SUBJECT:
title
Approving a resolution adopting modifications to the light rail element of Project Connect and the associated Implementation Sequence Plan by adopting the Austin Light Rail Implementation Plan.
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FISCAL IMPACT:
This action has no fiscal impact.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☒ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☐ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: CapMetro is one of three partners working to implement the Project Connect program of projects. Adoption of the Austin Light Rail Implementation Plan supports the next step of advancing the program and refining the initial investment in light rail on behalf of our community.
BUSINESS CASE: CapMetro must approve the Austin Light Rail Implementation Plan in order to advance the program, in alignment with the Project Connect governing documents.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on June 2, 2023.
EXECUTIVE SUMMARY: CapMetro must approve the Austin Light Rail Implementation Plan to advance the program, in alignment with the Project Connect governing documents. The plan represents a consensus recommendation from the Project Connect partnership staff from CapMetro, ATP, and the City of Austin, following a robust community engagement process. This item was forwarded to the City Council and CapMetro Board by the Austin Transit Partnership Board on May 24. The City Council authorized a substantially similar adoption of the Austin Light Rail Implementation Plan on June 1.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Executive Department
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2023-819
WHEREAS, on June 10, 2020, City of Austin ("City") Council adopted Resolution No. 20200610-002, directing the City Manager to amend the Austin Strategic Mobility Plan ("ASMP") to include the city-wide high-capacity transit system known as the Project Connect System Plan ("Project Connect"), which included locally preferred alternatives for light rail identified as the "Orange Line" and "Blue Line" (the "Light Rail Vision for Project Connect" or “Light Rail Vision”); and
WHEREAS, on August 12, 2020, City Council adopted Ordinance No. 20200812-009 (the "Ballot Measure"), ordering a general municipal election to be held in the City on November 3, 2020 to, among other things, submit "Proposition A" to voters, authorizing an increase in the maintenance and operations rate component of the City of Austin ad valorem tax rate pursuant to Section 26.07 of the Texas Tax Code, to provide funds for Project Connect, including $300 million in funds for anti-displacement efforts (the "Project Connect Tax Revenue"); and
WHEREAS, concurrently with the adoption of the Ballot Measure, City Council adopted Resolution No. 20200812-015 (the "Contract with the Voters Resolution"), clarifying and declaring the intent and commitment of City Council to the voters regarding the use of the Project Connect Tax Revenue to invest in Project Connect in accordance with the associated Implementation Sequence Plan described therein; and
WHEREAS, almost fifty-eight percent of City of Austin voters approved Proposition A on November 3, 2020; and
WHEREAS, upon the passage of Proposition A, the City and Capital Metropolitan Transportation Authority ("Capital Metro") jointly created the Austin Transit Partnership Local Government Corporation ("Austin Transit Partnership" or "ATP") to be the principal entity responsible for the implementation of Project Connect in a manner independent of the City and Capital Metro; and
WHEREAS, in accordance with Proposition A and the Contract with the Voters Resolution, the City has dedicated 100% of the Project Connect Tax Revenue to Austin Transit Partnership subject to the terms of the Interlocal Cooperation Agreement between the City and ATP with regarding the transfer of Project Connect Tax Revenue from the City to ATP dated August 17, 2021 (the “Prop. A Transfer ILA”); and
WHEREAS, the Project Connect Tax Revenue will provide Austin Transit Partnership with the local funds necessary to plan, design, contract, finance, and fund operations and maintenance of Austin light rail and other elements of Project Connect; and
WHEREAS, the Project Connect Tax Revenue will be the primary source of local funds used as the local matching funds to receive any Federal Transit Administration ("FTA") New Starts Capital Improvement Grants for Austin light rail (the "Grant Funds"); and
WHEREAS, these Grant Funds and the Project Connect Tax Revenue will be used by ATP to secure Austin Transit Partnership revenue bonds and other loans to finance ATP's acquisition, design, development and construction of Project Connect; and
WHEREAS, due to a material change in circumstances since the passage of Proposition A, including, but not limited to, increased land values, construction cost escalation, and increased labor and financing costs, Austin Transit Partnership has advised the City and Capital Metro that the development of the Light Rail Vision for Project Connect and the associated Implementation Sequence Plan requires modification; and
WHEREAS, the Contract with the Voters Resolution provides that “if federal matching funds are not available to complete components of the initial investment, or additional components, Council contracts with the voters that the Project Connect Tax Revenue shall be used to fund as much of the initial investment in Project Connect as possible;” and
WHEREAS, the Contract with the Voters Resolution provides that upon the joint concurrence of City Council and the Capital Metro Board of Directors, Project Connect and associated Implementation Sequence Plan may be modified; and
WHEREAS, the City of Austin, Capital Metro, and the Austin Transit Partnership entered into a Joint Powers Agreement (the “JPA”) in December 2021 to memorialize the roles and responsibilities of each entity and Section 5.1 of which provides for the ability of the City Council and Capital Metro Board to modify the Project Connect Investment Map and associated Implementation Sequence Plan at the request of ATP; and
WHEREAS, Sections 2.6 and 2.7 of the JPA contemplate that the implementation of Project Connect will require the parties to amend or supplement the JPA to address a variety of matters, including specific interagency topics, and such agreements are subject to the approval of the governing bodies of the City, Capital Metro and Austin Transit Partnership; and
WHEREAS, Austin Transit Partnership recently conducted an extensive priority population-focused engagement feedback process on potential modifications to the Light Rail Vision, connecting with over 7,000 community members regarding the proposed modifications to Light Rail Vision, hosting over 80 community engagement events, and connecting with more than 3,000 core transit riders at 45 unique bus stop locations; and
WHEREAS, after extensive public feedback, on May 24, 2023, the Austin Transit Partnership Board of Directors requested that the City and Capital Metro adopt modifications to the Light Rail Vision with an updated light rail implementation plan for the phased financing, development and construction of Austin light rail, including the first phase project, as depicted in Exhibit A to this resolution (the "Austin Light Rail Implementation Plan"), and
WHEREAS, Capital Metro intends that the Austin Light Rail Implementation Plan will modify and supplement the Light Rail Vision for Project Connect and associated Implementation Sequence Plan and serve as the new phased plan and vision for the development of Austin light rail; and
WHEREAS, modifications to the JPA are also necessary to adopt and carry out the Austin Light Rail Implementation Plan; and
WHEREAS, Capital Metro is committed to the full implementation of Project Connect, including continuing work to further defining roles and responsibilities among the Project Connect partners, and amending the JPA as necessary and appropriate; and
WHEREAS, upon joint concurrence of the City and Capital Metro, the Austin Light Rail Implementation Plan will modify and supplement the Light Rail Vision for Project Connect and the associated Implementation Sequence Plan and serve as the new phased plan and vision for the development of Austin light rail.
NOW, THEREFORE BE IT RESOLVED that the Capital Metropolitan Transportation Authority Board of Directors hereby approves the modification of the Light Rail Vision for Project Connect and the associated Implementation Sequence Plan by adopting the Austin Light Rail Implementation Plan attached as Exhibit A to this Resolution and authorizes the President & CEO, or her designee, to negotiate and execute an amendment to the JPA to incorporate Exhibit A.
BE IT FURTHER RESOLVED that Austin Transit Partnership is authorized to implement the Austin Light Rail Implementation Plan in accordance with the phasing described therein.
____________________ Date: ____________________
Secretary of the Board
Becki Ross