46:13] several different departments I

[2:46:15] have.

[2:46:16] >> yeah. >> nicole burdo, chief

[2:46:17] planning and engagement officer. So

[2:46:18] if

[2:46:19] you look at our capital, we have a

[2:46:20] way finding

[2:46:21] plan, and we're going to come back

[2:46:22] to

[2:46:25] you all

[2:46:28] about how that's phased. But

[2:46:31] that's about $600,000. Also we have

[2:46:32] the

[2:46:34] bus optimization which is now bus and

[2:46:37] speed and

[2:46:40] reliability which is 100k. We have

[2:46:43] planning studies of 300. And as you

[2:46:46] know, that's not significant enough

[2:46:47] to do

[2:46:49] one study. But what we use

[2:46:52] that funding for for 2026 or what's

[2:46:53] proposed is to

[2:46:55] do our mapping and design requests

[2:46:58] that we use that -- with gis, and

[2:47:02] most of this

[2:47:03] goes through our program management contract

[2:47:05] of hntb. We also use

[2:47:08] it for a

[2:47:11] freeway study that we'll be

[2:47:12] completing, micromobility accommodations infrastructure,

[2:47:14] along with our park

[2:47:15] and ride utilization, the study is

[2:47:16] finished, but now we need to look

[2:47:17] at

[2:47:18] who's using it, what the tool looks

[2:47:20] like and how many

[2:47:23] people are there. This will help

[2:47:25] in our development. And then an innovative

[2:47:27] mobility solutions, we reduced everything out

[2:47:29] of that that was grant dependent,

[2:47:32] and so you'll

[2:47:35] see our udot partnership

[2:47:38] with tsp.

[2:47:39] >> okay. Thank

[2:47:40] you. That was helpful.

[2:47:41] >> thanks. >>

[2:47:42] before we move off this slide, I

[2:47:44] also want to point out that as

[2:47:46] you can see the grant total, that's

[2:47:50] 1/3 of our capital budget. And

[2:47:54] it really is a timing issue. We've

[2:47:56] seen --experienced

[2:47:57] a timing issue over this last year,

[2:47:59] so I just want to highlight

[2:48:00] the fact that that continues to be

[2:48:03] a bit out of our control sometimes. So

[2:48:05] the ebb

[2:48:08] and flow of

[2:48:10] the grant revenue coming in is really, yes,

[2:48:14] our grant office, our

[2:48:15] grant department works very hard to process

[2:48:17] whatever we will

[2:48:20] need

[2:48:23] to send, but we sometimes have issues

[2:48:26] with the timing of receiving the

[2:48:29] funds.

[2:48:30] >> we want to take a moment

[2:48:31] to thank fsh for responding to us.

[2:48:32] >>

[2:48:33] well, you

[2:48:34] know, that award helps.

[2:48:35] >> just wave

[2:48:36] it

[2:48:38] in front of them. Thanks.

[2:48:39] >>

[2:48:41] all right. So here's some

[2:48:43] of the more major milestones. We'll

[2:48:44] highlight a couple

[2:48:46] of them. Obviously we talked about

[2:48:47] mvx coming

[2:48:50] online. Our s-line construction

[2:48:53] will begin in earnest next

[2:48:54] year. The amount og 10 admin building construction

[2:48:56] will begin, and then the fare

[2:48:59] system project is anticipated to be

[2:49:00] completed next year,

[2:49:02] as well

[2:49:05] as the

[2:49:06] new radio system installation continuing. So

[2:49:08] here's the

[2:49:09] state of good repair slide that I

[2:49:11] thought was in

[2:49:12] the previous presentation but is now

[2:49:14] here. So you can

[2:49:17] see

[2:49:20] next year the

[2:49:22] sgr number is 59%, non-sgr about 41%. And

[2:49:23] then

[2:49:24] highlighting the more major projects

[2:49:26] under each of those, actually,

[2:49:29] light rail has a large portion

[2:49:32] of our sgr program there, and

[2:49:35] then the two larger non-sgr

[2:49:37] projects are the midvalley and s-line

[2:49:38] extension. I'll turn

[2:49:41] it over to vi.

[2:49:42] >> okay. So

[2:49:44] our next steps, we

[2:49:46] are here today reviewing this tentative budget,

[2:49:47] and

[2:49:49] hopefully on october 8th when we return

[2:49:50] to

[2:49:53] the board meetings, you will consider adopting the

[2:49:56] tentative budget. And then we'll go

[2:49:57] to public hearings, and then we'll

[2:49:59] go back to the

[2:50:02] local advisory council and consult

[2:50:03] on the

[2:50:05] full package. And then december

[2:50:07] 3rd we'll discuss the final budget,

[2:50:11] and december 17th, if

[2:50:14] all

[2:50:16] goes well, we will have adopted budget.

[2:50:17] >> and

[2:50:19] some interesting walkup music.

[2:50:20] >>

[2:50:21] there

[2:50:22] you go. I don't know. I kind of liked

[2:50:23] the

[2:50:24] intro music to the five year. We will

[2:50:26] make that part of the budget

[2:50:27] discussion.

[2:50:28] >> does anybody have any

[2:50:31] final questions or questions about

[2:50:33] the timeline? Okay. Thank you for

[2:50:34] your efforts there. And we know a

[2:50:35] lot

[2:50:38] of work went into it. So thank

[2:50:41] you. I just would

[2:50:44] note that our next meeting will be

[2:50:45] on

[2:50:46] wednesday, october the 8th. With that,

[2:50:47] I would entertain

[2:50:50] a motion for

[2:50:51] adjustment.

[2:50:52] >> motion to adjourn. >>

[2:50:53] second.

[2:50:54] >> all

[2:50:56] in favor say

Board of Trustees on 2025-09-24 9:00 AM

Agenda

Transcript