Watson to CapMetro: Follow up is key

AUSTIN (KXAN) - Sen. Kirk Watson has called on Capital Metro this afternoon to take its general agreement with recommendations contained in a recent scathing audit and "be biased toward action."

Capital Metro posted its required response to the Sunset Advisory Commission review on Thursday afternoon, agreeing with most of the recommendations noted by the state agency. 

The response points out it already had addressed a number of concerns, such as the creation of a rail director position and consideration of new financial reserve policies. The agency was a bit more tepid on a recommendation to competitively bid its bus service, which the commission predicted could save millions.

"Capital Metro agrees that the current organizational structure between Capital Metro and StarTran is confusing and should be addressed. Conversations about how to best resolve this issue have occurred for many years and the Board will consider different options and structures for providing transit-related services," the agency wrote in a letter signed by board president Mike Martinez and Interim CEO Doug Allen. "There are significant legal and financial matters that must be fully evaluated in order to ensure that the proposed recommendation will not introduce additional challenges and risks."

Watson issued his own response to Capital Metro's response, saying he was pleased that the agency was in agreement with the Sunset Commission and appeared poised to move forward.

"But actions speak louder than words," Watson said in his statement. "I, along with the rest of this region, will be watching to see that Capital Metro follows through on these changes. The agency, and the board, must be biased toward action."

Last month, the Texas Sunset Advisory Commission said Capital Metro needed a major overhaul in those areas.

The report said CapMetro could save $66.4 million throughout the next five years if it follows its recommendations, including competitively contracting its transit services and making management changes.

Read the entire 55-page report here.

Capital Metro spokesman Adam Shaivitz said the agency would respond to each recommendation line by line.

Sen. Kirk Watson sponsored the report he asked for in legislation passed in 2009 .

"This review, resulting in a detailed report, is exactly what I wanted – and what this community has needed – for some time," Watson said last month.

The major findings of the report said:

• Capital Metro has failed to responsibly manage its finances.
• Costs for Cap Metro’s In-house transit Services are excessive.
• Cap Metro must improve commuter rail safety before expanding its rail system
• The Board has not effectively engaged stakeholders, eroding public trust in its decisions.

The report said that in anticipation of building passenger rail, Cap Metro built up more than $200 million in reserve funds but did not responsibly manage these funds.

It also said the "board took on financial liabilities without setting aside money to pay for its commitments and did not consider the long-term consequences, and that the board did little to rein in the high costs of its basic services and greatly underestimated the costs of the commuter rail."

"With little money left in reserve and sales tax revenues down, CapMetro’s overspending cannot be sustained," the report said.

The Sunset Advisory Commission will schedule a hearing for either May 25 or May 26, where Sunset staff will formally present their findings and recommendations.