From: Greer Gillis <REDACTED>

Date: December 15, 2021 at 5:52 PM EST

To: “Knight, James” <REDACTED>, “Evans, Greg” <REDACTED>, “Nathaniel P. Ford” <REDACTED>
Subject: Summary Document Responses

Jim,

Thank you for the time you have spent over the last several weeks meeting with the JTA. We also thank
the District 2 Secretary for meeting with Mr. Ford earlier today. We have provided the responses below
in red italic type directly under the comments from the District 2 Office.

In addition, we will work to coordinate a meeting with Administrator Dr. Yvette Taylor from the FTA’s
Region 4, FDOT and JTA.

D2 met with JTA many times as this project was developed. In summer 2021 one of the MPO
board members questioned the eligibility of the project to receive state New Starts funding.
During D2’s review of the project to respond to the MPO member’s concern, D2 identified an
error in the ridership projections. The MPO voted to move forward with the project, determining
that the project is eligible as a BRT project. JTA updated the ridership to correct the error;
however, the updated ridership shows minimal usage (250-300 riders/day pre-covid numbers).
Also in Summer 2021 FDOT learned that JTA planned on awarding a design build operate and
maintain procurement without receiving a bid price from the design build team. Furthermore
the development of urban core capable mixed flow autonomous vehicles has lagged projections
for availability.

At the April 2021 MPO meeting, a MPO member, who is also a Jacksonville City Council Member
and a public opponent of the U2C program, stated their opinion that New Starts funding could
not be used for the U2C Bay Street Innovation Corridor (BSIC) project because it was not a BRT
project. That was incorrect and was clarified, later, by the JTA and FDOT through Florida Statute
341.051(5)(a) which states funds can be used for “any eligible public transit capital project or
commuter assistance that is local…” Since that time, the FDOT’s 2018 BUILD grant commitment
of 50 percent of the non-federal share toward this transit project seems to be in jeopardy after
multiple commitments in writing and approval of the allocation through the Florida Legislature.

As confirmed above, the District 2 Office requested the JTA update the ridership projection model
in September 2021, using their preferred growth projection numbers instead of the prior,
industry-accepted model approved by the State through the TCAR process and the USDOT FTA
through the Build Grant Award process. Knowing that these models are only predictions of the
future and not an exact science, the JTA agreed, in good faith, to rework the original numbers to
current projected growth. The numbers referred above by Mr. Knight, only depicts estimated
riders in the first year of the 3-mile BSIC project. It doesn’t take into account the build out of the
entire system and number of customers to be served over the lifetime of this transit system.

The JTA understands the FDOT’s desire to evaluate certain components of the innovative BSIC
project to its funding criteria for BRT, simply because the FDOT currently does not have new
criteria to evaluate its participation in new and innovative projects. To that end, the JTA
proposes to utilize the $13 million by the FDOT towards the elements of the BSIC project that
meet the criteria of BRT-type improvements, i.e. roadway improvements and maintenance
 facilities and other eligible work that is required by the Fully Funded Grant Agreement with the
USDOT. This way, the FDOT can point its investment in being toward the approved components
of a more traditional transit network system, removing any responsibility or concerns for the
newer technology related items, including the autonomous vehicles, and operations and
maintenance costs which will be the responsibility of the JTA.

D2 expressed concerns about the ridership versus project cost and requested the JTA revisit the
scope to lower costs. D2 also informed JTA that we were hesitant to allow expenditure of state
funds prior to having a set scope and bid price. The current JTA bid plan has very little incentive
for the single bidder to provide a competitive price.

The FDOT’s committed matching funds toward the BUILD Grant to implement the Bay Street
Innovation Corridor have been certain since the time the JTA pursued and secured the grant. As is
typical with these types of funding partnerships, FDOT committed up to 50% of the non-federal
share of the project costs. This equated to no more than $13 million as the FDOT’s share of the
project, based on the total project cost. As stated above, the JTA will commit to using the FDOT’s
share of funds towards the traditional elements of a transit project.

The JTA is unable, based on the commitments made as part of the BUILD Grant Application and
the subsequent executed Grant Agreement with the USDOT, to alter the scope of the project. In
regard to the procurement, since 2019, and based on input from the private sector, the JTA
publicly stated it was leaning toward a public-private partnership for development and
implementation of the U2C and a Design, Build, Operate and Maintain (DBOM) form of
procurement would be pursued. JTA understands this is not the typical way that FDOT procures
traditional transportation projects. However, based on industry feedback, the JTA proceeded in
this innovative direction. As a result, this has led to an Agreement where the costs are not-to-
exceed a total amount with the vendor. Since the time the BUILD grant was awarded,
construction costs have significantly increased. The JTA does anticipate an increase in the project
cost; however, the FDOT will bear no financial responsibility other than the $13 million of its
matching grant funds. Any costs above and beyond the $44 million estimated in 2018 and
awarded for the BSIC will be overseen and require approval by the JTA Board of Directors, who
are appointed by the Mayor and Governor. It should also be noted the BSIC development
contract is an open-book contract allowing for justification of all costs incurred.

D2’s last meeting with JTA was on November 2, 2021. At the meeting FDOT requested that JTA
revisit the scope to cut cost and JTA requested FDOT provide guidance on metrics for this type of
project. D2 also reiterated concerns about the bidding and the vehicle cost being extremely high
but not capable of operating autonomously. JTA indicated that the vehicle will likely not operate
autonomously the first year but felt by year two they would operate autonomously.

With regard to revisiting the scope to cut costs, the JTA is unable to do so based on the executed
Grant Agreement with USDOT. The FDOT’s funding share has been and still remains a not-to-
exceed $13 million matching grant. As stated above, this $13 million will only go toward the
elements within the proposed response that are traditional transit system elements. In hope, this
will alleviate the concern by the FDOT District 2 Office associated with the project scope.

Best regards,
Greer

Greer Johnson Gillis, P.E.

Senior Vice President - System Development and Capital Programs
Jacksonville Transportation Authority
[REDACTED]
[REDACTED]
[REDACTED]| www.jtafla.com

Begin forwarded message:

From: "Lee, Kenyatta" <REDACTED>

Date: December 6, 2021 at 3:24:51 PM EST
To: "Nathaniel P. Ford" <REDACTED>, Bernard Schmidt <REDACTED>
Cc: "Knight, James" <REDACTED>, "Evans, Greg" <REDACTED>, "Stutts, Elizabeth" <REDACTED>
Subject: FW: Summary Document

[EXTERNAL EMAIL] DO NOT CLICK links or open any attachments unless you recognize the sender and
know the content is safe.

Nat and Bernard,

Per our conversation, I suggested that you both follow up with Secretary Evans and Jim to provide the
requested information as referenced in the below email. Additionally, based on our previous
conversations, I suggest we have a meeting with FTA, FDOT and JTA to discuss the revised scope and
ridership projections for consistency purposes. Please let know if you have any questions. Thanks.

Kenyatta

From: Knight, James <REDACTED>

Sent: Monday, December 6, 2021 10:41 AM
To: Lee, Kenyatta <REDACTED>
Cc: Evans, Greg <REDACTED>
Subject: RE: Summary Document

D2 met with JTA many times as this project was developed. In summer 2021 one of the MPO board
members questioned the eligibility of the project to receive state New Starts funding. During D2’s
review of the project to respond to the MPO member’s concern, D2 identified an error in the ridership
projections. The MPO voted to move forward with the project, determining that the project is eligible
as a BRT project. JTA updated the ridership to correct the error; however, the updated ridership shows
minimal usage (250-300 riders/day pre-covid numbers). Also in Summer 2021 FDOT learned that JTA
planned on awarding a design build operate and maintain procurement without receiving a bid price
from the design build team. Furthermore the development of urban core capable mixed flow
autonomous vehicles has lagged projections for availability.

D2 expressed concerns about the ridership versus project cost and requested the JTA revisit the scope to
lower costs. D2 also informed JTA that we were hesitant to allow expenditure of state funds prior to
having a set scope and bid price. The current JTA bid plan has very little incentive for the single bidder
to provide a competitive price.

D2’s last meeting with JTA was on November 2, 2021. At the meeting FDOT requested that JTA revisit
the scope to cut cost and JTA requested FDOT provide guidance on metrics for this type of project. D2
also reiterated concerns about the bidding and the vehicle cost being extremely high but not capable of
operating autonomously. JTA indicated that the vehicle will likely not operate autonomously the first
year but felt by year two they would operate autonomously.

James M. Knight, P.E.

Urban Planning and Modal Administrator
Florida Department of Transportation District 2

[REDACTED]
[REDACTED]

From: Lee, Kenyatta <REDACTED>

Sent: Friday, December 3, 2021 8:26 AM
To: Knight, James <REDACTED>
Subject: Fwd: Summary Document

From: Greer Gillis <REDACTED>

Sent: Thursday, November 18, 2021 3:21:42 PM
To: Lee, Kenyatta <REDACTED>
Cc: Jessica Shepler <REDACTED>
Subject: Summary Document

EXTERNAL SENDER: Use caution with links and attachments.

Kenyatta,
Please find attached a summary document for your use. Please feel free to contact us if you have any
questions or need further information. Thank you!

Best regards,
Greer
Greer Johnson Gillis, P.E.
Senior Vice President - System Development and Capital Programs
System Development Division
Jacksonville Transportation Authority
100 LaVilla Center Drive
Jacksonville, FL 32204
[REDACTED]
[REDACTED]
[REDACTED]| www.jtafla.com