SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute an Interlocal Agreement with the Austin Transit Partnership to provide reimbursement of capital costs for certain CapMetro Components of Project Connect through Fiscal Year 2031, in a total amount not to exceed $148,600,000.
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FISCAL IMPACT:
This action reimburses Capital Metro for expenses incurred.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☒ 2. Community
☐ 3. Workforce ☒ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: This Interlocal Agreement (ILA) will help ensure capital funding for critical components of Project Connect and allow CapMetro to continue to add and maintain service for the community and fulfill the will of the voters in approving Project Connect.
BUSINESS CASE: The ILA establishes a framework for funding certain CapMetro Components of Project Connect under which the Austin Transit Partnership (ATP) will provide funding to CapMetro for capital construction related to these critical components of Project Connect.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Finance, Audit and Administration Committee on September 10, 2025.
EXECUTIVE SUMMARY: CapMetro and ATP have entered into ILAs previously to provide funding for certain components of Project Connect, such as capital construction costs for the McKalla rail station and capital construction costs for the Expo Center and Pleasant Valley CapMetro Rapid lines. This ILA provides funding for certain additional CapMetro Components of Project Connect for which a specific ILA is not currently in place. Specifically, the ILA provides funding for construction of the Goodnight Ranch and Expo Center Park and Rides serving the new Rapid lines, including end-of-line charging for battery electric buses, and a new South Base Demand Response facility. CapMetro has already expended funds on these projects, and the ILA includes reimbursement to CapMetro for these funds as well as ongoing expenses for these projects through the term of the ILA. In addition, this ILA clarifies that CapMetro will use its financial contribution dedicated to Project Connect directly on operations and maintenance expenses for CapMetro Components, rather than transferring those funds to ATP. Through FY2031, total capital costs of the CapMetro Components covered by the ILA are estimated to be $148.6 million, which includes $37.6 million for the park and rides and $111 million for the South Base Demand Response facility. The parties further commit to working together in good faith to extend this ILA for additional years or enter into additional agreements as needed to ensure continued delivery and funding of CapMetro Components of Project Connect into the future.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Finance
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1277
WHEREAS, the CapMetro Board of Directors and Austin City Council approved the Project Connect System Implementation Plan in 2020, including bus rapid transit lines, park and rides, and facilities, which CapMetro is primarily responsible for implementing (the “CapMetro Components”);
WHEREAS, the CapMetro Board of Directors approved a resolution in August 2020 committing to the community its available financial resources in support of the Implementation Plan (“CapMetro Contribution”);
WHEREAS, the voters of the City of Austin approved a referendum in November 2020 to fund projects in the Implementation Plan;
WHEREAS, CapMetro is committed to building and operating the CapMetro Components in accordance with the contract with the voters and Joint Powers Agreement between the City, CapMetro and Austin Transit Partnership (ATP), and has committed CapMetro Contribution funding for the projects in its current fiscal year budget and its 5-year Capital Improvement Plan;
WHEREAS, the Federal Transit Administration provided Small Starts Capital Improvement Grant funds for the Expo Center and Pleasant Valley CapMetro Rapid lines, which grants include obligations to provide a certain minimum level of service on these lines, and funding from ATP is critical in meeting these obligations;
WHEREAS, CapMetro and the City of Austin created ATP, a joint local government corporation, to assist in the financing, funding and construction of the Implementation Plan and which will provide a significant portion of the funding for the CapMetro Components;
WHEREAS, CapMetro and ATP entered into an interlocal agreement (ILA) for Support Services and Program Funding related to the Project Connect program in February 2021, which ILA expired at the end of fiscal year 2024, and subsequently entered into ILAs providing for funding for certain specific CapMetro Components, namely construction of the McKalla commuter rail station and capital construction for the Expo Center and Pleasant Valley CapMetro Rapid lines;
WHEREAS, it is necessary for CapMetro and ATP to now enter into a new ILA to provide funding for certain additional CapMetro Components for which an ILA is not currently in place, namely the Goodnight Ranch and Expo Center Park and Rides and a new South Base Demand Response facility;
WHEREAS, this ILA requires CapMetro to deliver specified CapMetro Components and ATP to provide capital funding to CapMetro and further clarifies that CapMetro will use the CapMetro Contribution toward operating expenses, and other costs, for the CapMetro Components; and
WHEREAS, pursuant to the terms of this ILA, ATP’s funding contribution is in an amount not to exceed $148,600,000 through Fiscal Year 2031;
NOW, THEREFORE, BE IT RESOLVED that the President & CEO, or her designee, is authorized to finalize and execute an interlocal agreement with the Austin Transit Partnership to provide reimbursement of capital costs for certain CapMetro Components of Project Connect through Fiscal Year 2031, in a total amount not to exceed $148,600,000.
____________________ Date: ____________________
Secretary of the Board
Becki Ross