SCRRA BOARD OF DIRECTORS MEETING

Transcription

1 SCRRA BOARD OF DIRECTORS MEETING J U N E 2 5,

2 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY County Member Alternate Ventura: Keith Millhouse (Chair) Brian Humphrey Council Member Commission Member 1 vote City of Moorpark VCTC Los Angeles: Richard Katz (Vice-Chair) Jaime de la Vega Member, Deputy Mayor, 4 votes Metro Board of Directors City of Los Angeles City of Los Angeles Mayor Appointee Michael Antonovich Supervisor, 5 th District County of Los Angeles Don Knabe Supervisor, 4 th District County of Los Angeles Ara Najarian Chairman, Metro Board Council Member City of Glendale Robert T. Bartlett Appointed by Metro Beatrice Proo Appointed by Metro Maureen Micheline Transportation Deputy Metro San Bernardino: Paul Eaton Patricia Gilbreath* Mayor Mayor Pro Tem 2 votes City of Montclair City of Redlands Patrick Morris Mayor City of San Bernardino Diane Williams* Council Member City of Rancho Cucamonga Orange: Art Brown Paul Glaab* Council Member Council Member 2 votes City of Buena Park City of Laguna Niguel Richard Dixon Mayor Pro Tem City of Lake Forest 700 S. Flower Street, Suite 2600 Los Angeles, CA

3 SCRRA Board of Directors Roster Page 2 Riverside: Ron Roberts Robin Lowe* Mayor Pro Tem Council Member 2 votes City of Temecula City of Hemet Daryl Busch Mayor City of Perris Greg Pettis* Council Member Cathedral City EX-OFFICIO MEMBERS Southern California Association of Governments: Gary C. Ovitt Supervisor, 4 th District San Bernardino County San Diego Association of Governments: [CURRENTLY AWAITING APPOINTMENT] Contact: Linda Culp Senior Transportation Planner State of California: Dale E. Bonner Secretary of Business, Transportation and Housing Agency Alternate: [CURRENTLY AWAITING APPOINTMENT] *Alternates represent either member Revised

4 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY SCRRA BOARD OF DIRECTORS MEETING FRIDAY, JUNE 25, :00A.M. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) BOARD CONFERENCE ROOM 818 WEST SEVENTH STREET, 12th FLOOR LOS ANGELES, CALIFORNIA AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. Southern California Regional Rail Authority Consent Calendar Matters (Items 4-23) to be approved in one motion unless a Board Member requests separate action which it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chairman reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Board Secretary s office at (213) or via yeroo@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at 700 S. Flower, 26 th Floor, Los Angeles, CA 90017, and on the Metrolink website at under the Board Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda, may do so by completing a Speaker s Form and submitting it to the Board Secretary. Speakers will be recognized by the Chairman at the time the agenda item is to be considered. When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item not on the agenda, but within the subject matter jurisdiction of the Board, will be taken under Item 3 (Public Comment), and will be subject to the same guidelines as noted above. 700 S. Flower Street, Suite 2600 Los Angeles, CA

5 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 1. Call to Order 2. Pledge of Allegiance 3. Public Comment CONSENT CALENDAR 4. Approval of Minutes of the May 14, 2010 Board meeting Staff recommends the Board approve the minutes of the May 14, 2010 meeting. Page 1 5. Purchase Order No. S Retrieval, Storage, and Disposition Services of Offsite Records Iron Mountain A continued retrieval, storage, and disposition service of offsite records is required. Staff recommends the Board find that continuing with Iron Mountain s services is in the best interest of the Agency at this time, and authorize the Chief Executive Officer to award Purchase Order S , for retrieval, storage, and disposition services of offsite records for a not-to-exceed amount of $41,500, for a one-year period through June 30, 2011, plus two one-year options to be exercised by the Purchasing Agent, for a total notto-exceed amount of $124,500. Page 5 6. Purchase Order No. S Renewal of Software Licenses, Maintenance & Technical Support for Imaging Project Matrix Imaging Products, LLC (Matrix) Renewal of software licenses, maintenance and technical support is required for EMC s Documentum document management system. Staff recommends the Board authorize the Chief Executive Officer to: 1. Award Purchase Order S to Matrix for the renewal of the software license, maintenance, and technical support for the Documentum document management system at SCRRA for a not-to-exceed amount of $33,882, for a one-year period through June 30, 2011; and 2. Award two one-year options to be exercised by the Purchasing Agent, for a total notto-exceed amount of $101,646. Page 7 7. Purchase Order No. PO PC, Peripherals, Software, Related Services CDW Government, Inc. (CDW-G) To continue the cost-effective procurement of PC peripherals, software and related services. Staff recommends the Board authorize the Chief Executive Officer to: 1. Award Blanket Purchase Order PO to CDW-G for a not-to-exceed amount of $110,000, through March 31, 2011; and 2. Award two one-year options to be exercised by the Purchasing Agent contingent upon the exercising of options by LA County under Master Agreement No , for a total not-to-exceed amount of $335,000. Page 9

6 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 3 8. Purchase Order No. SP Office Communications Gateway Recommendation to Award Convergent Communications, Inc. An Office Communications Gateway is needed to support the Agency s communications infrastructure change to a converged network with IP connectivity to the field. Staff recommends the Board authorize the Chief Executive Officer to award Contract No. SP288-10, Office Communications Gateway to the single responsive and responsible bidder Convergent Communications, Inc., (CCI), in an amount not-to-exceed $59,279. The contract is for a 30-day term from Notice-to-Proceed. This award is not subject to protest as no other bids were submitted. Page Consultant Services for Organizational Assessment Non-Competitively Negotiated Contract Awards A non-competitive procurement for consultant services for the Chief Executive Officer s organizational assessment is in the best interests of the Agency at this time. Staff recommends that the Board find that a sole source award to continue the consulting services of The Jim Schultz Group, David M. Tolbert, and E2E Consulting for organizational assessment, is in the best interest of the Agency at this time, and that it authorize the Chief Executive Officer to award the following: Contract No. SP to The Jim Schultz Group for a total not-to-exceed contract authorization of $223,500; Contract No. SP to David M. Tolbert for a total not-to-exceed contract authorization of $220,500; and Contract No. SP to E2E Consulting for a total not-to-exceed contract authorization of $720,000. All three contracts will be for a period of one (1) year, from July 1, 2010 to June 30, Page Amendment and Extensions to Santiago Peak and Sunset Ridge Lease Agreements Amendments and extensions to two SCRRA communications tower facilities are required to maintain effective communications across the Metrolink service area. Staff recommends the Board: 1. Authorize the Chief Executive Officer to execute an amendment to the license agreement between SCRRA and American Tower, L.P. to permit SCRRA to relocate to a new tower location at Santiago Peak, Trabuco Canyon, and 2. Authorize the Chief Executive Officer to exercise a renewal option for the space rental agreement between SCRRA and the AVCOM Company for AVCOM building C2 room B and associated communications tower space at the Sunset Ridge communications facility and execute an amendment to the fee schedule to include rent for additional equipment that SCRRA plans to install. Page 17

7 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page Contract No. MS Ticket Vending Machine (TVM) Cash Collection and Counting Services - Extend Contract Term and Increase Contract Funding Authorization Los Angeles Federal Armored Services, Inc. Regular servicing of ticket vending machines (TVM) is required to ensure effective ticket and cash management of TVM transactions. Staff recommends the Board authorize the Chief Executive Officer to: 1. Extend the period of performance by six months on Contract No. MS for Ticket Vending Machine Cash Collection and Counting Services with Los Angeles Federal Armored Services, Inc. from July 1, 2010 to December 31, 2010; and 2. Increase the contract funding authorization by $275,000 for a total not-to-exceed amount of $2,601,921. Page Contract No. MS214 Request for FY10-11 Budget and Contract Authority for Track and Structures Maintenance with Veolia Transportation Maintenance and Infrastructure, Inc. (VTMI) Annual contract authority and not-to-exceed budget to fund track and structures maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support from VTMI is required. Consistent with the adoption of the FY10-11 Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $18,423,149 of contract funding authority for Contract No. MS214 with VTMI for FY The recommended amount is $10,823,149 for operating maintenance, $5,600,000 for support of capital construction projects and $2,000,000 for support of recollectable projects. Page Contract No. SP Law Enforcement Services Request for Fiscal Year Budget and Contract Funding Authority County of Los Angeles for the Los Angeles Sheriff s Department (LASD) Annual contract authority and not-to-exceed budget to fund law enforcement services is required. Consistent with the adoption of the FY10-11 operating and capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $7,843,592 of contract funding authorization for Contract No. SP with the LASD. The recommended amount is $5,850,710 for law enforcement services consistent with service assumptions for FY10-11, and $1,992,882 to support Los Angeles County Metropolitan Transportation Authority (Metro) recollectable work. Page Contract No. SP Marketing Support Services Creative Productions Marketing, Pulsar Advertising, and The Strausberg Group - Increase Contract Funding Authorization Continued marketing support services are needed for the Marketing and Sales Division to implement external marketing campaigns and programs and support the internal needs of the Authority. Staff recommends the Board authorize the Chief Executive Officer to amend the Marketing Support Services bench of firms:

8 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 5 SP212A-06 - Creative Productions Marketing, SP212B-06 - Pulsar Advertising, SP212C-06 The Strausberg Group. To increase the contract funding pool authorization under the bench by $2,500,000 f or a new total not-to-exceed pool amount of $5,500,000. Page Contract No. MS222-09R Request for FY10-11 Budget and Contract Authority for Signal and Communications Maintenance with Mass Electric Construction Company (MECC) Annual contract authority and not-to-exceed budget to fund signal and communications maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support from MECC is required. Consistent with the adoption of the FY10-11Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $13,354,607 of contract funding authority for Contract No. MS222 with Mass Electric Construction Company (MECC) for FY The recommended amount is $12,154,607 for operating maintenance, $700,000 for support of capital construction projects, and $500,000 for support of recollectable projects. Page Contract No. OP Request for FY Budget and Contract Authority for Maintenance of Equipment Services with Bombardier Transit Corporation Annual contract authority and budget to fund maintenance of equipment and rehabilitation and renovation support services with Bombardier is required. Consistent with the adoption of the FY Operating and Capital budgets by the SCRRA Board, staff recommends that the Board authorize the Chief Executive Officer to approve $28,657,645 of contract funding authority for Contract No. OP with Bombardier for FY The recommended amount is $27,757,645 for operating maintenance, including recollectable work, and $900,000 for rolling stock rehabilitation and renovation work. Page Contract No. OP Operator Services - Request for Time Extension for Contract Close-out Activities Only and Increase in Contract Authority for Contract Closeout - Connex Railroad LLC (Connex) To enable close-out of the operator services contract with Connex, a time extension to complete these close-out activities and an increase in contract authority is required. No train operation services will be provided during this time extension. Staff recommends the Board authorize the Chief Executive Officer to amend Contract No. OP with Connex to extend the period of performance by three months from July 1, 2010 thru September 30, 2010 to allow for the completion of close-out activities, and increase contract authority in the amount of $75,000 to enable commuter rail operations contract close-out. Page 32

9 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page Blanket Purchase Order No. PO Electronic Signal Equipment - Increase Contract Funding Authority to General Electric Transportation Systems Global Signaling, LLC (GETS) Repair and replacement of major components of the signal system are required to ensure continuation of uninterrupted service. Staff recommends the Board authorize the Chief Executive Officer to: 1. Extend the period of performance by twelve months on Blanket Purchase Order No. PO Electronic Signal Equipment with General Electric Transportation Systems Global Signaling, LLC (GETS) from May 15, 2011 to May 15, 2012; and 2. Increase the existing contract by $1,500,000 for a new total not-to-exceed amount of $3,841,667. Page Contract No. SP Fueling for Fleet Vehicles Exercise Option and Increase Contract Authority - SC Fuels, Inc. dba Cardlock Fuels, Inc. Vehicle fuel services (gasoline and diesel) are required for the continuous operation of non-revenue fleet vehicles. Staff recommends the Board authorize the Chief Executive Officer to exercise the two-year option on Contract No. SP with SC Fuels, Inc. dba Cardlock Fuels, Inc. to extend the period of performance from August 1, 2010 to July 31, 2012 and increase contract authority by $1,450,000 for a new total not-toexceed contract amount of $3,550,000. Page Contract No. C Station and Maintenance Facility Improvements- Change Order Approval A Change Order is required to increase the allowance to cover the additional costs for the continued management and disposal of soils, including contaminated soils, at the Keller Yard project site. Staff recommends the Board authorize the Chief Executive Officer to amend Contract No Station and Maintenance Facility Improvements, with Los Angeles Engineering Inc., (LAE) to issue a Change Order in the amount of $547, The pending Change Order and negotiated value of $547,280.38, if approved, combined with all others will not increase the total not-to-exceed amount of the contract. Page Metrolink Service Expansion Program (MSEP) and Orange County Grade Crossing Improvement Program (OCX) Amendments to Cooperative Agreements between OCTA and SCRRA To update the MSEP and OCX programs, an amendment to specify changes to the Cooperative Agreements between OCTA and SCRRA, and related agreements is needed. Staff recommends that the Board of Directors authorize the Chief Executive Officer to execute amendments to the Cooperative Agreements with OCTA for the MSEP and OCX, and conforming changes as appropriate to related agreements, such as the construction and maintenance agreements with various cities, to: 1. Incorporate funding revisions;

10 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 7 2. Revise budget amounts; and 3. Revise MSEP scope of work; and 4. Incorporate necessary schedule revisions Page Proposed Overall Disadvantaged Business Enterprise Disparity Study and 2010/11DBE Goal The U.S. Department of Transportation (U.S. DOT), requires SCRRA to establish and submit a three year Overall DBE Participation Goal for its FTA-Assisted contracts in compliance with Federal regulations set forth in Title 49 CFR Part 26 entitled Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs and the recently released U.S. DOT Final Rule (effective March 3, 2010). Staff recommends the Board: 1. Approve the proposed Amended Overall Annual DBE Participation Goal of 10% for Federal Fiscal Year (FFY) ; 2. Authorize the CEO to submit the goal and all supporting documentation to the Federal Transit Administration (FTA) for review and approval; 3. Accept the final Disparity Study Report; and 4. Authorize the CEO to proceed with a waiver of limited application process. Page Amendment to At Will Employment Agreement A contract amendment is needed to continue the services of Eric A. Haley, CEO Transition Advisor, for a one year period ending on June 30, Staff recommends the Board authorize the CEO to execute an amendment to be effective on July 1, 2010 to Section Three, Terms of Employment, 3.1 to amend the At Will Employment Agreement for Eric A. Haley to change the term date from June 30, 2010 to June 30, Page 58 REGULAR CALENDAR 24. PUBLIC HEARING Fiscal Year (FY11) SCRRA Budget The Southern California Regional Rail Authority (SCRRA) is required, under the terms of the Joint Exercise of Powers Agreement (JPA), to adopt, no later than June 30 of each year, a budget for the succeeding fiscal year. SCRRA staff recommends that the Board of Directors: 1) Conduct a public hearing on SCRRA s Proposed Fiscal Year (FY11 ) Budget, and 2) Upon the conclusion of the public hearing on the FY11 Budget: 1. With respect to the recommended service reductions in the proposed FY11 Budget and the California Environmental Quality Act (CEQA), make findings that the service reductions as included within the Proposed FY11 Budget are exempt from CEQA because (1) they do not constitute a project for CEQA as defined, and (2) in the alternative, make the finding that the service reductions are exempt from

11 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 8 CEQA because there exists a fiscal emergency, as defined in California Public Resources Code (PRC) , caused by the failure of anticipated agency revenues to adequately fund agency programs and facilities as detailed in this and prior staff reports and in Attachment A, which staff reports and findings are adopted, and direct staff to file a Notice of Exemption from CEQA following these Board actions which will be posted to give notice of this action; and 2. Consider the following service adjustments, beginning on or about July 1, 2010, representing 4 trains, and estimated to provide net subsidy savings of $0.767 million; A) The elimination of trains 306 and 323 on the San Bernardino Line. This action is estimated to produce a net subsidy savings of $0.393 million in FY 11; and B) The elimination of trains 105 and 114 on the Ventura County Line. This action is estimated to produce a net subsidy savings of $0.374 million in FY 11; and 3. Further with respect to recommended actions on fares not previously approved in earlier budget years and CEQA, make specific findings that the proposed fare increase, or any proposed fare policy changes, that would result in new fares or charges by SCRRA are exempt from the California Environmental Quality Act (CEQA) and adopt the specific Findings set out in Attachment B; that the statutory exemption in Public Resources Code (PRC) Section (b) (8) and the companion section of the State CEQA Guidelines, Section 15273, apply; and that any resulting additional revenue to SCRRA will be only for purposes covered by this exemption, for the reasons stated herein, and will not be for any capital projects to expand the system or for other ineligible purposes as detailed in the staff report here, in earlier staff reports, and in Attachment B, which staff reports and Findings are adopted, and find that this action includes a direction to staff to apply any additional revenue to SCRRA from this action only to these purposes and to file a Notice of Exemption from CEQA following these Board actions which will be posted to give notice of this action; and 4. Approve the implementation of a systemwide fare increase and the fare policy changes listed below, items I to VII, estimated to total additional annual revenue of up to $5.684 million as indicated below, effective July 1, 2010, in order maintain commuter rail service within the existing Metrolink service area; I. A systemwide average fare increase of 6%, estimated to equal $3.292 million; and II. Reduce the discount applied to a 10-trip ticket from the current average 13.6% to equal 5% below the costs 10 one way equivalents; and reduce the validity period of issued 10-trip tickets from the current 90 day period to 45 days, estimated to equal $0.832 million; and III. Eliminate the discount on roundtrip tickets to equal one-way ticket rates, estimated to equal $0.284 million; and

12 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 9 IV. Reduce the Senior/Disabled discount, on 10-trip tickets and monthly passes only, from the current discount of 50% to 25%. The 50% discount on one-way and roundtrip tickets would remain in place and unchanged, estimated to equal $0.757 million V. Restructure the sales of Student Fares to increase system availability, and reduce the discount value from 25% to 10%, estimated to equal $0.077 million; and VI. Eliminate the weekend pricing discount, estimated to equal $0.342 million; and VII. Eliminate the current 80-mile cap on long distance fares for one-way, roundtrip, and 10-trip tickets, estimated to equal $0.100 million; and E. Approve an increase in the number of authorized agency positions by two, from the current 230 to 232; and F. Adopt the proposed FY11 SCRRA Budget. Presenter: Drew Phillips, Manager, Budgets Page Contract No. OP Metrolink Operator Services - Request for FY09-10 and FY10-11 Budget and Contract Authority - National Railroad Passenger Corporation (Amtrak) Annual contract authority and not-to-exceed budget to fund commuter rail operations, maintenance-of-way, and capital support services with Amtrak is required for Contract No. OP Consistent with the adoption of the FY10-11 operating and capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to amend Contract No. OP with Amtrak to authorize: 1. $27,604,160 to fund commuter rail operations consistent with service assumptions for FY10-11, as well as other train services including special trains and recollectable work. 2. $21,000 to fund support of maintenance-of-way work trains. 3. $125,000 to fund support of capital project work trains. 4. $500,000 to fund FY09-10 train operations and other expenditures for the five-day period June 26, 2010 through June 30, Presenter: Gray Crary, Chief, Capital Management Officer Page Contract No. E On-Call Professional Engineering Design Services Bench Increase Contract Funding Authorization J.L. Patterson and Associates, Inc.; AECOM Corporation; and HDR Engineering, Inc. Continued on-call professional engineering design services are needed to support a wide variety of small and large capital and rehabilitation projects for SCRRA s Metrolink commuter rail system. Staff recommends the SCRRA Board authorize the Chief Executive Officer to increase the funding pool authorization for the bench of on-call professional engineering service firms by $3,500,000 for a total not to exceed contract amount of $14,500,000 for each firm. The following firms are part of the on-call professional engineering design service bench: E737A-08 J. L. Patterson and Associates, Inc E737B-08 AECOM Corporation E737C-08 HDR Engineering, Inc.

13 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 10 Presenter: Gray Crary, Chief, Capital Management Officer Page Contract No. E Engineering and Technical Support for Rolling Stock Acquisitions Increase Contract Funding Authorization - LTK Engineering Services, Inc. (LTK) Continued professional engineering and technical support services are required to support SCRRA s procurement for rolling stock and Positive Train Control (PTC) modifications. Staff recommends the Board authorize the Chief Executive Officer to amend Contract No. E with LTK to increase the contract funding authorization by $4,500,000 for a total not-to-exceed amount of $17,700,000. Presenter: Gray Crary, Chief, Capital Management Officer Page Contract C Metrolink Service Expansion and Grade Crossing Safety Improvements - Herzog Contracting Corporation Authorization of a contract Change Order reduction in the amount of $8,440, in work from the contracted scope of work for the construction of the Orange County Metrolink Service Expansion and Grade Crossing Safety Improvements (MSEP/OCX) program, is requested. Staff recommends the Board authorize the Chief Executive Officer to amend Contract No. C , MSEP/OCX, with Herzog Contracting Corporation (Herzog), and authorize execution of a subsequent Change Order with Herzog reducing the contracted scope of work by $8,440, In that this Change Order reduces the contracted for scope of work, the change is within the total contract funding authorization of $46,490, Presenter: Gray Crary, Chief, Capital Management Officer Page SCRRA Annual Property Insurance Renewal FY Board authorization is required to renew all-risk property insurance, automobile fleet and Pollution legal liability for property owned by SCRRA. Staff recommends the Board authorize the Chief Executive Officer to purchase All Risk Property, Pollution Legal Liability and Auto Fleet Insurance, Terrorism (TRIA) certified and non-certified coverage through agency broker Marsh for a not to exceed amount of $2,773,338 for the period July 1, 2010 to June 30, 2011 with the carriers listed in Attachment A of the staff report. Staff also recommends maintaining the earthquake sub limit to $15 million as described below. Staff also recommends maintaining the SIR deductible on rolling stock and locomotives at $2,000,000 per occurrence. Presenter: Gray Crary, Chief, Capital Management Officer Page SCRRA Annual Renewal of Operating Liability Insurance, Employment Practices Liability Insurance, and Crime Insurance FY Board authorization is required to purchase operating general liability, employment practices liability, and crime insurance coverage for FY Staff recommends the Board authorize the Chief Executive Officer to purchase General Operating Liability up to $300 million dollar limit, Employment Practices Liability, and Crime and Certified & Non Certified Terrorism Insurance in the amount of $11,953,237 for the period July 1, 2010 through June 30, 2011 through broker Marsh Inc. with carriers listed on Attachment A of

14 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 11 the staff report. Presenter: Gray Crary, Chief, Capital Management Officer Page Proposed New Board Special Committees Governance and Sustainability/ Growth In early 2010, in response to the Metrolink Commuter Rail Safety Peer Review Panel s recommendations on strategic planning and governance, The Oftelie Company was engaged to conduct a strategic assessment. Staff has developed a recommended process to engage the Board in a four month effort leading up to the Strategic Workshop on September 23-25, 2010 to begin to address the issues surrounding governance and sustainability/growth. The Executive Committee recommends that the Board authorize the Chairman to appoint two five-member Board of Director-level special committees, a Governance Special Committee and a Sustainability / Growth Special Committee. Presenter: John E. Fenton, Chief Executive Officer Page Mission to Excellence Our journey to excellence is well-underway. The presentation by Chief Executive Officer John Fenton will highlight some of the details of our plan, our processes, our strategies, and our structure to sustain our Mission to Excellence. There is no written report. Presenter: John E. Fenton, Chief Executive Officer 33. Chief Executive Officer s Report Agency Update Operations Update Amtrak Transition On Time Performance Improvement Plan 34. Board Member Comments (i.e., Announcements, Requests to Staff, Direction for Future Agenda Items) CLOSED SESSION 35. Closed Session a. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED and EXISTING LITIGATION Pursuant to Subdivision (a) and (b) of Government Code Section Anticipated and existing litigation arising out of the September 12, 2008 collision between a Metrolink train and a Union Pacific freight train on the Ventura County Line, near Chatsworth, CA, including but not limited to: Fravola v. SCRRA, Veolia Transportation Inc., Connex Railroad LLC, MTA - PC043734; Magdaleno v. SCRRA, et al- PC043703; Jeremy Schneider v. SCRRA, a public entity also known as Metrolink, Connex Railroad LLC, Veolia Transportation, Inc.- BC405966; Carolyn Rambo v. SCRRA, a public entity also known as Metrolink, Connex Railroad LLC, Veolia Transportation, Inc. - BC405967; Albert Cox and Marianne Cox v. SCRRA dba Metrolink, Veolia Environment, SA, Veolia Transportation Services, Inc, a division of Veolia

15 SCRRA Board of Directors Meeting Agenda Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 12 Environment, dba Connex, Connex Railroad LLC. - BC406161; Steven Lindell v. SCRRA, Veolia, Connex, and MTA - PC044349; Doug Smith v. SCRRA dba Metrolink - PC044535; Gracilda Tejero Tiu, Jay Tiu, Pomino D. Tejero, and Victoria R. Tejero v. SCRRA dba Metrolink, Veolia Transport Service Inc., Connex Railroad LLC, Estate of Robert M. Sanchez - BC407455; Kong Chao and Caryn Chao v. Veolia Transportation, Inc.; Connex Railroad, LLC; Estate of Robert M. Sanchez, deceased - BC400547; Michelle Baker, et al. v. SCRRA, MTA, Veolia, Connex, Mass, Herzog, Bombardier, UPRR - BC404544; Janice M. Kish, et al v. SCRRA, MTA, Veolia, Connex, Mass, Herzog, Bombardier, UPRR - BC404545; SCRRA v. Connex - CV b. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION - Pursuant to subdivision (a) of Government Code Section Litigation arising out of the January 26, 2005 derailment involving an automobile, two Metrolink trains and a Union Pacific work train in the City of Glendale, known as Glendale Metrolink Derailment Cases, which has been consolidated for liability purposes under the lead case of Tutino v. SCRRA, et al., Case No. BC , in the Superior Court of California, County of Los Angeles, and related actions; Los Angeles County v. Southern California Regional Rail Authority dba Metrolink, Case No. BC393817; The Heirs of Donald R. Wiley (Case No. BC344568); The Heirs of William Parent (Case No. BC344566); Steven and Lynn Toby (Case No. BC344625); David and Shannon Cox (Case No. BC344627) c. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section Property under Consideration: Properties: (1) One Gateway Plaza, Los Angeles, CA (2) 700 S. Flower, Suite 2600, Los Angeles, CA Agency Negotiator: Steve Wylie, Assistant Executive Officer, Finance & Administration, SCRRA Negotiating Parties: (1)Velma Marshall, Deputy Executive Officer, Real Estate Metro (2)1055 Seventh LLC Under Negotiation: Price and Terms of Payment 36. ADJOURNMENT

16 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA BOARD OF DIRECTORS MEETING - MAY 14, 2010 ITEM 4 BOARD MEMBERS/ALTERNATES VIA TELECONFERENCE (as noticed on the posted agenda): VOTES VCTC: KEITH MILLHOUSE (Chair) 1 (1 vote) BRIAN HUMPHREY METRO: RICHARD KATZ (Vice-Chair) 1.33 (4 votes) MICHAEL ANTONOVICH 1.33 ARA NAJARIAN 1.33 JAIME DE LA VEGA ROBERT BARTLETT MAUREEN MICHELINE SANBAG: PAUL EATON 1 (2 votes) PATRICK MORRIS 1 DIANE WILLIAMS PATRICIA GILBREATH RCTC: RON ROBERTS 1 (2 votes) DARYL BUSCH 1 GREG PETTIS OCTA: ART BROWN 1 (2 votes) RICHARD DIXON 1 PAUL GLAAB EX-OFFICIO MEMBERS: SCAG: GARY OVITT STAFF PRESENT: JOHN FENTON, Chief Executive Officer GRAY CRARY, Chief, Capital Management Officer STEVE LANTZ, Director, Executive Projects STEVE WYLIE, Assistant Executive Officer, Administrative Services HELEN PARKER, SCRRA Counsel TRUC MOORE, SCRRA Counsel OLGA YERO, Senior Executive Assistant/Board Secretary Meeting minutes are presented in a format that corresponds with the Board Meeting Agenda, which is incorporated by reference with these minutes. SCRRA Board Agendas are available online at under the Board Agenda link, or from the Board Secretary at S. Flower Street, Suite 2600 Los Angeles, CA

17 Minutes May 14, 2010 Board meeting Transmittal Date: June 21, 2010 Page 2 1. Call to Order The teleconference meeting of the Southern California Regional Rail Authority Board of Directors was called to order at 10:04 a.m. at the Southern California Regional Rail Authority offices, located at 700 S. Flower St., 26 th Floor Orange County Conference Room, Los Angeles, California. Chairman Millhouse presided over the meeting. The Secretary called roll and confirmed a quorum. 2. Pledge of Allegiance 3. Public Comment None. CONSENT CALENDAR Upon a motion by Director Morris, seconded by Vice-Chair Katz, the Board approved the Consent Calendar (Items 4-8). The Secretary called roll and confirmed a unanimous vote. 4. Approval of Minutes April 23, 2010 Board meeting ACTION: The Board approved the minutes of the April 23, 2010 meeting. 5. Contract No. PO Track Switch Plate Synthetic Lubricant Exercise One- Year Option Midwest Industrial Supply, Inc. ACTION: The Board authorized the Chief Executive Officer to: 1. Exercise the second one-year option to extend the period of performance from June 13, 2010 to June 12, 2011; and 2. Increase the contract authority by $35,000 for a new total not-to-exceed amount of $119, Contract No. Contract No. SP Crew Taxi Services Contract Award ACTION: The Board authorized the Chief Executive Officer to execute contracts for crew taxi services with the following firms: SP282A-10 Renzenberger Incorporated SP282B-10 Ventura Transit System, Inc. The term for each contract is to coincide with the Amtrak operator contract and is for four years with two three-year options that may be exercised at the sole discretion of SCRRA. The aggregate not-to-exceed amount for these two contracts is $200,000 for the initial term. Award is subject to resolution of any protest timely filed. 7. Budget Status Update Third Fiscal Quarter FY Ended March 31, 2010 This report provided the status of actual expenditures and revenues of the amended budget for the Fiscal Year through the third fiscal quarter ended March 31, The Board received and filed this report. 8. Passenger Fare Revenue Report Nine Months ended March 31, 2010 This item reported passenger fare revenues for the nine months ended March 31, 2010 compared to budget and prior year actual revenues for the same period. The Board received and filed this report. 2

18 Minutes May 14, 2010 Board meeting Transmittal Date: June 21, 2010 Page 3 REGULAR CALENDAR 9. Chief Executive Officer s Report Agency Update by John Fenton, Chief Executive Officer Mr. Fenton noted that he had notified the Board about a re-organization within the Agency that was rolled-out yesterday which will better align our staff around the core competencies that will increase functionality, improve efficiency and bring focus to our customers. He further explained that this reorganization will help provide clarity of purpose and mission, and each group will have specific targets and deliverables. He is trying to instill a continual improvement mentality into the organization and provide the right resources to alleviate the problems and issues the organization faces. He briefly reviewed the core groups and their direct area of focus, and announced staff assignments and new hires. He also announced the departure of Ms. Elizabeth Mahoney, Government and Regulatory Affairs Manager, and noted an aggressive recruitment for a replacement is underway. Vice-Chair Katz wanted to publically acknowledge and thank Ms. Mahoney for her dedication and efforts during her service and wished her well in her new endeavors. Director Busch asked if this was the final organizational structure, and Mr. Fenton explained that he does not anticipate any major changes as the agency moves forward, and this structural alignment will help complete the mission that each group will be given, although minor adjustments may be necessary on the way. Mr. Fenton noted revised organizational charts will be forwarded to the Board as soon as they are finalized. Director Gilbreath congratulated Mr. Fenton on what s been accomplished thus far and thanked him for being so active in his short term. Mr. Fenton also discussed on time performance, noting this is one key initiative as it is a priority to have the trains run at a more acceptable level. The Antelope Valley Line has been identified as having the worst on-time-performance and one that needs a concentrated effort to improve service. Staff will be conducting an intensive review to identify failures, root-causes for failures, worst performing locomotives, and will be more pro-active in dealing with these issues. Also, once enough data has been collected, staff will have a more granular view (segment by segment vs. overall) of the issues, and this will provide specific details that will help in increasing on-time-performance and reliability. Mr. Fenton noted that type of data is currently not available and has not been classified that way in the past. Vice-Chair Katz commented he appreciates the change into this direction. From a safety perspective, Mr. Fenton commented that he has requested a deeper focus on all areas of safety, internally as well as public safety. He will also introduce wellness and health as part of the comprehensive safety culture. 3

19 Minutes May 14, 2010 Board meeting Transmittal Date: June 21, 2010 Page 4 As part of a cost savings measure, efficiency tracking score cards are being developed, and there is greater focus on fuel conservation, fleet vehicle management and inventory control. Mr. Fenton further noted that rigid standards and policies have been implemented as it relates to fuel conservation, with engine and locomotive shut down and isolation and, as a result, fuel savings are anticipated at approximately 5,000 to 7,000 gallon per day. Operations Update: None. 10. Board Member Comments Vice-Chair Katz commended Director Morris and staff for the assistance in obtaining additional funding for Positive Train Control. He noted that Metrolink will be receiving $46 million in additional funds from the CTC. Chair Millhouse also thanked Mr. Fenton and the member agencies CEOs for their efforts in the Colton Crossing project. 11. ADJOURNMENT There being no further business for consideration by the Board, the meeting was adjourned at 10:21 a.m. Respectfully submitted, Olga Yero, Board Secretary/Senior Executive Assistant 4

20 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 5 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Purchase Order No. S Retrieval, Storage, and Disposition Services of Offsite Records Iron Mountain Issue Continued retrieval, storage, and disposition services of offsite records is required. Recommendation Staff recommends the Board find that continuing with Iron Mountain s services is in the best interest of the Agency at this time, and authorize the Chief Executive Officer to award Purchase Order S , for retrieval, storage, and disposition services of offsite records for a not-to-exceed amount of $41,500, for a one-year period through June 30, 2011, plus two one-year options to be exercised by the Purchasing Agent, for a total not-to-exceed amount of $124,500. Alternatives The Board may require staff to issue a new Request for Proposal for retrieval, storage, and disposition services of offsite records. Background SCRRA has been utilizing Iron Mountain s services for retrieval, storage, and disposition of offsite records since Beginning in FY08-09, staff also used Iron Mountain for the storage and protection of its backup data tapes required for the recovery of computer files in the event of disaster. This is an important component of a disaster recovery program, as recommended by SCRRA s auditors. There are currently over 3,900 boxes of inactive records stored at Iron Mountain. Recently added requirements include storage & retrieval of I.T. Back-up Tapes; Back-up Tape Vaulting of Hard Drives; and storage & retrieval of TVM software. SCRRA receives 20% off list pricing of Iron Mountain s standard storage services. Considering a new vendor would not be advantageous to the Agency at this time, given the extent to which inactive records have been stored with Iron Mountain and given the favorable pricing the Agency currently receives. Additionally, the cost to transition to a new vendor would include a perm out charge of $11.45 per box, in addition to the cost to 700 S. Flower Street, Suite 2600 Los Angeles, CA

21 Purchase Order No. S Iron Mountain Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 transport the boxes to a new provider. It would not be cost effective at this time to solicit a new offsite storage vendor. The administrative Services staff has been satisfied with the vendor s performance. This recommendation for contract award is made in accordance with the Board-approved Policy CON-19, permitting award when the Board determines in its sole discretion that non-competitive procurement is in the best interest of the Agency. Budget Impact Services provided under this contract are funded in the operating budget for FY Funding for option years will be requested in subsequent year s budgets. Prepared by: Robert Sanders, Administrative Services Supervisor Steve Holman, Buyer Jennifer M. Sims, C.P.M., Manager, Contract Administration & Procurement JOHN E. FENTON Chief Executive Officer 6

22 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 6 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Purchase Order No. S Renewal of Software Licenses, Maintenance & Technical Support for Imaging Project Matrix Imaging Products, LLC (Matrix) Issue Renewal of software licenses, maintenance and technical support is required for EMC s Documentum document management system. Recommendation Staff recommends the Board authorize the Chief Executive Officer to: 1. Award Purchase Order S to Matrix for the renewal of the software license, maintenance, and technical support for the Documentum document management system at SCRRA for a not-to-exceed amount of $33,882, for a one-year period through June 30, 2011; and 2. Award two one-year options to be exercised by the Purchasing Agent, for a total not-toexceed amount of $101,646. Alternatives 1. The Board may require staff to issue an Invitation for Bid for new licensing and maintenance, and technical support for the Documentum document management system. 2. The Board may require staff to issue a Request for Proposal for a new document management system to replace the current Documentum system. Background SCRRA began the Imaging Project on August 13, 2004 and has contracted with Matrix to provide licenses, maintenance and support services. The Imaging Project consists of hardware, software and services for the development, installation, configuration, support and maintenance of a Document Management and Imaging System, which includes, but is 700 S. Flower Street, Suite 2600 Los Angeles, CA

23 Purchase Order No. S Matrix Imaging Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 not limited to, scanning of Board of Director Meeting Records, engineering, equipment and facilities drawings, and contract documents. The majority of the cost is for annual maintenance support for the current licenses originally procured through Matrix. Licenses include a quantity of 30 for ApplicationXtender/WebXtender and 20 for WorkflowXtender. Five Kofax licenses and 2 Server licenses are also included in the annual renewal. Budget Impact Funding for the renewal of software licenses, maintenance and technical support for the imaging project is included in the request for the FY10-11 Operating Budget. Funding for option years will be requested in subsequent years budgets. Prepared by: Jay Peterson, Manager, Information Technology Steve Holman, Buyer Jennifer M. Sims, C.P.M., Manager, Contract Administration & Procurement JOHN E. FENTON Chief Executive Officer 8

24 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 7 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Purchase Order No. PO PC, Peripherals, Software, Related Services Recommendation to Award CDW Government, Inc. (CDW-G) Issue To continue the cost-effective procurement of PC peripherals, software and related services. Recommendation Staff recommends the Board authorize the Chief Executive Officer to: 1. Award Blanket Purchase Order PO to CDW-G for a not-to-exceed amount of $110,000, through March 31, 2011; and 2. Award two one-year options to be exercised by the Purchasing Agent, contingent upon the exercising of options by LA County under Master Agreement No , for a total not-to-exceed amount of $335,000. Alternatives The Board may: 1. Modify the amount of funding authorization request: or 2. Direct staff to initiate an Invitation for Bid (IFB). Background Staff recommends piggybacking off of County of Los Angeles Agreement No in order to realize savings of 20%-40% off manufacturer suggested retail price for the most frequently ordered items. In accordance with SCRRA s Contracts and Procurement Policies and Procedures CON-20, Cooperative Procurement, the Board can participate in another public entity s awarded contract. This type of piggybacking purchasing arrangement works particularly well for small agencies such as SCRRA that have limited volume-purchasing power. Typical items procured include, but are not limited to Software Purchases, and Licenses & Maintenance for Exchange Server, Primavera, Adobe, Dameware, MS Visio, Photoshop, 700 S. Flower Street, Suite 2600 Los Angeles, CA

25 Purchase Order No. PO CDW-G Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 and many other peripheral technology purchases. Because of the large quantity and variety of equipment/services that need to be purchased throughout the year, SCRRA staff recommends utilizing a blanket purchase order for the procurement of required equipment and services. Budget Impact Funding for the computer and network equipment is included in the FY10-11 adopted Operating Budget. Funding for future years will be requested in the budgets for those years. Prepared by: Jay Peterson, Manager, Information Technology Steve Holman, Buyer Jennifer M. Sims, C.P.M., Manager, Contract Administration & Procurement JOHN E. FENTON Chief Executive Officer 10

26 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 8 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Purchase Order No. SP Office Communications Gateway Recommendation to Award Convergent Communications, Inc. (CCI) Issue An Office Communications Gateway is needed to support the Agency s communications infrastructure change to a converged network with IP connectivity to the field. Recommendation Staff recommends the Board authorize the Chief Executive Officer to award Contract No. SP288-10, Office Communications Gateway to the single responsive and responsible bidder Convergent Communications, Inc., (CCI), in an amount not-to-exceed $59,279. The contract is for a 30-day term from Notice-to-Proceed. This award is not subject to protest as no other bids were submitted. Alternatives The Board may reject the single bid received and direct staff to re-issue the Invitation for Bid (IFB). Background SCRRA has undertaken a multi-year effort to migrate the existing communications backhaul at the ATCS locations to fiber and other IP services. However, before that can take place, the existing packet switch infrastructure at Metrolink shall be converted to the Office Communications Gateway (OCG) to provide IP connectivity to the field. The OCG is a server-based software application that provides the same functionality as a WCC/FPD (Wayside Communications Controller / Field Protocol Device), and can be deployed anywhere on the Metrolink WAN, (Wide Area Network), to enable a disaster recovery solution for the ATCS routing functionality. An Invitation for Bid was issued on May 12, 2010 to solicit competitive bids for an Office Communications Gateway. The solicitation was posted on the Metrolink website, advertised in publications in the five member counties, and notices were sent directly to 700 S. Flower Street, Suite 2600 Los Angeles, CA

27 Purchase Order No. SP Office Communications Gateway Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 firms registered on the Metrolink website and identified through industry publications. Fifteen (15) firms requested the solicitation and one firm attended the pre-bid conference that was held on May 19, A single bid was received from CCI on June 9, 2010 in the amount of $59,279 including sales tax. Also, a letter was submitted by Invensys Rail declining to bid due to their own liability concerns regarding integrating third party products with their system. In accordance with Procurement Policy CON-5 Cost and Price Analysis, when adequate price competition is lacking, such as in the case of a single bid, a market analysis was conducted. The analysis found that the proposed prices for Office Communications Gateway provided by CCI are reasonable. Therefore, CCI, the single responsive and responsible bidder is recommended for the contract award. Budget Impact Funding for the Office Communications Gateway is included in the FY09-10 Capital Maintenance Budget. Prepared by: Jerone Hurst, C&S Engineer Steve Holman, Buyer Jennifer M. Sims, C.P.M., Manager, Contract Administration & Procurement JOHN E. FENTON Chief Executive Officer 12

28 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 9 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Consultant Services for Organizational Assessment Non- Competitively Negotiated Contract Awards Issue A non-competitive procurement for consultant services for the Chief Executive Officer s organizational assessment is in the best interests of the Agency at this time. Recommendation Staff recommends that the Board find that a sole source award to continue the consulting services of The Jim Schultz Group, David M. Tolbert, and E2E Consulting for organizational assessment, is in the best interest of the Agency at this time, and that it authorize the Chief Executive Officer to award the following: Contract No. SP to The Jim Schultz Group for a total not-to-exceed contract authorization of $223,500; Contract No. SP to David M. Tolbert for a total not-to-exceed contract authorization of $220,500; and Contract No. SP to E2E Consulting for a total not-to-exceed contract authorization of $720,000. All three contracts will be for a period of one (1) year, from July 1, 2010 to June 30, Alternative The Board may: 1) Modify the amount of funding authorization request: or 2) Direct staff to initiate a Request for Proposals (RFP). Background In April 2010, three contracts were awarded by the Chief Executive Officer as noncompetitive procurements: 700 S. Flower Street, Suite 2600 Los Angeles, CA

29 Consultant Services for Organizational Assessment Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 Contract No. SP to The Jim Schultz Group Contract No. SP to David M. Tolbert Contract No. SP to E2E Consulting Each contract was within the Chief Executive Officer s purchasing authority for under $50,000 each. These contracts were for services covering assessments of the organization in the most important functions, safety, communication, customer engagement, data management and evaluating operational efficiency. To enable the Chief Executive Officer s continued organizational assessment in the areas of safety, public relations and data analysis, each consultant brings a unique skill set related to analysis and strategic planning with regard to organizational assessment, as outlined in Attachment 1 to this report. This recommendation for contract award is made in accordance with the Board-approved Policy CON-19, permitting award when the Board determines in its sole discretion that non-competitive procurement is in the best interest of the Agency. Budget Impact Funding for these consultant services is available in the FY Operating Budget through a combination of the CEO s Non-Operating Contingency Budget, Professional Services funding, as well as the Agency s Financial Systems Rehabilitation project. Prepared by: Irene Shapiro, Manager, Human Resources Steve Holman, Buyer Jennifer M. Sims C.P.M., Manager, Contracts Administration & Procurement JOHN E. FENTON Chief Executive Officer 14

30 Consultant Services for Organizational Assessment Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 3 Attachment 1 Under Contract No. SP292-11, The Jim Schultz Group will provide consulting services to: (1) Organize and facilitate administration of a Metrolink-specific guiding coalition/rsac of influential stakeholders and experts to address key operational and safety gaps/issues. (2) Complete an independent assessment of governance, strategic alignment, Peer Review and NTSB Report follow up (3) Employee and customer engagement program development and execution (4) Develop a strategic organizational governance plan that addresses key stakeholders, short and long term actions, outcomes, metrics and complement the financial strategic plan including contractor team alignment (5) Facilitate the building of a Safety Coalition and PTC Coalition The Jim Schultz Group principal, James T. Schultz, has more than 40 years of senior level experience leading teams in safety, accident investigations, and operations in the transportation sector. This service experience includes FRA Associate Administrator for Safety; FRA Regional Administrator-FRA Region 7; FRA Staff Director/Division Chief-FRA OP Division; and FRA Railroad Safety Specialist. Mr. Schultz also held several positions as Senior Vice President and Chief of Staff in the transportation sector. Mr. Schultz holds a Bachelor of Science and a Master of Arts in Pubic Administration. Under Contract No. SP293-11, David M. Tolbert will provide consulting services to: (1) Develop, organize and facilitate public relations and communication strategies to drive change in the organization and create a new culture of world class-safety and customer engagement. (2) Develop communications tools as part of the communications plan to drive urgency in achieving the Metrolink Mission to Excellence in safety and service. (3) Develop strategic special events for employees, contract partners and stakeholders to create and drive momentum, encourage engagement/teamwork and reinforce messaging on the Mission to Excellence. (4) Ensure all messaging to customers, employees, contract partners and stakeholders, communities and media has as single voice and are consistently and clearly delivered and distributed. 15

31 Consultant Services for Organizational Assessment Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 4 David M. Tolbert, has a 35 year career as a top public relations and communications professional and is well known for his strategic and big picture capabilities including creating cultures of safety and service excellence for the CEO and senior leadership team at Waste Management, Inc., OmniTRAX and he has served as lead strategist for a number of successful political and capital improvement campaigns in Jacksonville, Florida. Under Contract No. SP294-11, E2E Consulting will provide consulting services for Business Intelligence, I. T. Assessment and Systems Assessment to: (1)Improve the effective use of data residing within Metrolink systems including an evaluation of the quality, quantity and availability of data; design and implement a plan for data readiness for both analysis and action including a scorecard report for improved decision making. (2) Complete an inventory and assessment of current I. T. processes; identify and work on critical business/system gaps to provide an understanding of the appropriateness of methodologies and processes used by the Division and the effectiveness of the organizational structure to support the systems and initiatives required for the changing technical landscape including PTC. (3) Provide a summary and rating of existing enterprise systems based on a standard set of industry-accepted criteria as the foundation and a technical roadmap for the company to follow as it adopts new systems and hardware and retires others. E2E Consulting principal, Stephen Moreno, will be adding Shane Hendricks as an additional resource for this phase of the contract. Mr. Moreno has extensive experience with operations analysis and metrics, process and performance improvement and with analysis and reporting and has held positions at the senior management level at Time Warner Telecommunications, Covad Communications and at Waste Management. Mr. Moreno has a B.B.A with a concentration in Production and Operations Management. Shane Hendricks has prior experience in operational reporting, analysis and operational business analysis and has worked as a software engineer and technical manager on the network side of information systems. Mr. Hendricks holds a B. S. and a M. S. in Computer Technology. 16

32 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 10 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Amendment and Extensions to Santiago Peak and Sunset Ridge Lease Agreements Issue Amendments and extensions to two SCRRA communications tower facilities are required to maintain effective communications across the Metrolink service area. Recommendation Staff recommends the Board: 1. Authorize the Chief Executive Officer to execute an amendment to the license agreement between SCRRA and American Tower, L.P. to permit SCRRA to relocate to a new tower location at Santiago Peak, Trabuco Canyon, and 2. Authorize the Chief Executive Officer to exercise a renewal option for the space rental agreement between SCRRA and the AVCOM Company for AVCOM building C2 room B and associated communications tower space at the Sunset Ridge communications facility and execute an amendment to the fee schedule to include rent for additional equipment that SCRRA plans to install. Alternative The Board may decline to approve the renewal and/or amendments to the license agreements and recommend a different approach. Background At present, wayside field locations communicate via five mountain top Advanced Train Control Systems (ATCS) radio base stations to the Metrolink Operations Center (MOC) in Pomona. These sites are owned by private parties and are leased to various users in the region, including SCRRA, who install and maintain their respective equipment and facilities. Two of these leases require amendments and/or extensions at this time. The communication links from the office to the mountain top location consist of telephone company lease lines and a SCRRA-owned microwave radio link. The telephone company 700 S. Flower Street, Suite 2600 Los Angeles, CA

33 Santiago Peak & Sunset Ridge Lease Agreements Transmittal Date: June 21, 2010 Meeting Date June 25, 2010 Page 2 lease lines can be unreliable in emergency situations and the existing microwave link is unable to support the newer technologies needed for the SCRRA communications requirements. In an effort to improve the communications system infrastructure to support the Orange County Service Expansion and the anticipated PTC communications backhaul requirements, significant efforts have been made in the design of a SCRRA-owned high capacity microwave network. This microwave system is necessary to interface with the fiber optic network being installed in Orange County to provide a self-healing, hardened and redundant network to support train control and SCRRA data with the MOC. At each endpoint, the fiber equipment will transfer the data to the microwave network and reach the MOC through the mountain top sites on Santiago Peak and Sunset Ridge. In order to facilitate the new microwave system to support redundant paths to Fullerton, the Eastern Maintenance Facility, and to replace the link to Pomona Station more tower space is required for the associated microwave antennas. The equipment building also requires an increase of leased space to account for the added microwave radios and supporting battery plant. An essential part of this larger communications upgrade isl a 72-fiber cable to be installed along the 40-mile Orange and Olive subdivision tracks from Fullerton south to the Orange County line. The new fiber backbone will not only integrate the train control data but will be available to support additional services such as CCTV, ticket vending machines, public address, changeable message signs, voice radio, and some elements of Positive Train Control (PTC). The cable will be installed with service loops at grade crossings and terminate at 9 stations, 19 control points and 2 endpoints along the Orange County rail line. At each endpoint, the fiber equipment will transfer the data to a microwave network and reach the MOC through the mountain top sites on Santiago Peak and Sunset Ridge. Significant efforts have been made in the design of this system and an amendment to the license agreement for the Santiago Peak facility is proposed to facilitate the relocation of the radio-only-based facilities on Santiago Peak to a new facility approximately 440 feet southwest of the existing location. This new location is needed for the additional space required for the microwave and future PTC equipment as well as the ATCS radio equipment. On February 11, 2002 the SCRRA Board approved the original license of the radio site location on Santiago Peak above Trabuco Canyon in Orange County. The original term of the license was 25 years, including an initial five year term and four automatic renewal periods of five years each, and either party can terminate by giving a notice 180 days prior to the end of a renewal term. The rental payment was $934 per month, adjusted by an "annual escalator" amounting to the greater of 5% or the percentage increase in CPI. The new license fee will be $1, per month, subject to the same annual escalator, to take effect when the communications equipment is installed. The term of the license is unchanged The license is currently two years into the first renewal period, with approximately 18 years remaining in the entire term. Sunset Ridge is another communications facility which is located at an elevation of 5,246 feet on the southerly side of the San Gabriel Mountains above Pomona and provides radio 18

34 Santiago Peak & Sunset Ridge Lease Agreements Transmittal Date: June 21, 2010 Meeting Date June 25, 2010 Page 2 coverage to all of the San Gabriel Subdivision, as well as supporting the River and Orange/Olive Subdivisions. The SCRRA communications infrastructure began at Sunset Ridge in May 1, 1995 with a space rental agreement between the SCRRA and the AVCOM Company at AVCOM building C2 room B for the installation of a microwave radio link to Pomona communications shelter, a train control base radio, a dispatcher VHF radio, and a mobile PBX radio that allows field radios to communicate with the public telephone network. The initial term of the lease was for five (5) years with one renewal term of another five (5) years, which was exercised. In May 2005 another space rental agreement was executed between the SCRRA and AVCOM with a five (5) year initial term with the option to renew for two (2) consecutive periods of five years under the same terms. If SCRRA exercises the first renewal option, the rent will be $ 1, per month per terms of the renewal extension. An amendment to the agreement provides that the rent will increase by a total of $720, to $2, per month, as SCRRA installs additional communications equipment that it plans to add. Budget Impact Funding for the communications infrastructure upgrades is provided through a variety of federal, state, and local funds. The lease costs are ongoing expenses funded within the annual Operating Budget. Prepared by: Darrell Maxey, Director of Engineering and Construction Dan Guerrero, Manager of Signals and Communications JOHN E. FENTON Chief Executive Officer 19

35 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 11 TO: FROM: SUBJECT: Issue Board of Directors Chief Executive Officer Contract No. MS Ticket Vending Machine (TVM) Cash Collection and Counting Services - Extend Contract Term and Increase Contract Funding Authorization Los Angeles Federal Armored Services, Inc. Regular servicing of ticket vending machines (TVM) is required to ensure effective ticket and cash management of TVM transactions. Recommendation Staff recommends the Board authorize the Chief Executive Officer to: 1. Extend the period of performance by six months on Contract No. MS for Ticket Vending Machine Cash Collection and Counting Services with Los Angeles Federal Armored Services, Inc. from July 1, 2010 to December 31, 2010; and 2. Increase the contract funding authorization by $275,000 for a total not-to-exceed amount of $2,601,921. Alternatives The Board may: 1. Modify the period of performance and adjust the amount of the extension; or 2. Direct staff to initiate a Request for Proposal (RFP) for these services. Background In September 2004, the Board awarded Contract No. MS Ticket Vending Machine Cash Collection and Counting Services to Los Angeles Federal Armored Services. Los Angeles Federal Armored Services collects fare revenues from TVMs and replenishes ticketing media when supplies are low. The contract term was for three years with two one-year options. All options have been exercised, and the Board approved an additional 700 S. Flower Street, Suite 2600 Los Angeles, CA

36 MS Ticket Vending Machine Cash Collection and Counting Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 seven month extension in September of This seven month extension will expire on June 30, 2010, unless further extended. The recommended six month extension on this contract will allow staff to undertake and complete negotiations with ACS Transport Solutions, Inc., who currently provides software and maintenance services to the TVMs. Once negotiations are complete with ACS, the Agency will have a better understanding of what services still need to be procured with respect to the TVMs. Staff anticipates that this will be the last extension required, in that it expects to issue a Request for Proposal (RFP) later this year which may cover all or part of the current scope of work for this contract. Staff will present evaluation criteria for this RFP for approval by the Board in September Los Angeles Federal Armored Services is keeping the costs the same for the six month extension. Budget Impact Funding for the ticket vending machine cash collection and counting services is available in the Fare Collections FY10-11 budget. Prepared by: David Bostwick, Manager, Fare Collection Services Roslyn M. Lewis, Senior Contract Administrator Jennifer M. Sims, C.P.M., Manager, Contracts Administration & Procurement JOHN E. FENTON Chief Executive Officer 21

37 TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 12 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Contract No. MS214 Request for FY10-11 Budget and Contract Authority for Track and Structures Maintenance with Veolia Transportation Maintenance and Infrastructure, Inc. (VTMI) Issue Annual contract authority and not-to-exceed budget to fund track and structures maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support from VTMI is required. Recommendation Consistent with the adoption of the FY10-11 Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $18,423,149 of contract funding authority for Contract No. MS214 with VTMI for FY The recommended amount is $10,823,149 for operating maintenance, $5,600,000 for support of capital construction projects and $2,000,000 for support of recollectable projects. Alternatives The Board can authorize funding at a different level. Background Contract MS214 with VTMI was competitively procured and awarded on August 22, 2008 to VTMI for a six-year term with one four-year option. VTMI began track/structures maintenance and other maintenance responsibilities January 1, Contract MS214 specifies a budgeting process that requires VTMI to provide an annual budget based on maintenance-of-way assumptions provided by the Agency s System Maintenance and Rehabilitation Department. VTMI s proposed budget has been reviewed and the final submittal has been found to be consistent with the SCRRA s maintenance-of-way assumptions for the fiscal year. 22

38 Contract No. MS214 Track, Structures and Right-of-Way Maintenance Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 The proposed FY10-11 maintenance-of-way budget contains $10,823,149 for track, structures maintenance and also includes $391,985 for mobilization which represents one third of total mobilization costs of $1,175,954. VTMI began mobilizing October 16, The contract requires VTMI to bill SCRRA for mobilization costs via monthly invoices over a 36 month-period beginning January Five million six hundred thousand ($5,600,000) has been allocated for capital support in the area of rehabilitation/renovation of rail, cross tie, turnout, road crossing, bridge and signal programs and for new capital support the Metrolink Service expansion project in Orange County, Empire Avenue, swing gate and fencing installations at San Bernardino. The remaining $2,000,000 will support recollectable projects on behalf of third parties and freight railroads for grade crossing upgrades, spur track maintenance and right-of-way and property maintenance services in Los Angeles and San Bernardino counties and track support for grade separation at in Orange and San Bernardino County. Capital support and recollectable work is authorized under contract task orders dependent on funding. Budget Impact With the exception of recollectable work, the requested amounts are contained within various line items in SCRRA s approved FY10-11 operating and capital budgets. Recollectable work is funded by third party agreements. Prepared by: Rich Walker, Director, System Maintenance and Rehabilitation Zoila Bautista, Budget Administrator, Maintenance and Rehabilitation JOHN E. FENTON Chief Executive Officer 23

39 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 13 TO: FROM: Board of Directors Chief Executive Officer SUBJECT: Contract No. SP Law Enforcement Services Request for FY10-11 Budget and Contract Funding Authority County of Los Angeles for the Los Angeles Sheriff s Department (LASD) Issue Annual contract authority and not-to-exceed budget to fund law enforcement services is required. Recommendation Consistent with the adoption of the FY10-11 operating and capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $7,843,592 of contract funding authorization for Contract No. SP with the LASD. The recommended amount is $5,850,710 for law enforcement services consistent with service assumptions for FY10-11, and $1,992,882 to support Los Angeles County Metropolitan Transportation Authority (Metro) recollectable work. Alternatives The Board may modify the amount of funding authorization requested. Background Contract No. SP was awarded by the SCRRA Board of Directors on October 14, 2005 to the LASD to provide law enforcement services for a five-year term beginning July 1, Funding for this contract is requested through the annual budget process based upon service assumptions approved by the Board. The LASD s personnel, thirty three (33) deputies and five (5) civilian Law Enforcement Technicians are assigned 16 hours per day, seven days per week to Metrolink service and perform fare inspection, right-of-way enforcement, and respond to emergency situations involving Metrolink. The LASD s dispatch is used by Metrolink to notify local law enforcement of emergency calls. These operating assumptions include weekend service on the Orange County line, IEOC line, Antelope Valley line and on the San Bernardino line. 700 S. Flower Street, Suite 2600 Los Angeles, CA

40 Contract No. SP Law Enforcement Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 In accordance with the terms of the contract, there is a 1% escalation over last year's rate per service unit for FY Budget Impact Funding for law enforcement services is included in the FY10-11 Operating Budget. Funding is also recollectable from Metro for law enforcement services provided on the right-of-way owned by Metro within Los Angeles County. Prepared by: Ed Pederson, Assistant Director of Operations Lia McNeil-Kakaris, Principal Contract Administrator Jennifer M. Sims, C.P.M., Manager, Contracts Administration and Procurement JOHN E. FENTON Chief Executive Officer 25

41 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 14 TO: FROM: Board of Directors Chief Executive Officer SUBJECT: Contract No. SP Marketing Support Services Increase Contract Funding Authorization Creative Productions Marketing, Pulsar Advertising, and The Strausberg Group Issue Continued marketing support services are needed for the Marketing and Sales Division to implement external marketing campaigns and programs and support the internal needs of the Authority. Recommendation Staff recommends the Board authorize the Chief Executive Officer to amend the Marketing Support Services bench of firms: SP212A-06 - Creative Productions Marketing, SP212B-06 - Pulsar Advertising, SP212C-06 The Strausberg Group. to increase the contract funding pool authorization under the bench by $2,500,000 for a new total not-to-exceed pool amount of $5,500,000. Alternative The Board may: 1. Modify the amount of the contract funding authorization requested; or 2. Decline to increase the funding authorization and direct staff to issue a new Request for Proposal (RFP). Background The bench contracts for marketing support services, which include providing general marketing and advertising planning, project management, branding, art direction, graphic design, copywriting, and web development. 700 S. Flower Street, Suite 2600 Los Angeles, CA

42 Contract No. SP Marketing Support Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 At the April 23, 2010 Board meeting, the Board approved a two-year term extension to the competitively bid bench contracts as the result of vendor concessions that resulted in reduced contract rates. Funding commitments are released through the Contract Task Order (CTO) process on a per project basis in accordance with each firm s expertise. Budget Impact Funding for marketing support services is included in the FY10-11 Operating Budget for the Communications & Development Department. Additional amounts will be based on available approved budget funds in future fiscal years. Prepared by: Colleen Richter, Manager, Marketing & Development Richard Chiou, Contract Administrator Jennifer M. Sims C.P.M., Manager, Contracts Administration & Procurement JOHN E. FENTON Chief Executive Officer 27

43 TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 15 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Contract No. MS222-09R Request for FY10-11 Budget and Contract Authority for Signal and Communications Maintenance with Mass Electric Construction Company (MECC) Issue Annual contract authority and not-to-exceed budget to fund signal and communications maintenance, other maintenance-of-way expenditures, capital project support, and recollectable support from MECC is required. Recommendation Consistent with the adoption of the FY10-11Operating and Capital budgets by the SCRRA Board, staff recommends the Board authorize the Chief Executive Officer to approve $13,354,607 of contract funding authority for Contract No. MS222 with Mass Electric Construction Company (MECC) for FY The recommended amount is $12,154,607 for operating maintenance, $700,000 for support of capital construction projects, and $500,000 for support of recollectable projects. Alternatives The Board could authorize funding at a different level. Background Contract MS222-09R with MECC was competitively procured and awarded on November 13, 2009 to MECC for a six-year term with one four-year option. MECC began communications and signals maintenance responsibilities January 1, Contract MS222-09R specifies a budgeting process that requires MECC to provide an annual budget based on maintenance-of-way assumptions provided by the Agency s System Maintenance and Rehabilitation Department. MECC s proposed 28

44 Contract No. MS222-09R Communications and Signals Maintenance Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 budget has been reviewed and the final submittal has been found to be consistent with the SCRRA s maintenance-of-way assumptions for the fiscal year. The proposed FY10-11 operating and maintenance-of-way budget contains $12,154,607 for communications and signals and communication maintenance; $700,000 for capital support work for rehabilitation/renovation for rail, cross tie, turnout, road crossing, bridge, and signal programs and for new capital and support of the Orange County service expansion project, Pomona station improvements project, Keller Yard project, the Mail Dock project at Union Station and the Sealed Corridor project. $500,000 will support several recollectable projects for grade crossing upgrades on behalf of various cities, signal support for the pedestrian underpass at the Rancho Cucamonga Station, Jeffrey Rd. and Sand Canyon Ave. in Orange County and Empire Ave. and the Metro Orange Line extension projects in Los Angeles County. Capital support and recollectable work are authorized under contract task orders dependent on third party funding/agreements. Budget Impact With the exception of recollectable work, the requested amounts are contained within various line items in the SCRRA s FY10-11 operating and capital budgets. Recollectable work is funded by third party agreements. Prepared by: Rich Walker, Director, System Maintenance and Rehabilitation Zoila Bautista, Budget Administrator, Maintenance and Rehabilitation JOHN E. FENTON Chief Executive Officer 29

45 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 16 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Contract No. OP Request for FY Budget and Contract Authority for Maintenance of Equipment Services with Bombardier Transit Corporation (Bombardier) Issue Annual contract authority and budget to fund maintenance of equipment and rehabilitation and renovation support services with Bombardier is required. Recommendation Consistent with the adoption of the FY Operating and Capital budgets by the SCRRA Board, staff recommends that the Board authorize the Chief Executive Officer to approve $28,657,645 of contract funding authority for Contract No. OP with Bombardier for FY The recommended amount is $27,757,645 for operating maintenance, including recollectable work, and $900,000 for rolling stock rehabilitation and renovation work. Alternatives The Board could authorize funding at a different level. Background Contract OP with Bombardier was competitively procured and awarded on February 28, 2003 for a 7-year term, with one three-year option which was exercised by the Board on June 27, The contract specifies a budgeting process whereby Bombardier is required to provide an annual budget based upon service assumptions approved by the Board. Bombardier s proposed budget has been reviewed and the final submittal has been found to be consistent with SCRRA s operating assumptions for the upcoming fiscal year. Bombardier s budget includes cost reductions sought by the Board, and summarized in SCRRA s Public Hearing on Potential FY Budget Development Actions dated April 2, Specific functions contained within the budget include maintenance of 700 S. Flower Street, Suite 2600 Los Angeles, CA

46 Contract No. OP Equipment Maintenance Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 SCRRA s rolling stock fleet, material management services, and maintenance of the new Rotem rail cars as SCRRA takes delivery during the fiscal year. These base services are included in the Operating budget at $27,227,645. In addition to the budgeted base services, Bombardier will be responsible for performing other tasks such as nonscheduled rolling stock repair, accident repair, equipment modifications, and recollectable special train servicing. These items are not included in Bombardier s base operating budget, but are included in various SCRRA Operating budget line items and are estimated to be $530,000 in FY Contract authority is required for Bombardier to perform this work. As SCRRA s equipment maintenance contractor, Bombardier will be performing rehabilitation and renovation on the rolling stock fleet, and its contract authority must include this work. Specific tasks include heating-ventilation-air conditioning (HVAC) overhaul, bench seat removal, traction motor replacement, door operator overhaul, locomotive turbo overhaul, locomotive air compressor installation, and event recorder installation. Bombardier s rehabilitation and renovation work is estimated at $900,000 during the fiscal year. Additional maintenance of equipment funding for the servicing of Metrolink rolling stock at North County Transit District s (NCTD s) Stuart Mesa maintenance facility is contained in SCRRA s operating budget, and is covered by a Memorandum of Understanding between SCRRA and NCTD s contractor, Transit America Services. Budget Impact Funding for Bombardier s equipment maintenance is contained within various line items in SCRRA s FY operating budget and capital budget. Recollectable work is funded by third party agreements or claims. The agency budgets incorporate Bombardier s proposed rate reductions, which at this time have not been finalized between Bombardier and SCRRA. Prepared by: Gary Jarboe, Director of Equipment Karen Sakoda, Business Manager JOHN E. FENTON Chief Executive Officer 31

47 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 17 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Contract No. OP Operator Services - Request for Time Extension for Contract Close-out Activities Only and Increase in Contract Authority for Contract Closeout - Connex Railroad LLC (Connex) Issue To enable close-out of the operator services contract with Connex, a time extension to complete these close-out activities and an increase in contract authority is required. No train operation services will be provided during this time extension. Recommendation Staff recommends the Board authorize the Chief Executive Officer to amend Contract No. OP with Connex to extend the period of performance by three months from July 1, 2010 thru September 30, 2010 to allow for the completion of close-out activities, and increase contract authority in the amount of $75,000 to enable commuter rail operations contract close-out. Alternative The Board may: 1. Decline to authorize funding; or 2. Reduce the funding amount. Background Contract OP123 was awarded November 12, 2004 to Connex for train operation services for a 5-year period beginning July 1, 2005 with one five-year option. Prior to the conclusion of the initial 5-year period, Connex notified SCRRA that it would not agree to extension of the option. Close-out activity of the 5-year contract must take place past the current contract conclusion date of June 30, Contract closeout activity will include preparation of final invoicing for employee incentive payments, for which such information cannot be calculated by Connex until late August. Additionally, commuter rail operations work performed by Connex in the month of June 2010 will need to be processed and paid, 700 S. Flower Street, Suite 2600 Los Angeles, CA

48 Contract No. OP Operator Services Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 which will occur after the original contract conclusion date. In order to complete contract close-out activities, the positions of Manager of Payroll and Director of Finance under the current operating contract with Connex must be extended thru the first quarter of FY Budget Impact Requested dollars for the first quarter of FY10-11 period are funded in the FY10-11 operating budget. Prepared by: Gary Lettengarver, Director of Operations Oscar Viramontes, Business Administrator - Operations JOHN E. FENTON Chief Executive Officer 33

49 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 18 TO: FROM: SUBJECT: Issue Board of Directors Chief Executive Officer Blanket Purchase Order No. PO Electronic Signal Equipment - Increase Contract Funding Authority to General Electric Transportation Systems Global Signaling, LLC (GETS) Repair and replacement of major components of the signal system are required to ensure continuation of uninterrupted service. Recommendation Staff recommends the Board authorize the Chief Executive Officer to: 1. Extend the period of performance by twelve months on Blanket Purchase Order No. PO Electronic Signal Equipment with General Electric Transportation Systems Global Signaling, LLC (GETS) from May 15, 2011 to May 15, 2012; and 2. Increase the existing contract by $1,500,000 for a new total not-to-exceed amount of $3,841,667. Alternatives The Board may modify the period of performance and increase amount of the extension. Background The design of the Metrolink signal system requires the use of GETS electronic signal equipment to ensure technical compatibility with the Authority s existing equipment. It would be cost prohibitive to redesign the existing signal systems and layout standards where GETS components are installed, and to obtain spare parts to another manufacturer s product. In September 2004, PO was awarded as a non-competitive procurement to GETS to provide electronic signal equipment. The term of the contract was originally for a base period of three years with one two-year option. The original contract value was for a notto-exceed amount of $1,300,000 for the base period. In April 2008, the Board approved an increase of $175,000 for a new not-to-exceed contract amount of $1,475,000. In January 700 S. Flower Street, Suite 2600 Los Angeles, CA

50 PO Electronic Signal Equipment Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page the Board approved the exercise of the two-year option on the contract and an increase of $866,667. The contract currently expires on May 15, Contracts Administration & Procurement staff negotiated a 3% reduction on the current blanket purchase order prices for equipment and repair and replacement services. As a result, staff recommends extending the period of performance and increasing the existing contract amount. Past performance from GETS has been satisfactory. Budget Impact Funding for signal equipment is included in the FY09-10 new capital, rehabilitation/ renovation and maintenance of way budgets. Funding for the additional year will be requested in the budget for that year. Prepared by: Mike Carrasco, District C & S Supervisor, Roslyn M. Lewis, Senior Contract Administrator Jennifer M. Sims, C.P.M., Manager, Contracts Administration & Procurement JOHN E. FENTON Chief Executive Officer 35

51 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 19 TO: FROM: Board of Directors Chief Executive Officer SUBJECT: Contract No. SP Fueling for Fleet Vehicles Exercise Option and Increase contract Authority - SC Fuels, Inc. dba Cardlock Fuels, Inc. Issue Vehicle fuel services (gasoline and diesel) are required for the continuous operation of non-revenue fleet vehicles. Recommendation Staff recommends the Board authorize the Chief Executive Officer to exercise the twoyear option on Contract No. SP with SC Fuels, Inc. dba Cardlock Fuels, Inc. to extend the period of performance from August 1, 2010 to July 31, 2012 and increase contract authority by $1,450,000 for a new total not-to-exceed contract amount of $3,550,000. Alternative The Board may: 1. Modify the amount of the contract funding authorization requested; or 2. Decline to increase the funding authorization and direct staff to issue a new Invitation for Bid (IFB). Background Fuel for non-revenue fleet vehicles is required throughout the entire SCRRA operating area and must be easily accessible and available throughout the SCRRA service area. In addition, the supplier on behalf of SCRRA must be able to claim the federal excise tax exemption allowed under IRS Code Section 4041(g)(2) and 6416(b)(2). In May 2007, competitively procured Contract No. SP for fueling of fleet vehicles was awarded, to SC Fuels Inc., in an amount of $2,100,000 for a three year base period with a one two-year option. The base term for this contract ends July 31, SC Fuels provides approximately one (1) percent (or approximately cents) discount per 700 S. Flower Street, Suite 2600 Los Angeles, CA

52 SP Fueling for Fleet Vehicles Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 gallon off the pump price at participating gas stations throughout the five county area. The services provided have been satisfactory during the base period. The discounts for the option years were included and evaluated with SC Fuel s bid. Budget Impact Funding for the fueling of non-revenue vehicles is available in the FY10-11 Operating Budget. Prepared by: Ramon Rosario, Facilities Manager Lia McNeil-Kakaris, Principal Contract Administrator Jennifer M. Sims, C.P.M., Manager, Contracts Administration and Procurement JOHN E. FENTON Chief Executive Officer 37

53 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 20 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Contract No. C Station and Maintenance Facility Improvements- Change Order Approval Issue A Change Order is required to increase the allowance to cover the additional costs for the continued management and disposal of soils, including contaminated soils, at the Keller Yard project site. Recommendation Staff recommends the Board authorize the Chief Executive Officer to amend Contract No Station and Maintenance Facility Improvements, with Los Angeles Engineering Inc., (LAE) to issue a Change Order in the amount of $547, The pending Change Order and negotiated value of $547,280.38, if approved, combined with all others will not increase the total not-to-exceed amount of the contract. Alternative The Board may place the project on hold pending the resolution of the reimbursement for the disposal of the soils from the former property owner. Background At its April 24, 2009 meeting, the Board awarded competitively procured Contract No. C Station and Maintenance Facility Improvements to the lowest responsive and responsible bidder, LAE for $7,622,481.00, plus a fifteen percent contingency of $1,143, for a total amount not-to-exceed contract authorization of $8,765, This contract covers three (3) sub-projects; Keller Yard, Demolition of Mail Dock at Union Station and CMF Security. After the full Notice to Proceed was issued, LAE was delayed in initiating the work at Keller Yard. Delays occurred due to Gas Company pipe relocation, removal of underground storage tank and other obstacles, and the involvement of the Department of Toxic Substances Control (DTSC) on this portion of the project. DTSC required that all earthwork would be monitored and include soil testing, air monitoring and environmental reporting to the DTSC. All these factors and more contributed to the increase in cost to handle the soils removal, including those that were contaminated. 700 S. Flower Street, Suite 2600 Los Angeles, CA

54 C Station and Maintenance Facility Improvements Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 Budget Impact Funding for the Station and Maintenance Facility Improvements contract is provided in the FY09-10 Capital Budget with a combination of federal, state and local funds. Federal funds are provided under Grant Numbers CA-90-Y and CA-96-X Through a combination of adjustments in scopes and deletions of bid items in the Keller Yard portion of the project along with utilizing remaining contingencies there is sufficient project funding for this change order. Prepared by: Ron Mathieu, Program Manager, Capital Program Management Roslyn M. Lewis, Senior Contract Administrator Jennifer M. Sims, C.P.M., Manager, Contracts Administration & Procurement JOHN E. FENTON Chief Executive Officer 39

55 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 21 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Metrolink Service Expansion Program (MSEP) and Orange County Grade Crossing Improvement Program (OCX) Amendments to Cooperative Agreements between Orange County Transportation Authority (OCTA) and Southern California Regional Rail Authority (SCRRA) Issue To update the MSEP and OCX programs, an amendment to specify changes to the Cooperative Agreements between OCTA and SCRRA, and related agreements, is needed. Recommendation Staff recommends that the Board of Directors authorize the Chief Executive Officer to execute amendments to the Cooperative Agreements with OCTA for the MSEP and OCX, and conforming changes as appropriate to related agreements, such as the construction and maintenance agreements with various cities, to: 1. Incorporate funding revisions; 2. Revise budget amounts; and 3. Revise MSEP scope of work; and 4. Incorporate necessary schedule revisions Alternatives The Board may: 1. Request changes to the proposed Amendments to the Cooperative Agreements 2. Decline approval of Amendments. 700 S. Flower Street, Suite 2600 Los Angeles, CA

56 Amendment to MSEP and OCX Cooperative Agreement Amendments Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page Background On April 23, 2007, OCTA and SCRRA executed a Cooperative Agreement authorizing SCRRA to proceed with development, design and construction of rail infrastructure improvements necessary for the MSEP. On June 12, 2008, OCTA and SCRRA executed a Cooperative Agreement authorizing SCRRA to proceed with the OCX projects. Since the MSEP and OCX Cooperative Agreements were executed, several funding, estimate, scope and schedule revisions have occurred. Originally, the funds for both programs were to be only local funds. For the MSEP, the funds have since been supplemented with Proposition 116 funds and Public Transportation Modernization, Improvement, and Service Enhancement Account (PMISEA) funds. For the OCX program, the funds have been supplemented with Proposition 116 funds. The MSEP and OCX program budgets are needed to be increased to $95,000,000 and $85,009,000 respectively. The MSEP budget is increasing by $7,127,000. The OCX budget is increasing by $25,009,000. Some of the original MSEP projects have been either downscoped or deleted entirely from the scope of work due to OCTA s budget constraints and a much lower than expected level of additional train service from the levels anticipated in The total program costs for both the MSEP and OCX have increased significantly since the cooperative agreements were approved. The increased costs can be primarily attributed to higher than anticipated signal construction costs and proper budgeting for construction contingencies and project reserves. An amendment is requested to incorporate the revised MSEP projects included in the program. The MSEP projects were to be completed order to meet a service start-up date of December However, due to a reduction of local sales tax revenues which reduced money for operations, OCTA s proposed operations plan requires only 6 additional trains to start in fall of The OCX Amendment extends the project completion date from December 2010 to December The main causes for delay are related to OCTA s funding re-allocation processes and a SCRRA signal material contract procurement delay. Amendments are requested to incorporate these schedule revisions into the Cooperative Agreements. On April 26, 2010, OCTA approved draft Cooperative Agreement amendments for these funding, budget, scope and schedule changes. Staff requests the Board to authorize the Chief Executive Officer to approve and execute the Amendments to the Cooperative Agreements with OCTA for the MSEP and OCX programs. Staff also recommends that the Chief Executive Officer be granted the authority to amend the Construction and Maintenance Agreements with the various affected Cities and/or related agreements in accordance with the current cost projections. 41

57 Amendment to MSEP and OCX Cooperative Agreement Amendments Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page Budget Impact Funding for the MSEP and OCX programs is provided by OCTA. The Cooperative Agreements with OCTA includes provisions for OCTA to fund actual project costs on an advance funding basis, and that any cost increases or overruns will be subject to OCTA's prior approval. Prepared by: Gray Crary, Chief, Capital Planning & Program Management JOHN E. FENTON Chief Executive Officer 42

58 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 21, 2010 MEETING DATE: June 25, 2010 ITEM 22 TO: FROM: SUBJECT: Board of Directors Chief Executive Officer Proposed Overall Disadvantaged Business Enterprise (DBE) Goal Amendment for Federal Transit Administration (FTA) Assisted Contracts (October 1, 2010 September 30, 2012) Issue The U.S. Department of Transportation (U.S. DOT), requires SCRRA to establish and submit a three year Overall DBE Participation Goal for its FTA-Assisted contracts in compliance with Federal regulations set forth in Title 49 CFR Part 26 entitled Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs and the recently released U.S. DOT Final Rule (effective March 3, 2010). Recommendation Staff recommends the Board: 1. Approve the proposed Amended Overall Annual DBE Participation Goal of 10% for Federal Fiscal Year (FFY) ; 2. Authorize the CEO to submit the goal and all supporting documentation to the Federal Transit Administration (FTA) for review and approval; 3. Accept the final Disparity Study Report; and 4. Authorize the CEO to proceed with a waiver of limited application process. Alternative 1. The Board may direct staff to re-evaluate the proposed goal consistent with applicable requirements and return with a new goal for Board consideration. 2. The Board could decline to establish an amended Overall DBE Participation Goal. Background 700 S. Flower Street, Suite 2600 Los Angeles, CA

59 Disadvantaged Business Enterprise Overall Annual Goal Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 2 Disparity Study Public transportation agencies have implemented various programs to ensure contracting opportunities for disadvantaged business enterprises, minority-owned businesses, and women-owned businesses for a number of years. As a result of landmark Supreme Court cases in 1989 and 1995, as well as various state constitutional enactments (e.g. California s Proposition 209 in 1996), federal and state requirements in this field have become progressively narrower, moving further away from specific race-conscious and contract-specific goals, toward a more race-neutral program design. The more recent of these judicial decisions came from the Ninth Circuit Court of Appeals in the case of Western States Paving v. Washington State DOT in Following the line of previous decisions, the Western States case reaffirmed that state and local DBE programs (which are required as a condition of receiving federal transportation funds) are to be narrowly tailored in their design, which means, in essence, that recipients are to utilize race-neutral means to the maximum extent to meet their annual DBE contracting goals, and that race-and gender-conscious means must be used only to address documented conditions of disparity in the contracting environment. Following the Western States decision, in March 2006 the Federal Transit Administration released guidance to recipients of federal funds on how to prepare annual DBE contracting goals consistent with the holdings in Western States. The FTA directed agencies who do not have sufficient evidence of discrimination to prepare wholly race-neutral goals without contract-specific goals, and to undertake studies or other appropriate evidence-gathering processes to determine the existence of discrimination. SCRRA complied with this guidance, and each year SCRRA s goal-setting process has been conducted consistent with this guidance. The Board has seen references to the requirements of the Western States decision in all federally-funded procurements on Board agendas since mid To comply with the FTA s guidance in response to Western States, a consortium of Southern California transportation agencies was formed in 2007 to conduct a Disparity Study to determine the presence or absence of discrimination in the local contracting environment. The consortium members included Metro, OCTA, SCRRA, San Diego Association of Governments (SANDAG), and San Diego Metropolitan Transit System (MTS). Metro administered the procurement of consulting services and the resultant contract. BBC Research and Consulting was the successful proposer, and received a contract to perform the study on behalf of the consortium at a cost of $829,285. SCRRA s share of the cost was $75,000, which was remitted to Metro in Since then, BBC has undertaken the study on behalf of the consortium. The Final Draft Disparity Study Report was released in November SCRRA actively participated in two (2) public hearings to collect anecdotal evidence and input from the public as a part of the mandated public facilitation process. The Disparity Study Report was finalized in late January 2010 and reviewed by Authority staff to assess impacts on the Authority s current DBE Program. 44

60 Disadvantaged Business Enterprise Overall Annual Goal Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 3 Most importantly, the study recommends that 71% of SCRRA s DBE goal be achieved through race-and gender-neutral means and that a base figure of 11.6% be considered in the goal-setting process. The 71% race-neutral figure is also derived from an analysis of minority and women-owned firms receipt of contracting dollars compared with DBE firms availability for the work during the period Again, consistent with the aforementioned judicial determinations, the study recommends that as much as possible, even up to 100%, of SCRRA s goal should be met through race-and gender-neutral means. To accomplish this goal, the consultants note that SCRRA already undertakes several race-neutral programs as a part of its annual procurement activities, but also suggests other potential programs that could potentially increase DBE utilization. Caltrans has recently applied for FTA approval of a small business set-aside program that could also be used as a race-neutral method to improve DBE participation. Federal Register New Rule Change Pursuant to this final rule, SCRRA is required to conduct an annual review to account for changes that may warrant an adjustment to the overall goal and make any necessary adjustments based on changed circumstances (i.e. significant change in the legal standards governing the DBE program, new contracting opportunities presented by the availability of new or different grant opportunities, etc.) to ensure the goal and program as a whole are narrowly tailored throughout the goal period. SCRRA s next DBE goal and methodology submission is due to FTA on August 1, However, due to the release of the Disparity Study report and corresponding results and recommendations, SCRRA is proposing to amend its FFY 2010/12 Overall DBE Goal and its DBE contracting practices to effectively respond to the Disparity Study findings and recommendations on its FTA-assisted contracts. Overall Annual DBE Goal Calculation Methodology As this Disparity Study was not yet finalized, last year the Board approved a strictly raceneutral Overall Annual DBE Goal of 6%. Based on an extensive review and consideration of the Authority s FFY 2010/11 Contracting Program, potential subcontracting opportunities for those projects and the qualified DBE firms to provide this work based on SCRRA s market area, as well as any other relevant data, including past DBE attainments and Disparity Study findings, Staff proposes a 10% Amended proposed Overall DBE Goal. SCRRA identified a total of nine (9) FTA-funded projects anticipated to be solicited within the proposed Federal Fiscal Year contracting period. Attachment 1 to this report is the methodology and calculations used to develop the proposed goal. The Overall Annual DBE Goal for FTA-assisted projects was established utilizing the federal two-step goal setting methodology. Step 1 included establishing a base figure utilizing quantifiable evidence of the relative availability of DBEs within specified industries corresponding to SCRRA s FTA-assisted contracting opportunities anticipated to be awarded within the respective goal period. SCRRA utilized the California Unified Certification Program (CUCP) Directory of Certified DBE firms and United States Census Bureau: County 45

61 Disadvantaged Business Enterprise Overall Annual Goal Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 4 Business Patterns North American Industrial Classification System (NAICS) database to complete Step 1. Upon establishing the Overall Annual DBE Goal Base Figure, Step 2 of the process required SCRRA to survey and assess other known relevant evidence to determine what additional adjustments, if any, were needed to narrowly tailor the Base Figure to SCRRA s market area. Factors considered in the adjustment of the Base Figure included: incorporating the Base Figure recommended by the Disparity Study consultants, SCRRA s historical DBE data and current capacity of DBEs measured by actual attainments, Bidders List, and other evidence within the SCRRA s market area. Adjustments to the Step 1 Base Figure were made based on these factors. As a part of the prescribed goal setting methodology, SCRRA must ascertain and make a projection of the percentage of its Amended Proposed Overall DBE Goal that can be met utilizing race-neutral and race-conscious measures. The Disparity Study recommends that 71% of the Goal be achieved utilizing race-neutral measures. This would amount to a 7% race-neutral component and a 3% race-conscious component. SCRRA is thereby proposing to meet 7% of the 10% proposed Overall Annual DBE goal utilizing race-neutral measures and 3% of the 10% Overall Annual DBE goal utilizing race-conscious measures, including utilizing contract-specific UDBE goals to meet the goal. SCRRA must additionally complete and submit the waiver of limited application process which requires the U.S. General Counsel (Secretary of Transportation) Authorization prior to implementing a race and gender-conscious program of limited application and reinstituting good faith efforts responsiveness criteria to its FTA-assisted contracts which would include the application of numeric contract-specific goals. All the DBE groups, with the exception of Asian Pacific American-owned firms, showed substantial disparities (underutilization) and would therefore be included in the race-conscious component of the program as Underutilized Disadvantaged Business Enterprises (UDBEs). Public Facilitation In order to meet the required FTA-assisted public participation process, a public notice regarding the amended proposed Overall DBE Goal and request for waiver to implement a race-conscious program will be published in general Circulation, minority, and trade association publications. The amended proposed Overall DBE Goal and the methodology used to derive the proposed goal, including the Disparity Study findings regarding the identification of UDBEs will be made available for 45 days for review and comment following Board action on this agenda item. Additionally, a public hearing will be conducted to meet the required waiver application process, a public notice will be posted on SCRRA s Website and consultation letters will be issued to industry, chambers and minority trade associations and organizations to directly solicit their input. SCRRA will give full consideration to all comments and input received as a part of this process and will assess its impact on the Amended Proposed Overall DBE Goal and waiver application. 46

62 Disadvantaged Business Enterprise Overall Annual Goal Transmittal Date: June 21, 2010 Meeting Date: June 25, 2010 Page 5 Budget Impact Establishment of a DBE goal in and of itself has no direct budget impact. However, failure to establish and submit a DBE participation goal to FTA may have an adverse impact on receipt of federal grants. Prepared by: Steve Wylie, Assistant Executive Officer Jennifer M. Sims, C.P.M., Manager, Contract Administration & Procurement DBE Liaison Officer JOHN E. FENTON Chief Executive Officer Attachment: Overall Goal Setting Methodology & Waiver Request 47

63 ATTACHMENT 1 Southern California Regional Rail Authority s Proposed Amendment to Federal Transit Administration (FTA) - Overall DBE Goal Setting Methodology for FFY 2010/12 Goal Period Submitted in fulfillment of: Section 1101 of the Transportation Equity Act for the 21 st Century 49 Code of Federal Regulations Part 26 and Federal Register / Vol. 75, No. 22 [Docket No. OST ] This analysis is prepared exclusively for SCRRA; it is non-transferable and is not to be duplicated. 48