Upcoming ATP Board Meeting

[Colleen Pate]

Council Members:

This is to inform you about two items on the Austin Transit Partnership Board agenda this coming Wednesday. I had the opportunity Saturday to review the Board packet and visit with my staff in preparation for the meeting. The two items are to 1) authorize the Executive Director to negotiate an office lease in a downtown office building for up to $32 million and 2) authorize the Executive Director to build out the space at a cost of $15 million.

I oppose these two items, and the Executive Director was told that I’m opposed. Yesterday, we were informed that the ATP Board Chair agrees the two items should be postponed. I appreciate the Board Chair hearing my complaint and stopping a vote on these items.

Several weeks ago, I proposed to the ATP Executive Director that ATP staff co-locate in the current Capital Metro headquarters, which CapMetro owns. Co-locating two public entity partners, even if only partly, makes sense because it should be more cost-effective than leasing 2.5 floors in the downtown area for 10 years. Plus, co-location would enhance partner relationships. The Executive Director pushed back by arguing primarily that ATP would need more space than he thought was available at Cap Metro and that he felt it important for ATP to be downtown.

This proposed action comes even as the City of Austin faces serious budget challenges and is cutting important, critical programs. AISD is facing tough decisions with the closure of schools while addressing continued deficits. A Travis County tax increase to cover needs following a flooding disaster is being challenged. In this context of restraint by taxing entities, the proposed action from the local government corporation would be inappropriate.

The proposal also comes less than 6 months after Austinites--the people who provide the funding for Project Connect through their tax dollars--rejected a tax rate election. This shouldn't be ignored. Since that election, very little has happened to make life more affordable for Austinites. Among other things, gas prices and inflation continue to increase, decreasing the day-to-day funds of the people we serve.

There are other factors that go into my rejection of this idea.

The work done at ATP by calibrating its plans and stabilizing governance has been good. My sentiment is borne out by things like the contracting approaches it's taken and the recent Record of Decision from FTA. We have made much progress in the last few years to move this project forward. The proposed action to spend tens of millions for office space without a thorough analysis of alternatives would set that back.

ATP needs to immediately begin the process of looking at how it can co-locate with Capital Metro. The Executive Director should report back to the Board regarding the efforts and findings. This is an opportunity for ATP to demonstrate that it is building on the partnership we have with CapMetro, saving the taxpayers money, and watching their financial backs as we build a light rail system they have told us they want.

Thanks. I'll keep you informed as we move forward

Kirk
On Behalf of Mayor Watson

[Marc Duchen]

Thank you, Mayor Watson, for the updates here. While I have not tracked this issue as closely as you have, I appreciate the responsible approach you've laid out here.

ATP occupies an unusual space as a public corporation overseen by a board of directors that manages hundreds of millions of taxpayer dollars every year. In this time where people are struggling to afford to stay in the City and region, and everyone from families to local governments are having to make tough budget decisions, it's imperative that ATP's direction and policies reflect those constraints.

-Marc