Board of Directors Meeting   11/19/2024

Good to be here.

Omar?

Please walk around this way.

Good morning.

Good morning.

Thanks so much.

So I'd love to turn it over to Neal Crawford from Virginia Beach so that you can introduce yourself as well.

I look forward to working with everyone.

Would you like to introduce yourself?

So the idea of investing in infrastructure, both personally and professionally is something that I'm very passionate about and excited to be here to work with all of you.

We're going to take the roll call first to make sure we have a quorum.

Mr. Jordan?

Here.

Mr. Payne?

Here.

Here.

Mariselle, would you call the roll?

Ms. Bushue?

Aye.

Mr. Watkins?

Aye.

Thank you, Madam Chair and good morning everyone.

Yes, ma'am.

Is that correct?

I already talked about this, we continue to watch this very closely.

How does that work?

I think this is in

That's a good chart.

And we're not where we want to be there.

I really think it's knowable to find the right spot for fares.

And that's something that we continue to, I don't want to say fight Amtrak, we continue to partner with Amtrak to get more transparency and better information so we can make decisions that are more well informed.

Okay, that's very helpful.

And as we said at the last meeting, last six months, last eight months, Amtrak has been much more forthcoming with the data, which is great.

Thank you.

Steve, anything I missed there?

And so if every day there's 4,000 people making that trip, try to, but we just aren't quite at that point of the level of data that we have access to.

We don't know how many people are jumping on that hot lane with their family in the car as opposed to taking the traffic.

DJ, has your 70% cost recovery goal been the same since day one?

When we first started at VPRA, we set the goal just in the high 60s and we slowly inched the goal up as we've continued to make progress there.

Thank you.

I'm going to turn it to Mike McLaughlin for Capital Project updates, although I reserve the right to interrupt as he's going through.

Thanks, DJ.

If you have any questions and anything, I will pass.

Anything that it doesn't add that you want, we're happy to add.

We can talk about it a little bit, but since we're in negotiations with the contractor, we don't want to let too much know what we're thinking on that.

So, so far knocked on wood, we've had a good balance of open, honest conversations to get us to a good price on this project and others.

mid to late January at the board meeting.

Who's the lead on this, VPRA?

Again, this is about a six mile third track in the Franconia area.

We're now going to wait till we take ownership in spring and then they can test it and go forward if they see fit.

So what happens if it's not clean?

If it's not clean, then they will have to, to build the station, take it to a certified disposal location and pay that price.

Do we think that hill might be the dump?

It's further north.

So we have no role in this.

They're going to be building the station on land that won't be.

Thank you.

Do we have any leverage to push them to do that earlier?

Yeah, and look, everybody wants the station done, but we don't have a great deal of leverage there.

Oh, we don't know.

So Mike, go ahead.

And Rich, if I have this wrong, I believe the platforms could be on the other side of the tracks.

and then the developer will start their construction process which includes testing the land to see the dirt to see if they can move it to non-special location.

Liability.

That's a clear indication there may be liability.

And they don't like to stray from that because if they stray from that.

They haven't done any of the testing or disturbance.

So why would we take ownership prior to test without being tested?

We won't be building parks.

Sure.

So we dropped that deal and we're going down a different path.

The developers,

I live near here if anybody wants to talk.

We built thousands of houses and residences and done lots of testing and just the developer has been very slow on this.

It's just a huge revenue boost from that community alone.

I mean, people have moved there because of the train.

We're going to work with the developer to make sure they move as quickly as possible, but they've got to do the soil testing, and if the soil has to be moved to a special location, that's on that.

We've also been working with one of the county officials.

And we're going to get there.

Thank you.

So in many ways, construction's already begun, because that's the pre-construction work that they need to move out so that the concrete

and a platform.

Questions here?

Who's the lead on this project?

Norfolk Southern.

It's Norfolk Southern.

So this is one of those contracts that we've talked about where they have a set budget if they finish below budget and early they share a piece of that savings and if they finish above budget or late they actually have to pay part of that so they've got liquidated damages so then this is this has been a very good partnership with Norfolk Southern to hold them accountable hold us accountable for getting this service as soon as possible.

Let me move Mary Estelle's face off of it.

Thank you.

As you can see, those are 90, 100% designed.

Take control of that.

I think it moves.

We already talked about nuclear value.

something million we got for ADA improvements or do we need that earmark?

We could bring this station to ADA compliance without that earmark.

We could use it.

Of course, but it seems like it's a fundamental task we should get done and if we have the money to do it?

Very good.

It's a CRISI grant, correct?

Yes.

Yes, it's Chrissy Graham.

Okay.

We're going to allow a fair repayment, generally during the life of the construction.

And we just want to wait for that.

We're ready to move forward with our engineering bench to get that engineering started.

So that one, the question is, is that what's required with CSX is to just have the design or does it have to be built?

Right.

Okay.

Before the phase two trains kick in, we have to build it.

So, how many stations will be on the Virginia line?

The Petersburg-Edgwick station is going to benefit.

Yeah, but, I mean, on the run.

They're going to have some station on the line, but the one station being added in Virginia will be La Crosse, which is the south side.

Okay, so there'll be one on the run, and this is not planning on going into Main Street Station?

The other thing I'm concerned about is we might get one station.

Are they kicking in to help pay for the improvements on the S line or are we going to pay for the whole thing and we only get one station?

And then at that point, we'll have a better sense for how much money it's going to cost, and we'll have to come to the board and find out where the money's coming from.

Yes, thank you.

We've talked about that with you and others.

That was a big discussion.

That's very high up and go from rock to rock to rock, Senator.

Trains to Main Street.

Staples Mill is the busiest station in the Southeast, the big parking lot, and it's not far off of 64 and 95.

The trains around that slow corridor, because it's a 45-minute get around.

That's right.

And I remember from my time at DRPT, the talk about there's a lot of conversation at CTB back in the 2017, 2018 timeframe about where to put the station in Richmond.

Jean Trani and I put a plan together and it got poo-pooed by the hierarchy in Richmond.

And I was just stating what we're currently planning if the Board and others decide that we need to, that's another discussion.

The grant that we got from the FRA brings this Richmond to Raleigh project to 30% design and not another dollar gets spent without approval of this Board.

They might have to redesign some of that for the reality of the boundary survey, move the lines different from what their valuation maps, if you will, had when we signed an agreement with them.

Well, didn't you share that with us last meeting and the valve maps were incorrect?

As many parts, so they agree that that's very correct.

So, I think on that, is it going to be a matter it can be redesigned or is it a matter you're going to have to purchase right away?

Could be both.

Yeah.

Some projects are having those conversations, but yes, that's on.

We don't know what it's going to take to get there right away.

So, yes.

Do we have a resolution?

And so we should be hearing from CSX and Franco and Lord in the next month or two.

We may not have another one of those issues.

Look at my council and make sure I'm not saying anything wrong.

that butted up to it.

Please take discussion on some good questions.

That average you will see come down during the year because we're about a little over $400 million today between what we have in LGIP and what we have in investment.

Next slide.

So unless there are questions, or if you have questions, you're welcome to catch me in the break.

And so I would like to request that the board give us the authority to accept that money.

Any discussion?

Mr. Watkins?

I didn't figure that'd be controversial.

This is just going to be an ongoing thing because things have gone up so high.

He's not sweating so I feel good about that.

Not including those consultants that are hired to do the construction, obviously, but how many consultants do we have to supplement the FTEs?

I mean, we know the number of companies, obviously, and we can get that list for you.

How many FTEs do you have, Rich?

We have obviously, you know, contracted service providers and stuff.

Right.

Over, you know, two hundred and ten, two hundred twenty people.

But just FTEs, just VRT consultants.

About the same, I think about 62, 63.

Mindful of the taxpayers, Nicole.

That's true.

We have Kimley-Horn, we have WSP.

Or individual projects, yes.

We're just doing not just, although big, construction.

We can pay as VPRA, so it's a balance that we've been working on.

I'm seeing other state agencies and localities struggling to bring in talented people.

I think a lot of other industries are having that challenge, yeah.

I agree.

Contracting work that's being done?

If we need something 80 hours this week and zero hours the next week, then we're going to use a consultant.

It'd be great to see the

I think that would be very helpful.

So it's consistent.

Section 3.4, add pronouns.

We just added or her.

When we're using generic pronouns throughout, it's his or her and him or hers.

The board may choose to hire an executive director that's female and then the bylaws would be consistent.

has the ability to authorize or accept funding?

Executive Director, Chief Financial Officer, Chief Operating Officer, General Counsel, and then we're going to add Chief Administrative Officer.

So why is Ford not enough?

So each executive member has that same authority.

You wouldn't have Joan approving Mike's project.

Right, that's correct.

The way you're envisioning this, it's within your own lane.

Right, and at the end of the day, none of this changes the fact that anything over the dollar amounts that are outlined has to come to the board anyway and has to be part of the approved budget.

These are changes to the bylaws, correct?

We have one more executive than we expected to have, and we just wanted to make it consistent and have all of the executive positions as part of that.

Who signs hers now?

They come to me.

ability to apply for and administer federal funds.

Trust me, we want to sign that the day it shows up.

But there's three other people that can sign behind DJ, is that correct?

I mean, so it's,

I just, I think we need to be lean and mean, and I just think this is just adding another bureaucratic, something that's not really necessary, in my opinion.

I don't know if there are any other comments or questions.

Any additional questions or discussion?

Ms. Bushue?

Against.

Mr. Crawford?

Aye.

Aye.

And at this time, I think I'm going to ask our Vice Chair, Ms. Drake, to make a motion to take us into closed session.

Is there a second?

Second.

Ms. Bushue.

Aye.

Mr. Crawford.

Aye.

Mr. Delandro.

Aye.

Mr. Jordan.

Aye.

Thank you.

To the best of my knowledge, during the closed meeting, the only matters heard, discussed, or considered were those matters lawfully exempted from the open meeting requirements under the Virginia Freedom of Information Act, and only those public business matters as were identified in the motion by which the closed meeting was convened.

Aye.

Mr. Payne?

Aye.

Any further discussion?

Aye.

We will now stand in recess for lunch.

Welcome to auditor's.

Shlodge.

So just congratulations to Steve and his team there.

It's a really big deal for us to make that deadline this year for the first time.

If you're able to review the financial at the head of the homework, have questions for us.

Were the investment valuations in the AIC and CI issues from the valuation standpoint?

Thank you.

Bonnie was here today, she's hopefully chaos sick, I think she'd say this too, that Shannon said it too, that we kind of hadn't made it to them versus them giving us

across the Commonwealth of said.

And thank you to your team for your cooperation and your independence.

Thank you all.

I didn't want to go into a whole lot of detail beyond that, but if any questions, please feel free at any time to reach out.

Everybody's ready to give us a budget look ahead.

Can I answer any questions before we fish on to the management survey?

Very helpful, thank you.

So I'm happy to answer any questions before we ask the board to approve the managed reserve balance.

Because it sounds like this is, I don't mean this, but it sounds like it's like the idea is that this is how we accounted for this based upon some kind of, obviously, the methodology.

Absolutely.

So we're talking about the changes to this specific policy.

It's not actual money, but it's... Yeah, exactly.

It is more like a, it's like a, it's a math exercise.

Have you ever sent questions yet?

Mr. Crawford.

Approve.

Ms. Delandro.

Approve.

Ms. Doersch.

Mr. Watkins?

Is Mr. Finkenhurst available?

So once again, we are recommending a supplier diversity goal of 11.5% for Mr. Doersch.

It's small businesses and minority businesses.