12:00 p.m. Valley Metro RPTA. Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor Phoenix

Transcription

1 MEETINGS OF THE Management Committees Valley Metro RPTA METRO Light Rail MEETING DATE Wednesday, November 5, 2014 TIME 11:00 a.m. MEETING DATE Wednesday, November 5, 2014 TIME 12:00 p.m. LOCATION Valley Metro RPTA Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor Phoenix VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

2 October 28, 2014 Transit Management Committee Wednesday, November 5, 2014 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 11:00 a.m. For those participating by telephone, please mute your phone when not speaking. Members please make sure your microphone is turned on when speaking and turned off when you are not speaking. Action Recommended 1. Public Comment 1. For information A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the TMC on all agenda items. The Chair may recognize members of the public during the meeting at his/her discretion. Up to three minutes will be provided per speaker or a total of 15 minutes total for all speakers. 2. Minutes 2. For action Minutes from the October 1, 2014 TMC meeting are presented for approval. 3. Chief Executive Officer s Report 3. For information Steve Banta, Chief Executive Officer (CEO), will brief the TMC on current issues. CONSENT AGENDA 4A. Commercial Property and Liability Insurance Coverage Purchase 4A. For action Staff will request that the TMC forward to the Board of Directors authorization for the CEO to purchase renewal coverage for Valley Metro s insurance needs, Stand-Alone Terrorism and Cyber/Privacy coverage for an amount not to exceed $1,582,965. RPTA s obligation is $216,792. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

3 4B. Contract Award to Build and Install New Security Gates at the Mesa Operations & Maintenance Facility 4B. For action Staff will request that the TMC forward to the Board of Directors authorization for the CEO to execute a contract with Centennial Contractor Enterprises, Inc. to build and install new security gates at the Mesa Operations & Maintenance Facility for $68,170 and to authorize a 10% contingency. 4C. Fiscal Year 2014 and Fiscal Year 2015 (FY) Intergovernmental Agreements (IGA) with the City of Chandler 4C. For action Staff will request that the TMC forward to the Board of Directors authorization for the CEO to execute the City of Chandler IGAs for FY14 (Master Agreement) and FY15 (Amendment) for projects consistent with the RPTA Board of Directors approved FY14 and FY15 budgets. 4D. Authorization to Exercise Option Year One of the Information Technology Consulting Services Contract with Enterprise Technology Services (ETS) 4D. For action Staff will request that the TMC forward to the Board of Directors authorization for the CEO to exercise option year one to extend the information technology consulting services contract with ETS in an amount not to exceed $78,000 (RPTA portion) for the period of December 1, 2014 to November 30, E. Authorization to issue an Invitation for Bid (IFB) for Diesel Fuel and Fuel Card Services 4E. For action Staff will request that the TMC forward to the Board of Directors authorization for the CEO to issue an IFB for a five-year contract with one three-year renewal option (total of eight years) for diesel fuel and fuel card services to operate Route 685 (Ajo/Gila Bend) Rural Connector Service. 2

4 REGULAR AGENDA 5. Contract Award for the Manufacture and Delivery of Heavy Duty Transit Buses 5. For action Steve Banta, CEO, will introduce Ray Abraham, Chief Operations Officer, who will request that the TMC forward to the Board of Directors authorization for the CEO to execute contracts with Gillig, LLC and New Flyer of America, Inc. for the manufacture and delivery of 76 heavy duty transit buses over a five-year period at an estimated cost of $46,260,325 base cost and $6,800,000 for optional components and Producer Price Index (PPI) increases Origins and Destinations Study Contract Award 6. For action Steve Banta, CEO, will introduce Wulf Grote, Director, Planning and Development, who will request that the TMC forward to the Board of Directors authorization for the CEO to execute a contract with ETC Institute for the Origins and Destinations Study for an amount not to exceed $737,616, and to authorize the CEO to retain a contingency in the amount of $62,384 for unforeseen expenditures. 7. Future Agenda Items Request and Report on Current Events 7. For information and discussion Chair Cook will request future agenda items from members, and members may provide a report on current events. 8. Next Meeting 8. For information The next meeting of the TMC is scheduled for Wednesday, December 3, 2014 at 11:00 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 3

5 DATE AGENDA ITEM 1 October 28, 2014 SUBJECT Public Comment PURPOSE A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the TMC on all agenda items. The Chair may recognize members of the public during the meeting at his/her discretion. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION This item is presented for information only. CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENT None VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

6 DATE AGENDA ITEM 2 October 28, 2014 Summary Minutes Valley Metro RPTA Transit Management Committee Wednesday, October 1, 2014 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor Phoenix, AZ 11:00 a.m. Members Present Dan Cook, City of Chandler, Chair Kristen Sexton, City of Avondale, Vice Chair Nicole Patrick, ADOT via phone Sean Banda, City of Buckeye Jorge Gastelum, City of El Mirage Kristen Myers, Town of Gilbert Debbie Albert, City of Glendale Cato Esquivel, City of Goodyear Jodi Sorrell, City of Mesa Bill Mattingly, City of Peoria Maria Hyatt, City of Phoenix Madeline Clemann, City of Scottsdale Martin Lucero, City of Surprise Steven Methvin, City of Tempe Members Not Present Mitch Wagner, Maricopa County Christine Hagen, City of Tolleson Chair Cook called the meeting to order at 11:05 a.m. 1. Public Comment Mr. Crowley said being that in public comment that's when we have to comment on nonaction items they're there for just for your information. I'm looking at the service changes and when you had the meetings for these it was proposed service changes for October. These are now going in in April. The real problem I have with the sausage, another term I have for a committee trying to make things happen, especially when it comes to government, is that we aren't the region. How many of you have individual transit systems feeding into the major as in collective systems within your communities? Some of you do. Some of you don't. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

7 But all I know is that it's not twenty-four hours seven days a week and the grid isn't done to the maximum when you consider the two-thirds of the county is west of 67th Avenue and how many buses do we have going out there? Oh, we got one going to Buckeye and Gila Bend and Goodyear and that's one bus. How are we a transit system when you have one bus? And if you take it the other direction, where's my Wickenburg connector going to Aguila and Congress? That was one of the things we stated we wanted in the document that you base your existence on. And we never said in there that it needed to get two-thirds of the farebox recovery -- or 25 percent farebox recovery. That was something the electeds and yourselves felt was necessary, so I need my bus back. We're not supposed to be making a profit. And what we're supposed to be doing is providing a transportation system. I jumped on the electeds when I saw that what they were being presented didn't have the Route 17. It is now going to go on to the res, but as I said, if I would have known what was in the documents today, I would have brought your little thing that said these are proposed service changes for October. Now will there be new service changes this next month, or what is going on here? And when you have public hearings for specific times, why aren't they being adhered to? Thank you. 2. Minutes Minutes from the September 3, 2014 TMC meeting were presented for approval. IT WAS MOVED BY BILL MATTINGLY, SECONDED BY MADELINE CLEMANN AND UNANIMOUSLY CARRIED TO APPROVE THE MINUTES FROM THE SEPTEMBER 3, 2014 TMC MEETING. 3. Chief Executive Officer s Report Mr. Banta provided an update which included: SWTA Award Operation Life Saver Grant FOX 10 wrapped train Legislative Update 4. Consent Agenda The following items were presented on the consent agenda: A. Authorization to Issue an Invitation for Bid (IFB) for Contractor to Purchase 2

8 Vanpool Vehicles for Regional Vanpool Program B. Intergovernmental Service Agreement (ISA) with Arizona Department of Administration (ADOA) C. Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants Public Comment Mr. Crowley said I didn't have time to get the calculator out here, but I look at the first one and I see that it's going to benefit 3200 valley residents. Nice number. And then I see that it's going to cost a total of $14 million dollars -- well, what is that? We'll go fifteen because it's $14,800,000. So divide 3200 into $15 million are we getting the bang for the buck? Is it actually doing the amount of let's in any way we cannot take responsibility for putting a transit system out there and we'll kick it to the private sector and say, hey, look at the wonderful job we're doing because we got 3200 people doing something for clean air? I need you to start doing it better. And if it entails not paying him as much money, but I need you to start putting the moneys where they need to be, not where you have them. And then I'll go to my favorite department of administration on the B one. They're part of the reason I know that you people didn't feel it was necessary to keep the Wickenburg connector. And Mr. Chavez over there, I'm glad that this is one of the sub-cities that you do, but I need you people to start understanding that it's not just a vanpool, it's a transit system, it's not just the rail, because I know that's the big money. I was glad that we did get to mention that it was also a rail wrap here at the bus meeting. But the vanpool and what it does and the amount of money that it doesn't do, we need to do better. And then when I look at the pass-throughs of the City of Phoenix, why aren't you doing it better, why aren't you being more aggressive with it? And when it comes to multimodal, which is in that part of your agenda today. When you put the rail in the middle of I-10, where are the stops going to be, and where do the people leave their vehicles, and how do they walk across that freeway to get away from it; otherwise, why are you putting it where it doesn't need to be. Thank you. Ms. Hyatt requested that Item 4C be pulled from the consent agenda. Chair Cook said what is the criteria for the replacement of these vehicles in terms of the age of the vehicle, the number of miles, maintenance history? I think I remember this from a while ago, but is it like a five, 10-year replacement, a 100,000 miles, or what's the criteria? 3

9 Ms. Coomer said in general we replace the vehicles every four to six years, depending on the condition of the vehicle, and it's typically a 100,000 to 125,000 miles. IT WAS MOVED BY BILL MATTINGLY, SECONDED BY MARIA HYATT AND UNANIMOUSLY CARRIED TO APPROVE CONSENT AGENDA ITEMS A AND B. 4C. Intergovernmental Agreements (IGAs) with the City of Phoenix for Federal Transit Administration Pass-Through Grants Mr. Hodgins said thank you, Mr. Chairman, and members of the committee. I apologize for the revision. There was a discrepancy in Grant No. 90-X131. It is a 5307 formula grant. One of the projects the amount was off by about 260,000 on the federal side with a corresponding 20 percent local match. That wasn't caught until after the packet was sent out. So there's a revised memo. The correct federal share for the formula grant should be $13,613,899. That reflects what is in the current program of projects. These are the current Fiscal '14 grants, the pass-through agreements with Phoenix to allow us to receive those federal amounts. Ms. Clemann said I wanted to quickly have you confirm, so the vehicle purchases for the Scottsdale LINK will be 80 percent match. Mr. Hodgins said Mr. Chairman, Ms. Clemann, the vehicle purchases are at 85 percent. The project that was in error was the capital improvements for the Scottsdale Road corridor which was at an IT WAS MOVED BY MARIA HYATT, SECONDED BY BILL MATTINGLY AND UNANIMOUSLY CARRIED TO APPROVE AGENDA ITEM 4C. 5. Valley Metro Strategic Plan MR. BANTA: We always put it for possible action in case you're enamored with our presentation and agree wholeheartedly to move it forward, Mr. Chairman. I would like to start by saying we have had a process here in the Valley developing organizational goals that have taken a number of turns over the recent years in terms of how we develop those. One of the things that we were fortunate enough to do a couple years ago is get concurrence from the Board to adopt 2-year goals so we could move them in sync with our budget so we could have organizational goals that actually are tied to our budget. At the same point in time, we also thought it was important that we develop a strategic plan to be able to work with our management committees and our Board strategically moving our organization forward as we deal with the transportation and growing needs 4

10 here in the Valley. My thought was that we would be able to garner support for organizational goals for FY16 that would allow us to drive a strategic plan to achieve those goals. We've had a number of different conversations in many different arenas and at last the direction was from the Board, the Joint Board Subcommittee that they want to see a strategic plan first before adopting the goals. So we are modifying the approach in terms of developing the strategic plan. We do believe it's important to start with a set of goals and then build a plan around there so we're doing both at the same time and we're running kind of a parallel path. What we also recognized is that we wanted to move into Phase II of the reorganization. And if you remember when we integrated RPTA and Valley Metro Rail into one staff organization we requested and received the help of Parsons Brinckerhoff to help us integrate the team. This Phase II is developing a strategic plan to allow us to move forward with an integrated approach of our business practices on a day-to-day basis, identify goals that we believe that this committee and also the Board can approve and adopt and move forward strategically in a way in which we deal with the day-to-day business of advancing transit here in the Valley. One of the things that we wanted to do was garner the support of the Board to make sure that we were expending our efforts in areas that were supported by the Board and also the Board understood the way in which we were moving forward. We have been fortunate enough to have the help of Ms. Linda Bohlinger, Vice President from Parsons Brinckerhoff. She's had a number of opportunities throughout her transit career working not only on the public sector side, but on the private sector side. And with that I'd like to introduce Linda and provide you an overview of where we are with our strategic plan and then potentially have a little bit of dialogue about that. Ms. Bohlinger provided a presentation which included the following: Today s Agenda Strategic Plan Update Strategic Plan Purpose Strategic Plan drives budget and performance Strategic Plan Process Proposed Vision and Mission Objective of Goals Goals for consideration Increase customer focus Tactics 5

11 Advance performance based operation Tactics Grow transit ridership Tactics Focus on economic development and regional competitiveness Tactics Advance the value of transit Tactics Next Steps Mr. Banta said I had a couple of comments I wanted to make just before the questions, if I could, Mr. Chairman. The goals that we put up there are goals that over the last few months with my engagement with the Boards and also the Joint Board Subcommittee, those were the common themes I was hearing from them in terms of focus, the customer, performance, efficiency, ridership, the economic development piece. Then ultimately communicating and celebrating our wins really going out to, as Linda said earlier, trying to engage with the citizens that do not take transit and try to find out why and encourage them to give us an opportunity. So these were the things that we were thinking about when we tried to develop the goals so they would mean something to each and every person in this room and to all of our member cities as we move forward. Ms. Myers said I have a question when we look at next steps today we're giving input on the information that was provided in the presentation; is that correct? Ms. Bohlinger said correct. Ms. Myers said when the second bullet when it says seeking buy-in from the group, can you elaborate? Is that something that we're looking at as possible action today from a buy in standpoint. Mr. Banta said we wanted to sit here and talk openly with you about this, get some initial feedback. We're going to this out to you. We expect the actual feedback to come in weeks in the future, not today, unless, like I said in the beginning, you and Mr. Cook are enamored with this presentation and want us to go full speed ahead, but we would expect some dialogue in the future. Mr. Mattingly said Mr. Chairman, a couple of comments, I noticed in the mission statement the, of course, it's way back at the beginning there, but it refers to in the last three words refer to a total transit organization and it strikes me that's the name of a vendor. The two words "total transit" is the name of one of our vendors; is it not? Mr. Banta said it is. Mr. Mattingly said just seems kind of a, maybe there's a more artful choice of words there. I understand what you're trying to do there, but maybe better words. Mr. Banta said I've been communicating since my arrival in 2010 of developing a total 6

12 transit network without regard to Discount Cab or the Total Transit organization. And what we're trying to communicate is the fact that we have integrated all modes of transit with a robust paratransit system serving the most needy and that was the best way in which we came up with describing what we're trying to advance. Ms. Myers said I have a comment then, maybe instead of total we look at that word being replaced with integrated. Just as a suggestion. Mr. Mattingly said I don't have a strong feeling one way or another. It just struck me that that was a company name. Mr. Banta said I have been making presentations for the last five years using the term "total transit network". It's in national publications, it's in local publications. I feel pretty passionate about that one, but I'm glad to discuss it, if I could, and I'd appreciate your consideration too. Mr. Mattingly said just one other item, I want to be careful that as we talk about performance based operations that we don't run into conflict with some of the other objectives. In other words, we talk about transit oriented development, talk about growing ridership, expanding service areas and growing networks and connections, and I'm concerned that as we extend services to areas that are not currently served, then the ridership and some of those performance metrics will not be there in the early years until some of these other things fall into place. So it's a measure -- it's a balanced approach to performance metrics. Mr. Banta said Mr. Chairman, Mr. Mattingly, I appreciate that comment. And we have tried to communicate, sometimes not as clearly as we probably should, that we want to provide the opportunity to incubate transit service. We want to be able to go out and introduce service in a certain area and allow, over a period of time, ridership to grow and development to take place not just put it where we needed it ten years ago, but actually try to grow it in ways in which we grow the regional system. Chair Cook said Mr. Banta, I guess to Mr. Mattingly's point, it's really kind of that third sub-bullet that actually caught my eye earlier because you're saying to meet or exceed industry standards and that's, I think a concern that, at least, I and probably some other cities had, in terms of we may not be able to meet or exceed industry standards in some of these areas and some of these routes. So maybe tempering that wording a little bit would be more appropriate. Mr. Banta said I believe in the last working group meeting that we had with your staffs some of those similar comments were brought forward and we were going to modify some of that language moving forward, so we appreciate that. Ms. Hyatt said Linda, Steve, what do you see the as the city's role other than to give you 7

13 input? Do you have a plan for how you incorporate member cities or not? Mr. Banta said I guess I'm not sure I understand the complete question. What we would like to do is we have so many different committees that we meet with. We start with the RTAG. We come to the Management Committee and ultimately the Board. These committees are our official touch point with our member cities to ensure that as a regional agency we are a little bit different than the city in which they manage but we would like to have support from the region as we move this forward. So as we advance these ideas, we would think that we would have some engagement, some dialogue, if you make comments or want a little more information we would have a give and take and then advance what we can agree to up through the process. Chair Cook said Mr. Banta I guess mentally I was thinking that maybe next month at this meeting, you know, all the comments would be in before the meeting on how kind of a group discussion on some of the specific comments or all of them, whichever. I was assuming that might be the case, but if there's a different option or approach, I guess that's okay, too, but I was kind of thinking along those same lines. Ms. Bohlinger said we plan to send out an when we'd like comments back. We'd like to come back next month for the committees that relate to the December meeting to have a fuller discussion and an actual plan to present to you as well. But we would incorporate your comments into a draft plan before we would come back to you. Chair Cook said so it probably would be December before you would come back for any kind of action on this, is that what I'm hearing? Ms. Bohlinger said yes. Chair Cook said are there any questions, or is that acceptable to everybody? Ms. Hyatt said that's fine. I'm still thinking, so I apologize for the delay. When we go to these meetings it's pretty darn formal with all of us sitting around a table like this and, you know, having a big group. What I'm wondering is if there is a role within your strategic planning effort internally for some of the city members to be a part. Now I realize this is a strategic plan for Valley Metro as an organization of which our -- you provide service to the member cities. But in several of these items you can't do it without us. And what I'm seeing is there a way for us to be integrated without slowing you down or letting you or keeping you from getting to your end product is what I'm coming to. Again, I realize that you need to do your strategic plan for your organization, but maybe we have -- maybe we could add to that role in some way, Steve. Mr. Banta said I do believe there's opportunities for other than official meetings to sit down and discuss where some of the sensitivities are, some suggestions on what we 8

14 might be able to include, or maybe not include, depending upon the goal, the objective or the tactic. I think there's opportunities for that moving forward clearly. Chair Cook said so would it be fair to say in the next week or so you'll get an to everybody to lay out the plan on how to do that? Mr. Banta said I would say that probably by close of business today you'll receive this. We can put together a schedule of potential meetings leading up to again some more public action on the strategic plan and ultimately the Board Subcommittee kind of arbitrarily threw out end of year for a strategic plan adoption, so we -- I think it's, if it's not ready we're not going to bring it clearly, but we do want to have a goal in place to get this thing to move forward so we could start working together. Chair Cook said I was thinking of Maria's comments about maybe meeting with staff or bring it back next month or whatever the choice of Valley Metro is, but communicating that out to everybody in terms of how we do that. I think Maria's point is well said, kind of actually comes somewhat along the lines of what I was thinking of some interaction with some of the cities. And it seems to be a good plan rather than doing it in a formal setting do it a little more informal. So if you could schedule some meetings and get the right people in the room, I think that would be wonderful. Mr. Banta said we will sit down after this and figure out a way in which to do that. Chair Cook said sounds great. Anybody else have any questions? Ms. Sorrell said is this same presentation going to be shared with the Board in October meetings or is this just going here? At what point will the Board see this and have an opportunity to give input? Mr. Banta said we were going to move this for information only through the full process. 6. Proposed April 2015 Valley Metro Transit Service Changes Mr. Banta said Mr. Chairman, members of the committee, I would like to make one comment early on. This is the proposed April 2015 service changes. We are implementing the October service changes as we speak. It is just the timing of when these are coming before committee so we can get out in the public earlier for the April service changes. Wulf Grote, Director, Planning & Development, provided a presentation which included: Overview Proposed Service Changes Proposed Service Changes (map) 9

15 Public Inputs Mr. Lucero said is there a possibility that if there was a change that needed to occur in April that we could still have time to make that change or is it -- since it's early on in the process still? Mr. Grote said Mr. Chairman, members of the committee, we are not entertaining new service change requests at this point in time for April. We've already had a deadline that's passed. We don't want to confuse the process. I know that there's in Surprise particularly there is one service that we have some funding question about, the Route 571. At the moment we're not showing any changes. We're working to see if we can keep that service in place without making any adjustments. I think that's probably what you're referring to. Chair Cook said Mr. Grote, I want to just mention briefly to, sort of, tie the last discussion together with this. On our Route 96, you know, one of your goals was economic development potential and helping out. I think what we're proposing and you're supporting is some direct feeds into the Intel Campus, which is a very large employer down in that part of the city, as well as we have another employer coming in with somewhere around five or six thousand jobs in the same corridor that they're still building on. And we're working with your office and your staff on potentially coming in there, although I know there are some other challenges. But it's nice to see that tied to help that because both of those users are wanting transit services to those and one of those users would have sort of lower level employees in terms of economics and in terms of wage earners. So I think it's very good that we're able to do that and to tie that together, so I just wanted to point that tie out. I think that's great. Thank you, Mr. Grote. 7. Fiscal Year (FY) 2015 First Quarter Reports Ray Abraham, Chief Operations Officer, provided an Operations and Maintenance presentation which included: Regional Ridership Fixed Route Bus East Valley Fixed Route Bus West Valley Dial-a-Ride East Valley Dial-a-Ride West Valley Other Accessibility Services Customer Service Call Center Ray Abraham, Chief Operations Officer, provided a Safety and Security presentation which included: 10

16 Bus Accidents Dial-a-Ride Accidents Security Incidents Wulf Grote, Director, Planning & Development, provided a Planning presentation which included: Transit Planning Projects Regional Paratransit Study Regional Paratransit Study Schedule Scottsdale/Rural LINK Project John McCormack, Chief Financial Officer, provided a Finance presentation which included: Valley Metro RPTA Operating Results Q1 Open Positions Status Valley Metro RPTA Capital Results Q1 8. Future Agenda Items Request and Report on Current Events None. With no further discussion the meeting adjourned at 12:23 p.m. 11

17 DATE AGENDA ITEM 3 October 28, 2014 SUBJECT Chief Executive Officer s Report PURPOSE Steve Banta, Chief Executive Officer, will brief the TMC on current issues. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION This item is presented for information only. CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENT None VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

18 DATE October 28, 2014 AGENDA ITEM 4A SUBJECT Commercial Property and Liability Insurance Coverage Purchase PURPOSE To request Board approval to authorize the Chief Executive Officer (CEO) to purchase renewal coverage for Valley Metro s insurance needs, Stand-Alone Terrorism and Cyber/Privacy coverage for an amount not to exceed $1,582,965. RPTA s obligation is $216,792. BACKGROUND/DISCUSSION/CONSIDERATION Currently, Valley Metro purchases commercial insurance to cover losses to Valley Metro-owned property and to protect Valley Metro from claims involving third parties. The insurance is jointly purchased by RPTA and METRO. Valley Metro s insurance broker, Arthur J. Gallagher has obtained quotes from insurance carriers to meet the agency s ongoing insurance needs. Staff met with member agency risk managers and our insurance broker on October 15 to discuss insurance renewal proposals. The recommendations contained within this memo are supported by the member agency risk managers. This year, Valley Metro requested quotes on two categories of coverage that have not been specifically addressed in prior years. Staff recommends that we add both of these to our insurance coverage. Stand-Alone Terrorism and Nuclear, Chemical, Biological and Radioactive (NCBR) coverage Valley Metro has previously carried coverage as required under The Terrorism Risk Insurance Act (TRIA). This provides coverage for acts of terrorism, but only if the event is declared a terrorist event by the Secretary of Treasury, in concurrence with the Secretary of State and Attorney General. The event must be an act that is dangerous to human life, property, or infrastructure and must result in damage within the U.S. (or outside the U.S. in the case of a U.S.-flagged vessel, aircraft or premises of a U.S. mission). It must be committed as part of an effort to coerce U.S. civilians or to influence either policy or conduct of the U.S. Government through coercion. TRIA coverage specifically excludes nuclear, chemical, biological, and radiological (NCBR) events. The coverage recommended here will provide coverage even when an event is not declared a terrorist event, and will cover NCBR events. The quote for the policy is $50,620. If Valley Metro purchases the Stand-alone Terrorism coverage, the TRIA coverage included in the excess liability coverage is not needed. The VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

19 net cost of this coverage is the cost of the proposed policy less the $19,626 cost of TRIA coverage, or $30,994. Cyber/Privacy In the event of a breach of our computer network or personnel files, this policy will provide coverage in areas such as security and privacy liability, multimedia and intellectual property liability, privacy regulatory defense and penalties, breach response costs, crisis communications costs, and Payment Card Industry Data Security Standard (PCI DSS) Fines and penalties. The quote for Cyber/Privacy coverage is $18,417. The following table summarizes the insurance renewal proposal pricing for RPTA: TABLE 1 RPTA Ratable Exposure Renewal Premium Expiring Premium % Change Line of Coverage Policy Limit Renewal Coverage Property Blanket Limit $8.4 M values $8.5 M values $7,146 $6, % Crime $ 1,000,000 n/a $1,431 $1, % Auto Liability & Physical $500, Vehicles Damage 1 $12,469 $9, $750, Vehicles Excess Liability SIR Buffer Layer 2014 Excess Liability SIR Buffer Layer 2015 Primary Excess Liability 1 st layer in excess of $500, Primary Excess Liability 1 st layer in excess of $750, $250,000 $500,000 $10,000,000 Same As Primary $61,170, $60,624,577 n/a $35,088 n/a $90,159 $23,135 n/a $99,984 n/a 36.12% (includes change in policy limit) 51.67% (includes change in policy limit) -9.83% (includes change in policy limit) Excess Liability 2 nd layer $10,000,000 Same As Primary $23,520 $22, % Excess Liability 3 rd layer $15,000,000 Same As Primary $15,640 $14, % Excess Liability 4 th layer $25,000,000 Same As Primary $25,125 $24, % Totals $210,578 $201, % New Coverage Stand-Alone Terrorism (NCBR) property $50,000,000 liability $ 1,000, M $2,531 n/a n/a Cyber/Privacy $ 1,000,000 $3,683 n/a n/a Grand Total $216,792 $201, % 1 The auto liability and physical damage coverage applies to RPTA non-revenue vehicles. It does not apply to buses used in revenue service. 2

20 These figures represent RPTA s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $60,500,000 excess of a $250,000 self-insured retention. The following table summarizes the insurance renewal proposal pricing for METRO: TABLE 2 METRO Ratable Exposure Renewal Premium Expiring Premium % Change Line of Coverage Policy Limit Renewal Coverage Property Blanket Limit $135.7 M values $135.8 M values $114,176 $110, % Inland Marine $151,190,408 $150,660,000 Rolling Stock $151,190,408 $181,452 $181, % Inland Marine $22,581,224 $22,581,224 Town Lake Bridge $22,581,224 $30,710 $30, % DIC Excess Flood & $15,000,000 x/o Quake $5mil u/l n/a $36,333 $36, % Crime $1,000,000 n/a $2,146 $2, % Auto Liability & Physical , Vehicles Damage , Vehicles $70,921 $62,885 Primary Excess Liability Buffer Layer 2014 Primary Excess Liability Buffer Layer 2015 Primary Excess Liability 1 st layer in excess of $500, Primary Excess Liability 1 st layer in excess of $750, % (includes change in policy limit) $250,000 n/a $97, % Same As Primary (includes change in policy limit) $500,000 $140,352 n/a $10,000, $34,236,454 n/a $421, $33,154,510 $360,635 n/a % (includes change in policy limit) Excess Liability 2 nd layer $10,000,000 Same As Primary $94,080 $93,176.97% Excess Liability 3 rd layer $15,000,000 Same As Primary $62,559 $62, % Excess Liability 4 th layer $25,000,000 Same As Primary $100,500 $101, % Excess Liability 5 th layer $25,000,000 Same As Primary $73,366 $80, % Excess Liability 6 th layer $15,000,000 Same As Primary $36,120 $38, % Pollution Liability $5,000,000 n/a n/a 2 n/a 2 n/a 2 Renewal Totals $1,303,350 $1,320, % New Coverage Stand-Alone Terrorism (NCBR) property $50,000,000 liability $ 1,000, M $48,089 n/a n/a Cyber/Privacy $ 1,000,000 $14,734 n/a n/a Grand Total $1,366,173 $1,320, % 1 The auto liability and physical damage coverage applies to METRO non-revenue vehicles. It does not apply to rail cars used for service. 3

21 2 This was renewed in 2012 for a 3-year policy term at a premium of $23,673 These figures represent METRO s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $100,500,000 excess of a $250,000 self-insured retention. The Valley Metro insurance policies are part of a combined insurance program with RPTA and METRO. The policies cover exposures of both entities and premium is split between the two organizations based on exposure as determined by the insurance underwriters. Due to the overlapping of employees, this combined approach has been beneficial to each agency in the coordination of coverage and in the purchasing power of the combined entities. COST AND BUDGET The renewal premium costs by type of insurance for RPTA and METRO are provided below in Table 3. TABLE 3 Coverage Type 4 RPTA Premium METRO Premium TOTAL Renewal Coverage Property $7,146 $114,176 $121,322 Inland Marine Rolling Stock n/a $181,452 $181,452 Inland Marine Town Lake Bridge n/a $30,710 $30,710 DIC Excess Flood/Quake Town Lake Bridge n/a $36,333 $36,333 Crime $1,431 $2,146 $3,577 Auto Liability & Physical Damage $12,469 $70,921 $83,390 Excess Liability Buffer Layer $35,088 $140,352 $175,440 Primary Excess Liability 1 st layer $90,159 $360,635 $450,794 Excess Liability 2 nd layer $23,520 $94,080 $117,600 Excess Liability 3 rd layer $15,640 $62,559 $78,199 Excess Liability 4 th layer $25,125 $100,500 $125,625 Excess Liability 5 th layer n/a $73,366 $73,366 Excess Liability 6 th layer n/a $36,120 $36,120 Pollution Liability n/a n/a n/a Totals $210,578 $1,303,350 $1,513,928 New Coverage Stand-Alone Terrorism (NCBR) $2,531 $48,089 $50,620 Cyber/Privacy $3,683 $14,734 $18,417 Grand Total $216,792 $1,366,173 $1,582,965 For the term December 1, 2014 November 30, 2015 the METRO contract obligation is $1,366,173 which is fully funded within the METRO Adopted FY 2015 Operating and Capital Budget. Contract Obligations beyond FY 2015 are incorporated into the METRO Five-Year Operating Forecast and Capital Program (FY2015 thru FY2019). For the term December 1, 2014 November 30, 2015, the RPTA contract obligation is $216,792 which is fully funded within the FY 15 RPTA Adopted Operating Budget. Contract Obligations beyond FY2015 are incorporated into the RPTA FY15-19 Five- Year Operating Forecast.

22 COMMITTEE ACTION RTAG: October 21, 2014 for information TMC: November 5, 2014 for action Board of Directors: November 13, 2014 for action RECOMMENDATION It is recommended the TMC forward to the Board of Directors authorization for the CEO to purchase renewal coverage for Valley Metro s insurance needs, Stand-Alone Terrorism and Cyber/Privacy coverage for an amount not to exceed $1,582,965. RPTA s obligation is $216,792. CONTACT Carol L. Ketcherside Director of Administration & Organizational Development cketcherside@valleymetro.org ATTACHMENT None 5

23 DATE October 28, 2014 AGENDA ITEM 4B SUBJECT Contract Award to Build and Install New Security Gates at the Mesa Operations & Maintenance Facility PURPOSE To request Board authorization for the Chief Executive Officer (CEO) to execute a contract with Centennial Contractor Enterprises, Inc. to build and install new security gates at the Mesa Operations & Maintenance Facility for $68,170 and to authorize a 10% contingency. BACKGROUND/DISCUSSION/CONSIDERATION The Mesa Operations Facility was designed with two automated gates providing secured entry and exit for all transit vehicles. These gates were designed and constructed of heavy gauge steel, weighing several thousand pounds each. The gate motor operating mechanisms are some of the largest commercial grade required in order to mobilize the gates back and forth, throughout the day. Since the facility was constructed in 2003, these gate assemblies have demonstrated repeated failures and have exceeded their useful life. As a result of the ongoing issues associated with these gates, staff recommends both gates be replaced with units manufactured with significantly lighter weight materials, new gate motor assemblies and controllers, and with provisions to allow for manual over-rides of the automated function. In addition, all safety ground loops and sensors will be replaced and new embedded guide tracks will be installed. Centennial Contractor Enterprises, Inc. was selected through the contracting services procured by the Mohave Educational Services Cooperative, Inc. which is compliant with the state-wide contract and is recommended to perform the required work. Valley Metro s Design and Construction Department will provide the construction management services for this work. COST AND BUDGET The cost to have Centennial Contractor Enterprises, Inc. build and install the gates at the Mesa Operations & Maintenance Facility is $68,170. A contract contingency of 10 percent is also requested to be used to cover unanticipated contract changes that may become necessary. Costs for the gates are fully funded within the RPTA Adopted FY15 Operating and Capital Budget. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

24 COMMITTEE PROCESS RTAG: October 21, 2014 for information TMC: November 5, 2014 for action Board of Directors: November 13, 2014 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the CEO to: Execute a contract with Centennial Contractor Enterprises, Inc. to build and install new gates at the Mesa Operations & Maintenance Facility for an amount of $68,170; and Authorize a contract contingency of $6,817 for unanticipated contract changes. CONTACT Ray Abraham Chief Operating Officer rabraham@valleymetro.org ATTACHMENT None 2

25 DATE October 28, 2014 AGENDA ITEM 4C SUBJECT Fiscal Year 2014 and Fiscal Year 2015 (FY) Intergovernmental Agreements (IGA) with the City of Chandler PURPOSE To request Board authorization for the Chief Executive Officer (CEO) to execute the City of Chandler IGAs for FY14 (Master Agreement) and FY15 (Amendment) for projects consistent with the RPTA Board of Directors approved FY14 and FY15 budgets. BACKGROUND/DISCUSSION/CONSIDERATION Each year Valley Metro executes IGAs with its member agencies. The IGAs are presented as a single agenda item and are outlined in the attached summary table. This summary table is developed in cooperation with member agencies and defines the expenditure of resources for transit operations and capital investment. COST AND BUDGET Please see the attached spreadsheet. COMMITTEE ACTION RTAG: September 16, 2014 for information TMC: November 3, 2014 for action Board of Directors: November 13, 2014 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the CEO to execute the City of Chandler IGAs for FY14 (Master Agreement) and FY15 (Amendment) as outlined in the attached table for projects consistent with the RPTA Board of Directors approved FY14 and FY15 budgets. CONTACT Carol L. Ketcherside Director, Administration and Organizational Development cketcherside@valleymetro.org ATTACHMENT FY 2014 and FY 2015 City of Chandler Intergovernmental Agreement Summary VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

26 RPTA Intergovernmental Agreements FY14 IGA (Master Agreement) Expense/ Revenue Member Agency/Jurisdiction Brief Description FY 2013 Contract Amount * FY 2014 Contract Amount Change from FY 2013 to FY 2014 Revenue City of Chandler RideChoice Alternative Paratransit Services $66,717 $63,518 -$3,199 Revenue City of Chandler Fixed Route Transit Services $81,488 $220,958 $139,470 Revenue City of Chandler Dial a Ride $193,268 $148,559 -$44,709 PTF Reimbursement City of Chandler ADA Allocations $800,000 $1,150,000 $350,000 FY15 IGA (Amendment) Expense/ Revenue Member Agency/Jurisdiction Brief Description FY 2014 Change Order Amount * FY 2015 Change Order Amount Change from FY 2014 to FY 2015 Revenue City of Chandler RideChoice Alternative Paratransit Services $63,518 $58,602 -$4,916 Revenue City of Chandler Fixed Route Transit Services $220,958 $310,974 $90,016 Revenue City of Chandler Dial a Ride $148,559 $377,919 $229,360 PTF Reimbursement City of Chandler ADA Allocations $1,150,000 $1,180,000 $30,000 * FY 2015 Change Order amounts shown are estimates. Page 1 of 1

27 DATE October 28, 2014 AGENDA ITEM 4D SUBJECT Authorization to Execute Option Year One and a Contract Value Adjustment to the Information Technology Consulting Services Contract with Enterprise Technology Services (ETS) PURPOSE To request Board authorization for the Chief Executive Officer (CEO) to exercise an option to extend the information technology consulting services contract with ETS for one year in an amount not to exceed $78,000 (RPTA portion) for the period of December 1, 2014 to November 30, BACKGROUND/DISCUSSION/CONSIDERATION In 2011, METRO and RPTA jointly procured Information Technology Services with ETS. The proposal was for a three year contract with two one-year options. In November 2011, the RPTA Board awarded a three-year contract to ETS. ETS provides valuable services which augment the small in-house IT staff. Staff augmentation allows for right-sizing the IT team as workloads fluctuate, resulting in a financial saving to the agency. ETS provides needed resources quickly when circumstances require expertise that is not available in house. This contract option will provide professional services for networking, help-desk, system engineering and program management for the period December 1, 2014 to November 30, An independent cost estimate was completed, and the pricing for this option year is consistent with that estimate. Actual hours of services vary based on Valley Metro s requirements to: Maintain existing systems Replace equipment and software which has reached end of life-cycle Implement upgrades Develop applications to meet changing technology needs COST AND BUDGET The RPTA portion of the one-year option is not to exceed $78,000. Costs are included within the Valley Metro approved FY15 Operating and Capital Budget and the Five-Year Operating Forecast and Capital Program (FY15 FY19). VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

28 COMMITTEE PROCESS RTAG: October 21, 2014 for information TMC: November 5, 2014 for action Board of Directors: November 13, 2014 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the CEO to execute a one-year option and a contract value adjustment to the Information Technology Consulting Services Contract with Enterprise Technology Services (ETS) in an amount not to exceed $78,000 for the period of December 1, 2014 to November 30, CONTACT Carol L. Ketcherside Director, Administration and Organizational Development cketcherside@valleymetro.org ATTACHMENT None 2

29 DATE October 28, 2014 AGENDA ITEM 4E SUBJECT Authorization to issue an Invitation for Bid (IFB) for Diesel Fuel and Fuel Card Services PURPOSE To request Board authorization for the Chief Executive Officer (CEO) to issue an IFB for a five-year contract with one three-year renewal option (total of eight years) for diesel fuel and fuel card services to operate Route 685 (Ajo/Gila Bend) Rural Connector Service. BACKGROUND/DISCUSSION/CONSIDERATION The Route 685 Ajo/Gila Bend Regional Connector operates along State Highway 85 and provides bus service to the communities of Ajo, Gila Bend, Buckeye, Goodyear, Avondale, Tolleson and Phoenix. Recently, Valley Metro awarded a new five-year contract with one three-year renewal option to Ajo Transportation/Second Generation to operate the service on behalf of Valley Metro. The new contract with Ajo Transportation/Second Generation did not include the cost of fuel to operate this service. Valley Metro elected to purchase fuel separately because, as a governmental agency, federal excise taxes are exempt and thus lowers the cost of fuel and operation of the route. In addition, all other Valley Metro bus contracted services are structured in this manner. Valley Metro staff is seeking authorization to issue an IFB for the supply of diesel fuel and fuel card services in the town of Gila Bend. This is the halfway point of the route and from the current operating parameters, this location will ensure vehicles can travel the required miles on this route without having to obtain fuel more than one time per trip. This is also the current location for a comfort stop for passengers and bus operators on a route that covers over 120 miles each direction. COST AND BUDGET The projected five-year cost for fuel services is $1,112,000. The projected three-year option cost for fuel services is $758,600. The estimated first year cost of $220,000 is included in the RPTA Adopted FY15 Operating and Capital Budget. Contract obligations beyond FY15 are incorporated into the RPTA Five - Year Operating Forecast and Capital Program (FY2015 thru FY2019). COMMITTEE PROCESS RTAG: October 21, 2014 for information TMC: November 5, 2014 for action Board of Directors: November 13, 2014 for action VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

30 RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the CEO to issue an IFB for a five-year contract with one three-year renewal option (total of eight years) for diesel fuel and fuel card services to operate Route 685 (Ajo/Gila Bend) Rural Connector Service. CONTACT Ray Abraham Chief Operations Officer rabraham@valleymetro.org ATTACHMENT None 2