[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