For More Information Contact:
Emlea Chanslor, Media Relations 369-6029
News Release: May 29, 2002

AUSTIN - The Capital Metropolitan Transportation Authority Board of Directors decided today not to hold a referendum on light rail in November 2002.

The need for more community involvement and input into the plan was cited by Board Chairman Lee Walker, President/CEO Fred Gilliam and board members as the most compelling reason not to call for an election.

In a memo presented to the board at their meeting today, Gilliam said: "I am confident that Capital Metro heard citizens when they said more information and public input is needed before bringing light rail back for a vote."

Gilliam added, "As we have gone out into the community, we have found that the enthusiasm for a rail plan has led to people wanting more-not less-time to help shape this vital project."

Chairman Walker said that feedback from the community was the most important factor in the board's decision not to seek a referendum.

"We respect what we have heard from the community," Walker said. "Before they vote again on light rail, citizens want a clear and sensible plan and to have ample opportunity for input on that plan. Light rail is about more than solving traffic congestion. It's about our air quality, land use, and ultimately the quality of life for all of us."

Begun in November 2001 and headed by John Almond, who led the Austin-Bergstrom Airport project, the Rapid Transit Project/Preliminary Engineering and Environmental Impact study when completed will provide information on route alignment, estimated costs, estimated ridership, and a bus/rail system plan for the initial segment; and a bus/rail system plan for the future buildout of the entire system.

In addition, the University of Texas and the State Capitol Complex have become more involved in the light rail route planning process as the study has continued. A variety of options for how the routes might go through public land, downtown, and neighborhoods will require more time to maximize their involvement.

Note: Please find quoted below, Fred Gilliam's memorandum to the Capital Metro Board of Directors.

Austin community leaders willing to speak with reporters regarding today's vote: Mark Hazelwood, president, Greater Austin Chamber of Commerce, 322-5601 Neal Kocurek, president, St. David's Hospital, 867-5340 Jim Walker, Chair, Austin Neighborhoods Council, 223-7774 Charlie Betts, executive director, Downtown Austin Alliance, 469-1766

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Below is a Memorandum from Fred Gilliam, President and CEO of Capital Metro, presented to the Board of Directors on May 29, 2002

May 29, 2002

TO: Capital Metro Board of Directors

FROM: Fred Gilliam, President/CEO

At the Board work session last week you requested that I review technical information regarding a possible light rail referendum and present my findings to you today.

Clearly, the decision of when there should be a referendum on rail is a policy decision that you, the board of directors, and the community should make. Based on my past experience and previously being involved in a successful referendum, I know these elections are not easy. In the last legislative session, Capital Metro and the Legislature agreed to have a referendum on even numbered years before a rail system is built.

I believe the following four things should be in place before calling for a referendum:

Capital Metro must listen to the community and be responsive. The public must have confidence in Capital Metro’s performance, ability, and leadership. Tremendous progress has been made, on time performance has improved and ridership is currently up. But more work needs to be done. A clear and sensible transit plan for the region incorporating all modes and the benefit for each area served. In addition, we must decide which technologies are best for this region. Public input is a must and the plan should be fully integrated with other core transportation services. An overall consensus plan that the community wants and supports. My goal from the beginning, with your help and support, has been to improve Capital Metro’s operations from the inside out. For the citizens and taxpayers of this community to have confidence in Capital Metro, our core services must be beyond reproach. That means our buses will run on time, be clean and well maintained, our bus operators be courteous, the greatest possible number of people will be served, and that our employees will operate with absolute integrity and have pride in their work.

I don’t believe we are there yet. In the short time I have been here, I have already begun to see improvements in the quality of our core services, but there is room for much more improvement and there is more we must do to gain the community’s utmost support and respect.

We must complete the full preliminary engineering and environmental study, where we can provide full and sufficient information to the region. The community’s input will make this the best possible system for greater Austin. The present work being done in the study is a direct response to community input about what a rail system should look like and the study will produce, in time, the basis of a clear and sensible transit plan for our region.

Currently, the only information available is preliminary work on the route alignment that the Rapid Transit Project Team has focused on since the technical work began in November 2001. The information that will become available when the preliminary study is completed includes:

• Route alignment for the initial segment
• Cost budget estimate for the initial segment
• Ridership estimates for the initial segment
• A bus/rail system plan for the initial segment
• A bus/rail system plan for the future build out

To be clear, I’m confident that Capital Metro heard the citizens when they said more information and public input is needed. This study, though not completed, is the first step toward fulfillment of that expressed need. As we have gone out into the community, we have found that the enthusiasm for a plan has led to people wanting more – not less – time to help shape this vital project.

The project team, headed by John Almond, who led the Austin-Bergstrom Airport Project to coming in on-time and under budget, continues to focus on route planning for the initial light rail starter line. The emphasis has been on analyzing a variety of options through the University of Texas, State Capitol Complex, downtown, and neighborhoods such as Crestview-Wooten. New ideas continue to evolve daily and be discussed.

As soon as the route planning is completed, it must be presented to the public for review and comment. The plan should only be considered complete when it has been thoroughly reviewed by the public and approved by Capital Metro’s board.

There have been questions regarding federal funding, and whether it will be available in the future if we do not have a referendum this year. I offer the following comments and thoughts on this matter:

Federal transit officials have advised us that an election is but one of the prerequisites necessary to receive federal funding. A plan that has received public approval is the critical foundation from which all else will stem. Accordingly, I believe it would be irresponsible to ask the federal government for money without a clear, sensible and publicly supported plan.

I believe that once we have a complete plan that is accepted by the community, we will be in the strongest possible position to compete for federal funds.

In closing, whatever your decision is today, we should remember that this is ultimately not just about light rail. In fact, it’s about a planning process that will ensure that in twenty-five, fifty, and 100 years – the Austin region will be a world class community. The staff and I stand ready to respect your decision and implement whatever the board decides.