Valley Metro RPTA. Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor Phoenix

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1 MEETINGS OF THE Management Committees Valley Metro RPTA METRO Light Rail MEETING DATE November 1, 2012 TIME 11:00 a.m. MEETING DATE November 1, 2012 TIME 1:30 p.m. LOCATION Valley Metro RPTA Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor Phoenix

2 October 24, 2012 TO: FROM: RE: Members of the Valley Metro RPTA and METRO Light Rail Management Committees Steve Banta Chief Executive Officer November 1, 2012 Packet Notes Attached is the November 1, 2012 agendas and supporting information for the Valley Metro RPTA and METRO Light Rail Management Committee meetings. You will notice that both meeting agendas and supporting information are combined in one book for your convenience. These meetings can be attended via teleconference. Please contact the receptionist at for the call-in information. If you have any questions regarding the information in this packet, please let me know. Parking is available onsite and parking can be accessed via the entrance on Adams Street. Parking validation will be available at the meeting. Transit tickets are also available to those who attend the meeting using transit. If you need detailed directions, please contact the receptionist at

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4 October 24, 2012 Transit Management Committee Thursday, November 1, 2012 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 11:00 a.m. For those participating by telephone, please mute your phone when not speaking. Members please make sure your microphone is turned on when speaking and turned off when you are not speaking. Action Recommended 1. Public Comment 1. For information A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the TMC on all agenda items. The Chair may recognize members of the public during the meeting at his/her discretion. Up to three minutes will be provided per speaker or a total of 15 minutes total for all speakers. 2. Minutes 2. For action Minutes from the October 3, 2012 TMC meeting are presented for approval. 3. Chief Executive Officer s Report 3. For information Steve Banta, Chief Executive Officer, will brief the TMC on current issues. CONSENT AGENDA 4A. Authorization to purchase up to (14) trolley-style buses for the city of Scottsdale 4A. For action Staff will request approval to purchase up to 14 trolley and trolleystyle buses for the city of Scottsdale using a contract assignment from LYNX (Central Florida Regional Transportation Authority, Orlando, FL) for a cost not to exceed $8,547,806. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

5 4B. Intergovernmental Agreement (IGA) Amendment with the city of El Mirage for Public Transportation Funds (PTF) 4B. For action Staff will request approval for the Chief Executive Officer to amend the IGA with the city of El Mirage to provide PTF reimbursement of up to $200,000 for the construction of two bus pullouts and two passenger shelters in the city of El Mirage. 4C. Contract Award for Concrete Rehabilitation at the Mesa Operations Facility 4C. For action Staff will request approval to award a contract procured through the State of Arizona Job Order Contract (JOC) system to S. J. Anderson and Company for $233, for concrete rehabilitation and Gordian Consulting for $11, for management of the project at the Mesa Operations Facility for a total cost not to exceed $245, for concrete rehabilitation at the Mesa Operations Facility. 4D. State Legislative Counsel Contract Award 4D. For action Staff will request approval of a State Legislative Counsel contract with HighGround/Kruse Group, a Public Affairs/Government Relations Joint Venture, to provide Government Relations Consulting Services to RPTA and METRO effective January 1, 2013 for 3 years, with two (2) one (1) year options in an amount not to exceed $344,500. RPTA s obligation will be $172,250. 4E. Operations Cleaning Services Contract Award 4E. For action Staff will request approval for the Chief Executive Officer to execute a contract with R.C.D. Cleaning Service, Inc. to provide operations cleaning services effective January 1, 2013 for a total term of 5 years (3-year base contract plus two one-year renewal options). For the total term of the contract, the award cost is $4,446,383. RPTA s obligation is $397,416. METRO s obligation is $4,048,967, which includes additional funding coming from the city of Mesa for the Bus Transit Facility in the amount of $133,354. 4F. Intergovernmental Agreement with the Arizona Department of Transportation for Federal Transit Administration Section 5311 (Rural Transit) Pass-Through Grant Reimbursements 4F. For action Staff will request approval for the Chief Executive Officer to enter 2

6 into an Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) for Federal Transit Administration (FTA) Section 5311 (Rural Transit) pass-through funding in the amount of $380,000 for Gila Bend Route 685 and Buckeye Express Route 563 for Fiscal Year 2013/ G. January Bus Service Changes Intergovernmental Agreements (IGA) and Bus Operating Contract Change Orders 4G. For action Staff will provide information to the Board regarding proposed Valley Metro bus service changes for January 2013 and request Board authorization for the Chief Executive Officer (CEO) to execute IGA amendments and bus operating contract changes in conjunction with proposed bus service changes. 4H. Intergovernmental Agreement (IGA) with the town of Gila Bend for Bus Stop Improvements 4H. For action Staff will request authorization for the Chief Executive Officer to execute an IGA with the town of Gila Bend for local matching funds, installation and maintenance of two passenger shelters. 4I. Commercial Property and Liability Insurance Renewal 4I. For action Staff will request authorization for the Chief Executive Officer to purchase continued coverage for Valley Metro s insurance coverage needs for an amount not to exceed $1,482,318. RPTA s obligation is $202,822. 4J. Scottsdale/Rural Roads LINK Project Definition Study Consultant Services 4J. For action Staff will request authorization for the Chief Executive Officer to initiate a task order with HDR under METRO s Planning Support Services Contract for the Scottsdale/Rural Roads LINK project. REGULAR AGENDA 5. Fare Media Advertising Steve Banta, Chief Executive Officer, will introduce Hillary Foose, Communication and Marketing Director, who will provide an update on the City of Phoenix s effort to pursue a fare media advertising program and outside sales contractor to generate additional revenue for the region. 5. For information and discussion 3

7 6. Gilbert Road LRT Extension Major Amendment to the RTP 6. For action Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will request Board approval of Resolution regarding the major amendment to the RTP extending the LRT corridor east on Main Street to Gilbert Road and to request Board authorization for the Chief Executive Officer to update the TLCP to include the Gilbert Road LRT Extension. 7. Regionalization: Baseline Model of Transit Service Delivery 7. For information and discussion Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will provide an informational update on the proposed process to meet the CEO s Performance Incentive goal on Regionalization. 8. Future TMC Agenda Items Request and Report on Current Events 8. For information and discussion Chair Hazine will request future TMC agenda items from members and members may provide a report on current events. 9. Next Meeting 9. For information The next meeting of the TMC is scheduled for Wednesday, November 28, 2012 at 11:00 a.m. Qualified sign language interpreters are available with 72 hours notice. Materials in alternative formats (large print, audiocassette, or computer diskette) are available upon request. For further information, please call Valley Metro at or TTY at To attend this meeting via teleconference, contact the receptionist at for the dial-in-information. The supporting information for this agenda can be found on our web site at 4

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9 DATE AGENDA ITEM 1 October 24, 2012 SUBJECT Public Comment PURPOSE An opportunity for general public comment on issues related to Valley Metro RPTA. Up to three (3) minutes or a total of 15 minutes for all speakers, will be provided. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION For information only CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENTS None

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11 October 24, 2012 AGENDA ITEM 2 Summary Minutes Valley Metro RPTA Transit Management Committee Wednesday, October 3, 2012 Lake Powell Conference Room 101 N. 1 st Avenue, Suite 1000 Phoenix, AZ 11:00 a.m. Members Present Jodi Sorrell, City of Mesa, Vice Chair Greg Jordan, City of Tempe Kini Knudson for Neal Young, City of Phoenix Rogene Hill, City of Avondale (telephone) Sean Banda, Town of Buckeye Dan Cook for RJ Zeder, City of Chandler Terry Johnson for Jamsheed Mehta, City of Glendale David Meinhart, City of Scottsdale Dave Kohlbeck, City of Surprise Mitch Wagner, Maricopa County Cato Esquivel, City of Goodyear Dawn Irvine, Town of Gilbert Sue McDermott, City of El Mirage (phone) Chris Hagen, City of Tolleson (phone) Members Not Present Maher Hazine, City of Peoria, Chair Sara Allred, ADOT Chair Maher Hazine called the meeting to order at 11:04 a.m. 1. Public Comment None. 2. Summary Minutes Minutes from the September 5, 2012 TMC meeting were presented for approval. The spelling of Sorell will be changed and Dawn Irvine requested that a correction be made to her statement made on page 5 the statement should read: there have been different philosophies about the fares and is pleased with the adjustments. 1

12 IT WAS MOVED BY DAVE MEINHART, SECONDED BY DAN COOK AND UNANIMOUSLY CARRIED TO APPROVE THE MINUTES, WITH CHANGES, FROM THE SEPTEMBER 5, 2012 TMC MEETING. 3. Chief Executive Officer Report Steve Banta provided an update the following items: Certificate of Excellence for Financial Report from the Government Finance Officers Association Trip to Washington D.C. MAP 21 Mesa Extension PCGA Signing Ceremony October 12 Trip to Salt Lake City APTA Leadership selection of Hillary Foose Ridership Legislative Update handout Ms. Sorell said Mesa is excited about the PCGA announcement. 4. Consent Agenda Mr. Banta listed the following items on consent: A. Contract Change Order with New Flyer Industries for Vehicle Air Conditioning System Upgrades and Retrofits B. Contract Award for EMP Mini-Hybrid Cooling System Retrofit Kini Knudson said there is a difference between a contract award and a contract change order. He suggested that the memo should include the term of the contract. Greg Jordan asked where the local match is coming from for the retrofits. Mr. Banta said staff will incorporate the contract term into the memos and said the local match for the retrofits will come from the PTF. IT WAS MOVED BY DAWN IRVINE, SECONDED BY TERRY JOHNSON AND UNANIMOULSY CARRIED TO APPROVE THE CONSENT AGENDA. 5. Transit Life Cycle Program Express Bus Cost Allocations Mr. Banta introduced Paul Hodgins who provided an overview of the TLCP Express Bus Cost Allocations. The presentation included: 2

13 Background Allocation policy approved in March 2007 Allocates cost for jurisdictional equity Jurisdictions with stops are allocated costs - Allocation based on revenue miles - Pass through jurisdiction miles allocated pro-rata to other jurisdictions in route Issues Ridership drawn from greater distance - Local riders typically walk short distance - Express riders more likely to drive Benefits distributed to more cities Allocation by miles does not approximate benefits Alternatives Allocation based on boardings - Does not account for larger catchment area Allocation based on stops - Does not differentiate between park-and-ride and local or exception stops Exceptions Some exceptions to policy exist - Peoria agreed to an allocation of costs on Rts. 573 and Some trips that were added were allocated to the jurisdiction of origin Exceptions are negotiated through the TLCP update process Moving Forward Staff could revisit alternatives, look for new alternatives - Potentially could reopen discussion on other policies The TMC discussed the current process and agreed to continue discussing this issue in the TLCP Working Group. Mr. Hodgins said the cost allocations are written and included in the policies. He said the TLCP Working Group will begin meeting once the ADOT financial forecast is released and further discussion could held then. This item was presented for information only. 3

14 6. Administrative Code Mr. Banta said changes are being suggested to the RPTA Administrative Code to change Executive Director to Chief Executive Officer and to the date that Board Officers election is held. He said the Board currently elects officers at the end of the January Board meeting. He said the change would be to elect officers at the June Board meeting so the officers would serve for a fiscal year which would align with overseeing the budget and performance goals of the CEO. It would also align with the Board officer elections at METRO and MAG. This item was presented for information only. 7. Fiscal Year 2014 Budget Process and Schedule Mr. Banta introduced Tyler Olson who provided an overview of the proposed FY 2014 Budget Process and Schedule. The presentation included the following: Budget Process Goals Effective Interaction with the Member Cities Staff through Financial Working Group and RTAG Budget Schedule: October 2012 Operations budget assumptions developed November - December 2012 Member city input regarding Operations February 13, 2013 Draft Operating and Capital budgets delivered to RTAG, RSWG and Financial Working Group for review and incorporation into Member City Budgets March 13, 2013 Comments due from member city staff March 27, 2013 Proposed budget submitted to RMC, TMC and BFS April 2013 Presentations of proposed budget to TMC, RMC, BFS and Boards for information May 2013 Presentations of final budget to TMC, RMC, BFS and Boards for adoption Mr. Meinhart asked with cities can expect to receive the estimated cost per mile. He said February 18 is still a little late. He said Scottsdale begins their budget process in January. Mr. Olson said staff will work to on getting the estimates out sooner. Mr. Banta said staff is trying to be more forthcoming with information but noted that the members will also need to provide needed information. 4

15 8. Future TMC Agenda Items Request and Report on Current Events Mr. Knudson said the city of Phoenix received awards from Valley Forward for the 27 th Avenue and Baseline Park-and-Ride and Central Station. The city of Tempe also received an award for the pedestrian bridge and the city of Mesa received an award for small plan area. With no further discussion the meeting adjourned at 11:52 a.m. 5

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17 DATE AGENDA ITEM 3 October 24, 2012 SUBJECT Chief Executive Officer s Report PURPOSE To provide TMC members with informational updates on current events. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION For information only. CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENTS None

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19 DATE October 24, 2012 AGENDA ITEM 4A SUBJECT Approval to purchase up to fourteen (14) trolley-style buses for the city of Scottsdale PURPOSE To request Board approval for the Chief Executive Officer to purchase up to 14 trolley and trolley-style buses for the city of Scottsdale using a contract assignment from LYNX. BACKGROUND The city of Scottsdale currently operates a fleet of 21 buses in the provision of fixed route bus service. These buses serve the city in a shuttle-type operation on the Downtown, Miller Road and Neighborhood Trolley routes. Thirteen of the 14 buses will reach the end of their useful life of 10 years as defined by the Federal Transit Administration (FTA) in The 14 th bus will meet its useful life in All of the existing 14 buses planned for replacement are experiencing substantial maintenance issues, thereby significantly increasing operational costs. The 14 th bus will be replaced when eligible or subsequent to FTA approval of an early retirement due to maintenance issues. Scottsdale requires that four (4) of the 14 buses be equipped with a complete trolley package while the remaining 10 buses are to be painted to appear similar to the trolley package. All buses will be delivered with diesel-electric hybrid engines. Since Valley Metro s existing bus contract does not offer trolley-style buses, Scottsdale and Valley Metro staff spoke with the Central Florida Regional Transportation Authority (LYNX) in Orlando, Florida to obtain options to purchase revenue vehicles from its existing contract with Gillig Corporation. LYNX was able to provide the options requested. The LYNX contract is federally compliant with FTA requirements and the contract and assignment (piggyback) has been approved by the city of Phoenix as the designated recipient for federal funds. Costs for the buses are estimated as follows: Full trolley-style 29 foot bus cost per bus (4 buses): $ 650,319 Trolley-look 29 foot cost per bus (4 buses): $ 585,583 Trolley-look 35 foot cost per bus (6 buses): $ 599,533 Total $8,540,806 COST AND BUDGET The total cost for the purchase of the fourteen buses shall be $8,547,806 which includes a $500 per bus administrative payment to the Florida Transit Association that administers the cooperative purchasing contract. This purchase shall be funded in the following manner: VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

20 Grant type Grant number (source of Federal Federal Share Local Share* Total Cost federal funds) Ratio Hybrid fuel system AZ % $1,197,896 $133,100 $1,330,996 Buses AZ-90-X109 80% $2,284,228 $571,057 $2,855,285 Buses AZ-90-X109 83% $3,620,066 $741,459 $4,361,525 $7,102,190 $1,445,616 $8,547,806 *Public Transportation Funds Bus delivery is estimated to occur 16 months after issuance of a purchase order by Valley Metro. As such, the actual expenditure for this bus purchase shall not occur until Fiscal Year This contract obligation will be incorporated into the Valley Metro RPTA Five Year Operating Forecast and Capital Program (FY2014 thru FY2018) and the FY 2014 budget. COMMITTEE PROCESS RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, authorization for the Chief Executive Officer to purchase up to 14 buses for the city of Scottsdale from Gillig Corporation at a cost not to exceed $8,547,806 in FY14. CONTACT Carol Ketcherside Director of Administration and Organizational Development cketcherside@valleymetro.org ATTACHMENTS None 2

21 DATE October 24, 2012 AGENDA ITEM 4B SUBJECT Intergovernmental Agreement (IGA) amendment with the city of El Mirage PURPOSE To request Board approval for the Chief Executive Officer to amend the IGA with the city of El Mirage to provide reimbursement for the construction of two bus pullouts and two passenger shelters in El Mirage with Public Transportation Funds (PTF). BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro and the city of El Mirage have an IGA under which Valley Metro provides paratransit services on behalf of the city. This agenda item requests Board approval for the CEO to amend the existing IGA to allow Valley Metro to reimburse the city of El Mirage up to $200,000 in PTF for the purchase and installation of two passenger shelters with accompanying bus pullouts in the city. PTF funding for this project is included in the approved Transit Life Cycle Program (TLCP) and Valley Metro s FY13 budget. El Mirage will be responsible for any costs exceeding $200,000 and will also be responsible for on-going maintenance costs for the improvements. El Mirage will prepare the site designs, procurement documents, designs of shelters, pullouts and concrete work prior to award for RPTA review. Valley Metro will partner with the city and shall approve site work, procurement, fabrication and installation of the shelters and pullouts. COST AND BUDGET The total cost for El Mirage bus shelters and bus pullouts during the period November 1, 2012 through June 30, 2013 is not to exceed $200,000. Payment for construction services will be reimbursed to the city with PTF. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, authorization for the Chief Executive Officer to amend the Valley Metro-city of El Mirage IGA to provide reimbursement of up to $200,000 in PTF for the purchase and installation of two (2) passenger shelters with accompanying bus pullouts.

22 CONTACT Carol Ketcherside Director, Administration and Organizational Development ATTACHMENTS None A copy of the IGA amendment is available upon request. 2

23 DATE October 24, 2012 AGENDA ITEM 4C SUBJECT Contract Award for Concrete Rehabilitation at the Mesa Operations Facility PURPOSE To request Board authorization for the Chief Executive Officer to award a contract procured through the State of Arizona Job Order Contract (JOC) system to S.J. Anderson and Company for concrete rehabilitation at the Mesa Operations Facility and it award a contract to Gordian Consulting for its consulting services as part of the State of Arizona s Job Order Contract system. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro s Mesa Operations Facility s vehicle parking area has experienced multiple concrete panel failures. There are also several concrete storm water catch basins that have deteriorated and require repair. The SJ Anderson Company is recommended to perform the required repairs. SJ Anderson Company was selected through the State of Arizona Job Order Contract system. Gordian Consulting has been retained by the State of Arizona to perform the management of the Job Order Contracts. Gordian s role is to insure that the project s pricing is consistent with the requested service (concrete repair) and that the pricing provided by SJ Anderson Company is fair and reasonable. Gordian receives a fee of 5% of the project s cost for its role with the State of Arizona s Job Order Contract system. COST AND BUDGET The total project cost is $245, and is included in the FY Valley Metro budget in Project Operating/ Maintenance Facilities found on page 113 of the Operating and Capital Budget. SJ Anderson Company will be paid $233, for performing the concrete repairs and Gordian Consulting will be paid $11, for its consulting services as part of the State of Arizona s Job Order Contract system. All funding required for this capital expense is from IRS fuel tax credit receipts. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action

24 RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, authorization for the Chief Executive Officer to approve the budgeted expenditure for the Operations Facility s Concrete repair project. CONTACT Jim Wright Bus Services Delivery Director jwright@valleymetro.org ATTACHMENTS None 2

25 DATE October 24, 2012 AGENDA ITEM 4D SUBJECT State Legislative Counsel Contract Award PURPOSE To request Board approval to execute a contract for State Legislative Counsel consulting services with HighGround/Kruse Group, a Public Affairs/Government Relations Joint Venture, to assist Valley Metro with activities at the Arizona State Legislature, Governor s Office and various state agencies that impact Valley Metro. Services provided under the contract will be funded by a combination of RPTA and METRO sources. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro s current consultant contract for State Legislative Counsel consulting services will expire on December 31, Valley Metro continues to have a need for government relations consulting support to successfully address activities at the state level. The contract was procured Consulting services may include but not be limited to: Governmental Relations The primary duty of the legislative counsel will be to monitor, track, and lobby public transit issues at the state legislature, the Governor s office, and/or state agencies. Strategic Planning Assist with strategic planning by identifying challenging or potentially challenging issues, proactively advising Valley Metro on issues which may impact public transit policies or programs or other emerging long range issues and providing practical plans/initiatives to respond. This contract shall be in effect for three (3) years from date of contract approval by the Board, with two (2) options of renewal for subsequent one (1) year periods. Work under this contract will be paid on a firm fixed price monthly. In August 2012, Valley Metro issued a Request for Proposals for this contract. Proposals were evaluated based on the following criteria: (1) Qualifications & Experience of Firm / Key Personnel, (2) Understanding / Approach to the Scope of Services, (3) Overall Evaluation of Proposal and (4) Price. All proposals were determined to be responsive. The selection committee was comprised of one Valley Metro staff and a staff member from the cities of Phoenix, Glendale and Mesa. Committee members were chosen based on their expertise in government relations. At the conclusion of the evaluation process, the selection committee chose the proposal from HighGround/Kruse Group as the offer deemed the most advantageous and the best value. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

26 COST AND BUDGET 1. The Government Relations Counsel consulting services contract will have a total term of 5 years. (3 year base contract plus 2 one-year extensions) for. 2. For the total term of the contract, the award cost is $344,500, with the RPTA funded portion being $172, The fiscal year 2013 adopted budget includes funding for the proposed contract expenditures from January 1, 2013 through June 30, Future year annual funding amounts will be identified in subsequent fiscal year budgets. No federal funding will be used for this contract. 4. The METRO funding portion of the contract is incorporated into the METRO budget. COMMITTEE PROCESS RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, authorization for the Chief Executive Officer to execute a contract with HighGround/Kruse Group to provide Government Relations Consulting Services effective January 1, 2013 for 3 years, with two (2) options of renewal for subsequent one (1) year periods. The total five-year contract amount will not exceed $344,500, with the RPTA funded portion not to exceed $172,250. CONTACT John Farry Government Relations Officer jfarry@valleymetro.org ATTACHMENTS None A copy of the draft contract is available upon request. 2

27 DATE October 24, 2012 AGENDA ITEM 4E SUBJECT Operations Cleaning Services Contract Award PURPOSE To request Board authorization for the Chief Executive Officer to execute a contract for Operations Cleaning Services with R.C.D. Cleaning Service, Inc. to provide cleaning services for the operations and maintenance facilities, park-and-rides, artwork power washing and passenger stations along the light rail alignment. This multi-modal contract will be funded with a combination of RPTA and METRO funding sources. BACKGROUND/DISCUSSION/CONSIDERATION The current contract for Operations Cleaning Services expires December 31, Valley Metro continues to have a need for cleaning of maintenance facilities, park-andrides, artwork power washing and passenger stations along the light rail alignment. This work will also include cleaning services for the RPTA bus operating facility and an option for the city of Mesa s Bus Transit Center. Services performed under this contract include a full range of cleaning services necessary to maintain Valley Metro s Operations and Maintenance Center, Bus Transit Facility, Light Rail Vehicles (LRVs), park-and-rides and street sweeping at park-andrides, operator facilities, security offices, pressure washing passenger stations, light rail guideway and an option for the city of Mesa Bus Transit Center Facility. Services will include the cleaning of spills and litter removal from light rail vehicles during operating hours. Additionally, the contract will include the cleaning of artwork along the LRT alignment on a quarterly basis. The contractor shall provide all necessary vehicles, tools, supplies, materials and other related equipment required to perform the cleaning services defined in this contract. The contract shall be in effect for three (3) years from date of contract approval by the Board, with two (2) options of renewal for subsequent one (1) year periods. Work under this contract will be paid on a firm fixed price monthly. In August 2012, Valley Metro issued a Request for Proposals for this contract. Proposals were evaluated based on the following criteria: (1) Firm Qualifications & Experience, (2) Personnel Qualifications & Experience, (3) Understanding / Approach to the Scope of Services and (4) Price. After review and scoring of proposals of which four offers were received, it was determined one offer was in the competitive range for award. The selection committee was comprised of four Valley Metro staff. Committee members were chosen based on their experience in maintenance and operations.

28 At the conclusion of the evaluation process, the selection committee chose the proposal from R.C.D. Cleaning Service, Inc. as the offer deemed the most advantageous and the best value. The City of Phoenix Equal Opportunity Department determined the Disadvantaged Business Enterprise (DBE race-and gender-neutral) outreach requirements and they have been met for this contract. COST AND BUDGET The Operating Cleaning Services for approval has a total term of 5 years. (3 year base contract plus 2 one-year extensions). For the total term of the contract, the award cost is $4,446,383, with funding as follows: o RPTA $ 397,416 o METRO $ 4,048,967 (includes the city of Mesa s option for the Bus Transit Center at Sycamore and Main St. in the amount of $133,354). For calendar year 2013, the RPTA contract obligation is $75,904, which is fully funded within the Valley Metro Adopted FY 2013 Operating and Capital Budget. Contract obligations beyond FY2013 include escalations and are incorporated into the Valley Metro RPTA Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the Transit Management Committee forward to the Board of Directors, authorization for the Chief Executive Officer to execute a contract with R.C.D. Cleaning Service, Inc. to provide Operating Cleaning Services effective January 1, 2013 for 3 years, with two (2) options of renewal for subsequent one (1) year periods. RPTA total funding for the contract will not exceed $397,416. CONTACT Ray Abraham Operations and Maintenance Director rabraham@valleymetro.org ATTACHMENTS None A copy of the draft contract is available upon request. 2

29 DATE October 24, 2012 AGENDA ITEM 4F SUBJECT Intergovernmental Agreement with the Arizona Department of Transportation for Federal Transit Administration Section 5311 (Rural Transit) Pass-Through Grant Reimbursements PURPOSE To request Board authorization for the Chief Executive Officer to enter into an Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) for Federal Transit Administration (FTA) Section 5311 (Rural Transit) passthrough funding for rural routes for Fiscal Year 2013/2014. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro staff intends to apply for up to $380,000 of FTA Formula Grants for Other than Urbanized Areas (Section 5311) funds for the federal fiscal year starting October 2013 through September The application will include: Administrative and Operating Assistance for Route 685 Gila Bend Up to $270,000 Operating Assistance for Route 563 Buckeye Express Up to $110,000 ADOT is the designated recipient for FTA 5311 rural formula grant funds for the state and Valley Metro must submit an application annually to receive this funding for the services identified above. ADOT s application process requires submittal of an IGA for funding and it must be signed by Valley Metro for the application to be accepted. Upon award, ADOT finalizes the IGA with the awarded amount. COST AND BUDGET The reimbursement from ADOT during the period October 1, 2013 through September 30, 2014 is expected to be up to $380,000. ADOT will notify the agency with a formal award letter with a total amount allocated through the FTA 5311 grant. Operation of Routes 685 and 563 are in the agency budget and are programmed in the Transit Life Cycle Program (TLCP) with Public Transportation Funds (PTF), which serve as the required sources of local match funds. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action

30 RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the Chief Executive Officer to enter into an IGA with the Arizona Department of Transportation for Federal Transit Administration Section 5311 (Rural Transit) passthrough funding for rural routes for Fiscal Year 2013/2014. CONTACT Wulf Grote, P.E. Director, Planning and Development ATTACHMENTS None A copy of the IGA is available upon request. 2

31 DATE October 24, 2012 AGENDA ITEM 4G SUBJECT January Bus Service Changes: Intergovernmental Agreements (IGA s) and Bus Operating Contract Changes Orders PURPOSE To provide information to the Board regarding proposed Valley Metro bus service changes for January 2013 and to request Board authorization for the Chief Executive Officer to execute IGA amendments and bus operating contract changes in conjunction with proposed bus service changes. BACKGROUND/DISCUSSION/CONSIDERATION Beginning January 28, 2013, several bus service changes operated by Valley Metro are proposed throughout the region. Most service changes will require Board approval for amendments to existing IGA s and adjustments to existing contracts with bus service providers. Proposed service changes are described below. Gila River Indian Community (GRIC) The GRIC requests an extension to Route 251 south to provide service to an area currently not served by transit. The route currently terminates at the Vee Quiva Casino. This bus service extension requires a modification to the IGA with the GRIC and requires a modification to Valley Metro s existing contract with Total Transit, Inc., given the addition of 24,000 annual revenue miles in FY City of Chandler The City of Chandler requests service expansion for three routes. This expansion will require a modification to the IGA between Valley Metro and the City and results in a modification to Valley Metro s existing contract with Veolia Transportation. Proposed changes include: Route 96-Dobson Road Add three weekday trips in each direction from Pecos Road to the Snedigar Sports Complex. This includes one morning and two afternoon northbound trips and one morning and two afternoon southbound trips, for an additional 3,401 FY 2013 revenue miles. Route 112- Country Club/Arizona Avenue Extend all trips (weekday, Saturday, and Sunday) currently operating in the City of Chandler south to Pecos Road, east to Hamilton Street, resulting in an additional 18,800 FY 2013 revenue miles.

32 Express Route 542 Add one inbound and one outbound trip, resulting in an additional 6,017 FY 2013 revenue miles. Avondale There will be a minor route modification to the Avondale ZOOM at its northern terminus. Valley Metro contracts this service but no Board action is needed. Proposed bus route modifications that affect Valley Metro routes are depicted in the attached figures. COST AND BUDGET None of these proposed changes are included in the adopted Operating and Capital Budget for FY 2013; however, these changes will be included in a mid-year budget adjustment. 1. The cost for the extension of Route 251 will be $131,000 for the remainder of FY Total Transit, Inc. operates this route and their FY 2013 contract will be increased to $3,261,803. GRIC will fund the route extension. 2. The cost for Chandler service changes will be $158,000 for the remainder of FY Veolia operates these routes and their FY2013 contract will be increased to $22,273,054. The City of Chandler will fund this additional service. COMMITTEE PROCESS RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is the recommendation that the TMC forward to the Board of Directors authorization for the Chief Executive Officer to: 1. Amend the IGA with the Gila River Indian Community for the extension of Route Execute a contract change order with Total Transit, Inc. for the extension of Route 251, adjusting the total contract amount to $3,261, Amend the IGA with the City of Chandler for the expansion of services for Routes 96, 112, and Execute a contract change order with Veolia Transportation for expansion of service on the three routes operated in the City of Chandler, adjusting the total contract amount to $22,273,054. 2

33 CONTACT Wulf Grote, P.E. Director, Planning and Development ATTACHMENTS Figures depicting proposed bus route changes (GRIC-Route 251; Chandler-Route 112; Avondale-ZOOM) A copy of the IGA s and Change Orders are available upon request. 3

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37 DATE October 24, 2012 AGENDA ITEM 4H SUBJECT Intergovernmental Agreement with the Town of Gila Bend for Bus Stop Improvements PURPOSE To request Board approval to authorize the Chief Executive Officer to enter into an Intergovernmental Agreement (IGA) with the Town of Gila Bend for local matching funds, installation and maintenance of two passenger shelters. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro, as operator of Route 685-Gila Bend rural route applied for and received 5311 Federal Transit Administration (FTA) Formula Grants for Other than Urbanized Areas (Section 5311) funds through the Arizona Department of Transportation (ADOT) for two (2) passenger shelters and two (2) information kiosks to be installed in Gila Bend. There are currently no passenger shelters in Gila Bend on the Route 685. Valley Metro is the designated sub-recipient to ADOT for FTA Section 5311 funds for Route 685. Section 5311 funds are 93% Federal with a local match of 7%. Gila Bend will provide the local match and will be responsible for any costs exceeding the amount of the award. Gila Bend is also responsible for operations and maintenance and related costs at both sites. Valley Metro will hold title to the assets as the sub-recipient of the federal funds. Gila Bend has requested Valley Metro to prepare the site designs, oversee site development and procure and install the shelters and kiosks. Valley Metro staff is requesting authorization to enter into an IGA with Gila Bend to allow site work and procurement of the shelters and kiosks to begin,. COST AND BUDGET The total cost of the project is $28,000, with $26,040 in FTA Section 5311 funds and Gila Bend providing the local match of $1,960. The project is included in the FY 2013 budget. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action

38 RECOMMENDATION It is recommended that the TMC forward to the Board of Directors authorization for the Chief Executive Officer to enter into an IGA with Gila Bend for local matching funds, installation and maintenance of two (2) shelters with kiosks. CONTACT Wulf Grote, P.E. Director, Planning and Development ATTACHMENTS None 2

39 DATE October 24, 2012 AGENDA ITEM 4I SUBJECT Commercial Property and Liability Insurance Coverage Purchase PURPOSE To request Board approval to authorize the Chief Executive Officer to purchase continued coverage for Valley Metro s insurance coverage needs. Current policies expire December 1, BACKGROUND/DISCUSSION/CONSIDERATION Currently RPTA and METRO jointly purchase commercial insurance to cover losses to Valley Metro-owned property and to protect Valley Metro from claims involving third parties. Valley Metro s insurance broker, Arthur J. Gallagher has obtained quotes from insurance carriers to meet the agency s ongoing insurance needs. Staff met with member agency risk managers and our insurance broker on October 17 th to discuss insurance renewal proposals. The recommendations contained within this memo are supported by the member agency risk managers. The following table summarizes the insurance renewal proposal pricing for RPTA: TABLE 1 RPTA Line of Coverage Policy Limit Ratable Exposure Renewal Premium Expiring Premium % Change Property Blanket Limit $8.4 M values $9.1 M values $7,792 $ 6, % Crime $ 1,000,000 n/a $2,091 $ 2,091 0% Auto Liability & $ 300, Vehicles Physical Damage Vehicles $11,842 $16,724-29% Primary Excess $10,000, $39,260,276 Liability $42,053,452 $120,076 $119,215 +1% layer Excess Liability 2 nd $10,000,000 Same As Primary $21,938 $21,700 +1% Excess Liability 3 rd $15,000,000 layer Same As Primary $14,937 $15,497-4% Excess Liability 4 th $25,000,000 layer Same As Primary $24,144 $25,595-6% Totals $202,822 $207,747-2% 1 The auto liability and physical damage coverage applies to RPTA non-revenue vehicles. It does not apply to buses used in revenue service. These figures represent RPTA s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $60,000,000 excess of a $250,000 self-insured retention.

40 The following table summarizes the insurance renewal proposal pricing for METRO: TABLE 2 METRO Line of Coverage Policy Limit Ratable Exposure Renewal Premium Expiring Premium % Change Property Blanket Limit $134.4 M values $134.3 M values $109,164 $109, % Inland Marine $150,660, $150,660,000 Rolling Stock $150,660,000 $170,698 $165,726 +3% Inland Marine $22,581, $22,581,224 Town Lake Bridge $22,581,224 $30,710 $30,711 0% DIC Excess Flood $15,000,000 & Quake x/o $5mil u/l n/a $35,932 $35,932 0% Crime $ 1,000,000 n/a $2,281 $ 2,281 0% Auto Liability & $ 300, Vehicles Physical Damage Vehicles $50,984 $57, % Primary Excess $10,000, $35,085,591 Liability $35,292,962 $494,125 $443, % Excess Liability $10,000,000 2 nd layer Same As Primary $85,672 $80, % Excess Liability $15,000,000 3 rd layer Same As Primary $61,469 $57, % Excess Liability 4 th $25,000,000 layer Same As Primary $99,356 $95, % Excess Liability 5 th $25,000,000 layer Same As Primary $78,432 $76, % Excess Liability 6 th $15,000,000 layer Same As Primary $37,000 $35, % Pollution Liability $5,000,000 n/a $23,673 2 $31,278 2 Totals $1,279,496 $1,221, % 1 The auto liability and physical damage coverage applies to METRO non-revenue vehicles. It does not apply to rail cars used for service. 2 Expiring premium is for a 5-year policy term; renewal is a 3-year policy term. These figures represent METRO s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $100,000,000 excess of a $250,000 self-insured retention. The Valley Metro insurance policies are part of a combined insurance program with RPTA and METRO. The policies cover exposures of both entities and premium is split between the two organizations based on exposure as determined by the insurance underwriters. Due to the overlapping of employees, this combined approach has been beneficial to each agency in the coordination of coverage and in the purchasing power of the combined entities. 2

41 COST AND BUDGET The renewal premium costs by type of insurance for RPTA and METRO are provided below in Table 3. TABLE 3 Coverage Type RPTA Premium METRO Premium TOTAL Property $7,792 $109,164 $116,956 Inland Marine Rolling Stock NA $170,698 $170,698 Inland Marine Town Lake Bridge NA $30,710 $30,710 DIC Excess Flood/Quake Town Lake Bridge NA $35,932 $35,932 Crime $2,091 $2,281 $4,372 Auto Liability & Physical Damage $11,842 $50,983 $62,826 Primary Excess Liability 1 st layer $120,076 $494,126 $614,202 Excess Liability 2 nd layer $21,938 $85,672 $107,610 Excess Liability 3 rd layer $14,937 $61,469 $76,407 Excess Liability 4 th layer $24,144 $99,356 $123,500 Excess Liability 5 th layer NA $78,432 $78,432 Excess Liability 6 th layer NA $37,000 $37,000 Pollution Liability NA $23,673 $23,673 Totals $202,822 $1,279,496 $1,482,318 For the term December 1, 2012 November 30, 2013, the RPTA contract obligation is $202,822, which is fully funded within the Valley Metro Adopted FY 2013 Operating and Capital Budget. Contract Obligations beyond FY2013 are incorporated into the Valley Metro RPTA Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). For the term December 1, 2012 November 30, 2013, the METRO contract obligation is $1,279,496, which is fully funded within the METRO Adopted FY 2013 Operating and Capital Budget. Contract Obligations beyond FY 2013 are incorporated into the METRO Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors for approval, the request to purchase continued coverage for the existing lines of property, crime, auto liability and physical damage, excess liability insurance and other insurance policies as reflected in the RPTA column of Table 3 of this memorandum. 3

42 CONTACT Carol Ketcherside Director of Administration & Organizational Development ATTACHMENTS None 4

43 DATE October 24, 2012 AGENDA ITEM 4J SUBJECT Scottsdale/Rural LINK: Project Definition Study Consultant Services PURPOSE To request Board authorization for the Chief Executive Officer to initiate a task order for planning support under METRO s Planning Support Services contract with HDR, Inc. BACKGROUND/DISCUSSION/CONSIDERATION In May 2012 the Board adopted the FY 2012 Transit Life Cycle Program (TLCP) update, which reprogrammed funds to accelerate implementation of the Scottsdale/Rural Road LINK to begin service in FY Included in the TLCP update were capital and operating funds for the corridor between Scottsdale and north Tempe. Valley Metro staff proposes to initiate a project definition study to address the operational and capital characteristics of the service. The scope of the study includes planning, environmental and conceptual design work to develop recommendations on project implementation, including capital and operating costs, schedule and project delivery options. The scope will be accomplished utilizing a combination of Valley Metro and HDR staff. The study will take approximately 12 months to complete. COST AND BUDGET HDR s cost for their portion of the work will be $86,976. Funding for the project is from the Public Transportation Fund (PTF). The project definition study is not included in the FY 2013 budget, but it is currently programmed in the approved TLCP to accomplish this work in FY2013. A mid-year budget adjustment will be made to include the cost for this study. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, authorization for the Chief Executive Officer to initiate a task order for $86,976 for planning support under METRO s Planning Support Services contract with HDR, Inc.

44 CONTACT Wulf Grote, P.E. Director, Planning and Development ATTACHMENTS None 2

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46 DATE AGENDA ITEM 5 October 24, 2012 SUBJECT Fare Media Advertising PURPOSE To provide the Board with an update on the city of Phoenix s efforts to pursue a fare media advertising program and firm to generate additional revenue for the region. BACKGROUND/DISCUSSION/CONSIDERATION The city of Phoenix Public Transit Department is responsible for printing, acquisition and distribution of fare media on behalf of the region. In an effort to generate additional revenue to support local transit services, Phoenix would like to competitively procure the services of a firm that would be responsible for securing commercial advertisers for fare media. The city of Phoenix plans to solicit a Request for Proposals (RFP) this winter (possibly January 2013) to find an advertising consultant that can help identify the revenue potential in this marketplace and, ultimately, sell the advertising. The selected entity would abide by a set of advertising guidelines as determined by Phoenix and specific to fare media. Phoenix would review and approve all compliant advertising artwork and contracts. Revenue estimates are unknown as fare media advertising is highly contingent upon the potential in the marketplace. Revenue estimates will be provided by respondents of the RFP and shared with Valley Metro committees. Fare media advertising revenue will be distributed to the agencies providing service using the current distribution formula for fare revenue that uses ridership counts. Service providers would see a credit, similar to the credit for fare revenue, reducing the cost of service charged to each provider by Phoenix. Any additional revenue, beyond Phoenix s costs of fare media production and management, will be distributed to service providers on a monthly basis. COST AND BUDGET There is no cost to member agencies to conduct the RFP. Potential revenue is unknown, but will be shared following the results of the RFP. COMMITTEE ACTION RTAG October 16, 2012 for information and discussion TMC November 1, 2012 for information and discussion Board of Directors November 15, 2012 for information and discussion

47 RECOMMENDATION For information and discussion CONTACT Hillary Foose Director, Communication & Marketing ATTACHMENT City of Phoenix Fare Media Advertising Briefing Sheet Draft City of Phoenix Fare Media Advertising Request for Proposals is available upon request. 2

48 Fare Media Advertising OVERVIEW FARE MEDIA MANAGEMENT Transit fare media is purchased by the City of Phoenix and distributed regionwide. Includes all paper passes on buses, at transit centers, in almost 700 retail locations, and light rail fare vending machines Last year, over $21 million in fare media was sold and distributed, including 3.6 million individual passes Phoenix transit center staff monitors fare media inventory, orders supply, manages regional distribution and answers fare media customer service questions. LOCAL FULL FARE MEDIA STOCK ADVERTISING ON FARE MEDIA Advertising is not currently placed on any fare type in the Valley Metro system. Fare media advertising is an accepted method of revenue generation to help support transit operations nationally and internationally. Advertising on fare media will provide purchasing opportunities to Valley Metro transit customers who may buy a pass with a coupon or discount printed on the front Phoenix oversees the majority of advertising in the Valley Metro system, through two advertising programs on transit assets: a bus advertising contract, and a contract for shelters and benches. Phoenix s fare media advertising program will be similar to current advertising contracts. Revenue from fare media advertising would benefit the region by lowering operating costs Advertising revenue will be shared with regional partners based on the current fare revenue distribution formula Advertising standards for fare media would be based on the established City of Phoenix advertising standards for buses and bus shelters, with changes to address the purchase of fare media by minors In addition, the business community will have a new way to get the word out to the community about their products and services NEXT STEPS Phoenix will conduct a competitive procurement and contract with a company to sell advertising on paper fare media RFP is anticipated to be released by January, 2013

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50 DATE AGENDA ITEM 6 October 24, 2012 SUBJECT Gilbert Road Light Rail Transit Extension Major Amendment to the Regional Transportation Plan and to update the Transit Life Cycle Program (TLCP) to include the Gilbert Road Light Rail Transit (LRT) Extension PURPOSE To request Board approval of Resolution regarding the major amendment to the RTP extending the LRT corridor east on Main Street to Gilbert Road and to request Board authorization for the Chief Executive Officer to update the TLCP to include the Gilbert Road LRT Extension BACKGROUND/DISCUSSION/CONSIDERATION In September 2009, the MAG Regional Council approved the Central Mesa Alternatives Analysis recommendations, which included a locally preferred alternative for a 3.1-mile LRT extension along Main Street from Sycamore to just east of Mesa Drive. Also as part of the Alternatives Analysis recommendations, MAG approved consideration of a 1.9-mile LRT extension on Main Street east to Gilbert Road as a future phase. The Gilbert Road LRT Extension was included in the MAG RTP as an illustrative project, meaning the project will be considered in future regional planning efforts, but is unfunded. This was recommended because of strong ridership demand along this segment, opportunities to optimize regional bus connections, and a preferred longrange site for an end-of-line park and ride near Gilbert Road. On October 24, 2012, the MAG Regional Council voted to approve a funding proposal that shifts $153.4 million (in 2011 dollars) of federal Surface Transportation Program (STP) funds from Mesa street improvements to the Gilbert Road LRT Extension. In addition, 5.7% local matching funds will be provided by the City of Mesa. This MAG action also initiated a request for a major amendment to the RTP. The major amendment process requires action by the RPTA Board prior to MAG approval of the amendment. In addition, Valley Metro staff proposes to include the Gilbert Road LRT Extension in the FY 2014 update to the TLCP. In 2011, a planning study was completed by METRO to better define the proposed project and currently an Environmental Assessment is underway with completion set for late Design and right-of-way acquisition would begin in 2014 following the selection of a design-build contractor. The preliminary schedule for project completion is 2017.

51 COST AND BUDGET Federal STP funds in the amount of $153.4 million (in 2011 dollars) will be available for the Gilbert Road LRT Extension and will be matched with 5.7% local funds from the City of Mesa. Two street configuration options are being evaluated and the option selected will affect the project s cost estimate. The preliminary cost estimate for the project, including project management, design, right-of-way, construction, light rail vehicles, contingency and financing is within the funding amount available, irrespective of which street configuration is selected. COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for action RPTA Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the TMC forward to the Board of Directors, approval of a major amendment to include the Gilbert Road LRT Extension in the MAG Regional Transportation Plan and to include the project in the FY 2014 TLCP update. CONTACT Wulf Grote, P.E. Director, Planning and Development wgrote@valleymetro.org ATTACHMENTS Draft Resolution 2

52 RESOLUTION A RESOLUTION OF THE VALLEY METRO REGIONAL PUBLIC TRANSPORTATION AUTHORITY REGARDING THE MAJOR AMENDMENT TO THE REGIONAL TRANSPORTATION PLAN EXTENDING THE LIGHT RAIL CORRIDOR EAST ON MAIN STREET TO GILBERT ROAD WHEREAS, Valley Metro Rail, Inc. completed an Alternatives Analysis of a high capacity corridor along Main Street in Mesa that recommended light rail as the preferred technology extending from Mesa Drive to Gilbert Road; and WHEREAS, Maricopa Association of Governments adopted the Locally Preferred Alternative for the corridor to Mesa Drive and the extension to Gilbert Road as an unfunded illustrative project in the Regional Transportation Plan; and WHEREAS, the City of Mesa has developed a financial plan to fund the design, construction and operation of the extension from Mesa Drive to Gilbert Road, and WHEREAS, the extension to Gilbert Road requires a major amendment to the Regional Transportation Plan pursuant to A.R.S (b); and WHEREAS, Maricopa Association of Governments Transportation Policy Committee has recommended approval of the major amendment and beginning a thirty day review period pursuant to A.R.S E.2; and WHEREAS, A.R.S E.2 requires the Board of Directors of the Regional Public Transportation Authority, by a majority vote of the members, to submit a written recommendation to the Transportation Policy Committee that the proposed amendment be approved, modified or disapproved; and WHEREAS, the development and expansion of public transportation is critical to the future economic vitality of the region and is an essential component of the transportation network in the valley; NOW THEREFORE BE IT RESOLVED, that the Valley Metro Regional Public Transportation Authority s Board of Directors recommends that the Maricopa Association of Governments Transportation Policy Committee approve the major amendment to the Regional Transportation Plan extending light rail in Mesa east on Main Street to Gilbert Road. Passed and Adopted by the Valley Metro Regional Public Transportation Authority Board of Directors this 15 th day of November, Ron Aames, Chairman Board of Directors Valley Metro Regional Public Transportation Authority

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54 DATE AGENDA ITEM 7 October 24, 2012 SUBJECT Regionalization: Baseline Model of Transit Service Delivery PURPOSE To provide an informational update on the proposed process to meet the CEO s Performance Incentive Goal on Regionalization BACKGROUND/DISCUSSION/CONSIDERATION One of the key FY 2013 goals identified by the Boards for the CEO is Regionalization. As part of this goal, it was requested that the CEO initiate a discussion with the Boards having to do with a baseline model of transit service delivery across the Valley providing the Boards with decision options for moving forward. Supporting actions being addressed by Valley Metro staff include: Developing, and seeking adoption by the Board, service standards and performance measures for delivery of regional services; and Development of a prioritization process to address member agency s service requests and for identifying future regional service needs. Staff will provide a brief presentation to outline key strategies and process to accomplish these actions and will identify a schedule for completing the work. This will be followed by an opportunity for discussion and feedback to provide direction to accomplish this goal. COST AND BUDGET None COMMITTEE ACTION RTAG October 16, 2012 for information TMC November 1, 2012 for information Board of Directors November 15, 2012 for information RECOMMENDATION This item is presented for information only. CONTACT Wulf Grote, P.E. Director, Planning and Development Wgrote@valleymetro.org ATTACHMENTS None

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56 DATE AGENDA ITEM 8 October 24, 2012 SUBJECT Future Agenda Items Request and Report on Current Events PURPOSE Chair Hazine will request future agenda items from members and members may provide a report on current events. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PRCESS None RECOMMENDATION For information only CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENTS None

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58 October 24, 2012 Rail Management Committee Thursday, November 1, 2012 Lake Powell Conference Room 101 N. 1 st Avenue, 10 th Floor 1:30 p.m. For those participating by telephone, please mute your phone when not speaking. Members please make sure your microphone is turned on when speaking and turned off when you are not speaking. Action Recommended 1. Public Comment 1. For information A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the RMC on all agenda items. The Chair may recognize members of the public during the meeting at his/her discretion. 2. Minutes 2. For action Minutes from the October 3, 2012 RMC meeting are presented for approval. 3. Chief Executive Officer Report 3. For information Steve Banta, Chief Executive Officer, will brief the RMC on current issues. CONSENT AGENDA 4A. Commercial Liability Insurance Renewal 4A. For action Staff will request authorization for the Chief Executive Officer to purchase continued coverage for Valley Metro s insurance coverage needs for an amount not to exceed $1,482,318. METRO s obligation is $1,279,496. 4B. Operations Cleaning Services Contract Award 4B. For action Staff will request approval for the Chief Executive Officer to execute a contract with R.C.D. Cleaning Service, Inc. to

59 provide operations cleaning services effective January 1, 2013 for a total term of 5 years (3-year base contract plus two one-year renewal options). For the total term of the contract, the award cost is $4,446,383. METRO s obligation is $4,048,967, which includes additional funding coming from the city of Mesa for the Bus Transit Facility in the amount of $133,354. RPTA s obligation is $397,416. 4C. State Legislative Counsel Contract Award 4C. For action Staff will request approval of a State Legislative Counsel contract with HighGround/Kruse Group, a Public Affairs/Government Relations Joint Venture, to provide Government Relations Consulting Services to RPTA and METRO effective January 1, 2013 for 3 years, with two (2) one (1) year options in an amount not to exceed $344,500. METRO s obligation will be $172,250. REGULAR AGENDA 5. Fare Media Advertising Steve Banta, Chief Executive Officer, will introduce Hillary Foose, Communication and Marketing Director, who will provide an update on the City of Phoenix s effort to pursue a fare media advertising program and outside sales contractor to generate additional revenue for the region. 6. Business Assistance Program Overview Steve Banta, Chief Executive Officer, will introduce Hillary Foose, Communication and Marketing Director, who will provide information on METRO s Business Assistance Program. 7. Community Advisory Board (CAB) Process and Distribution of Funds 5. For information and discussion 6. For information and discussion 7. For action Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will request approval for the Chief Executive Officer to have the ability to distribute incentive funds to construction contractors when they exceed contract specifications and met the needs of the 2

60 CABs associated with the Central Mesa (CME) and Northwest (NWE) light rail extensions. The cost of the CAB program is $300,000 for each construction project (CME and NWE), totaling $600, Northwest Light Rail Transit Extension 8. For action Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will request approval authorization for the Chief Executive Officer (CEO) to modify the design and Construction Manager at Risk contracts for the Northwest LRT Extension Project. 9. Gilbert Road LRT Extension Major Amendment to the RTP 9. For action Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will provide an informational update on the major amendment to the MAG RTP and to request Board authorization for the Chief Executive Officer to update the TLCP to include the Gilbert Road LRT Extension. 10. Regionalization: Baseline Model of Transit Service Delivery 10. For information and discussion Steve Banta, Chief Executive Officer, will introduce Wulf Grote, Planning and Development Director, who will provide an informational update on the proposed process to meet the Chief Executive Officer s Performance Incentive goal on Regionalization. 11. Future RMC Agenda Items Request and Report on Current Events 11. For information and discussion Chair Cavazos will request future RMC agenda items from members and members may provide a report on current events. 12. Next Meeting 12. For information The next meeting of the RMC is scheduled for Wednesday, November 28, 2012 at 1:30 p.m. 3

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

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63 DATE AGENDA ITEM 1 October 24, 2012 SUBJECT Public Comment PURPOSE A 15-minute opportunity will be provided to members of the public at the beginning of the meeting to address the RMC on all agenda items. The Chair may recognize members of the public during the meeting at his/her discretion. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION For information only CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENTS None

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65 DATE AGENDA ITEM 2 October 24, 2012 Members Present David Cavazos, City of Phoenix Dan Cook, City of Chandler Greg Jordan, City of Tempe Terry Johnson, City of Glendale Chris Brady, City of Mesa Minutes from the Rail Management Committee Wednesday, October 3, 2012 Lake Powell Conference Room 101 N. 1 st Avenue, Suite 1000 Phoenix, AZ 1:30 p.m. Chair Cavazos called the meeting to order at 1:30 p.m. 1. Public Comment None 2. Minutes Minutes from the September 5, 2012 RMC meeting were presented for approval. IT WAS MOVED BY GREG JORDAN, SECONDED BY CHRIS BRADY AND UNANIMOUSLY CARRIED TO APPROVE THE MINUTES FROM SEPTEMBER 5, Chief Executive Officer s Report Steve Banta provided an update on the following items: Certificate of Excellence for Financial Report from the Government Finance Officers Association Trip to Washington D.C. MAP 21 Mesa Extension PCGA Signing Ceremony October 12 Trip to Salt Lake City APTA Leadership selection of Hillary Foose Ridership Legislative Update handout

66 4. Fiscal Year 2014 Budget Process and Schedule Mr. Banta introduced Tyler Olson who provided an overview of the proposed FY 2014 Budget Process and Schedule. The presentation included the following: Budget Process Goals Effective Interaction with the Member Cities Staff through Financial Working Group and RTAG Budget Schedule: October 2012 Operations budget assumptions developed November - December 2012 Member city input regarding Operations February 13, 2013 Draft Operating and Capital budgets delivered to RTAG, RSWG and Financial Working Group for review and incorporation into Member City Budgets March 13, 2013 Comments due from member city staff March 27, 2013 Proposed budget submitted to RMC, TMC and BFS April 2013 Presentations of proposed budget to TMC, RMC, BFS and Boards for information May 2013 Presentations of final budget to TMC, RMC, BFS and Boards for adoption Mr. Brady said this new schedule will be very helpful. 5. By-Laws Amendment Mr. Banta said changes are being suggested to the METRO By-Laws to change the date that Board Officers election is held. He said the Board currently elects officers at the end of the first meeting of the fiscal year. The suggested change would is to have the elections occur at the end of the fiscal year. It would also align with the Board officer elections at RPTA and MAG. This item was presented for information only. 6. Central Mesa Light Rail Transit (LRT) Extension Project Update Mr. Banta introduced Wulf Grote who provided a presentation on the Central Mesa Light Rail Transit Extension Project which included: Progress/Milestones Real Estate Acquisition and Design Construction Status 2

67 Community Outreach and Community Advisory Board (CAB) Project Schedule Project Cost and Budget Upcoming Activity Mr. Brady said he appreciates the scheduling of construction around the months of October through May for the core downtown area. Mr. Banta said while there is no construction during those months in downtown Mesa, other areas of the project continue. 7. Future Agenda Item Request and Report on Current Events None With no further discussion the meeting adjourned at 1:53 p.m. 3

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69 DATE AGENDA ITEM 3 October 24, 2012 SUBJECT Chief Executive Officer Report PURPOSE Steve Banta, Chief Executive Officer, will brief the RMC on current issues. BACKGROUND/DISCUSSION/CONSIDERATION None COST AND BUDGET None COMMITTEE PROCESS None RECOMMENDATION For information only CONTACT Steve Banta Chief Executive Officer sbanta@valleymetro.org ATTACHMENTS None

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71 DATE October 24, 2012 AGENDA ITEM 4A SUBJECT Commercial Property and Liability Insurance Coverage Renewal PURPOSE To request Board approval to authorize the Chief Executive Director to purchase continued coverage for Valley Metro s insurance coverage needs. Current policies expire December 1, BACKGROUND/DISCUSSION/CONSIDERATION Currently RPTA and METRO jointly purchase commercial insurance to cover losses to Valley Metro-owned property and to protect Valley Metro from claims involving third parties. Valley Metro s insurance broker Arthur J. Gallagher has obtained quotes from insurance carriers to meet the agency s ongoing insurance needs. Staff met with member agency risk managers and our insurance broker on October 17 th to discuss insurance renewal proposals. The recommendations contained within this memo are supported by the member agency risk managers. The following table summarizes the insurance renewal proposal pricing for RPTA: TABLE 1 RPTA Line of Coverage Policy Limit Ratable Exposure Renewal Premium Expiring Premium % Change Property Blanket Limit $8.4 M values $9.1 M values $7,792 $ 6, % Crime $ 1,000,000 n/a $2,091 $ 2,091 0% Auto Liability & $ 300, Vehicles Physical Damage Vehicles $11,842 $16,724-29% Primary Excess $10,000, $39,260,276 Liability $42,053,452 $120,076 $119,215 +1% layer Excess Liability 2 nd $10,000,000 Same As Primary $21,938 $21,700 +1% Excess Liability 3 rd $15,000,000 layer Same As Primary $14,937 $15,497-4% Excess Liability 4 th $25,000,000 layer Same As Primary $24,144 $25,595-6% Totals $202,822 $207,747-2% 1 The auto liability and physical damage coverage applies to RPTA non-revenue vehicles. It does not apply to buses used in revenue service. These figures represent RPTA s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $60,000,000 excess of a $250,000 self-insured retention.

72 The following table summarizes the insurance renewal proposal pricing for METRO: TABLE 2 METRO Line of Coverage Policy Limit Ratable Exposure Renewal Premium Expiring Premium % Change Property Blanket Limit $134.4 M values $134.3 M values $109,164 $109, % Inland Marine $150,660, $150,660,000 Rolling Stock $150,660,000 $170,698 $165,726 +3% Inland Marine $22,581, $22,581,224 Town Lake Bridge $22,581,224 $30,710 $30,711 0% DIC Excess Flood $15,000,000 & Quake x/o $5mil u/l n/a $35,932 $35,932 0% Crime $ 1,000,000 n/a $2,281 $ 2,281 0% Auto Liability & $ 300, Vehicles Physical Damage Vehicles $50,984 $57, % Primary Excess $10,000, $35,085,591 Liability $35,292,962 $494,125 $443, % Excess Liability $10,000,000 2 nd layer Same As Primary $85,672 $80, % Excess Liability $15,000,000 3 rd layer Same As Primary $61,469 $57, % Excess Liability 4 th $25,000,000 layer Same As Primary $99,356 $95, % Excess Liability 5 th $25,000,000 layer Same As Primary $78,432 $76, % Excess Liability 6 th $15,000,000 layer Same As Primary $37,000 $35, % Pollution Liability $5,000,000 n/a $23,673 2 $31,278 2 Totals $1,279,496 $1,221, % 1 The auto liability and physical damage coverage applies to METRO non-revenue vehicles. It does not apply to rail cars used for service. 2 Expiring premium is for a 5-year policy term; renewal is a 3-year policy term. These figures represent METRO s allocation of the combined RPTA and METRO insurance premium. Total excess liability limits are $100,000,000 excess of a $250,000 self-insured retention. The Valley Metro insurance policies are part of a combined insurance program with RPTA and METRO. The policies cover exposures of both entities and premium is split between the two organizations based on exposure as determined by the insurance underwriters. Due to the overlapping of employees, this combined approach has been beneficial to each agency in the coordination of coverage and in the purchasing power of the combined entities. 2

73 COST AND BUDGET The renewal premium costs by type of insurance for RPTA and METRO are provided below in Table 3. TABLE 3 Coverage Type RPTA Premium METRO Premium TOTAL Property $7,792 $109,164 $116,956 Inland Marine Rolling Stock NA $170,698 $170,698 Inland Marine Town Lake Bridge NA $30,710 $30,710 DIC Excess Flood/Quake Town Lake Bridge NA $35,932 $35,932 Crime $2,091 $2,281 $4,372 Auto Liability & Physical Damage $11,842 $50,983 $62,826 Primary Excess Liability 1 st layer $120,076 $494,126 $614,202 Excess Liability 2 nd layer $21,938 $85,672 $107,610 Excess Liability 3 rd layer $14,937 $61,469 $76,407 Excess Liability 4 th layer $24,144 $99,356 $123,500 Excess Liability 5 th layer NA $78,432 $78,432 Excess Liability 6 th layer NA $37,000 $37,000 Pollution Liability NA $23,673 $23,673 Totals $202,822 $1,279,496 $1,482,318 For the term December 1, 2012 November 30, 2013, the METRO contract obligation is $1,279,496, which is fully funded within the METRO Adopted FY 2013 Operating and Capital Budget. Contract Obligations beyond FY 2013 are incorporated into the METRO Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). For the term December 1, 2012 November 30, 2013, the RPTA contract obligation is $202,822, which is fully funded within the Valley Metro Adopted FY 2013 Operating and Capital Budget. Contract Obligations beyond FY2013 are incorporated into the Valley Metro RPTA Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). COMMITTEE ACTION RTAG October 16, 2012 for information RMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the RMC forward to the Board of Directors for approval, the request to purchase continued coverage for the existing lines of property, crime, auto liability and physical damage, excess liability insurance and other insurance coverages as reflected in the METRO column of Table 3 of this memorandum. 3

74 CONTACT Carol Ketcherside Director of Administration & Organizational Development ATTACHMENTS None 4

75 DATE October 24, 2012 AGENDA ITEM 4B SUBJECT Operations Cleaning Services Contract Award PURPOSE To request Board authorization for the Chief Executive Officer to execute a contract for Operations Cleaning Services with R.C.D. Cleaning Service, Inc. to provide operations cleaning services for the operations and maintenance facilities, park and rides, artwork power washing and passenger stations along the light rail alignment. This multi-modal contract will be funded with a combination of RPTA and METRO funding sources. BACKGROUND/DISCUSSION/CONSIDERATION METRO s current contract for Operations Cleaning Services expires December 31, METRO continues to have a need for cleaning of maintenance facilities, park and rides, artwork power washing and passenger stations along the light rail alignment. This work also covers the RPTA transit facility and an option for Mesa s Bus Transit Center. Services are for the performance of a full range of cleaning services necessary to maintain METRO s Operations and Maintenance Center, RPTA Bus Transit Facility, Light Rail Vehicles (LRVs), park and rides plus street sweeping at park and rides, operator facilities, security offices, pressure washing passenger stations, the light rail alignment and an option for the City of Mesa Bus Transit Center Facility. Additionally, this contractor will be cleaning the art work along the alignment on a quarterly basis. Services will include cleaning spills and litter from the light rail cars during operations. The Contractor shall provide all necessary fleet of vehicles, tools, supplies, materials and other related equipment required to perform the cleaning services described in the Contract. This contract shall be in effect starting January 1, 2013, with Board approval, for three (3) years and two (2) options of renewal for subsequent one (1) year periods. Work under this contract will be paid on a firm fixed price monthly. In August 2012, Valley Metro issued a Request for Proposals for this contract. Proposals were evaluated based on the following criteria: (1) Firm Qualifications & Experience, (2) Personnel Qualifications & Experience, (3) Understanding / Approach to the Scope of Services and (4) Price. After review and scoring of proposals of which four offers were received, it was determined one offer was in the competitive range for award. The selection committee was comprised of four Valley Metro staff. Committee members were chosen based on their experience in maintenance and operations.

76 At the conclusion of the evaluation process, the selection committee chose the proposal from R.C.D. Cleaning Service, Inc. as the offer deemed the most advantageous and the best value. The City of Phoenix Equal Opportunity Department determined the Disadvantaged Business Enterprise (DBE race- and gender-neutral) outreach requirements and they have been met for this contract. COST AND BUDGET The Operating Cleaning Services for approval has a total term of 5 years (3 year base contract plus 2 one year extensions). For the total term of the contract, the award cost is $4,446,383, with funding as follows: o RPTA $ 397,416 o METRO $ 4,048,967 (includes the city of Mesa s option for the Bus Transit Center at Sycamore and Main St. in the amount of $133,354). For the calendar year 2013, the METRO contract obligation is $773,327, which is fully funded within the METRO Adopted FY 2013 Operating and Capital Budget. Contract Obligations beyond FY 2013 include escalations and are incorporated into the METRO Five Year Operating Forecast and Capital Program (FY2013 thru FY2017). COMMITTEE PROCESS RTAG October 16, 2012 for information RMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the RMC forward to the Board of Directors, authorization for the Chief Executive Officer to execute a contract with R.C.D. Cleaning Service, Inc. to provide Operating Cleaning Services effective January 1, 2013 for 3 years, with two (2) options of renewal for subsequent one (1) year periods. METRO total funding for the contract will not exceed $4,048,967. CONTACT Ray Abraham Operations and Maintenance Director rabraham@valleymetro.org ATTACHMENTS None A copy of the draft contract is available upon request. 2

77 DATE October 24, 2012 AGENDA ITEM 4C SUBJECT State Legislative Counsel Contract Award PURPOSE The purpose of this item is to request Board approval to execute a contract for State Legislative Counsel consulting services with HighGround/Kruse Group, a Public Affairs/Government Relations Joint Venture, to assist Valley Metro with activities at the Arizona State Legislature, Governor s Office and various state agencies that impact Valley Metro. Services provided under the contract will be funded by a combination of RPTA and METRO sources. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro s current consultant contract for State Legislative Counsel consulting services will expire on December 31, Valley Metro continues to have a need for government relations consulting support to successfully address activities at the state level. The contract was procured Consulting services may include but not be limited to: Governmental Relations The primary duty of the legislative counsel will be to monitor, track, and lobby public transit issues at the state legislature, the Governor s office, and/or state agencies. Strategic Planning Assist with strategic planning by identifying challenging or potentially challenging issues, proactively advising Valley Metro on issues which may impact public transit policies or programs or other emerging long range issues and providing practical plans/initiatives to respond. This contract shall be in effect for three (3) years from date of contract approval by the Board, with two (2) options of renewal for subsequent one (1) year periods. Work under this contract will be paid on a firm fixed price monthly. In August 2012, Valley Metro issued a Request for Proposals for this contract. Proposals were evaluated based on the following criteria: (1) Qualifications & Experience of Firm / Key Personnel, (2) Understanding / Approach to the Scope of Services, (3) Overall Evaluation of Proposal and (4) Price. All proposals were determined to be responsive. The selection committee was comprised of one Valley Metro staff and a staff member from the cities of Phoenix, Glendale and Mesa. Committee members were chosen based on their expertise in government relations.

78 At the conclusion of the evaluation process, the selection committee chose the proposal from HighGround/Kruse Group as the offer deemed the most advantageous and the best value. COST AND BUDGET 1. The Government Relations Counsel consulting services contract will have a total term of 5 years. (3 year base contract plus 2 one-year extensions) for. 2. For the total term of the contract, the award cost is $344,500, with the METRO funded portion being $172, The fiscal year 2013 adopted budget includes funding for the proposed contract expenditures from January 1, 2013 through June 30, Future year annual funding amounts will be identified in subsequent fiscal year budgets. No federal funding will be used for this contract. 4. The RPTA funding portion of the contract is incorporated into the RPTA budget. COMMITTEE PROCESS RTAG October 16, 2012 for information RMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended that the RMC forward to the Board of Directors, authorization for the Chief Executive Officer to execute a contract with HighGround/Kruse Group to provide Government Relations Consulting Services effective January 1, 2013 for 3 years, with two (2) options of renewal for subsequent one (1) year periods. The total five-year contract amount will not exceed $344,500, with the METRO funded portion not to exceed $172,250. CONTACT John Farry Government Relations Officer jfarry@valleymetro.org ATTACHMENTS None A copy of the draft contract is available upon request. 2

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80 DATE AGENDA ITEM 5 October 24, 2012 SUBJECT Fare Media Advertising PURPOSE To provide the Board with an update on the city of Phoenix s efforts to pursue a fare media advertising program and firm to generate additional revenue for the region. BACKGROUND/DISCUSSION/CONSIDERATION The city of Phoenix Public Transit Department is responsible for printing, acquisition and distribution of fare media on behalf of the region. In an effort to generate additional revenue to support local transit services, Phoenix would like to competitively procure the services of a firm that would be responsible for securing commercial advertisers for fare media. The city of Phoenix plans to solicit a Request for Proposals (RFP) this winter (possibly January 2013) to find an advertising consultant that can help identify the revenue potential in this marketplace and, ultimately, sell the advertising. The selected entity would abide by a set of advertising guidelines as determined by Phoenix and specific to fare media. Phoenix would review and approve all compliant advertising artwork and contracts. Revenue estimates are unknown as fare media advertising is highly contingent upon the potential in the marketplace. Revenue estimates will be provided by respondents of the RFP and shared with Valley Metro committees. Fare media advertising revenue will be distributed to the agencies providing service using the current distribution formula for fare revenue that uses ridership counts. Service providers would see a credit, similar to the credit for fare revenue, reducing the cost of service charged to each provider by Phoenix. Any additional revenue, beyond Phoenix s costs of fare media production and management, will be distributed to service providers on a monthly basis. COST AND BUDGET There is no cost to member agencies to conduct the RFP. Potential revenue is unknown, but will be shared following the results of the RFP. COMMITTEE ACTION RTAG October 16, 2012 for information and discussion RMC November 1, 2012 for information and discussion Board of Directors November 15, 2012 for information and discussion VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

81 RECOMMENDATION For information and discussion CONTACT Hillary Foose Director, Communication & Marketing ATTACHMENT City of Phoenix Fare Media Advertising Briefing Sheet Draft City of Phoenix Fare Media Advertising Request for Proposals is available upon request. 2

82 Fare Media Advertising OVERVIEW FARE MEDIA MANAGEMENT Transit fare media is purchased by the City of Phoenix and distributed regionwide. Includes all paper passes on buses, at transit centers, in almost 700 retail locations, and light rail fare vending machines Last year, over $21 million in fare media was sold and distributed, including 3.6 million individual passes Phoenix transit center staff monitors fare media inventory, orders supply, manages regional distribution and answers fare media customer service questions. LOCAL FULL FARE MEDIA STOCK ADVERTISING ON FARE MEDIA Advertising is not currently placed on any fare type in the Valley Metro system. Fare media advertising is an accepted method of revenue generation to help support transit operations nationally and internationally. Advertising on fare media will provide purchasing opportunities to Valley Metro transit customers who may buy a pass with a coupon or discount printed on the front Phoenix oversees the majority of advertising in the Valley Metro system, through two advertising programs on transit assets: a bus advertising contract, and a contract for shelters and benches. Phoenix s fare media advertising program will be similar to current advertising contracts. Revenue from fare media advertising would benefit the region by lowering operating costs Advertising revenue will be shared with regional partners based on the current fare revenue distribution formula Advertising standards for fare media would be based on the established City of Phoenix advertising standards for buses and bus shelters, with changes to address the purchase of fare media by minors In addition, the business community will have a new way to get the word out to the community about their products and services NEXT STEPS Phoenix will conduct a competitive procurement and contract with a company to sell advertising on paper fare media RFP is anticipated to be released by January, 2013

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84 DATE AGENDA ITEM 6 October 24, 2012 SUBJECT Business Assistance Program Overview PURPOSE To provide information to the Board on METRO s Business Assistance program that supports businesses throughout the life of capital construction. BACKGROUND/DISCUSSION/CONSIDERATION METRO executed a Business Assistance program for the 20-mile light rail starter line that provided technical assistance, marketing support and other resources for businesses immediately adjacent to construction. The program was developed using best practices from transit properties nationwide as well as custom programming pertinent to a local audience. Based on what METRO learned through initial light rail construction, the Community Relations team, in close coordination with city partners, has developed a Business Assistance program for the extensions underway: the 3.1-mile Central Mesa extension (CME) and the 3.2-mile Phase I of the Northwest extension (NWE). METRO offers a series of programs, supplemented by city-specific efforts. These programs are wide-ranging in an effort to keep businesses of all sizes and industries supported and well-positioned throughout light rail construction. METRO Programs These programs are available to both CME and NWE business stakeholders. They are launched in phases to provide maximum support and coverage throughout the construction years. One-on-one outreach: METRO has the full-time support of Gary Flunoy, Business Assistance Specialist, to directly assist businesses within both extension areas throughout construction. Signs and banners: Directional and promotional signage is available at no cost to businesses. 24-hour hotline: A hotline is made available to give businesses and residents the ability to ask questions or report problems that may arise during construction, 24 hours a day, seven days a week. Community Advisory Board (CAB): A CAB program has/will be executed in both extension areas made up of residents and business representatives who will serve as the voice of the community during construction. The CABs meet monthly to rate the contractor on their performance. METRO Max Rewards: Discount card program that provides a regional advertising opportunity for participating businesses. Customer postcards: METRO offers free pre-printed postcards to help businesses market to existing and new customers during construction. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

85 Additional METRO programs: o General marketing support o Multi-media marketing campaigns o Peer-to-peer business forums City Programs The cities of Mesa and Phoenix offer additional business-support programs that help to meet the needs of their constituents. For CME construction, the City of Mesa is offering a utility rebate program, additional wayfinding/signage and significant staff support. For NWE construction, the City of Phoenix plans to offer such programs as business consulting services, a dedicated business access coordinator and the 19th Avenue connector bus service to continue to serve transit passengers within the construction zone. Business Assistance Partners METRO also employs the resources and programs of outside partners to assist impacted businesses to an even greater degree. These partners include chambers of commerce, local neighborhood development corporations, the Maricopa Small Business Development Center, SCORE of Greater Phoenix, Local First Arizona and Friends of Transit. These are groups that offer such services as business planning, marketing strategy and events and loan assistance. COST AND BUDGET The cost of the METRO Business Assistance program is approximately $200,000 per year of construction (or +/- $1.2 million total) for each construction project (CME and NWE). The monies are allocated in the respective capital budgets for each project. The total cost does include the CAB program incentive. COMMITTEE PROCESS RMC November 1, 2012 for information RECOMMENDATION For information CONTACT Hillary Foose Director, Communication & Marketing hfoose@valleymetro.org ATTACHMENTS None 2

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87 DATE AGENDA ITEM 7 October 24, 2012 SUBJECT Community Advisory Board (CAB) Process and Distribution of Funds PURPOSE To request the Board authorization for the Chief Executive Officer to distribute incentive funds to construction contractors when they exceed contract specifications and have met the needs of the CABs associated with the Central Mesa (CME) and Northwest (NWE) light rail extensions. BACKGROUND/DISCUSSION/CONSIDERATION Valley Metro successfully executed five CAB programs for the initial 20-mile light rail starter line. More than 100 stakeholders served on the five CABs, representing residents, business and property owners, neighborhood associations and community advocates. Valley Metro has included the CAB as part of its overall Business Assistance Program for CME and NWE. Members of the CABs serve as liaisons between the project and the residential and business communities they represent. CAB members conduct monthly evaluations of the construction contractor s performance in minimizing adverse impacts to the community (see attachment for sample evaluation form). As part of the evaluation, discussions occur regarding activities, incidences, and/or situations that affect the community both positively and negatively. Contractor Incentive Fund A monetary incentive fund for both CME and NWE has been included as part of the overall budget within each project s Business Assistance Program. These funds would be provided for contractor work efforts and coordination with the community above-and-beyond construction contract specifications. This incentive program previously executed with the starter line encouraged a productive and positive working relationship between the contractor and neighbors affected by construction. This program provides a level of empowerment to affected neighbors as construction issues arise and progress is evaluated for responsiveness. Members serve as a critical voice of the community which is valuable to the construction process and end product. The incentive fund has been apportioned to both CME and NWE project budgets based on miles of track in each extension ($100,000 per mile). The ratings from the monthly CAB meetings would be tallied to determine the incentive amount, if any. If an incentive is available, it would be paid to the contractor on a quarterly basis. Quarterly updates on the CABs progress will be provided to the Board and Rail Management Committee. A total of $300,000 (or $100,000 per mile) for each CAB program in CME and NWE has been allocated in the Business Assistance portion of the respective project budgets. This allotment is consistent with the amount available for the CABs executed during starter line construction. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

88 Public Involvement Staff Support Over the course of the construction contracts in both CME and NWE, Community Relations (CR) staff will execute the CAB program to meet the overall needs of stakeholders and the communities at large to address, administer, and mitigate the program. Assigned CR staff will serve as direct support to the CAB and will perform the following duties: Provide staff support at monthly CAB meetings. Prepare Activity Reports and send to CAB members. Administration of the monthly Contractor Evaluation Report. Coordinate work with adjacent businesses, activities with the public, and the construction contractor. Work closely with the contractor to provide the public with advance notification of construction impacts; help ensure access is maintained and limited overnight work is conducted. Provide regular updates on construction progress. COST AND BUDGET The cost of the CAB program is $300,000 for each construction project (CME and NWE), totaling $600,000. The monies are allocated in the respective capital budgets for each project. The average quarterly distribution during starter line construction, for line sections of similar size (+/- three miles), was $30,000. COMMITTEE PROCESS RTAG October 16, 2012 for information RMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION It is recommended the RMC forward to the Board of Directors, authority for the Chief Executive Officer to pay up to $300,000 each to the CME and NWE construction contractors as evaluated and determined by the CABs. CONTACT Wulf Grote Director, Planning and Development ATTACHMENT Sample CAB Evaluation Form 2

89 Scale: Rating % of Incentive Fee Exceptional Good At contract or below contract 0 COMMUNITY ADVISORY BOARD EXCEPTIONAL - The Contractor has demonstrated an approach that is considered to significantly exceed stated requirements/objectives in a way beneficial to METRO/line section stakeholders and indicates a consistently outstanding level of quality. There are essentially no weaknesses. GOOD - The Contractor has demonstrated an approach that is considered to exceed stated requirements/objectives and indicates a generally better than acceptable quality. Weaknesses, if any, are very minor. Monthly Contractor Evaluation Form AT CONTRACT - The Contractor has demonstrated an approach that is considered to meet the stated requirements/objectives and indicates an acceptable level of quality. Weaknesses are minor and can be readily corrected. BELOW CONTRACT - The Contractor has demonstrated an approach that indicates significant weaknesses/ deficiencies and/or unacceptable quality. The Contractor s performance fails to meet the stated requirements/ objectives and/or lacks essential information and is conflicting and/or unproductive. Definition of Terms: 1. Timely - as promised/on schedule 2. Effectively - successfully/producing desired result 3. Regularly - consistently/routinely 4. Convenient - appropriate/suitable 5. Responsive - receptive/accessible/sensitive 6. Exceeding - going beyond/surpassing/better than expected 7. Courteous - thoughtful/polite 8. Informative - enlightening/instructional/educational 9. Needed - necessary/essential/required Date:

90 The following contractor activities are to be rated on a regular basis to coincide with each CAB meeting. Incentive payments to the contractor will be made at predetermined project milestones, based on a total of the scores accumulated from the prior period. Criteria Public Outreach/Information Notification of construction activity to affected stakeholders in a timely manner. Notification of utility interruptions in a timely manner. Notification of temporary parking restrictions in a timely manner. Notification of lane closures and traffic restrictions in a timely manner. Comments: CAB Contractor Evaluation Report/Summary Each increment will be paid based on the percentage determined by the accumulated scores. Monthly Contractor Evaluation Form Incentive funds not collected by the contractor will be retained by the project and not added to future evaluations. Rating - Percentage of Incentive Fee Exceptional Good At contract or below contract Criteria Traffic Management/ Impact Mitigation Efforts Maintain traffic guide-way signage effectively and regularly? Maintain access to stakeholder properties in the work zone during times when access is needed, as required by the Contract Special Provisions? Maintain convenient and safe accessibility for pedestrians, wheelchair users, bicyclists, etc. within the work zone? Comments: Criteria Property Restoration/Clean-up Meet requirements for dust and noise control? Meet requirements of restoration and clean up in time/quality? Comments: Rating - Percentage of Incentive Fee Exceptional Good At contract or below contract Rating - Percentage of Incentive Fee Exceptional Good At contract or below contract Criteria Contractor Response/Contact Respond to problems and concerns in a timely manner? Communicate with stakeholders in a courteous and informative manner? Resolves problems and issues in a timely manner? Comments: Rating - Percentage of Incentive Fee Exceptional Good At contract or below contract For Internal Use Only TOTAL Public Outreach/Information: Contractor Response/Communications: Traffic Management/Impact Mitigation Efforts: Property Restoration/Clean-up: Rating - Percentage of Incentive Fee Exceptional Good At contract or below contract

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92 DATE AGENDA ITEM 8 October 24, 2012 SUBJECT Northwest Light Rail Transit (LRT) Extension Contract Actions PURPOSE To request Board authorization for the Chief Executive Officer (CEO) to modify the design and Construction Manager at Risk contracts for the Northwest LRT Extension Project. BACKGROUND/DISCUSSION/CONSIDERATION The Northwest Light Rail Transit Extension project is a 3.2 mile extension along 19 th Avenue from the current end-of-line at Montebello Avenue to Dunlap Avenue. This project will add three new stations and a park-and-ride at Dunlap. In May and June of 2012, the METRO Board, MAG Regional Council and City of Phoenix Council took actions to accelerate completion of the project. The project is now scheduled for completion in In September 2012 the Board authorized a contract change order with the Sundt/Stacey Witbeck (SSW) Joint Venture, the construction management at risk team, to provide additional pre-construction services. Also, the Board authorized re-execution of a contract with AECOM to complete the project s design. In preparation for project construction to start in January 2013, it is now necessary to make additional modifications to the two contracts mentioned above. The AECOM design contract needs to be amended to add their support for Design Services During Construction (DSDC) and to include the design of the park-and-ride located at Dunlap Avenue and 19 th Avenue. Also, Valley Metro has negotiated a Guaranteed Maximum Price (GMP) with SSW for construction of the project. Today s action will authorize the construction contract to be modified allowing construction to begin. COST AND BUDGET Changes related to the AECOM contract include: 1. The final design of the Dunlap Park and Ride Lot at a cost of $241,500 plus allowances of $25,000 for a total of $266, DSDC services at a cost of $2,525,000 plus a contingency to be held by METRO in the amount of $252,500 for a total of $2,777,500. Change relating to the SSW contract: 1. Authorization to expend the GMP of $158,074,268 for construction services. VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

93 2. In addition, the CEO will have authority to amend the contract by drawing from the project contingency up to $6,000,000 to address necessary changes in the work. Both the AECOM design and SSW construction costs are included in the METRO Fiscal Year 2013 budget. The Transit Life Cycle Program (TLCP) project forecast is $310.8 million. Funding will be a combination of regional Public Transportation Funds and City of Phoenix funds. No federal funds are involved in this project. Valley Metro staff is finalizing the overall project budget, which includes refinement of project management costs, definition of private utility company expenses, and determination of City of Phoenix costs to support the project. When complete, the final project budget will be incorporated into the 2014 Transit Life Cycle Program update to be reviewed and approved by the Board in Spring COMMITTEE ACTION RTAG October 16, 2012 for information RMC November 1, 2012 for action Board of Directors November 15, 2012 for action RECOMMENDATION Staff requests that the Board authorize the CEO to: 1. Execute contract task orders with AECOM for the design of the Dunlap Park and Ride for an amount not to exceed $266,500; and for the Design Services During Construction for an amount not to exceed $2,525, Manage an AECOM contingency of $252,500 for Design Service During Construction. 3. Execute a contract change order with Sundt/Stacy Witbeck Joint Venture to provide construction services, for an amount not to exceed $158,074,268 for construction services. 4. Amend the construction services contract as necessary for changes up to $6,000,000 from the project contingency reserve. CONTACT Wulf Grote, PE Director, Planning and Development wgrote@valleymetro.org ATTACHMENTS None 2

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95 DATE AGENDA ITEM 9 October 24, 2012 SUBJECT Gilbert Road Light Rail Transit Extension Major Amendment to the Regional Transportation Plan PURPOSE To provide an informational update to the Board on a major amendment to the Maricopa Association of Governments (MAG) Regional Transportation Plan (RTP) and to request Board authorization for the Chief Executive Officer to update the Transit Life Cycle Program (TLCP) to include the Gilbert Road Light Rail Transit (LRT) Extension. BACKGROUND/DISCUSSION/CONSIDERATION In September 2009, the MAG Regional Council approved the Central Mesa Alternatives Analysis recommendations, which included a locally preferred alternative for a 3.1-mile LRT extension along Main Street from Sycamore to just east of Mesa Drive. Also as part of the Alternatives Analysis recommendations, MAG approved consideration of a 1.9-mile LRT extension on Main Street east to Gilbert Road as a future phase. The Gilbert Road LRT Extension was included in the MAG RTP as an illustrative project, meaning the project will be considered in future regional planning efforts, but is unfunded. This was recommended because of strong ridership demand along this segment, opportunities to optimize regional bus connections, and a preferred longrange site for an end-of-line park and ride near Gilbert Road. On October 24, 2012, the MAG Regional Council voted to approve a funding proposal that shifts $153.4 million (in 2011 dollars) of federal Surface Transportation Program (STP) funds from Mesa street improvements to the Gilbert Road LRT Extension. In addition, 5.7% local matching funds will be provided by the City of Mesa. This MAG action also initiated a request for a major amendment to the RTP. The major amendment process requires action by the RPTA Board prior to MAG approval of the amendment. In addition, Valley Metro staff proposes to include the Gilbert Road LRT Extension in the FY 2014 update to the TLCP. In 2011, a planning study was completed by METRO to better define the proposed project and currently an Environmental Assessment is underway with completion set for late Design and right-of-way acquisition would begin in 2014 following the selection of a design-build contractor. The preliminary schedule for project completion is VALLEY METRO 101 N 1ST AVE STE 1300 PHOENIX AZ

96 COST AND BUDGET Federal STP funds in the amount of $153.4 million (in 2011 dollars) will be available for the Gilbert Road LRT Extension and will be matched with 5.7% local funds from the City of Mesa. Two street configuration options are being evaluated and the option selected will affect the project s cost estimate. The preliminary cost estimate for the project, including project management, design, right-of-way, construction, light rail vehicles, contingency and financing is within the funding amount available, irrespective of which street configuration is selected. COMMITTEE ACTION RTAG October 16, 2012 for information RMC November 1, 2012 for information METRO Board of Directors November 15, 2012 for information RECOMMENDATION It is recommended that the RMC forward to the Board of Directors approval to include the Gilbert Road LRT Extension in the FY 2014 TLCP update. The major amendment to include this extension in the MAG Regional Transportation Plan is for information only. CONTACT Wulf Grote, P.E. Director, Planning and Development wgrote@valleymetro.org ATTACHMENTS None 2