MEETINGS OF THE Boards of Directors

Transcription

1 MEETINGS OF THE Boards of Directors Joint Meeting of Valley Metro RPTA and Valley Metro Rail Valley Metro RPTA Valley Metro Rail Date Thursday, January 19, 2017 Starting time 11:15 a.m. Meetings to occur sequentially Location Valley Metro Lake Powell Conference Room (10A) 101 N. 1 st Avenue, 10 th Floor Phoenix If you require assistance accessing the meetings on the 10 th floor, please go to the 13 th floor or call VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

2 January 12, 2017 Joint Meeting Agenda RPTA Board of Directors and Valley Metro Rail Board of Directors Thursday, January 19, 2017 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 11:15 a.m. Action Recommended 1. Items from Citizens Present (yellow card) 1. For information An opportunity will be provided to members of the public at the beginning of the meeting to address the Board on non-agenda items. Up to three minutes will be provided per speaker or a total of 15 minutes for all speakers. 2. Chief Executive Officer s (CEO) Report 2. For information Scott Smith, CEO, will brief the Boards of Directors on current issues. 3. Minutes 3. For action Minutes from the December 15, 2016 Joint Boards of Directors meeting are presented for approval. 4. Public Comment on Agenda Action Items (blue card) 4. For information The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

3 5. Change Order to the Cleaning Services Contract 5. For action Scott Smith, CEO, will recommend that the Boards of Directors authorize the CEO to make a contract modification with DMS Facility Services for operations cleaning services in an amount not to exceed $1,088,540 for the period January 1, 2017 to December 31, The Valley Metro Rail portion will not exceed $1,062,671. The RPTA portion will not exceed $25, Possible Executive Session The Board may vote to enter Executive Session pursuant to A.R.S (A)(3) (Legal Advice) and (A)(4) (Litigation, Contract Negotiations, and Settlement Discussions) to discuss and consult with attorney(s) in order to receive legal advice, consider Valley Metro s position regarding claim(s) and related issues, and to instruct and authorize attorney(s) to proceed regarding claims that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve possible litigation. 7. Executive Session Action Items The Boards may take action related to items discussed as part of the Agenda Item FY18 Agency Budget Initiatives 6. For possible action 7. For possible action 8. For information Scott Smith, CEO, will introduce Paul Hodgins, CFO, who will provide an informational update on the development of the FY18 Agency Budget, and specifically the recommended initiatives for incorporation into the FY18 budget, as defined in the Five-Year Strategic Plan. 9. Travel, Expenditures and Task Order Changes 9. For information The monthly travel, expenditures and task order changes for Valley Metro RPTA and Valley Metro Rail are presented for information. 10. Future Agenda Items Request and Report on Current Events 10. For information Chairs Williams and Mitchell will request future agenda items from members, and members may provide a report on current events. 2

4 Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 3

5 DATE AGENDA ITEM 1 January 12, 2017 SUBJECT Items from Citizens Present PURPOSE An opportunity will be provided to members of the public at the beginning of the meeting to address the Joints Boards of Directors on non-agenda items. Up to three minutes will be provided per speaker or a total of 15 minutes for all speakers. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

6 DATE AGENDA ITEM 2 January 12, 2017 SUBJECT Chief Executive Officer s Report PURPOSE Scott Smith, Chief Executive Officer, will brief the Boards on current issues. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

7 DATE AGENDA ITEM 3 January 12, 2016 Minutes of a Joint Meeting of Valley Metro RPTA and Valley Metro Rail Boards of Directors Thursday, December 15, :15 a.m. RPTA Meeting Participants Councilmember Thelda Williams, City of Phoenix, Chair Councilmember Suzanne Klapp, City of Scottsdale, Vice Chair Councilmember Lauren Tolmachoff, City of Glendale, Treasurer (phone) Councilmember Jim McDonald, City of Avondale (phone) Councilmember Kevin Hartke, City of Chandler Councilmember Jack Palladino, City of El Mirage (phone) Councilmember Brigette Peterson, Town of Gilbert Councilmember Sharolyn Hohman, City of Goodyear Vice Mayor Dennis Kavanaugh, City of Mesa Councilmember Skip Hall, City of Surprise Mayor Mark Mitchell, City of Tempe Members Not Present Councilmember Eric Orsborn, City of Buckeye Supervisor Steve Gallardo, Maricopa County Vice Mayor Jon Edwards, City of Peoria City of Tolleson Councilmember Rui Pereira, Town of Wickenburg Valley Metro Rail Meeting Participants Mayor Mark Mitchell, City of Tempe, Chair Vice Mayor Dennis Kavanaugh, City of Mesa, Vice Chair Councilmember Rick Heumann, City of Chandler Councilmember Lauren Tolmachoff, City of Glendale (phone) Thelda Williams, City of Phoenix Chair Williams said we have a very special guest. Mr. Minnaugh, would you like to tell us? Mr. Minnaugh said yes. Thank you, Chair. Happy holidays from Valley Metro and to everyone here today, and, of course, the Boards of Directors. In the interest of time, although we're waiting for a quorum, there are some comments and fun things today that we can go through before any potential action items need to take place. Mr. Smith is in transit and will be here shortly. So we've launched our 2016 VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

8 holiday campaign at Valley Metro with sleigh inspired wraps and interior decorations on two buses and a light rail train. And this all occurred the week of November 28. In addition, Valley Metro created a holiday ride guide and brochure. And I know, in fact, I think in front of each one of you, you'll see that brochure. And we're actually in the process of planning a two rider appreciation -- two rider appreciation events to hand out ornaments, goodies, and ultimately to engage with more riders than we normally would during this holiday season. Valley Metro staff was out at First Friday in Phoenix and Merry on Main in Mesa. The past two weekends spreading more holiday cheer. You can see behind us some of the great fun we've had at these events. Moving on, the 17th Annual Design a Transit Wrap contest was launched. It was launched -- we launched the 17th Annual Design a Transit Wrap contest for high school students. In fact, the winning illustration will be wrapped on a bus and train for an entire year. Submissions are due mid-february, on February 17, and we're anxiously awaiting to see how creative some of the contestants will be. This program and the Cool Transit stuff program, that's S-T-U-F-F, Calendar Art contest for third graders are great opportunities to engage local youth and get them really excited about the impact of public transportation in our communities. The 2017 Cool Transit Calendars are also in front of you at your place. And, please, take them and spread them around your cities. The theme for the 12th annual cool -- the 17th Annual Cool third grade art contest is: Valley Metro Hop Aboard and Let's Explore. In fact, we're lucky here today to have a guest, Summer Fairbanks. Summer Fairbanks is the best of show winner. She's a student at Zahairus Elementary School in Mesa. Summer and her mom are here today. And actually after this great photo opportunity, Summer has to go back to school. And the last thing we'd ever want to do is make her late for that. But I think today was just an exciting opportunity for her. Chair Williams, as you make your path back to your seat, I think it's important for us to understand how staggering the numbers that are associated with this project. There were over 580 entries received from 46 different schools in the Valley. Summer's entry was the only one from her school and she had heard about the contest, probably from her mother and father, but she had heard about it from information posted at the Red Mountain Library in Mesa. 2

9 A total of 17 third graders were awarded prizes and have their artwork in the 2017 Transit Education Calendar. We would, again, like to congratulate Summer and her family for being here today and, you know, giving us an opportunity to take some pictures of you. 11:33 a.m. Chair Williams said thank you very much. We have a quorum and will now call the official joint meeting to order. We are going to do the joint meeting first so everybody knows where we're at. And would everyone stand and say the Pledge. 1. Items from Citizens Present Mr. Crowley said good morning and happy season to you. I'm not going to say that I miss my Duck Dynasty beard, but I did pass for Santa from time to time, but it has been fun playing it lately. I'm coming here today on the non-agenda items to continually complain that you are not doing well enough to get the whole thing done. But more than that, I've got Qognify search -- Suspect Search Contract Award, which went up before the transit managers. And it's your police believing that they need to have a more robust CCTV search solution beyond the basic. And this approach needs more expanding funds on another solution and staff training for the solution. And then it says the amount of $650, what is this to do with your mission statement of getting stuff out there? We're gonna be searching for suspects. And the strategic planned alignment of this is, it says, goal one is customer focus is to improve customer satisfaction that you're being searched, you know, blatantly, and who's gonna have access to it. As one of the managers asked, where is the civil liberties part of this and the expectation of privacy? And, like I said, are you her police force? Is that what your job is? And let's be looking at all of our clientele that use the system, because, you know, criminals, they're all criminals, because we've got to look at all of them. And then, it says, performance based operations to operate an effective, reliable and high-performance transit system. I hate shams like that. Now it did get tabled, and I did ask a couple of you: Do you know anything about this, and you said no. So we need to get you back in line to what the people that wrote Prop 400 want you to do. And I would say I know personally what their feelings were since I'm one of the ones that wrote that. We wanted you to use the grid to the maximum of its abilities. 3

10 When I look at the audits coming up in each of your different communities, starting with Mesa 30 percent has transit, or 70 percent has nothing. Avondale, thank you for getting part of the grid going out there, but we still need to get north and south. And that according to the plans isn't what you have been doing for how long, because when you consider that you're now doing a smidgen, thank you, Phoenix, at 83rd and 75th Avenue, the west side doesn't stop at 67th Avenue going north and south. So, Goodyear, we need you to get the bus both ways going. That's what we got the moneys out there for. That's what your citizens are paying for. It's just not a railroad. It's not just the freeways or arterial streets. It was the bus system to work with the other parts of the equation -- the RAPID bus and the rail. See you in a little bit. 2. Chief Executive Officer s Report Chair Williams said we can delay and come back to you, or are you ready to go? Mr. Smith said Madam Chair, if we could, if we could do this right after the exec session, I would appreciate that. 3. Minutes Chair Williams said we will take this out of order. And we'll go to the minutes next. Any discussion, comment, changes, or a motion? IT WAS MOVED BY COUNCILMEMBER HEUMANN, SECONDED BY COUNCILMEMBER MCDONALD AND UNANIMOUSLY CARRIED TO APPROVE THE NOVEMBER 10, 2016 JOINT BOARD MEETING MINUTES. 4. Public Comment on Agenda Action Items Mr. Crowley said the Prop 400 performance audit results. Who's supposed to do that audit? CTOC. Does CTOC exist at this moment? Well, it's a little shaky and that. But so what you guys are doing is, according to Hoyle and the law, as I had requested to get a copy of this, I have not gotten it in my hot little hands yet, but when it comes to that performance audit and who is supposed to be doing what, I go to the back page and, like I said, I don't have it with me, but this is just staff's attempt to do what. It says percentage of scheduled trips operated. Nice number. If a bus breaks down on route, flat tire, you know, it's still going to have a scheduled trip operated, because as soon as they get that tire on that bus will do its route, whether it's two hours later, ten 4

11 hours later, whatever, because the company charges you by the inch and it wants to get that. A lot of times they don't even pick up anybody, but they do the routes, so nice number, but you need to get underneath it a bit. Customer complaints, farebox recovery, I like that 25 percent, because that's what you used to get rid of the Wickenburg connector. And if you look at the little subtleties in there of peer city comparisons, that 21 percent is what we're doing, peer average 19, and a variance of 12.9, because most of those are below what we are trying to attempt to get. And then subsidies. And when it says strengthen capital projects. What do we want to do? When it comes to the bus, what capital projects do you do, joint committee? Park-and-rides? Ooh, bus stops? Not unless you're doing a whole bunch of them it isn't considered. Acquisition of buses? So when I see that, I go, gee, they want to make the rail look so nice, but you're not doing what you're supposed to be doing, and the audit isn't showing what that is, and it needs to be addressed. Like I said, on the capital projects we need to have been getting more of the buses. We need each of your communities to be having more of the grid operated. And until you do that, are you doing your job. It's like I've been trying to get the Wickenburg connector back put in, and what's happening on that. We'll talk later. Have a pleasant. I'll see you at the next meeting after exec. 5. Proposition 400 Performance Audit Results Chair Williams said next is Item 5. The Prop 400 Performance Audit. Mr. Smith said thank you, Madam Chair. And I can give my -- the last of my report after him before we go into exec, if you'd like. I'd like to bring Paul Hodgins up here to talk about the prop 400 audit results. Paul. Mr. Hodgins said thank you, Mr. Smith. Madam Chair, Members of the Board, the statute requires the auditor general to perform a performance audit every five years and report back to the legislature. This is the second performance audit for Prop

12 Earlier this year, the auditor general hired Sjoberg Evashenk Consulting to perform the audit. And their -- in general, their conclusions they reported that the RTP partners have planned and implemented many strong activities and strengthened existing processes and the project management techniques used by the RTP partners were aligned with industry best practices. They noted that performance data reveals the results are comparable to or better than peers across the country. And specific to transit performance measures, such as operating cost per mile, boardings per mile, the ones noted on the screen, that Valley Metro outperforms its peers in all of these categories. Their overall conclusion is that based on the audit work performed, there are no significant changes warranted for the transportation system. They did come up with twelve findings, improvements for efficiencies. Three of them -- three of the twelve are specific to Valley Metro regarding score cards that are published on the Web, coordinating with MAG to ensure that all the score cards are in one location, and establishing key targets -- or targets for key performance indicators. They noted that we did good work with the transit standards and performance measures, but recommended we actually have targets, because we don't have any targets set. So attached to the memo is a letter from Mr. Smith to, I believe, to the auditor general responding to the findings. We agree and will implement these as noted. The statute, though, recommends or requires that the Board take formal action on those findings, so we're asking that the Board forward these or ratify the recommendations to the auditor general. That concludes my report. I would be happy to answer any questions. Chair Williams said does anyone have any questions? Okay. Hearing none, I believe Mr. Scott's letter is sufficient to address these. And I assume that you will bring back the targets for the Board to review in the future? Mr. Hodgins said yes, that would come back through the board process. IT WAS MOVED BY COUNCILMEMBER MCDONALD, SECONDED BY COUNCILMEMBER HOHMAN AND UNANIMOUSLY CARRIED TO AUTHORIZE THE CEO TO SUBMIT THE ATTACHED COMMENTS TO THE MAG TPC RELATED TO FINDINGS OF THE PROPOSITION 400 PERFORMANCE AUDIT. (moved back to Chief Executive Officer s Report) 6

13 Chair William said Mr. Smith do we want to hear yours or go to E-session? Your pleasure. Mr. Smith said we're looking for Vice Mayor Kavanaugh, since we have a nice recognition for him, so, Madam Chair, I can give the report except for that. We can pick that up later, however if you would like to do that. You've received the first part of the report about some of the holiday activities we have. I just wanted to add one thing. And this is really a shout-out to our staff and to the people we work with. You know, we have no problem hearing when things go wrong. And in a system this big and with the number of interactions we have, we invariably have challenges. One of the great things that happened over last weekend was the Polar Express in Mesa which exceeded everybody's expectations. We had literally people lined up off the platform. I think you saw some of the pictures of the families that showed up with very minimal promotion. It was a just an absolutely stellar excuse. We had one incident that happened that I want to read you a note that we got from one of our private patrons. And what happened is one of the families that was on there, the mother lost an envelope with cash in it while on the Polar Express. And things turned out well and I want to read this to you. This is what she sent to or posted on Facebook. "This wonderful security guard is an angel. I had an envelope with our rent money in it in my back pocket on the Polar Express and it fell out. We didn't notice until we were halfway home. I called Valley Metro in tears. They quickly called the rail and told me she had found it and immediately put it up waiting for me to come back. If you only knew what you did for my family. God bless you." Now, you have to understand there were several layers that were involved in this process. This poor woman, I can only imagine the panic that set in when she realized that her rent money was gone. She called our call center and got one of our call center agents, who then recognized the severity -- and rather than just saying, gee, there's nothing I can do for you -- really sought out and called our operations center. Our operations center then called the supervisor on the platform, who then talked to the security guards. And then they found out that they had it and the supervisor there held it. So all along the line people went beyond what was normal protocol, you might want to say, and really saved the day for this woman. So I just wanted to let you know that we often hear about the things -- when things go 7

14 wrong, I wanted to give you an example of when the system worked. And our stellar employees and the employees of ACI, our contractor on light rail, and Allied Barton and the Mesa police, who all were there that day, really, really shined. So I just wanted to give you that bit of information, because it's good to share, good to celebrate when things go right. I also want to tell you that as part of one of our initiatives, we are working with outside agencies, especially on our tribal outreach. This is, once again, part of our long-term security plan, which is prevention -- focused on prevention and intervention. We have this tribal ad hoc outreach committee. We're working with Native American Connections office and other service providers that when we encounter someone who has a problem in our system they can be identified if they're Native American. Rather than just push them away or rather than involving the police, we actually have a program in place where we're getting them connected with the services they need. So we take care -- it's a win-win. We take care of our issue, which is to hopefully keep them off our transit where they can perhaps do something wrong, but also get them the help they need so that they're not just pushed back out and pushed away, which is certainly not want what we want to do. So that's another thing that we're doing. The next meeting we have will be held in January. One thing I'd like you to also know is that -- and I want to throw this thing out to you, we have developed an app for our meeting agendas. The idea and the goal, long-term goal, is to move everybody away from paper. And it looks like most of you are already there. We do still deliver packages to some Board members and we produce them for others. And just so you know, we now have an app. You can download it if you have an iphone or an ipad. And if you don't we have ipads for you. We will provide ipads for you. So if you don't have one -- Bill, are you going to arrange that -- talk to Bill Tsuei after this meeting, and he'll arrange for you to have an ipad from Valley Metro and will help you download that app. Now here's why it's important. Beginning in February -- in January we're going to let you ease into it. Beginning in February we will not be printing or delivering paper agenda, unless you absolutely get on the floor, scream and yell. No, if you ask and request it for whatever reason, we will continue to provide that, but our goal is to move completely to digital. We will provide written for those of you who want it, but we're going to make it easy both by providing the app and providing the 8

15 ipad. If you don't want an ipad or whatever, we're currently developing an Android app. And that will have all of the agendas and the backup material will be digital and you'll be able to just pull it up. It works really slick. I've already tried it out. And that will begin with the February meeting. Okay. If you have any questions, please ask me or ask Bill our IT officer. Yes, Suzanne. Councilmember Klapp said will you be developing any kind of other materials that will go on the app like committee meetings, et cetera? Mr. Tsuei said eventually we're going to develop the integrated portion of the apps, so we are currently working an Android version, should be available next week. And then after that we will develop a Windows version of the apps, also be able to download if you're using Surface or Windows phone. And then we are going to tackle the TMC/RMC portion, as well as some future calendar item as well. Mr. Smith said so the idea is that all meetings, all committee meetings, and any other data that you have will be available through this app. Councilmember Heumann said so as all this is public record, will the public have access to this app as well? Mr. Smith said yes. Mr. Tsuei said yes. It's available through the Apple Store, Google Play and also a Windows store. Mr. Smith said and now, welcome, Vice Mayor. Your timing is impeccable, because we'd like to recognize three of our Board members who have served us on both these entities. As a matter of fact -- well, two of them have served both, one serving RPTA for many years, who are serving at their last Board meeting today: Councilmember Heumann from Chandler, Vice Mayor Dennis Kavanaugh from Mesa, and Councilmember Jim McDonald from Avondale. I would like to thank them for their service and recognize them. Beginning with Councilmember Heumann: He's been a Board member since 2010; he helped provide the leadership for the City of Chandler in evaluating and incorporating high-capacity transit through the initiation of the Fiesta Downtown Chandler Transit Corridor Study; working to successfully open two light rail extensions in Mesa and Phoenix ahead of 9

16 schedule and on budget, as part of the Valley Metro Rail Board developed a unique and award-winning array of public art as part of the Valley Metro rail system enhancing station areas in reflecting the neighboring community. Vice Mayor Dennis Kavanaugh has been a Board member since And as one who worked with him on the City Council for six years, I can tell you Vice Mayor Kavanaugh has been a strong voice in supporting all forms of transit, especially the Central Mesa Extension light rail into Mesa, both the original 20 mile when he served before, and then the three-mile extension, which got us through downtown, and opened up in August of He has worked tirelessly on behalf of transit and has been a great advocate for transit and for Valley Metro. Councilmember Jim McDonald was a Board member since He worked to help initiate and expand the Avondale ZOOM neighborhood circulator to provide enhanced mobility for residents in the West Valley in his city, connecting them to local destinations; and regional project options worked hard on the regionalization of the Dial-A-Ride system services for people with disabilities and seniors across the Phoenix metro community, which is a great accomplishment of this entire region; and fulfilled commitments to develop the Prop 400 fund and transportation plan with the opening of new regional facilities including mobility center for ADA assessments. Councilmember McDonald served as our Board Chair just recently, just up until June. So on behalf of the Boards of Directors, the Valley Metro staff, and the public thanks to the three of you. We're going to miss you and these are big shoes to fill. We appreciate getting to work with you. So if we could give these three servants a round of applause. Now we also have for your closet, your wall, wherever you want to put it, nice little certificates of recognition, so if you'll come up here, we'll be happy to present these to you. Chair Williams said I just want to congratulate and thank all of you for all of the hard work, many hours, and frustrations sometimes you have put in on this Board. It has been a pleasure to work with you and you will be missed. 6. Possible Executive Session Chair Williams said the next item on the agenda is a possible E-session, and I believe we are going to have one. (RPTA Motion) 10

17 IT WAS MOVED BY COUNCILMEMBER PETERSON, SECONDED BY COUNCILMEMBER KLAPP AND UNANIMOUSLY CARRIED TO ENTER INTO EXECUTIVE SESSION. (VMR Motion) IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO ENTER INTO EXECUTIVE SESSION. (Meeting adjourned at 11:58 a.m.) (Meeting reconvened at 12:47 p.m.) 7. Executive Session Action Items Chair Williams said everybody's back. We will talk about Item 7. Executive Session Action Items. I know we have one action from Suzanne. Councilwoman. IT WAS MOVED BY COUNCILMEMBER KLAPP, SECONDED BY COUNCILMEMBER HEUMANN AND UNANIMOUSLY CARRIED TO APPROVE PAUL HODGINS AS THE NEXT CFO. 8. Travel, Expenditures and Task Order Changes This item was presented for information. 9. Future Agenda Items Request and Report on Current Events Chair Williams said does anyone have any future agenda items for the joint committee? Hearing none, we will adjourn this and go to RPTA meeting. With no further discussion the meeting adjourned at 12:50 p.m. 11

18 DATE AGENDA ITEM 4 January 12, 2017 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Boards on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

19 DATE AGENDA ITEM 5 January 12, 2017 SUBJECT Change Order to the Cleaning Services Contract PURPOSE To request authorization for the Chief Executive Officer (CEO) to make a contract modification with DMS Facility Services for operations cleaning services in an amount not to exceed $1,088,540 for the period January 1, 2017 to December 31, The Valley Metro Rail portion will not exceed $1,062,671. The RPTA portion will not exceed $25,869. BACKGROUND/DISCUSSION In November 2015, the Board of Directors authorized the CEO to execute a contract with DMS Facility Services to provide operations cleaning services effective January 1, 2016 for a total term of 5 years (3-year base contract plus one two-year renewal option). For the total term of the contract, the award cost was $9,530,200. The Valley Metro Rail (VMR) portion was not to exceed $9,248,300. The RPTA portion was not to exceed $281,900. DMS Facility Services has provided a stable workforce and more than a satisfactory level of quality service that enhances operations and contributes to ridership growth and low customer complaints. DMS Facility Services provides all necessary vehicles, tools, supplies, materials and other related equipment required to perform the cleaning services defined in the contract. Services performed under this contract include a full range of cleaning services related to bus and light rail summarized below: Valley Metro Mesa Bus Operations and Maintenance Facility; Valley Metro Operations and Maintenance Center (OMC); Light rail park-and-ride lots and security kiosks, including street sweeping at park-and-rides; Light rail operator facilities at end-of-line stations; Pressure washing light rail passenger stations; Cleaning of spills and litter removal from light rail vehicles during operating hours; Cleaning of artwork along the LRT alignment on a quarterly basis: and Cleaning of light rail vehicles (nightly cleaning at OMC). Due to the passage of Proposition 206 in November 2016, beginning in January 2017, Arizona will have increases in the minimum wage. The minimum wage will increase from $8.05 to $10.00 January 1, 2017; $10.50 January 1, 2018; $11.00 January 1, 2019 and $12.00 January 1, 2020 (total of a 49% increase over 2016). Also, beginning July 1, 2017, Arizona workers shall accrue, and have the legal right to use, a minimum amount of Paid Sick Time benefits each year. Employees can accrue a maximum of 40 hours VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

20 of paid sick time per year. These increases have a direct effect on the costs for services that are provided to Valley Metro and adjustments to the contract are needed in order to consistently retain the proper level of staffing on the project. It has been our experience that for the type of cleaning performed and the an approximate 25% over minimum wage is required to attract and retain the proper staffing. COST AND BUDGET The cost of the change order to the cleaning services contract with DMS Facility Services over the remaining four years of the contract is an amount not to exceed $1,088,540 as detailed in the chart below. Calendar Year VMR RPTA Total Increase % Increase 2017 $225,063 $5,094 $230, % 2018 $245,694 $5,823 $251, % 2019 $232,484 $6,589 $239, % 2020 $359,430 $8,363 $367, % Total $1,062,671 $25,869 $1,088,540 For the Fiscal Year 2017, The VMR contract obligation is $112,532, which is fully funded within the VMR Adopted FY17 Operating and Capital Budget. Contract Obligations beyond FY17 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021). For the Fiscal Year 2017, The RPTA contract obligation is $2,547, which is fully funded within the RPTA Adopted FY17 Operating and Capital Budget. Contract Obligations beyond FY17 are incorporated into the RPTA Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021). The source of funding is member cities. COMMITTEE PROCESS RTAG: December 20, 2016 for information TMC/RMC: January 4, 2017 aprpoved Boards of Directors: January 19, 2017 for action 2

21 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 1: Increase customer focus o Tactic A: Improve customer satisfaction Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system RECOMMENDATION Staff recommends that the Boards of Directors authorize the CEO to make a contract modification with DMS Facility Services for operations cleaning services in an amount not to exceed $1,088,540 for the period January 1, 2017 to December 31, The Valley Metro Rail portion will not exceed $1,062,671. The RPTA portion will not exceed $25,869. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 3

22 DATE AGENDA ITEM 6 January 12, 2017 SUBJECT Possible Executive Session PURPOSE The Board may vote to enter Executive Session pursuant to A.R.S (A)(3) (Legal Advice) and (A)(4) (Litigation, Contract Negotiations, and Settlement Discussions) to discuss and consult with attorney(s) in order to receive legal advice, consider Valley Metro s position regarding claim(s) and related issues, and to instruct and authorize attorney(s) to proceed regarding claims that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve possible litigation. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION The Board may vote to enter Executive Session. CONTACT Michael Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

23 DATE AGENDA ITEM 7 January 12, 2017 SUBJECT Executive Session Action Items PURPOSE The Board may take action related to items discussed as part of the Agenda Item 6. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION The Board may take action related to the items discussed as part of Agenda Item 10. CONTACT Michael Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

24 DATE AGENDA ITEM 8 January 12, 2017 SUBJECT FY18 Agency Budget Initiatives PURPOSE To provide an informational update on the development of the FY18 Agency Budget, and specifically the recommended initiatives for incorporation into the FY18 budget, as defined in the Five-Year Strategic Plan. BACKGROUND/DISCUSSION/CONSIDERATION In January 2015, the Valley Metro RPTA and Valley Metro Rail Boards adopted the Valley Metro Strategic Plan for FY16 through FY20. The Strategic Plan provides clear definition of the purpose of the organization and establishes realistic goals and objectives for a five-year period. This plan ensures the most effective use of the organization s resources by focusing those resources on key priorities. In addition, the plan provides a basis from which progress can be measured and provides the foundation for the budget process, as illustrated below. The Adopted Strategic Plan included short-term tactics (FY16), mid-term tactics (FY17 and FY18) and long-term tactics (FY19 and FY20). When the plan was adopted in 2015, Phoenix s T2050 initiative had not yet been passed by voters and the Tempe Street Car Project had not yet been adopted by the City of Tempe. The initiative and other capital project decisions have advanced a number of significant planning and capital projects that will impact Valley Metro in a variety of areas. The increased level of activity may require additional resources over the next two to five years to address the major expansion in rail capital and operating activities over the next ten years. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

25 Staff has added several initiatives to the mid-term tactics that align with the Five-Year Strategic Plan, address the needs an expanded planning and capital budget and which will be incorporated into the FY18 budget. The updated list of mid-term tactics are summarized below, with new initiatives for FY18 noted with an asterisk: 1. Increase Customer Focus: Improve Customer Satisfaction; customer amenities; new tech Evaluate and enhance passenger safety and security Enhance customer service to member cities Enhance services & facilities for seniors & people with disabilities 2. Advance Performance Based Operation: Operate an effective, reliable, high performing transit system Enhance Valley Metro s role in sustainability and the environment. Deliver projects and services ontime/on-budget Maintain a culture to recruit and retain a qualified and diverse workforce Maintain strong fiscal controls to support Valley Metro s long-term sustainability 3. Grow Transit Ridership: Mid-Term Initiatives Develop smart card fare program/mobile ticketing Renovate website & mobile site * Increase presence of safety and security to address passenger and employee safety Maintain open lines of communication Develop a more seamless, cost-effective ADA Dial-a-Ride network with cities as partners Develop an asset management plan for Valley Metro in conjunction with member agencies * Develop standards for system state of good repair in conjunction with asset management plan, incorporate into budget process Ensure Valley Metro operations service and maintenance performance indicators meet or exceed industry standards and historical expectations Implement the Sustainability Action Plan and Program as approved by the Boards in August 2014 Advance projects and services in the current regional transportation plan and Transit Life Cycle program Deliver capital projects on-time/on-budget Develop a program to recruit and retain a qualified and diverse workforce * Complete a zero-base review of staffing to ensure resources are allocated optimally * Create, review, update all policies relating to fiscal controls 2

26 Expand and improve transit services to reach new markets; partner with stakeholders to incentivize expanded transit/alternative mode use Improve connectivity of transit services for greater effectiveness. Communicate availability, attractiveness and safety of transit service Partner with the business community to provide transit services to support their economic growth and attract new businesses 4. Focus on Economic Development, Regional Competitiveness and Financial Resources: Work with local communities to leverage transit oriented development (TOD) to increase investment in transit Pursue all available funding opportunities for transit projects and services 5. Advance the value of transit: Develop and implement a communications plan to inform and educate the public on the value of transit Collaborate with member agencies to advance the value of transit Maintain sound relationships with federal, state and regional agencies Review fare policy to encourage new business participation by offering incentives Analyze the region s transit system to optimize connectivity between transit services, including new LRT extensions Conduct discretionary ridership campaigns to continue to attract riders Engage with business community Research and monitor and report regional trends regarding TOD implementation and successes Aggressively pursue federal transit funding opportunities at the regional level Develop strategy to pursue federal discretionary funds for future transit corridor projects Conduct targeted outreach to share the value of transit Communicate the importance of public transit to city councils and elected officials Communicate the value of transit to federal elected officials COST AND BUDGET The FY18 budget will incorporate and identify costs associated with the Strategic Plan initiatives. STRATEGIC PLAN ALIGNMENT This item relates to all goals and strategies identified in the Five-Year Strategic Plan. COMMITTEE PROCESS 3

27 RTAG: December 20, 2016 for information TMC/RMC: January 4, 2017 for information AFS: January 12, 2017 for information Board of Directors: January 19, 2017 for information RECOMMENDATION This item is for information only. CONTACT Scott Smith Chief Executive Officer ATTACHMENT 4

28 DATE AGENDA ITEM 9 January 12, 2017 SUBJECT Travel, Expenditures and Task Order Changes PURPOSE The monthly travel and expenditures are presented for information. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Paul Hodgins Chief Financial Officer phodgins@valleymetro.org ATTACHMENT Valley Metro Travel Reimbursement Report Valley Metro RPTA and Valley Metro Rail Monthly Accounts Payable over $25,000 VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

29 Job Title Purpose of Travel Location Dates Traveled Valley Metro Travel Reimbursement Report For Travel Completion Dates November 26, 2016 through December 25, 2016 Total Travel Cost Airfare Other Transport Lodging Meals Misc. Consultant FTA Quarterly Mtg San Francisco, CA 12/4/16-12/5/16 $ $ $60.48 $ $98.25 $ Director, Capital & 1 Service Development FTA Quarterly Mtg San Francisco, CA 12/4/16-12/6/16 $ $ $8.95 $ $ $22.00 Project Manager FTA Quarterly Mtg San Francisco, CA 12/4/16-12/5/16 $ $ $8.95 $ $98.25 $0.00 Project Manager FTA Quarterly Mtg San Francisco, CA 12/4/16-12/5/16 $ $ $64.00 $ $98.25 $0.00 Project Control FTA Quarterly Mtg Manager San Francisco, CA 12/4/16-12/5/16 $ $ $49.48 $ $98.25 $0.00 Manager, 2 Administrative Support Services and Project Management MOD Sandbox Mtg Atlanta, GA 12/11/16-12/13/16 $1, $ $61.78 $ $ $50.00 Sr. Application MOD Sandbox Mtg Developer Atlanta, GA 12/11/16-12/13/16 $ $ $3.50 $ $ $0.00 Chief Technology MOD Sandbox Mtg 1 Officer Atlanta, GA 12/11/16-12/13/16 $ $ $3.50 $ $ $33.00 Chief Operating Officer FTA Quarterly Mtg San Francisco, CA 12/4/16-12/5/16 $ $ $20.00 $ $ $0.00 Project Manager SC LRT Project Funding Washington DC 11/8/16-11/9/16 $1, $1, $35.75 $ $88.50 $0.00 Chief Technology Officer APTA Board Mtg Washington DC 11/30/16-12/3/16 $1, $ $66.31 $ $ $33.00 Report reflects Out of State (AZ) Travel 1 Airport Parking 2 Luggage

30 Valley Metro Regional Public Transportation Authority Monthly AP Payments over $25,000 November 21, December 20, 2016 Transaction Document NumbName Transaction Description Effective Date Amount W002 FirstGroup America, Inc. Express, Circulator, Local, Link & Flash Routes October /2/2016 4,991, W City of Phoenix Nov FR Bus Service, Fixed Route OP Support, DAR Service 12/2/2016 2,197, City of Tempe July - Sept 2016 EVBOM Lease Agreement 12/15/2016 1,254, W005 Total Transit Enterprises, LLC Sept 2016 NW Valley ParaTransit/Mobility Center Services 12/9/ , W005 Total Transit Enterprises, LLC Sept 2016 East Valley ParaTransit Services 12/9/ , W006 ADP PPE Wages Payable - Reverse Wire 12/9/ , ADP Wages Payable-Reverse Wire PPE /25/ , W007 United Healthcare Dec Employee Dental, Medical & Vision Coverage 12/2/ , W006 ADP PPE Federal, State, SS/Med EE/ER Tax ACH 12/9/ , ADP Federal, State, SS/Med EE/ER Tax-ACH PPE /25/ , W005 Total Transit Enterprises, LLC Oct 2016 West Valley Avondale Zoom Fixed Route 12/9/ , City of Avondale 7/1/13-6/30/14 FY-14 PTF Request DAR 12/15/ , W007 ASRS PPE ASRS Contributions Employee 12/9/ , W007 ASRS PPE ASRS Contributions Employer 12/9/ , ASRS ASRS Contribution Employer PPE /25/ , ASRS ASRS Contributions Employee PPE /25/ , W005 Total Transit Enterprises, LLC Oct 2016 West Valley Vee Quiva Fixed Route 12/9/ , W005 Total Transit Enterprises, LLC Oct 2016 West Valley Glendale Express Fixed Route 12/9/ , W004 City of Mesa November 2016 Utilities 11/30/ , W004 Second Generation, Inc. dba Ajo Transp. Rural Connector Route - October /2/ , vride, Inc. Vanpool Services for September /30/ , W001 CopperPoint Mutual Insurance Company Call Center & Mobility Center Rent for Dec /2/ , C.A.R.E Evaluators, Inc. Oct 2016 Mobility Center ADA Evaluations 12/15/ , Wells Fargo Bank November 2016 Wells Fargo Credit Card Purchases 12/15/ , Dell Marketing L.P. VMWare Cloud Protection 12/7/ , W007 SRP November 2016 Utilities 11/30/ , ,514,950.98

31 Valley Metro Rail, Inc. Monthly AP Payments over $25,000 November 21, December 20, 2016 Effective Date Transaction Amount Document NumbName Transaction Description W001 Alternate Concepts Inc. Transportation Services Oct /9/ , W003 HDR/SR Beard & Associates July/Aug HDR Planning and Support Services 12/9/ , W003 HDR/SR Beard & Associates Sept HDR Planning and Support Services 12/9/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY16-17 (12/1/ /12017) 12/15/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY16-17 (12/1/ /1/2017) 12/15/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY (12/1/ /1/2017) 12/15/ , W Allied Barton Security Services Fare Inspection and Security Services Oct /9/ , W APS November 2016 Utilities 11/30/ , W007 HDR/SR Beard & Associates Sept 2016 Planning Support Services 12/2/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY16-17 (12/ /12017) 12/15/ , City of Phoenix Refund of Overpayment NW Extension Sewer CNPAs 12/1/ , W010 URS Corp July 2016 Glendale Planning and conceptual Design 12/2/ , W006 Gannett Fleming, Inc. Oct th Street Station Design Services 12/2/ , W020 SRP November 2016 Utilities 11/30/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY16-17 (12/1/ /1/2017) 12/15/ , W001 AECOM Technical Services March 2016 NW Extension Engineering Services 12/2/ , Western Fence Co Inc. OMC Security Fencing 12/7/ , W009 Stacy and Witbeck 50th St Oct th Street Station Preconstruction 12/2/ , City of Phoenix July 2016 NW Extension ROW, Signal Equipment, Staff Costs 12/1/ , W002 ARCADIS Oct 2016 Task 2 GRE Consulting Support Services 12/2/ , W004 DMS - Facility Services, Inc. Oct 2016 Facilities Maintenance Services 12/2/ , Lilee Systems Monthly Charges, Installation, Configuration Services 12/7/ , City of Phoenix July - Sept 2016 Regional Wireless Billing 12/1/ , Arthur J Gallagher Risk Mgt. Services Pass Thru Insurance Premium FY16-17 ) 12/1/ /1/ /15/ , City of Phoenix Aug 2016 NW Extension ROW, Signal Equipmemt, Staff Costs 12/1/ , W010 URS Corp Aug 2016 Capitol/I-10, Phx West 12/2/ , W004 City of Mesa November 2016 Utilities 11/30/ , W002 ARCADIS Consulting Support Services - October /9/ , City of Phoenix November 2016-Fare Handling Fee 12/7/ , United Right-of-Way Facilities Landskeeping Services October /7/ , W002 City of Mesa Gilbert Road Extension Pymt #13 Oct /16/ , W010 URS Corp Aug 2016 Glendale Planning and Conceptual Engineering 12/2/ , ,458,401.46

32 DATE AGENDA ITEM 10 January 12, 2017 SUBJECT Future Agenda Items Request and Report on Current Events PURPOSE Chairs Williams and Mitchell will request future agenda items from members, and members may provide a report on current events. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Pending Items Request VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

33 Pending Items Request Item Requested Date Requested Planned Follow-up Date 2

34 January 12, 2017 Board of Directors Thursday, January 19, 2017 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 11:15 a.m. Action Recommended 1. Public Comment on Agenda Action Items (blue card) 1. For information The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 2. Minutes 2. For action Minutes from the December 15, 2016 Board meeting are presented for approval. CONSENT AGENDA 3A. Contract Award for the Refurbishment of Fixed Route Bus Fareboxes 3A. For action Staff recommends that the Board of Directors authorize the CEO to execute a contract with Scheidt & Bachmann, Inc. for the supply of components to refurbish 280 farebox units in an amount not to exceed $2,882,483 and to establish a contingency of $288,248 for a total of $3,170,731 that is included within the overall budget established for the project. 3B. Contract Award for the Manufacture and Delivery of Medium Duty Transit Buses 3B. For action Staff recommends that the Board of Directors authorize the CEO to execute a contract through a cooperative agreement with Creative Bus Sales under Arizona State Contract #ADSP for the manufacture and delivery of four medium duty 37 transit buses for a not-to-exceed amount of $815,227. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

35 3C. Workers Compensation and Employer s Liability Insurance Coverage Renewal 3C. For action Staff recommends that the Board of Directors authorize the CEO to renew the workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company for an estimated annual premium of $146,331. REGULAR AGENDA 4. RPTA Fiscal Year 2017 (FY17) Mid-Year Budget Adjustment 4. For action Scott Smith, CEO, will introduce Paul Hodgins, Interim CFO, who will request that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY Overview of Valley Metro Accessible Transit Services 5. For information Scott Smith, CEO, will introduce Ron Brooks, Manager, Accessible Transit Services, who will provide an overview of Dial-a-Ride and other related services provided by Valley Metro and the strategies which Valley Metro is pursuing to ensure that customers with disabilities and seniors have the accessible transportation services they need while effectively managing the increasing cost of Dial-a- Ride service. 6. Future Agenda Items Request and Report on Current Events 6. For information and discussion Chair Williams will request future agenda items from members, and members may provide a report on current events. 7. Next Meeting 7. For information The next meeting of the Board is scheduled for Thursday, February 16, 2017 at 11:15 a.m. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 2

36 DATE AGENDA ITEM 1 January 12, 2017 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

37 DATE AGENDA ITEM 2 January 12, 2017 Minutes of the Valley Metro RPTA Board of Directors Thursday, December 15, :15 a.m. Meeting Participants Councilmember Thelda Williams, City of Phoenix, Chair Councilmember Suzanne Klapp, City of Scottsdale, Vice Chair Councilmember Lauren Tolmachoff, City of Glendale, Treasurer (phone) Councilmember Jim McDonald, City of Avondale (phone) Councilmember Kevin Hartke, City of Chandler Councilmember Jack Palladino, City of El Mirage (phone) Councilmember Brigette Peterson, Town of Gilbert Councilmember Sharolyn Hohman, City of Goodyear Vice Mayor Dennis Kavanaugh, City of Mesa Councilmember Skip Hall, City of Surprise Mayor Mark Mitchell, City of Tempe Members Not Present Councilmember Eric Orsborn, City of Buckeye Supervisor Steve Gallardo, Maricopa County Vice Mayor Jon Edwards, City of Peoria City of Tolleson Councilmember Rui Pereira, Town of Wickenburg Chair Williams called the meeting to order at 12:50 p.m. 1. Items for Citizens Present Mr. Crowley said the first item I'd like to cover on action is authorize an issuance and request for proposal for the Transit bus book. And, as it states in here, it's a semiannual basis. When was the last time you put it out twice in a year? How many times did you just do it? Otherwise, so, when you print it like that, staff, what's the reality about it. I also believe that with technology, et cetera today, we could do it in-house for less than a half a million dollars. You're saying you have to farm it out for, being that we print so many other things. And, as in the Recommendation for the Valley Metro Transit Service Changes, how many are you really doing it to the level that the Prop 400 people right here asked and wanted you to be doing. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

38 When I see where is the expansion into the West Valley, and I know that a part of it is funding. Equity has not been addressed the way it should be, but in the proposal that I saw with Mary Rose Rogers Marie Lopez Rogers from Avondale back in the day, it showed the progression on the west side. And we should have things happening all the way over to Litchfield and beyond, because, as most of you know on that west side in Goodyear, you're no longer a bunch of fields, rabbits, and cactus. Why don't we have the bus down there? Why isn't it a part of the future planned changes? Where is the acquisition of buses? Where is that in your proposals? No, we're going to do the bus book and say that we're doing it twice annually when, what was it, two years, was the last actual bus book that you produced. So why put it in as a sham. You know, twice a year, there are updates, but when you're saying you're producing the book, isn't it his predecessor who went, well, we're not going to be doing the book because we can all do it electronically. It's just like with your agenda and briefings, the public, this specific one, isn't wired to the electronic age. I need those things to be given to me on paper. So after February, hopefully, just like the bus book and your proposed changes, those things need to be on paper so I can review it and get it done. Have a pleasant and I'll see you at the rail. 2. Minutes Chair Williams said we will go to the minutes of the November 10, 2016 board meeting. Anyone have any questions, comments, or a motion? IT WAS MOVED BY COUNCILMEMBER MCDONALD, SECONDED BY COUNCILMEMBER KLAPP AND UNANIMOUSLY CARRIED TO APPROVE THE NOVEMBER 10, 2016 BOARD MEETING MINUTES. 3. Consent Agenda Chair William said that brings us to our consent agenda. Does anyone have any questions, comments? Hearing none, do I have a motion to approve the consent agenda? IT WAS MOVED BY COUNCILMEMBER MCDONALD, SECONDED BY COUNCILMEMBER HARTKE AND UNANIMOUSLY CARRIED TO APPROVE THE CONSENT AGENDA. 4. Recommended April 2017 Valley Metro Transit Service Changes 2

39 Mr. Smith said we don't need to give a presentation unless there's questions on this. This is simply to approve additional payments to take into account the changes that have already been presented on the April service changes. So unless there's a question, we'll dispense with the presentation. Chair Williams said Questions? Comments? Motion? IT WAS MOVED BY COUNCILMEMBER MCDONALD, SECONDED BY COUNCILMEMBER HARTKE AND UNANIMOUSLY CARRIED TO AUTHORIZE THE CEO TO AMEND MEMBER AGENCY FY17 INTERGOVERNMENTAL AGREEMENTS (IGAS) AS NECESSARY, AND TO EXECUTE A CHANGE ORDER TO THE FIRST TRANSIT CONTRACT TO ADD CONTRACT AUTHORITY IN THE AMOUNT OF $400,000 FOR FIRST TRANSIT USING THE BOARD APPROVED CONTINGENCY TO ACCOMMODATE THE RECOMMENDED APRIL 2017 SERVICE CHANGES THROUGH THE EXISTING CONTRACT TERM OF JUNE 30, Future Agenda Items request and Report on Current Events. Our next meeting will be Thursday, January 19. And as chair of this committee, I wish you all Merry Christmas and Happy New Year, and we'll see you in January. With no further discussion the meeting adjourned at 12:55 p.m. 3

40 DATE January 12, 2017 AGENDA ITEM 3A SUBJECT Contract Award for the Refurbishment of Fixed Route Bus Fareboxes PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute a contract with Scheidt & Bachmann, Inc. for the supply of components to refurbish 280 farebox units in an amount not to exceed $2,882,483 and to establish a contingency of $288,248 for a total of $3,170,731 that is included within the overall budget established for the project. BACKGROUND/DISCUSSION/CONSIDERATION The Scheidt & Bachmann farebox was implemented as part of the regional fare collection system in 2007 as a means to improve revenue handling, provide detailed back-end ridership reports and allow agencies throughout the region to implement upgraded fare media. The farebox preventative maintenance functions are currently administered as part of service provider contracts. Significant upgrades to increase overall reliability and performance of the fareboxes are needed at this time. Farebox performance data is monitored by Valley Metro staff through the receipt of daily reports. An analysis of failures over a three year period (FY 2014 FY 2016) reveals a steady increase in farebox breakdowns. On average, the East Valley operation experiences 14 daily farebox failures and approximately 7% of buses dispatched report farebox failures. When a farebox failure occurs, customers are impacted through the damage or loss of fare media and boarding delays, consequently degrading On Time Performance (OTP). Farebox malfunctions often result in the inability to collect ridership data, which impacts route planning efforts and farebox recovery rates. Furthermore, road supervisors are the first to respond to in-field farebox failures and these efforts subtract from other supervisory duties including passenger assistance, operator engagement and field observations. Finally, farebox failures are burdensome on the Valley Metro maintenance teams as repairs often require electronic technician labor hours and the purchase of costly proprietary components. Scheidt & Bachmann has presented a proposal to supply components to refurbish 280 farebox units (261 heavily-used units in the East Valley, 14 units for spares and 5 expansion units). The program will result in the upgrade and replacement of several key modular components within the farebox, including ticket units, customer interfaces, farebox PC s, cash modules and software updates. The modules will be delivered between February and June 2017 and by design will allow for efficient implementation, reducing vehicle downtime without impacting service. Scheidt & Bachmann, Inc. will supply the necessary components to refurbish the fareboxes. Additionally, the total project cost includes factory testing, project management support and training. The labor to install the new components will be provided by Valley Metro s current East Valley fixed route contractor. Execution of the farebox refurbishment project will improve reliability throughout the remaining farebox life cycle VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

41 (replacement of fareboxes is projected by 2021), enhancing the customer experience and preserving the integrity of ridership data. Scheidt & Bachmann is the sole source provider for regional fare collection equipment. The equipment is sole source because the hardware is proprietary in nature and is the only available solution for integration with the existing on-board fare collection equipment. An independent cost estimate and a sole source justification including a cost comparison and price analysis have been completed. The cost of a new farebox is estimated at $19,500 so the proposed price to refurbish the current farebox ($10,330) has been deemed fair and reasonable. COST AND BUDGET The contract award with Scheidt & Bachmann, Inc. for approval is an amount not to exceed $2,882,483. A contract contingency not to exceed $288,248 (10 percent) is established for the project for unanticipated changes. Project completion will occur by June, For the Fiscal Year 2017, the RPTA obligation is $3,170,731 which will be funded as part of a mid-year budget adjustment to the Valley Metro Adopted FY 2017 Operating and Capital Budget. The source of funding is Prop 400. COMMITTEE PROCESS RTAG: December 20, 2016 for information TMC: January 4, 2017 approved Board of Directors: January 19, 2017 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : o Goal 2: Advance performance based operation Tactic A: Operate an effective, reliable, high performing transit system RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute a contract with Scheidt & Bachmann, Inc. for the supply of components to refurbish 280 farebox units in an amount not to exceed $2,882,483 and to establish a contingency of $288,248 for a total of $3,170,731 that is included within the overall budget established for the project. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

42 DATE January 12, 2017 AGENDA ITEM 3B SUBJECT Contract Award for the Manufacture and Delivery of Medium Duty Transit Buses PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute a contract through a cooperative agreement with Creative Bus Sales under Arizona State Contract #ADSP for the manufacture and delivery of four medium duty 37 transit buses for a not-to-exceed amount of $815,227. BACKGROUND/DISCUSSION/CONSIDERATION Ajo Transportation currently operates nine vehicles for the route 685 service between Ajo and Phoenix. Four of the current vehicles have surpassed their FTA defined minimum useful life of seven years, or 300,000 miles. As a result, staff has researched available vehicle configurations offered by Creative Bus Sales, who currently supplies vehicles to Arizona municipalities via the State Cooperative Purchasing Contract. The StarTrans President Cutaway vehicle is believed to be the most suitable and reliable fit for rural connector service. These replacement vehicles will ensure seamless continuation of the service for route 685, while improving the customer experience. Cooperative Agreements are contracts that are solicited and awarded by other public entities and whose cooperative language allows Valley Metro to utilize these contracts for goods and services it requires. This FTA compliant cooperative contract for medium duty 37 transit buses was procured via the State of Arizona Procurement Office of the Department of Administration and is currently awarded to Creative Bus Sales. COST AND BUDGET The estimated cost for Valley Metro is as follows: Fiscal Year Qty. Length Bus Type Fuel Type FY ft. Cutaway Diesel Optional FY 17 1 Components/Contingency Mfg. Base Price Total Creative Bus Sales $185,279 $741,116 Creative Bus Sales $74,111 Total $815,227 The above chart is based on the current bus specifications and may change based on the final requirements of the pending bus build with Creative Bus Sales. Any cost increases will be determined once a notice to proceed has been issued to the vendor and all optional equipment has been identified to place the vehicle into revenue service. As a result, a contract contingency not to exceed $74,111 is established that is included within the overall budget established for the project for unanticipated charges. An VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

43 independent cost estimate and a cost comparison and price analysis have been completed. The proposed price has been deemed fair and reasonable. All vehicles will be funded with 85% Federal Transit Administration (FTA) funds and 15% Regional Proposition 400 funds. All costs are fully funded within the RPTA Adopted FY 2017 Operating and Capital Budget. COMMITTEE PROCESS RTAG: December 20, 2016 for information TMC: January 4, 2017 approved Board of Directors: January 19, 2017 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute a contract through a cooperative agreement with Creative Bus Sales under Arizona State Contract #ADSP for the manufacture and delivery of four medium duty 37 transit buses for a not-to-exceed amount of $815,227. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

44 DATE January 12, 2017 AGENDA ITEM 3C SUBJECT Workers Compensation and Employer s Liability Insurance Coverage Renewal PURPOSE To request authorization for the Chief Executive Officer (CEO) to renew workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company for an estimated annual premium of $146,331. BACKGROUND/DISCUSSION/CONSIDERATION The current insurance policy will expire on March 1, The policy covers work-related injuries to all RPTA employees and is required by A.R.S The workers compensation and employer s liability insurance has been written by CopperPoint Mutual Insurance Company (formerly SCF Western (a subsidiary of SCF Arizona)) for more than 12 years. RPTA bid this coverage three years ago to 25 other carriers which produced no viable results due to Valley Metro s business classification in the insurance market which includes class code 8385 Railroad Operations. CopperPoint Mutual Insurance Company provided a quote to renew the coverage. COST AND BUDGET The following premium indication was provided by CopperPoint Mutual Insurance Company: Line of Coverage Workers Compensation / Employer s Liability Policy Limit Statutory / $1,000,000 Expiring Premium $142,145 (unaudited) Renewal Premium $146,331 (estimated) Allocation of this cost to be attributed to RPTA and Valley Metro Rail (VMR) budgets are based on actual payroll allocations between the two budgets. Historically, this split has been approximately 11% to the RPTA budget and 89% to the VMR budget. The annual premium is subject to a payroll audit at the end of the policy period which runs from immediately following the expiration of the existing policy on March 1, 2017 through March 1, If the audited payroll differs from the estimated payroll, there will be a premium adjustment.

45 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic D: Maintain a culture to recruit and retain a qualified and diverse workforce. o Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability. COMMITTEE ACTION RTAG: December 20, 2016 for information TMC: January 4, 2017 approved Board of Directors: January 19, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to renew the workers compensation and employer s liability insurance coverage for a one-year period with CopperPoint Mutual Insurance Company for an estimated annual premium of $146,331. CONTACT Michael J. Minnaugh General Counsel mminnaugh@valleymetro.org ATTACHMENT 2

46 DATE AGENDA ITEM 4 January 12, 2017 SUBJECT RPTA Fiscal Year 2017 (FY17) Mid-Year Budget Adjustment PURPOSE To request authorization for the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY17. BACKGROUND/DISCUSSION/CONSIDERATION In May 2016, the TMC recommended and the Board approved the FY17 Operating and Capital Budget. The cost factors used to develop the budget have changed and adjustments are warranted to update the expenditures planned for the remainder of the fiscal year. The major changes include: Operating Activities: Budget Description Increase (Decrease) Amt Funding Source Operations Administration Apply contingency for use in Fixed Route Bus and Dial-a-Ride service. $ (1,150,000) PTF RPTA Fixed Route Service (East Valley) October 2016 and April 2017 service increases. Ridership and fare revenue below plan. $ 1,328,000 Federal PM PTF City of Phoenix East Valley Dial-a-Ride Trips higher than plan $ 572,000 PTF Northwest Valley Dial-a-Ride Trips higher than plan $ 872,000 PTF Regional Dial-a-Ride Trips higher than plan $ 2,985,000 PTF Regional Call Center Customer Service Expansion to enhance the quality of service provided to our customers. $ 330,000 PTF Operations Total $ 4,937,000 The decrease in contingency is for use in offsetting some of the increases for Fixed Route Bus and Dial-a-Ride services. The increase for East Valley RPTA Fixed Route Service is needed to support the two service changes in FY17, resulting in an increase of 197,000 revenue miles over plan. As reported in November, increases in the Dial-a- Ride services are due to a higher number or trips than originally planned, in particular the new Regional Dial-a-Ride program has been very successful. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

47 Changes to the funding for Operating Activities are as follows: Operating Sources Operations Contingency RPTA Fixed Route Service (East Valley) East Valley Dial-a-Ride Northwest Valley Dial-a- Ride Regional Dial-a- Ride Regional Call Center Total Fixed Route Fare Revenues $ (1,652,000) $ (1,652,000) Public Transportation Funds (1,150,000) 403, , ,000 2,985, ,000 4,012,000 FTA - section 5307 PM 1,200,000 1,200,000 TSR - Gila River Indian Community 5,000 5,000 TSR - Chandler 25,000 25,000 TSR - Mesa 105, ,000 TSR - Phoenix 1,142,000 1,142,000 TSR - Scottsdale 31,000 31,000 TSR - Tempe 69,000 69,000 Total $ (1,150,000) $ 1,328,000 $ 572,000 $ 872,000 $ 2,985,000 $ 330,000 $ 4,937,000 2

48 Revised Total Uses of Funds for Operating Activities total $171.4 million as shown below: Comparative Operating Budget by Project Uses of Funds by Project for Operating Activities Proj. FY17 FY17 No. Project Description Adopted Revised Change Operating Projects 2010 Phoenix Fixed Route $ 10,573,000 $ 10,573,000 $ RPTA Fixed Route Service (East Valley) 69,959,000 71,287,000 1,328, RPTA Fixed Route Service (West Valley) 4,763,000 4,763, Ajo / Gila Bend Connector 839, , East Valley Dial-a-Ride 8,696,000 9,268, , Other ADA 18,115,000 18,115, Alternative Transportation Program 891, , Northwest Valley Dial-a-Ride 1,943,000 2,815, , Regional Dial-a-Ride 2,272,000 5,257,000 2,985, Regional Vanpool Service 968, , Regional Rideshare 572, , Trip Reduction Program/Clean Air Campaign 260, , Trip Reduction Program/Expansion 351, , Operations Administration 1,750, ,000 (1,150,000) 2012 Fare Vending Machine Service and Maint. 159, , Regional Services Administration 380, , Regional Ridership Reporting 91,000 91, Community Outreach 502, , Regional Marketing 2,596,000 2,596, Regional Call Center 4,508,000 4,838, , Mobility Service Center 2,288,000 2,288, Finance and Administration Support 844, , Administrative Capital Outlay 529, , Safety and Security 380, , Planning Administration 294, , Corridor & Facility Development 761, , System and Services Development 1,040,000 1,040, Transit Life Cycle Program 135, , Chief Executive Officer's Division 1,121,000 1,121, Valley Metro Rail 17,637,000 17,637, Arizona Lottery Fund 11,200,000 11,200,000 - Total Operating Projects $ 166,417,000 $ 171,354,000 $ 4,937,000 3

49 Capital Activities: Budget Description Increase (Decrease) Amt Funding Source Rail Bus Replacement Bus-Expansion Vanpool Fleet - Replacement Transit Centers Passenger Facilities - Bus Stop Passenger Amenities Increase lead agency PT disbursements to Valley Metro Rail to fund capital expenditures. Deferral of 6 circulator buses to later years; added 1 pilot artic bus for FY17; deferral of 4 Scottsdale buses to FY18 and later. Deferral of 13 planned standard bus purchases for SRTP expansion to later years. Deferral of 13 planned vanpool vehicles to FY18; additional cost savings due to purchases of smaller vehicles currently in greater demand. Peoria transit center land acquisition is being deferred to later years. Bus stop Improvement project being deferred to FY18. $ 2,408,000 PTF $ (1,695,000) FTA PTF $ (6,905,000) FTA PTF $ (917,000) FHWA $ (783,000) FTA $ (500,000) FTA Park and Rides Vehicle Management/Communicatio n Systems Reduced FY17 park and ride expenses delayed in FY17 for Peoria, 59th Ave/Laveen, and North Glendale. Apollo camera installation project is now included in the regional communications system upgrade. $ (2,377,000) FTA PTF $ (678,000) PTF State of Good Repair - Fleet Rebuild Fare Collection System Fewer Mid-Life engine and transmission rebuilds than planned. Refurbish all fareboxes for EV First Transit buses and spares fareboxes. $ (564,000) FTA $ 3,191,000 PTF Capital Total $ (8,820,000) Total Capital Activity expenditures are being reduced by $8.8M. Rail PTF disbursements are increased due to the increased construction activity during FY17. Some of the bus purchases have been deferred, pushing the delivery of most buses to FY18 and some in later years. Vanpool purchases have been reduced from plan due to the deferral of 13 planned vanpool purchases and some savings due to purchases of 4

50 smaller vans which are currently needed. The budget for Transit Centers is being deferred to later years while the passenger facilities are being deferred to FY18. We will expend less on Park and Rides this year due to delays in the schedules Changes to the funding for Capital Activities are as follows: FY17 FY17 Funding Source Adopted Revised Change Public transportation funds $ 68,712,000 $ 64,699,000 $ (4,013,000) FTA - Section ,751,000 16,033,000 (9,718,000) FHWA - STP 3,073,000 2,056,000 (1,017,000) Member local match 100,000 - (100,000) Vehicle/parts proceeds 574, ,000 - PTF Bond Proceeds 60,000,000 60,000,000 - Bond premium 1,257,000 1,257,000 - Capital assets reserve applied 553, ,000 (296,000) Vanpool reserve applied - 100, ,000 Undesig. fund bal applied (PTF) 17,694,000 23,919,000 6,225,000 Undesig. fund bal applied (RARF) 126, ,000 - Total Capital Revenues $ 177,840,000 $ 169,021,000 $ (8,820,000) Revised Total Uses of Funds for Capital Activities total $169.0 million as shown below: Uses of Funds for Capital Projects Comparative Operating Budget by Project Proj. FY17 FY17 No. Project Description Adopted Revised Change Capital Projects 4000 Valley Metro Rail $ 83,628,000 $ 86,036,000 $ 2,408, Public Transportation Debt Service 43,592,000 43,592, IT Infrastructure 1,430,000 1,430, Standard Bus - Replacement 17,318,000 15,623,000 (1,695,000) 9011 Standard Bus - Expansion 15,133,000 8,228,000 (6,905,000) 9030 Rural Fleet - Replacement 636, , Paratransit Fleet - Replacement 259, , Vanpool Fleet - Replacement 3,073,000 2,156,000 (917,000) 9090 Fleet - Other 602, , Transit Centers (4-Bay) 816,000 33,000 (783,000) 9213 Pass. Facilities - Bus Stop Pass. Amenities 535,000 35,000 (500,000) 9220 Pass. Facilities - Park & Rides 5,319,000 2,942,000 (2,377,000) 9390 Vehicle Management/Communications 3,278,000 2,600,000 (678,000) 9391 Fare Collection Systems 405,000 3,596,000 3,191, State of Good Repair - Fleet Rebuild 1,816,000 1,252,000 (564,000) Total Capital Projects $ 177,840,000 $ 169,020,000 $ (8,820,000) 5

51 COST AND BUDGET Changes proposed are incorporated into overall agency sources and uses of funds below: FY17 Revised Operating & Capital Budget Comparison to FY17 Adopted Budget (In thousands) FY17 FY17 Amount Adopted Revised Increase/ Budget Budget Decrease Sources of funds Revenues: Public transportation funds (PTF) $ 141,162 $ 141,162 $ - Transit service agreements 30,868 32,244 1,376 Federal grants 39,773 30,238 (9,535) VMR staff & administration reimbursement 17,137 17,137 - Regional area road funds (RARF) 4,864 4,864 - Interest & other revenues 3,020 3,020 - Local participation (100) State & local grants Fixed Route Fare Revenues 15,664 14,012 (1,652) AZ Lottery Proceeds 11,250 11,250 - Total revenues 264, ,385 (9,911) Bond proceeds 61,257 61,257 - Carryforwards & reserves 18,705 24,732 6,027 Total revenues & other sources of funds 344, ,374 (3,883) Uses of funds by category Expenses: Lead agency PTF disbursements $ 72,365 $ 73,576 $ 1,211 Transit service contracts and fuel 94, ,379 5,757 Capital outlay 36,858 26,827 (10,031) Salary & fringe benefits 27,231 27, Bond principal & interest expense 25,433 25,433 - Consultants & Maintenance contracts 3,771 3,771 - Contingency 1, (1,150) Rent & facility costs 4,988 4,994 6 Advertising Transit book, outreach mat. & online serv Insurance & risk management Lead agency RARF disbursements Other administrative costs 1,915 1,915 - AZ lottery Disbursements 11,200 11,200 - Lead agency bond disbursement 43,098 43,098 - Total expenses 325, ,670 (3,883) Carryforwards & contributions to reserves 18,704 18,704 - Total expenses & other uses of funds $ 344,257 $ 340,374 $ (3,883) Operating Budget $ 166,417 $ 171,354 $ 4,937 Capital Budget 177, ,020 (8,820) Total Operating & Capital Budget $ 344,257 $ 340,374 $ (3,883) 6

52 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o o Tactic A: Operate an effective, reliable, high performing transit system. Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability. COMMITTEE PROCESS RTAG: December 20, 2016 for information Financial Working Group: December 20, 2016 for information TMC: January 4, 2017 approved AFS: January 12, 2017 approved Board: January 19, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY17. CONTACT Paul Hodgins Chief Financial Officer phodgins@valleymetro.org ATTACHMENT 7

53 1/11/2017 Valley Metro RPTA FY17 Mid-Year Budget Adjustment January 2017 Changes Operations Activities Budget Operations Administration Description Apply contingency for use in Fixed Route Bus and Dial-a-Ride service. Increase (Decrease) Amt Funding Source $ (1,150,000) PTF RPTA Fixed Route Service (East Valley) October 2016 and April 2017 service increases. Ridership and fare revenue below plan. $ 1,328,000 Federal PM PTF City of Phoenix East Valley Dial-a-Ride Trips higher than plan $ 572,000 PTF Northwest Valley Dial-a-Ride Trips higher than plan $ 872,000 PTF Regional Dial-a-Ride Trips higher than plan $ 2,985,000 PTF Regional Call Center Customer Service Expansion to enhance the quality of service provided to our customers. $ 330,000 PTF Operations Total $ 4,937,

54 1/11/2017 Operating Funding Changes Operating Sources Operations Contingency RPTA Fixed Route Service (East Valley) East Valley Dial-a-Ride Northwest Valley Dial-a- Ride Regional Dial-a- Ride Regional Call Center Total Fixed Route Fare Revenues $ (1,652,000) $ (1,652,000) Public Transportation Funds (1,150,000) 403, , ,000 2,985, ,000 4,012,000 FTA - section 5307 PM 1,200,000 1,200,000 TSR - Gila River Indian Community 5,000 5,000 TSR - Chandler 25,000 25,000 TSR - Mesa 105, ,000 TSR - Phoenix 1,142,000 1,142,000 TSR - Scottsdale 31,000 31,000 TSR - Tempe 69,000 69,000 Total $ (1,150,000) $ 1,328,000 $ 572,000 $ 872,000 $ 2,985,000 $ 330,000 $ 4,937,000 3 Changes Capital Activities Budget Rail Bus Replacement Description Increase lead agency PT disbursements to Valley Metro Rail to fund capital expenditures. Deferral of 6 circulator buses to later years; added 1 pilot artic bus for FY17; deferral of 4 Scottsdale buses to FY18 and later. Increase (Decrease) Amt Funding Source $ 2,408,000 PTF $ (1,695,000) FTA PTF Bus-Expansion Deferral of 13 planned standard bus purchases for SRTP expansion to later years. Vanpool Fleet - Replacement Deferral of 13 planned vanpool vehicles to FY18; additional cost savings due to purchases of smaller vehicles currently in greater demand. $ (6,905,000) FTA PTF $ (917,000) FHWA Transit Centers Peoria transit center land acquisition is being deferred to later years. $ (783,000) FTA 4 2

55 1/11/2017 Changes Capital Activities (contd.) Budget Passenger Facilities - Bus Stop Passenger Amenities Description Bus stop Improvement project being deferred to FY18. Increase (Decrease) Amt Funding Source $ (500,000) FTA Park and Rides Vehicle Management/Communication Systems State of Good Repair - Fleet Rebuild Reduced FY17 park and ride expenses delayed in FY17 for Peoria, 59th Ave/Laveen, and North Glendale. Apollo camera installation project is now included in the regional communications system upgrade. Fewer Mid-Life engine and transmission rebuilds than planned. $ (2,377,000) FTA PTF $ (678,000) PTF $ (564,000) FTA Fare Collection System Refurbish all fareboxes for EV First Transit buses and spares fareboxes. $ 3,191,000 PTF Capital Total $ (8,820,000) 5 Summary of Changes Uses of Funds Proj. FY17 FY17 No. Project Description Adopted Revised Change Operating Projects 2015 RPTA Fixed Route Service (East Valley) 69,959,000 71,287,000 1,328, East Valley Dial-a-Ride 8,696,000 9,268, , Northwest Valley Dial-a-Ride 1,943,000 2,815, , Regional Dial-a-Ride 2,272,000 5,257,000 2,985, Operations Administration 1,750, ,000 (1,150,000) 6035 Regional Call Center 4,508,000 4,838, ,000 Total Operating Projects $ 166,417,000 $ 171,354,000 $ 4,937,

56 1/11/2017 Summary of Changes Uses of Funds (Contd.) Proj. FY17 FY17 No. Project Description Adopted Revised Change Capital Projects 4000 Valley Metro Rail $ 83,628,000 $ 86,036,000 $ 2,408, Standard Bus - Replacement 17,318,000 15,623,000 (1,695,000) 9011 Standard Bus - Expansion 15,133,000 8,228,000 (6,905,000) 9050 Vanpool Fleet - Replacement 3,073,000 2,156,000 (917,000) 9210 Transit Centers (4-Bay) 816,000 33,000 (783,000) 9213 Pass. Facilities - Bus Stop Pass. Amenities 535,000 35,000 (500,000) 9220 Pass. Facilities - Park & Rides 5,319,000 2,942,000 (2,377,000) 9390 Vehicle Management/Communications 3,278,000 2,600,000 (678,000) 9391 Fare Collection Systems 405,000 3,596,000 3,191, State of Good Repair - Fleet Rebuild 1,816,000 1,252,000 (564,000) Total Capital Projects $ 177,840,000 $ 169,020,000 $ (8,820,000) Total Operating & Capital Projects $ 344,257,000 $ 340,374,000 $ (3,883,000) 7 Summary of Changes Sources of Funds Sources of funds Revenues: Public transportation funds (PTF) 141,162 FY17 FY17 Amount Adopted Revised Increase/ Budget Budget Decrease $ $ 141,162 $ - Transit service agreements 30,868 32,244 1,376 Federal grants 39,773 30,238 (9,535) VMR staff & administration reimbursement 17,137 17,137 - Regional area road funds (RARF) 4,864 4,864 - Interest & other revenues 3,020 3,020 - Local participation (100) State & local grants Fixed Route Fare Revenues 15,664 14,012 (1,652) AZ Lottery Proceeds 11,250 11,250 - Total revenues 264, ,385 (9,911) Bond proceeds 61,257 61,257 - Carryforwards & reserves 18,705 24,732 6,027 Total revenues & other sources of funds 344, ,374 (3,883) 8 4

57 1/11/2017 Recommendation Staff recommends that the Board of Directors authorize for the Mid-Year Budget Adjustment update to the Valley Metro RPTA Operating and Capital Budget for FY

58 DATE AGENDA ITEM 5 January 12, 2017 SUBJECT Overview of Valley Metro Accessible Transit Services PURPOSE To provide an overview of Dial-a-Ride and other related services provided by Valley Metro and the strategies which Valley Metro is pursuing to ensure that customers with disabilities and seniors have the accessible transportation services they need while effectively managing the increasing cost of Dial-a-Ride service. BACKGROUND/DISCUSSION/CONSIDERATION A core tenant of the Americans with Disabilities Act of 1990 (ADA) is that people with disabilities be provided access to programs and services provided by local and state governmental entities in the most integrated and least restrictive setting possible. In keeping with this tenant, the ADA requires transit agencies to provide bus, light rail and other transit services which are accessible to and usable by people with disabilities. Transit agencies are required to provide origin-to-destination paratransit (also known as Dial-a-Ride) only when a customer with a disability is unable to independently use other, less restrictive forms of public transportation. In keeping with these requirements, Valley Metro utilizes accessible facilities and vehicles to provide bus, light rail and other transportation services which are compliant with ADA requirements and accessible to many people with disabilities. Nevertheless, the demand for and cost of ADA mandated paratransit services is on the rise, and the growing demand for more costly door-to-door paratransit services is having an adverse impact on Valley Metro and member agency budgets across the region. In light of the growing demand for ADA paratransit, staff will provide an overview of Diala-Ride services which are currently provided by Valley Metro, and staff will share a number of Dial-a-Ride and other accessibility-related service enhancements which staff is making in order to better manage the rising cost of Dial-a-Ride services and to provide more cost-effective and flexible accessible transportation options for seniors and people with disabilities throughout the region. COST AND BUDGET There are no financial implications associated with this presentation. STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY Goal 1: Increase customer focus VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

59 o Tactic A: Improve customer satisfaction o Tactic B: Evaluate and enhance passenger safety and security o Tactic E: Enhance services and facilities for seniors and people with disabilities. Goal 2: Advance performance-based operations o Tactic A: Operate an effective, reliable, high-performing transit system COMMITTEE PROCESS RTAG: December 13, 2016 for Information TMC: January 4, 2017 for Information Board of Directors: January 19, 2017 for Information RECOMMENDATION This item is for information only. CONTACT Wulf Grote, P.E. Director, Capital and Service Development wgrote@valleymetro.org ATTACHMENT 2

60 1/11/2017 Overview of Paratransit Services January, 2017 Goals of the ADA Provide meaningful access to programs and services for people with disabilities. Provide accessibility in the most integrated setting possible. Make conventional transit services accessible to the extent possible. Provide transportation for those still unable to use bus/rail for some or all trips. 2 1

61 1/11/2017 What is Dial-a-Ride? Also known as paratransit Pre-scheduled origin to destination service provided upon request Provided for eligible customers and trips Eligibility assessments at VM Mobility Center 3 Dial-a-Ride in Dedicated Vehicles Typically larger vehicles with more capacity (allowing for more shared trips) Used full-time to provide DAR service Owned by either the agency or the contractor 4 2

62 1/11/2017 Dial-a-Ride in Non-Dedicated Vehicles Typically smaller vehicles with less capacity Some are not wheelchairaccessible Used only part-time to provide DAR service Owned by either the contractor or the individual driver 5 Dial-a-Ride Service Areas in the Region 6 3

63 1/11/2017 Northwest Valley Service Matrix 7 8 4

64 1/11/2017 The Paratransit (Dial-a-Ride) Dilemma Paratransit is Least flexible and most costly option for customers Most costly for the agency Demand is growing quicker than any other VM service. 9 Addressing the Cost Trend Improve accessibility of bus and light rail services Transit system improvements Increase the level of accessibility within communities Develop attractive and effective alternatives to costly paratransit for those who need origin to destination transportation Make refinements to paratransit so that it more closely resembles what the ADA requires 10 5

65 1/11/2017 Alternative Transportation Programs Programs providing more cost effective service: ADA Platinum Pass East Valley RideChoice Individualized travel training program 11 Valley Metro RideChoice Improvements Increase cost effectiveness and improve the customer experience Expand the program to new communities. Explore the incorporation of ridesourcing companies like Uber and Lyft. 12 6

66 1/11/2017 Refinements to Paratransit Implement technology supporting more productive service. Move from a 100% taxi-based model to a mix that uses both larger dedicated vehicles and sedans to: Achieve more shared trips and higher productivity during busy travel times Maintain the flexibility and cost advantages offered by smaller vehicles when trips cannot be shared 13 Refinements to Paratransit Use paratransit in conjunction with bus and light rail service for longer trips when appropriate. Use incentives to encourage customers to choose bus and/or light rail for all or portions of trips when they are able to do so. Implement trip-by-trip eligibility for customers who are able to use bus or light rail to complete some trips. 14 7

67 DATE AGENDA ITEM 6 January 12, 2017 SUBJECT Future Agenda Items Request and Report on Current Events PURPOSE Chair Williams will request future agenda items from members, and members may provide a report on current events. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT Pending Items Request VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

68 Pending Items Request Item Requested Date Requested Planned Follow-up Date 2

69 January 12, 2017 Board of Directors Thursday, January 19, 2017 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 11:15 a.m. Action Recommended 1. Public Comment on Agenda Action Items (blue card) 1. For information The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. 2. Minutes 2. For action Minutes from the December 15, 2016 Board meeting are presented for approval. CONSENT AGENDA 3A. Gilbert Road LRT Extension Design Contingency Amendment 3A. For action Staff recommends that the Board of Directors authorize the CEO to increase the Gilbert Road LRT Extension (GRE) design contingency by $200,000, which will be held by Valley Metro staff and made available to the designer, Jacobs Engineering Inc., as needed to complete the final design plans. 3B. Power Switch Machine Upgrade 3B. For action Staff recommends that the Board of Directors authorize the CEO to purchase 20 power switch machines from Voestalpine Nortrak, Inc. for an amount not to exceed $395,400. 3C. Qognify Suspect Search Contract Award 3C. For action Staff recommends that the Board of Directors authorize the CEO to execute a purchase order with Qognify to install the Suspect Search software used at Valley Metro in the amount of $650,060. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

70 REGULAR AGENDA 4. Tempe Streetcar Contract Award Scott Smith, CEO, will introduce Wulf Grote, Director, Capital and Service Development, who will request that the Board of Directors authorize the CEO to execute a contract for the Tempe Streetcar CM@Risk contractor for pre-construction services, with for a not to exceed amount of $850,000 and to authorize staff to hold $85,000 (10%) for use as a contingency for unforeseen circumstances. 5. Valley Metro Rail Fiscal Year 2017 (FY17) Mid-Year Budget Adjustment 4. For action 5. For action Scott Smith, CEO, will introduce Paul Hodgins, CFO, who will request that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY Valley Metro Rail System Branding 6. For information Scott Smith, CEO, will introduce Hillary Foose, Director Communication & Marketing, who will review proposed regional branding and naming conventions for the current and future extensions of the Valley Metro Rail high-capacity transit system, including streetcar. 7. Contract Monitoring Security Services Update 7. For information Scott Smith, CEO, will introduce Adrian Ruiz, Director Safety Security and Quality Assurance, who will provide an update regarding the Contract Monitoring for Security Services. 8. Future Agenda Items Request and Report on Current Events 8. For information Chair Mitchell will request future Board agenda items from members and members may provide a report on current events. 9. Next Meeting 9. For Information The next meeting of the Board is scheduled for Thursday, February 16, 2017 at 11:15 a.m. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 2

71 DATE AGENDA ITEM 1 January 12, 2017 SUBJECT Public Comment on Agenda Action Items PURPOSE The public will be provided with an opportunity at this time to address the Board on all action agenda items. Up to three minutes will be provided per speaker to address all agenda items unless the Chair allows more at his/her discretion. A total of 15 minutes for all speakers will be provided. BACKGROUND/DISCUSSION/CONSIDERATION COST AND BUDGET COMMITTEE PROCESS RECOMMENDATION This item is presented for information only. CONTACT Scott Smith Chief Executive Officer ssmith@valleymetro.org ATTACHMENT VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

72 DATE AGENDA ITEM 2 January 12, 2017 Minutes of the Valley Metro Rail Board of Directors Thursday, December 15, :15 a.m. Meeting Participants Mayor Mark Mitchell, City of Tempe, Chair Vice Mayor Dennis Kavanaugh, City of Mesa, Vice Chair Councilmember Rick Heumann, City of Chandler Councilmember Lauren Tolmachoff, City of Glendale (phone) Thelda Williams, City of Phoenix Chair Mitchell called the meeting to order at 12:55 p.m. 1. Public Comment Mr. Crowley said starting with action Item 3B half a million dollars. Is there any way, other than half a million dollars, for these guys to be communicating? There's smart phones. Is that the way that it also happens that operate an effective, reliable, high-performance transit system and that takes a half a million dollars in two-way radios. Interesting. And then to the contract award for the upgrade. I know that we keep on having to hand you more and more money, rail. Is there a reason that it keeps on being layered on instead of the job being done? It's like you had to spend, what was it, five and a half million dollars to get somebody to get all the different contractors together to get them to work and be able to do, and I go, we just spent $5 million for what. I look at the amount that we put in the rail and I appreciate that the 50th Street Station is going to be getting the farebox. Wouldn't be nice if you also had them at the transit centers, because it's important that you have them at the light rail 'cause that's all your customers -- no. All of your customers use both. And you need to be getting those fare vending machines going that other direction. With the rail and the extensions that you're doing, as in with this Authorization of Joint Agency Request for Qualifications for Miscellaneous Construction Services, it's just more of the 40 percent that you're supposed to be getting of transit funds keeps on eating more and more and more of them rather than taking care of the bus. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

73 Like I said, it's nice we're gonna be putting that ticket vending machine at the 50th Street Station. Have you resolved the problem of his predecessor and gotten any at the other parts, being that Gilbert has what, oh, one of those ticket vending machines in its park-and-ride. 2. Minutes Chair Mitchell said moving on to the next item is, is there -- approval of the minutes. Is there a motion to approve of the minutes? IT WAS MOVED BY COUNCILMEMBER HEUMANN, SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO APPROVE THE NOVEMBER 10, 2016 BOARD MEETING MINUTES. 3. Consent Agenda Chair Mitchell said the next item on our agenda is our consent agenda. IT WAS MOVED BY VICE MAYOR KAVANAUGH, SECONDED BY COUNCILMEMBER WILLIAMS AND UNANIMOUSLY CARRIED TO APPROVE THE CONSENT AGENDA. 4. Future Agenda Items Request and Report on Current Events Councilmember Williams said I want to request that the next agenda that a point of interest station naming be considered at the 19th Avenue/Northern Station for the 19th North Community Alliance. Chair Mitchell said yes. That will be on the next meeting. Councilmember Williams said yes, please. That is highly recommended by the neighborhoods. Councilmember Heumann said I just want to make a quick comment. I didn't have a chance to. I've served on this side of the Board for a long time. I just want to thank all and it's been a pleasure to work with the other council members and vice mayors and mayors and everybody up on this dais working with our staff and the professional level of our staff in getting through these tough times in the last year or so. It's been my pleasure to be a part of that, so I just want to thank you guys for the opportunity. 2

74 Chair Mitchell said our next meeting is Thursday, January 19, in the New Year, With that, I just want to make a comment to Councilmember Heumann and Vice Mayor Kavanaugh. It's been a pleasure, I know you both personally, but it's been a pleasure serving with you on the Metro Boards. I hope you guys continue to be involved, which I feel that you will be, and you will definitely be missed. And I just want to wish everyone, all the Metro staff, and everybody in the audience a very happy holiday season and be safe with all of your families. And this meeting is adjourned. With no further discussion the meeting adjourned at 1:01 p.m. 3

75 DATE January 12, 2017 AGENDA ITEM 3A SUBJECT Gilbert Road LRT Extension Design Contingency Amendment PURPOSE To request authorization for the Chief Executive Officer (CEO) to increase the Gilbert Road LRT Extension (GRE) design contingency by $200,000, which will be held by Valley Metro staff and made available to the designer, Jacobs Engineering Inc., as needed to complete the final design plans. BACKGROUND/DISCUSSION/CONSIDERATION In August 2015, the Board authorized Valley Metro to enter into a design contract for the Gilbert Road LRT Extension with Jacobs Engineering Inc. for $7,050,000 plus a 10% contingency to be held by staff. Since that time design changes have occurred. Some of the significant design changes include the elimination of a roundabout at Harris, the addition of bio-swales and retention basins, and the reconfiguration of traffic lanes west of Stapley Drive. Cost for these design changes will exceed the 10% contingency. Therefore, it is necessary to request an increase of contingency. COST AND BUDGET The amount of the proposed design contingency increase is $200,000 and will be covered by overall GRE project contingency. The GRE project is funded with federal CMAQ and STP funds (repurposed from highway projects within the City of Mesa) and City of Mesa local funds. No regional funds will be used for this project. The overall project budget is included in the Valley Metro Rail FY17 Adopted Operating and Capital Budget and FY17 FY21 Five-Year Capital Program. STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation Tactic C: Deliver projects and services on-time/on-budget. Goal 3: Grow transit ridership Tactic A: Expand and improve transit services to reach new markets. Tactic B: Improve connectivity of transit services for greater effectiveness. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

76 COMMITTEE PROCESS RTAG: December 20, 2016 for information RMC: January 4, 2017 approved Board of Directors: January 19, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to increase the Gilbert Road LRT Extension (GRE) design contingency by $200,000, which will be held by Valley Metro staff and made available to the designer, Jacobs Engineering Inc., as needed to complete the final design plans. CONTACT Wulf Grote, PE Director, Capital and Service Development ATTACHMENT 2

77 DATE January 12, 2017 AGENDA ITEM 3B SUBJECT Power Switch Machine Upgrade PURPOSE To request authorization for the Chief Executive Officer (CEO) to purchase 20 power switch machines from Voestalpine Nortrak, Inc. for an amount not to exceed $395,400. BACKGROUND/DISCUSSION/CONSIDERATION Power switch machines are currently installed along the light rail alignment. A power switch machine is a mechanical installation enabling light rail vehicles to be guided from one track to another. The switch consists of a pair of linked tapering rails, known as switch points, lying between the diverging outer rails (the stock rails). These points can be moved laterally into one of two positions to direct a light rail vehicle coming through the switch points toward the straight path (normal) or the diverging path (reverse). The power switch machines along the original 20-mile alignment are needing to be upgraded as these switches have had issues with the indication mechanism that has caused reliability issues with clearing signals.voestalpines latest design which Valley Metro Rail currently is using along the Northwest Extension extension uses a new style of indication circuitry that has shown much greater reliability in verifying switch position. Voestalpine Nortrak, Inc. is the sole source provider for the power switch machines. The equipment is sole source because the switch machine is designed to fit into the existing earth boxes that are currently on the alignment. It would require another vendor to modify the earth boxes that the power switch machine sits in at an additional cost. An independent cost estimate and a sole source justification including a cost comparison and price analysis have been completed. The cost comparison and price analysis was completed by comparing pricing to two other transit agencies that have purchased the same switch machines in the past. Valley Metro has determined that the proposed price has been deemed fair and reasonable. COST AND BUDGET The cost to purchase the power switch machines from Voestalpine Nortrak, Inc. is for an amount not to exceed $395,400. For Fiscal Year 2017, the VMR contract obligation is $395,400, which is fully funded within the VMR Adopted FY17 Operating and Capital Budget. Contract Obligations beyond FY17 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2017 thru FY2021). The source of funding is Prop 400. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

78 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system COMMITTEE PROCESS RTAG: Dec. 20, 2016 for information RMC: January 4, 2017 approved Board of Directors: January 19, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to purchase 20 power switch machines from Voestalpine Nortrak, Inc. for an amount not to exceed $395,400. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT 2

79 DATE January 12, 2017 AGENDA ITEM 3C SUBJECT Qognify Suspect Search Contract Award PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute a purchase order with Qognify to install the Suspect Search software used at Valley Metro Rail (VMR) in the amount of $650,060 that is included in the overall annual budget. BACKGROUND/DISCUSSION/CONSIDERATION Qognify, formerly named Nice Vision, is the existing CCTV solution provider that VMR has had in place since There have been numerous software updates and camera replacements that have occurred in the past few years. The existing CCTV system provides adequate camera monitoring capability to cover VMR s facilities, station platforms and the light rail corridor. As light rail services continue to grow and more rigorous safety and security requirements are imposed by the Transportation Security Administration (TSA), VMR is has the need to provide a more robust CCTV search solution beyond the basic CCTV monitoring function. Suspect Search is an additional software module added to existing monitoring software to allow operators to specify the characteristics of a suspect, such as sex, height, race, etc. Once the search attributes have been entered, the Suspect Search module will screen through all recorded video records and filter out the target based on the search criteria set. The search result will present the target with date, time, entry point to the service area and all the behaviors throughout the trip taken until the target exited the service area. Valley Metro staff has been investigating different CCTV search solutions available in the market place, such as Axis Communications, Honeywell Security and Tyco International. To get the search function working, it first has to have a basic monitoring solution in place. This means by adopting another search solution, VMR would need to purchase the basic monitoring solution and add the search optional module to the basic solution. This approach means, expending more funds on another solution and staff training for the new solution. Qognify is a market leader in the security monitoring/search solution field. More than 80 out of the Fortune 100 companies adopted the Qognify solution. The solution has been adopted widely by the public sector as well. Valley Metro will maintain oversight, Standard Operating Procedures (SOP s) and Information Technology User Agreements in order to monitor the proper use of analytical software related to closed circuit television. Analytical software allows for searches/inquiries based on full body image, textures and colors and other unique characteristics. It is a valuable, time efficient tool not only in identifying persons suspected of criminal/disorderly behavior, but also for lost children and vulnerable adults. The written VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

80 guide for CCTV and the use of analytics can be found in Allied Universal/Valley Metro Post Order 8 Video Monitoring, Storage and Dissemination. The SOP references and recognizes an individual s reasonable expectation of privacy while in a public place. Only authorized persons can view images on the CCTV system and permissions are required to disseminate images and data. The software includes a tracking signature used for conducting audits of program use. Violations for the use agreements or SOPs will result in progressive discipline and in keeping with the highest expectations of professionalism. An independent cost estimate and a sole source justification including a cost comparison and price analysis have been completed. The proposed price has been deemed fair and reasonable. COST AND BUDGET The amount to acquire and setup the Qognify Suspect Search function is $650,060. For FY17, the VMR contract obligation is $650,060, which is fully funded within the VMR Adopted FY2017 Operating and Capital Budget. Contract Obligations for maintenance beyond FY2017 are incorporated into the Valley Metro Rail Five-Year Operating Forecast and Capital Program (FY2018 thru FY2022). The source of funding is from member cities. COMMITTEE PROCESS RTAG: December 20, 2016 for information RMC: January 4, 2017 for action Board of Directors: January 19, 2017 for action STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : o Goal 1: Increase Customer Focus Tactic A: Improve customer satisfaction o Goal 2: Advance performance based operation Tactic A: Operate an effective, reliable, high performing transit system RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute a purchase order with Qognify to install the Suspect Search software used at Valley Metro in the amount of $650,060. CONTACT William Tsuei Chief Technology Officer wtsuei@valleymetro.org ATTACHMENT 2

81 DATE AGENDA ITEM 4 January 12, 2017 SUBJECT Tempe Streetcar - CM@Risk Contract Award PURPOSE To request authorization for the Chief Executive Officer (CEO) to execute a contract for the Tempe Streetcar Construction Manager at Risk (CM@Risk) contractor for preconstruction services, with Stacy & Witbeck for a not to exceed amount of $850,000 and to authorize staff to hold $85,000 (10%) for use as a contingency for unforeseen circumstances. BACKGROUND/DISCUSSION/CONSIDERATION The Tempe Streetcar Project consists of approximately 3.0 miles of single and double streetcar trackway extending along Rio Salado Parkway, through a one-way couplet loop in downtown Tempe on Mill and Ash Avenues, Mill Avenue south of University Drive, and east on Apache Boulevard to the current Dorsey Lane Light Rail Transit (LRT) station. The Project shall include fourteen stops, embedded trackwork, traction power substations, signals and powered switch machines for crossovers, communications, and ticket vending machines. The alignment is mostly street running with two crossings of and one connection with the light rail system. Off wire operation is being analyzed on the project on Mill and Ash Avenues between University Drive and Rio Salado Parkway. The system elements shall be consistent with other Valley Metro projects. This project will include renovation and reconstruction of any infrastructure such as utilities, storm drains, and landscaping that are impacted because of this project. All disturbed areas shall be reconstructed to the most current standards. The Tempe Streetcar project includes four major procurements: Design Services, Construction Manager at Risk (CM@Risk) Services, Public Art Services and Streetcar Vehicles. To date the procurement process for Design Services and the Public Art Services is complete. The vehicle procurement is still in progress. This action is only for the Tempe Streetcar CM@Risk Contractor. CM@Risk contracts involve two phases: the pre-construction phase, which occurs parallel to the project s design process, and the construction phase. At this time, action is only needed to execute a contract for the pre-construction phase. As the project nears design completion, the CM@Risk contractor, working closely with the design team, will prepare a Guaranteed Maximum Price (GMP) for the construction of the project. At that time staff will seek Board approval to award the construction phase for the GMP amount. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

82 The pre-construction services contract will include design participation in review/development of the street car alignment, structures, drainage, utility relocations, the fourteen stop platforms, street reconstruction; geotechnical activities; right-of-way (ROW), systems engineering, urban design, and pavement markings/signage. This contract will also provide design management, studies, analyses, cost estimates, design coordination with operations, utility engineering, civil engineering, architectural design, structural engineering, systems engineering, ROW development, surveying, technical support, geotechnical analysis, and constructability reviews of the project s design. A Request for Qualifications (RFQ) in accordance with A.R.S Title for this contract was issued on August 8, The RFQ published evaluation criteria and corresponding point values were as follows: Introductory Letter Experience of Contractor Understanding of Project and Approach to Performing Required Services Past Performance for past 10 years Contractor Proposed Project Team 0 Points 150 Points 250 Points 250 Points 350 Points Statements of Qualifications (SOQ s) were received on September 26, A total of four submittals were received and deemed responsive. SOQ s were received from the following firms: Archer Western Herzog Kiewet-Sundt Stacey & Witbeck Sun Valley Streetcar Partners The selection committee comprised of four Valley Metro employees, two City of Tempe employees, and one Contractor, evaluated the four responsive SOQs. Based on the selection committee s initial scoring and ranking it was determined to invite all four firms to the next phase in the solicitation process and submit Request for Proposal (RFP). The RFP was issued in accordance with A.R.S. Title on October 24, The RFP published evaluation criteria and corresponding point values were as follows: Introductory Letter Construction manager/general contractor project team Project approach and management of the work Public involvement and community relations plan Estimating and cost control measures for this project Major subcontractor and major supplier selections Design document reviews Risk management plan Proposed project schedule Quality assurance/quality control plan 0 Points 150 points 100 points 50 points 100 points 50 points 100 points 50 points 100 Points 75 Points 2

83 Safety plan Project Close Out and Warranty Price schedule 75 Points 50 Points 100 Points Proposals were received on November 21, A total of four proposals were received and deemed responsive from the following firms: Archer Western Herzog Kiewet-Sundt Stacey & Witbeck Sun Valley Streetcar Partners The selection committee comprised of four Valley Metro employees, two City of Tempe employees, and one Contractor, evaluated the four responsive proposals. Based on the selection committee s initial scoring and ranking it was determined to short list to three firms and conduct interviews on December 16, 2016 with the following firms: Kiewet-Sundt Stacey & Witbeck Sun Valley Streetcar Partners Upon completion of interviews, the selection committee completed their final scoring and ranking results as reflected below. CM@Risk Contractor Stacy & Witbeck Kiewit Sundt Sun Valley Streetcar Partners Ranking 1st 2nd 3rd The selection committee determined that Stacy Witbeck was the most qualified and highest ranked firm to perform the CM@Risk services and has entered into contract negotiations for Preconstruction Services. COST AND BUDGET The Tempe Streetcar project is funded with FTA Small Starts, FHWA Congestion Mitigation/Air Quality (CMAQ) Program, City of Tempe and Public Transportation Funds (PTF). The negotiated cost for the CM@Risk contractor s pre-construction services is $850,000. A 10% contingency, to be held by staff, is also needed to address unforeseen changes and circumstances that may arise during the project s design. It is anticipated that these preconstruction services will be funded 80 percent with CMAQ and 20 percent with PTF. 3

84 Project funding is included in the Valley Metro Rail Adopted FY17 Operating and Capital Budget. Contract obligations beyond FY17 are incorporated into the Five-Year Operating Forecast and Capital Program (FY17 thru FY21). STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o Tactic C: Deliver projects and services on-time/on-budget. Goal 3: Grow transit ridership o Tactic A: Expand and improve transit services to reach new markets. o Tactic B: Improve connectivity of transit services for greater effectiveness. COMMITTEE PROCESS RTAG: December 20, 2016 for information RMC: January 4, 2017 approved Board of Directors: January 29, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the CEO to execute a contract for the Tempe Streetcar CM@Risk contractor for pre-construction services, with for a not to exceed amount of $850,000 and to authorize staff to hold $85,000 (10%) for use as a contingency for unforeseen circumstances. CONTACT Wulf Grote, PE Director, Capital and Service Development wgrote@valleymetro.org ATTACHMENT 4

85 DATE AGENDA ITEM 5 January 12, 2017 SUBJECT Valley Metro Rail Fiscal Year 2017 (FY17) Mid-Year Budget Adjustment PURPOSE To request authorization for the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY17. BACKGROUND/DISCUSSION/CONSIDERATION In May 2016, the RMC recommended and the Board approved the FY17 Operating and Capital Budget. The cost factors used to develop the budget have changed and adjustments are warranted to update the expenditures planned for the remainder of the fiscal year. Future project development activities are greater than plan ($900K) due to an increase for Northwest Phase II which will be funded by Public Transportation Funds, as illustrated in the table. Operating Activities: Budget Future Project Development Description Increase (Decrease) Amt Funding Source Increased activity for Northwest $ 900,000 PTF Phase II Operations Total: $ 900,000 Annual expenditures will increase for several capital projects in FY16 due to timing of scheduled work. For each capital project, total project costs remain within budget. Project increases include CNPA work for Central Mesa ($0.2M), Gilbert Road ($1.5M), Tempe Streetcar ($5.1M), System wide improvements ($0.6M), and Non-Prior Rights utilities for Tempe Streetcar ($1.2M). We will expend less than planned for the Gilbert Road project ($14.6M) due to the design phase taking longer than planned in the budget. South Central Extension will not enter the capital phase until late in the year so we ve reduced the project accordingly ($36.3M). VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

86 Capital Activities: Budget CNPA-Central Mesa Capital Project Gilbert Road Capital Project CNPA-Gilbert Road Capital Project Tempe Streetcar NPR-Tempe Streetcar Capital Project 50th Street Station Increase Description Funding Source (Decrease) Amt Lesueur Pedestrian Crossing $ 158,000 City of Mesa Design phase later than assumed $ (14,334,000) City of Mesa in budget CMAQ Sewer Design Work and Lining $ 1,484,000 City of Mesa Additional funding for vehicle progress payment, PMCM, and Planning support Design schedule to start earlier, in FY17 Accelerate first phase of construction $ 5,854,000 PTF CMAQ South Central Capital Project Engineering phase later than assumed in budget Systemwide Improvements Mobile Ticketing project accelerated vs. plan. Capital Total: $ (41,099,000) $ 1,189,000 PTF CMAQ $ 285,000 City of Phoenix $ (36,335,000) City of Phoenix $ 600,000 PTF Federal COST AND BUDGET Changes proposed are incorporated into overall agency sources and uses of funds below: 2

87 FY17 Adopted FY17 Amended Change Operating Activities: Revenue Operations 44,890 44,890 - Future Project Development 10,967 11, Agency Operating Budget 1,081 1,081-56,938 57, Capital Projects: Northwest Extension 3,203 3,203 - Central Mesa Extension 4,673 4,673 - Gilbert Road Extension 57,984 43,650 (14,334) Tempe Streetcar Extension 9,476 15,330 5,854 50th Street LRT Station 5,780 6, South Central Extension 39,417 3,082 (36,335) Non-Prior Rights Utilities Relocations 3,185 4,374 1,189 CNPAs - Mesa Extension CNPAs - Gilbert Road - 1,484 1,484 Systemwide Improvements 16,305 16, Subtotal Capital before Debt Service 140,023 98,924 (41,099) Total Uses of Funds 196, ,762 (40,199) Sources of Funds ($,000) FY17 Adopted FY17 Amended Change Operating Activities: Fare Revenue 15,909 15,909 - Advertising Revenue 1,100 1,100 - Federal 5307 PM 1,197 1,197 - TIGER Member Cities 31,139 31,139 - MAG / RPTA (RARF) 1,000 1,000 - PTF Sales Tax Revenue 6,419 7, ,938 57, Capital Projects: Federal CMAQ 73,232 65,349 (7,883) Federal 5337 SOGR Federal 5312 MOD Member Cities 49,237 14,013 (35,224) Less Repayment Phoenix NW Advance (60,000) (60,000) - PTF Bond Revenue 43,099 43,099 - PTF Sales Tax Revenue 34,113 35,622 1, ,023 98,924 (41,099) Total Sources of Funds 196, ,762 (40,199) 3

88 STRATEGIC PLAN ALIGNMENT This item relates to the following goals and strategies in the Five-Year Strategic Plan, FY : Goal 2: Advance performance based operation o o Tactic A: Operate an effective, reliable, high performing transit system. Tactic E: Maintain strong fiscal controls to support Valley Metro s long-term sustainability. COMMITTEE ACTION RTAG: December 20, 2016 for information Financial Working Group: December 20, 2016 for information RMC: January 4, 2017 approved Audit and Finance Subcommittee: January 12, 2017 approved Board of Directors: January 19, 2017 for action RECOMMENDATION Staff recommends that the Board of Directors authorize the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY17. CONTACT Paul Hodgins Chief Financial Officer phodgins@valleymetro.org ATTACHMENT 4

89 12/29/2016 Valley Metro Rail FY17 Mid-Year Budget Adjustment January 2017 Changes Operations Projects Budget Future Project Development Description Increase (Decrease) Amt Funding Source Increased activity for Northwest $ 900,000 PTF Phase II Operations Total: $ 900,

90 12/29/2016 Changes Capital Projects Budget CNPA-Central Mesa Capital Project Gilbert Road Capital Project CNPA-Gilbert Road Capital Project Tempe Streetcar NPR-Tempe Streetcar Capital Project 50th Street Station Increase Description Funding Source (Decrease) Amt Lesueur Pedestrian Crossing $ 158,000 City of Mesa Design phase later than assumed $ (14,334,000) City of Mesa in budget CMAQ Sewer Design Work and Lining $ 1,484,000 City of Mesa Additional funding for vehicle progress payment, PMCM, and Planning support Design schedule to start earlier, in FY17 Accelerate first phase of construction $ 5,854,000 PTF CMAQ South Central Capital Project Engineering phase later than assumed in budget Systemwide Improvements Mobile Ticketing project accelerated vs. plan. Capital Total: $ (41,099,000) $ 1,189,000 PTF CMAQ $ 285,000 City of Phoenix $ (36,335,000) City of Phoenix $ 600,000 PTF Federal 3 Changes - Uses of Funds ($,000) FY17 Adopted FY17 Amended Change Operating Activities: Revenue Operations 44,890 44,890 - Future Project Development 10,967 11, Agency Operating Budget 1,081 1,081-56,938 57, Capital Projects: Northwest Extension 3,203 3,203 - Central Mesa Extension 4,673 4,673 - Gilbert Road Extension 57,984 43,650 (14,334) Tempe Streetcar Extension 9,476 15,330 5,854 50th Street LRT Station 5,780 6, South Central Extension 39,417 3,082 (36,335) Non-Prior Rights Utilities Relocations 3,185 4,374 1,189 CNPAs - Mesa Extension CNPAs - Gilbert Road - 1,484 1,484 Systemwide Improvements 16,305 16, Subtotal Capital before Debt Service 140,023 98,924 (41,099) Total Uses of Funds 196, ,762 (40,199) 4 2

91 12/29/2016 Changes Sources of Funds ($,000) FY17 Adopted FY17 Amended Change Operating Activities: Fare Revenue 15,909 15,909 - Advertising Revenue 1,100 1,100 - Federal 5307 PM 1,197 1,197 - TIGER Member Cities 31,139 31,139 - MAG / RPTA (RARF) 1,000 1,000 - PTF Sales Tax Revenue 6,419 7, ,938 57, Capital Projects: Federal CMAQ 73,232 65,349 (7,883) Federal 5337 SOGR Federal 5312 MOD Member Cities 49,237 14,013 (35,224) Less Repayment Phoenix NW Advance (60,000) (60,000) - PTF Bond Revenue 43,099 43,099 - PTF Sales Tax Revenue 34,113 35,622 1, ,023 98,924 (41,099) Total Sources of Funds 196, ,762 (40,199) 5 Recommendation Staff recommends that RMC forward to the Board of Directors authorization for the Mid-Year Budget Adjustment update to the Valley Metro Rail Operating and Capital Budget for FY

92 DATE AGENDA ITEM 6 January 12, 2017 SUBJECT Valley Metro Rail System Branding PURPOSE To review proposed regional branding and naming conventions for the current and future extensions of the Valley Metro Rail high-capacity transit system, including streetcar. BACKGROUND/DISCUSSION/CONSIDERATION As the region s high-capacity transit system grows and with the introduction of a new rail mode (streetcar), it is timely to discuss how the system and customers will identify the various lines colors, numbers, letters, destinations, etc. Staff initiated an effort to explore the industry and other agencies for their scheme(s) for rail line designations. Several naming conventions were evaluated in the context of national and international peers, opportunities and challenges they have experienced as well as the local operating characteristics of the future system. Following industry research and meeting with member agency staff, Valley Metro is recommending the use of letters as the primary service designation with colors as a secondary designation for Valley Metro Rail lines. See below for examples. Other transit agencies that use the letter/color system to represent their rail lines include: Denver RTD San Francisco Muni Tokyo It is important to note that Los Angeles Metro will soon use this convention as well. They are planning to transition to letters from a color only-based system in response to limitations as they outgrew their original color designations. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

93 The letter/color naming convention was selected as the preferred option for Valley Metro Rail as it best suits the system s growth pattern and the following criteria: Clear expression of modes. With letters representing the rail lines and numbers representing the bus routes, Valley Metro customers will be able to easily distinguish modes when planning a trip or viewing system maps. Bilingual. The pronunciation of letters is very similar in English and Spanish, enabling greater comprehension by the Valley s Spanish-speaking audience. Assertive identification. Future designations will feature large, bold white (reflective) letters which will allow wayfinding signage to stand out in a cluttered urban environment. Room for growth. With two dozen options, a letter system leaves ample flexibility for additional lines or operating patterns. At-a-glance recognition. With the use of color as a secondary designation, it will allow for the lines to be distinct and unique on all maps, signage and customer materials. Color is also used distinguish bus routes. The colors deployed will derive from Valley Metro s style guide color palette. Ability for classification. Letters can be grouped together to provide further information about a rail line. Valley Metro is proposing to designate the front of the alphabet to lines that cross through downtown Phoenix, middle alphabet to other regional connecting lines and end of alphabet to streetcar and other future modes. The proposed naming convention will accommodate future growth and realignments. It can also apply to any high-capacity transit mode, including streetcar, commuter rail and bus rapid transit (BRT). Front-of-alphabet (A-G) To be assigned to major, cross-regional lines that operate through downtown Phoenix Mid-alphabet (J-R) To be assigned to full-service, regional lines that do not serve downtown Phoenix Back of alphabet (S-Z) To be assigned to streetcars and other short-distance feeder and/or circulator lines Note: The strategy will not include the use of the following letters due to possible confusion with their common use in wayfinding signage outside the transit industry: o H (Hospital) o I (Information) o O (Zero) o P (Parking) Valley Metro proposes to introduce the letter/color convention to customers in 2020 with the opening of Tempe Streetcar, the first branch off the main line. 2

94 More near-term steps include continuing to work with member agency staff on the strategy for future deployment and developing designs for the regional streetcar vehicle that will initially service the Tempe Streetcar line. Staff will present initial streetcar vehicle designs for feedback in the spring. COST AND BUDGET Industry research was performed by CHK America via an existing contract, within annual budget and scope, for wayfinding and system map development services. No additional budget is required at this time. At the time of launch (2019/2020), budget will be required to transition signage and create customer education related to this naming convention. COMMITTEE PROCESS RTAG: December 20, 2016 for information RMC: January 4, 2017 for information Board of Directors: January 19, 2017 for information RELEVANCE TO STRATEGIC PLAN This item relates to the following goals and strategies in the Board adopted FY16 20 Strategic Plan: Goal 2: Advance performance based operation o Tactic A: Operate an effective, reliable, high performing transit system Goal 3: Grow transit ridership o Tactic A: Expand and improve transit services to reach new markets o Tactic B: Improve connectivity of transit services for greater effectiveness o Tactic C: Communicate availability, attractiveness and safety of transit service RECOMMENDATION This item is presented for information and discussion only. CONTACT Hillary Foose Director, Communication and Marketing Division hfoose@valleymetro.org ATTACHMENT Proposed Valley Metro Rail Identity Concept Industry research is available upon request. 3

95 Basic Naming Convention The lines in this document establish a durable naming convention. The naming convention can accommodate future growth and realignments. It applies to any high-capacity transit mode, including light rail, streetcar and commuter rail, depending on their function in the network. Front-of-Alphabet Major, cross-regional lines that operate through Downtown Phoenix D ALINE BLINE CLINE LINE ELINE FLINE GLINE Mid-Alphabet Full-service regional lines that do not serve Downtown Phoenix JLINE KLINE LLINE MLINE NLINE QLINE RLINE Back-of-Alphabet Short-distance feeder and circulator lines. Services can be identified as a line to integrate with the primary system or feature a descriptive word like streetcar. S STREETCAR TLINE U STREETCAR V Y Z CIRCULATOR WTROLLEY XFEEDER SHUTTLE CONNECTOR Unused Letters To avoid confusion with common wayfinding symbols, these letters are not recommended for use on any line. H I O P HOSPITAL INFO ZERO PARKING

96 ALINE BLINE CLINE JLINE S STREETCAR U STREETCAR

97 BELL RD 51 ALINE J BLINE CLINE JLINE S STREETCAR operating Station PHX Sky Train Transfer Station C PEORIA AVE Glendale 79th Ave under construction Future Station J streetcar (not all stops shown) J Downtown Glendale THOMAS RD 67th Ave 51st Ave/Glendale 43rd Ave/Glendale Bethany West 43rd Ave/Camelback th Ave 51st Ave B GRAND AVE 35th Ave/GCU Metrocenter Rose Mofford 25th Ave 19th Ave/Dunlap CAMELBACK RD 27th Ave 35th Ave /I-10 19th Ave 7th Ave Phoenix Oakland Capitol Northern Glendale Montebello Carnegie 7th Ave Central Ave/ Camelback Civic Center 17 CENTRAL AVE Van Buren Cityscape Map is for illustrative purposes only. B A 12th St Campbell Indian School Osborn Thomas Encanto McDowell Roosevelt Dreamy Draw Piestewa Peak Bethany East Town & Country 3rd St 12th St 24th St Paradise Valley Mall Indian Bend Wash Shea 143 WASHINGTON ST Lincoln PHX Buckeye Rio Salado Broadway/Ed Pastor Roeser Southern Baseline 38th St 44th St 50th St 10 Priest Dr Center Pkwy Mill Ave/3rd St S ASU Tempe SCOTTSDALE RD SHEA BLVD THOMAS RD CHANDLER BLVD 101 Marina Heights Veterans Way/College Ave University Dr/Rural Rd C S Dorsey/Apache Blvd McClintock APACHE BLVD Smith-Martin Price-101 Fwy Sycamore/Main St MAIN ST Alma School Country Club Center Mesa Dr Stapley Dr Mesa 202 A Gilbert Rd

98 12/29/2016 Valley Metro Rail System Branding January 2017 Purpose Create guidelines for naming of future light rail/high-capacity transit system Prompted by Tempe Streetcar Implementation will remain flexible Graphics are for illustrative purposes only 2 1

99 12/29/2016 Recommendation Letters as primary designation Colors as secondary designation Rationale: Clear/easy understanding At-a-glance recognition on wayfinding maps & signage Bilingual interpretation Room for growth Ability to classify by rail type Complementary to bus system Which uses a number & color methodology 4 2

100 12/29/2016 Supports All Rail Modes Front-of-alphabet (A-G) Major, crossregional lines that operate through downtown Phoenix Mid-alphabet (J-R) Full-service, regional lines that do not serve downtown Phoenix Back of alphabet (S-Z) Streetcars and other short-distance feeder and/or circulator lines 5 Map is for illustrative purposes only. 3