METRO BOARD OF DIRECTORS Board Meeting Agenda

Transcription

1 Thomas C. Lambert PRESIDENT & CEO METRO BOARD OF DIRECTORS Board Meeting Agenda BOARD MEMBERS Gilbert Andrew Garcia, Chairman 1900 Main Street, Board Room, 2 nd Floor Jim Robinson, Vice Chairman Wednesday, January, 27, 2016, 9:00 AM Christof Spieler, Secretary Don Elder Jr. Lisa Castañeda Diann Lewter Sanjay Ramabhadran Cindy Siegel Barron Wallace ACTION 1. Approval of the minutes for the Regular Board Meeting of December 17, 2015 Board Member 2. Public Comments G. Garcia - Board Speaker Follow-up Letter 3. METRO President & CEO Business Report T. Lambert 4. Chairman Report G. Garcia 5. Working Committee Meeting Reports G. Garcia a. Finance and Audit C. Siegel b. Administration D. Lewter c. Capital and Strategic Planning C. Spieler d. Public Safety, Customer Service and Operations J. Robinson 6. FY2016 Goals and Objectives T. Lambert CONSENT AGENDA 7. Request Board approval accepting the monthly committee reports, including investment reports. C. Siegel 8. Appointment of two trustees to METRO s Non-Union Pension Plan. C. Siegel 9. Request Board authorization for the President & CEO to enter into contracts with consultants for legislative coordination services. D. Lewter 10. Request Board approval of permanent change to METRO s Small Business Program to allow work performed by a small business prime to count toward the small business goal of the contract. D. Lewter 11. Request Board approval to modify the contract with 2Plus of Texas, Inc. for vanpool management services and execute a one (1) year option extending the contract through February 28, J. Robinson Page 1

2 METRO BOARD OF DIRECTORS Board Meeting Agenda 1900 Main Street, Board Room, 2 nd Floor Wednesday, January 27, 2016, 9:00 AM 12. Request Board authorization for the President & CEO to award a contract to SimplexGrinnell, L.P. to perform preventive maintenance, inspections and repairs on the Fire Protection System at various METRO facilities. J. Robinson 13. Request Board authorization for the President & CEO to award a contract to Maldonado Nursery and Landscaping to perform landscaping services at various METRO facilities. J. Robinson 14. Request Board authorization for the President & CEO to execute a contract with Elite Janitorial Services, LLC to provide cleaning services for bus stops and bus shelters. J. Robinson 15. Request Board authorization for the President & CEO to execute a contract with D&J Cleaning Services to provide cleaning services for bus stops and bus shelters. J. Robinson ITEMS FOR SEPARATE CONSIDERATION 16. Election of board officers and appointing board members to standing committees of the Board. - PULLED G. Garcia 17. Request Board adoption of a policy to approve budget changes. C. Siegel 18. Request Board authorization for the President & CEO to execute a contract modification with McCarthy Building Companies, Inc. for the construction of the Harrisburg Overpass. DEFERRED TO FEBRUARY C. Spieler 19. Request Board authorization for the President & CEO to modify the Harrisburg Overpass Business Assistance Fund Administration Guidelines. J. Robinson 20. Request Board approval for a pilot program for services to the Bayou Event Center. J. Robinson The next regular scheduled board meeting is Thursday, February 25, 2016 at 9:00 a.m. For proposed regular board meeting dates and times, visit METRO s Board Meetings and Notices page. Page 2

3 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Board Meeting Minutes AGENDA DATE: 1 DEPARTMENT: Legal PRESENTER: Alva Trevino SUMMARY: Regular Board Meeting Minutes

4 MOTIONS to RESOLUTIONS to METROPOLITAN TRANSIT AUTHORITY OF HARRIS COUNTY, TEXAS BOARD OF DIRECTORS REGULAR BOARD MEETING 1900 Main, Houston, Texas MINUTES December 17, 2015 Presiding - Chairman of the Board, Gilbert A. Garcia, CFA Board Members Present: Jim Robinson, Vice Chairman (Harris County) Sanjay Ramabhadran (City of Houston) Barron F. Wallace (City of Houston) Christof Spieler (City of Houston) Diann Lewter (City of Houston) Lisa Castañeda (Harris County) Cindy Siegel (Multi-Cities) Board Member Absent: Don Elder (Multi-Cities) The Regular Board Meeting of the Metropolitan Transit Authority Board of Directors was called to order at 9:00 a.m., by Chairman Gilbert A. Garcia. Approval of the Minutes: Chairman Gilbert A. Garcia called for a Motion for approval of the Minutes for the Special Board Meeting of November 11, 2015, and the Regular Board Meeting of November 18, Board Member Wallace moved for the approval of the Minutes. Board Member Siegel seconded the Motion. All Board Members present voted in favor. MOTION Executive Session: At 9:02 a.m., Chairman Garcia convened the meeting into EXECUTIVE SESSION, pursuant to the Texas Government Code , , , and to consult with the Board s attorneys regarding pending or potential litigation, legal matters in which the attorneys duties are governed by the State Bar of Texas Code of Conduct; deliberations pursuant to the Act, to deliberate the purchase, lease, exchange or value of real property; personnel matters, security matters and devices, and legal issues regarding contracts that may result in potential litigation. The regular Board meeting re-convened into public session at 9:35 a.m.

5 President & CEO s Report: East End Business Outreach METRO Blue Santa Recognition of Employees with Outstanding Safety Records In Memoriam: former METRO Board Members and Active Employees New Bus Network Snapshot Survey CAF Light Rail Car Delivery Item for Separate Consideration: Chairman Garcia then called for consideration of Item 9. A presentation of the Item was made by METRO Staff Member Clint Harbert. A Motion for approval of the Item was made by Board Member Siegel. The Motion was seconded by Board Member Ramabhadran. All Board Members present voted in favor Item 9. MOTION RESOLUTION Authorization for the President and CEO to negotiate a Memorandum of Understanding with the Uptown District for the development of the Uptown Bus Rapid Transit Project. At 11:20 a.m., Board Member Siegel leaves the meeting. Chairman Garcia reported the calendar for the Board Meeting dates for Public Comments: Mark Hogue commented on safety issues at a club near a bus stop on Westheimer. Mark Smith commented on METRO s New Bus Network. Dominque Mozach commented on METRO s transfer policy and the appointment of new board members. Patricia Jones commented on METRO s New Bus Network. David Tidmore commented regarding safety on the buses. James Huggins expressed his appreciation for METROLift, monthly passes and yearly passes and suggested that the METROLift Advisory Committee meetings be posted on METRO s website.

6 Board Committee Reports: Chairman Garcia called on the Chairs of the METRO Board Committees to give their reports. Board Member Robinson- Finance/Audit Committee Board Member Lewter- Administration Committee Board Member Spieler- Capital/Strategic Programs Committee Board Member Robinson- Public Safety, Customer Service and Operations At 11:42 a.m., Board Member Wallace leaves the Board Meeting. Consent Agenda Items: Chairman Garcia then called for consideration of the consent agenda Items 14, 15 and Items The Motion was made by Board Member Robinson and seconded by Board Member Lewter. All Board Members present voted in favor of the items. MOTION By Motion, as reflected in these Minutes, the Board approved the acceptance of the monthly committee reports including the investment and financial reports and passed the following Resolutions: RESOLUTION Authorizing the President and CEO to execute and deliver contracts, purchase orders and check requests with multiple vendors for the marketing and education on the Green (East End) Rail Line, the Purple (Southeast) Rail Line, METRO s New Bus Network and other ridership initiatives; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to Gallagher Benefit Service, Inc., for health benefits broker/consultant services; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to amend the existing Interlocal Agreement between METRO and Harris County for Park and Ride services in Baytown, Texas, for a maximum period of twelve months to allow continuous operation while METRO s Board of Directors considers a change in its policy for contracting service; and making findings and provisions related to the subject.

7 RESOLUTION Declaring certain properties as surplus; Authorizing and directing the President and CEO to negotiate the sale or exchange of such property and to execute and deliver appropriate documents for such sale or exchange; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to Sylvania Lighting Services Corp., to rehabilitate outdoor lighting equipment at four of METRO s bus operating facilities: Kashmere, Polk, Hiram Clarke, and Northwest; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a requirements contract to Stewart and Stevenson, LLC for the purchase and delivery of Allison battery refresher and conversion kits for Hybrid buses; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to Thermo King of Houston for the purchase and delivery of thirty-nine HVAC overhaul kits for METRO s Rail Cars; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to Nova Bus for one hundred transit buses; and making findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to First Transit Inc., for onsite rolling stock inspection manufacturing services; and making and findings and provisions related to the subject. RESOLUTION Authorizing the President and CEO to execute and deliver a contract to Cummins Southern Plains to provide non-warranty service repairs that cover METRO s Fleet of NABI, MCI and NOVA Buses; and making findings and provisions related to the subject. Items for Separate Consideration: Chairman Garcia called for consideration of Item 10. Board Member Robinson moved for approval of the Item. Board Member Ramabhadran seconded the Motion. All Board Members present voted in favor of approval of Item10.

8 MOTION RESOLUTION Modifying METRO s fare policy to remove the single-trip restrictions on transfers; and making findings and provisions related to the subject. Chairman Garcia called for consideration of Item 11. Board Member Spieler moved for approval of the Item. Board Member Lewter seconded the Motion. All Board Members present voted in favor of approval of Item 11. MOTION RESOLUTION Selection of service options for the Lighthouse of Houston; and making findings and provisions related to the subject. Chairman Garcia called for consideration of Item 12. Board Member Robinson moved for approval of the Item. Board Member Lewter seconded the Motion. All Board Members present voted in favor of approval of Item 12. MOTION RESOLUTION Authorizing the President and CEO to enter into a Memorandum of Understanding with the Gulf Coast Rail District, TXDOT, and Houston-Galveston Area Council (H-GAC) to undertake a multi-modal systems-level passenger rail planning study as part of the Metropolitan Transportation planning process; and making findings and provisions related to the subject. Board Member Spieler made a Motion that any study of the corridor between Houston Central Business District and the Northwest Transit Center/Northwest Mall consider all mass transportation needs in the corridor, including commuter transit, local transit, connections to the New Bus Network, and connections to high speed rail, and should evaluate multiple possible modes, including commuter rail, light rail, diesel multiple unit and bus rapid transit. Board Member Robinson seconded the Motion. All Board Members present voted in favor of approval of the Motion. MOTION RESOLUTION Supporting a study of the transportation needs between the Houston Central Business District and Northwest Center/Northwest Mall; and making findings and provisions related to the subject. Chairman Garcia called for consideration of Item 13. Board Member Robinson moved for approval of the Item. Board Member Lewter seconded the Motion. All Board Members present voted in favor of approval of Item13.

9 MOTION RESOLUTION Initiating a 90 day marketing campaign to transition the elimination of paper transfers to inform customers, and authorizing the issuance of METRO Q-Cards to customer requesting paper transfers; and making findings and provisions related to the subject. Briefing Items- Mobile Ticket APP Presentation Metro Police Department (MPD) Connect APP Presentation At 12:15 p.m. Chairman Garcia leaves the Board Meeting. The meeting adjourned at 12:22 p.m. The date for the next Regular Board Meeting is Wednesday, January 27, 2016, at 9:00 a.m. Respectfully submitted, Alva I. Treviño General Counsel and Assistant Board Secretary

10 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Public Comments AGENDA DATE: 2 DEPARTMENT: Board PRESENTER: Chairman, Gilbert Garcia SUMMARY:

11 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: BOARD SPEAKER FOLLOWUP AGENDA DATE: DEPARTMENT: CUSTOMER SERVICE PRESENTER: DANICEL WHITAKER SUMMARY:

12 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: METRO President and CEO Business Report AGENDA DATE: 3 DEPARTMENT: Executive Office PRESENTER: Tom Lambert SUMMARY: METRO President and CEO Report

13 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Chairman Report AGENDA DATE: 4 DEPARTMENT: Board PRESENTER: Chairman, Gilbert Garcia SUMMARY:

14 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: Working Committee Reports AGENDA DATE: 5 DEPARTMENT: Departments Listed Below PRESENTER: Board Members SUMMARY: 1. Finance and Audit Cindy Siegel 2. Administration Diann Lewter 3. Capital and Strategic Planning Christof Spieler 4. Public Safety, Customer Service and Operations Jim Robinson

15 Finance & Audit Committee Meeting Report January Sales Tax Report $ 55,433,955 Rec d in JAN/ Sales in NOV $ 228,102,939 FY % FY2016 Change over FY2015 Investment Report $ 284,293,202 General Fund (0.270% vs % Benchmark) $ 62,048,142 Construction Fund (0.187% vs % Benchmark) $ 90,425,181 General Mobility Escrow Balance Inflows: $ 13.4 million from Sales Tax Debt Report Outflows: $ 9.8 million City of Houston $ 4.6 million Harris County $ 1,141,000,000 Outstanding Balance METRO Board Meeting - January 27, 2016

16 Finance & Audit Committee Meeting Report Monthly Board Report Year-to-date FY2016 expenditures are within budget: Operating $ (8.4M) or (6.2%) METRORail Expansion.... $ (13.1M) or (39.9%) Capital Improvements.... $ (10.4M) or (62.7%) General Mobility $ (15.3M) or (37.1%) Debt Service $ (0.0M) or (0.0%) Briefing Items Monthly Compliance Report Monthly Financial Reports Recommended for Board Action Approval of Monthly Financial Committee Reports including the Investment Reports Adopt a Policy for the Approval of Budget Changes Committee Approval Anticipated Procurement Report Solicitation for the administration for 457 (b) deferred compensation plan, 401 (a) defined contribution plan and 401 (a) savings plan Solicitation for procuring a firm to conduct the State mandated quadrennial performance audit METRO Board Meeting - January 27, 2016

17 Finance and Audit Committee Anticipated Procurement Report - January The Committee reviewed and provided concurrence on the following solicitations: 1) Administration of METRO s Retirement Plans (RFP); 2) Quadrennial State Performance Audit (RFP) METRO Board Meeting - January 27, 2016

18 Administration Committee Meeting Report Briefing Items Government Affairs Update: Federal: President Obama s FY17 Budget Proposal asks for a 10-year, nearly $4 billion investment to accelerate the development of autonomous vehicles. METRO is very interested in the development of this technology and will continue to monitor this initiative for applications that are useful to the transit industry. The federal transportation bill that passed in December allows public transit users to protect up to $255 a month in pre-tax income to help offset the cost of commuting to work. State: Governor Greg Abbott issued a proclamation announcing May 7, 2016 as the special election date to the House seat vacated by Representative Sylvester Turner. The early voting period for the special election will be held from April 25, 2016 to May 3, Local: Harris County Judge Ed Emmett will announce Commissioner El Franco Leo's successor on Friday, January 22 nd. The Government Affairs staff met with 32 elected officials to brief them on the January Service Change. Administration Committee Meeting January 21, 2016

19 Administration The Committee reviewed and provided concurrence on the following Request for Action: 1. Approval of revisions to METRO s Small Business Enterprise program incorporating the pilot program on a permanent basis. 2. Authorization for the President & CEO to enter into contracts with consultants for legislative coordination services. METRO Board Meeting - January 27, 2016

20 Organization Development FY16 training curriculum Leadership Development Program: Class V Administration Committee Meeting Report January 2016 HR Monthly Metrics HR Board Committee Briefings Presentation of the December 2015 workforce metrics: Employee headcount increased from 3,830 in November to 3,875 in December 45 new hires in December (primarily in Operations for the implementation of METRO s New Bus Network & upcoming January service enhancements, as well as the transition of MV Drivers and Dispatchers to METRO for the METROLift contract) Turnover decreased from 55 employees in November to 36 employees in December Exit interview process: HR analyzes turnover information through tools such as exit interviews and stay interviews Will continue to use this information to expand retention efforts 2,237 applicants in December Health Insurance Metrics showing specific plan enrollment Overview of strategies for possible savings: ER vs. urgent care visits; prescription drug costs, etc. Three major health issues at METRO: Back pain, diabetes, and hypertension

21 Capital and Strategic Planning Committee Meeting Report Board Recommendations and Authorizations for the President & CEO Request Board input on suggestions and possible approaches to provide service outside the METRO service area. (Board provided guidance to staff to draft a policy to deal with requests for bus service that originate from jurisdictions outside the METRO Service Area. This policy will address differences by the number and type of vehicles, the cost to provide the service, and the facilities needed to operate the service. ) The proposed policy will be presented to the Board for discussion at the next board meeting. Briefing Items Texas Medical Center Transit Center Proposal for Development High Capacity Corridor Planning Proposal for Development New Bus Network Bus Stop Signage Northwest Transit Center Expansion METRO Board Meeting - January 27, 2016

22 Capital Programs Committee - Anticipated Procurement Project Report - January-2016 The Committee reviewed and provided concurrence to move forward with the following solicitations: 1) HOV/HOT Lane Sign Replacement (IFB); 2) CNG Detection and Alarm System - (IFB) METRO Board Meeting - January 27, 2016

23 METRO Public Safety, Customer Service & Operations Committee Meeting Report Authorization for the President & CEO to modify the contract with 2Plus of Texas, Inc. for vanpool management services and execute a one (1) year option extending the contract through February 28, to modify the Harrisburg Overpass Business Assistance Fund Administration Guidelines. to award a contract to SimplexGrinnell, L.P. to perform preventive maintenance, inspections and repairs on the Fire Protection System at various METRO facilities. to award a contract to Maldonado Nursery and Landscaping to perform landscaping services at various METRO facilities. to execute a contract with Elite Janitorial Services, LLC to provide cleaning services for bus stops and bus shelters. to execute a contract with D&J Cleaning Services to provide cleaning services for bus stops and bus shelters. Briefing Items Committee Approval Anticipated Procurement Report Monthly Briefings Public Safety, Customer Service and Operations Report Board Speaker Follow-up METRO Public Safety, Customer Service & Operations Committee Meeting January 21, 2016

24 METRO Public Safety, Customer Service & Operations Committee Meeting Report Briefing Items Briefings HOT Lanes Violation Collections Rail Safety Education Campaign METRO Retailer Network Program METRO Q Fare Card Promotion Update Pilot for Bus Service to Bayou Event Center Committee Requests Future Briefing on Bus Shelters Media outreach regarding HOT Lane Violation Collections in February Media outreach on Q Fare Card retailer locations Increase marketing/signage of Travis Street Store Full Board Action approval on six month pilot for Bus Service to Bayou Event Center METRO Public Safety, Customer Service & Operations Committee Meeting January 21, 2016

25 Public Safety/Customer Service/Operations Committee - Anticipated Procurement Project Report - January The Committee reviewed and provided concurrence to move forward with the following solicitations: 1) H1 Rail Vehicle Batteries (IFB); 2) Transit Vehicle Filters (IFB); 3) Elevator/Escalator Maintenance, Inspections and Repairs (IFB); 4) Installation of Vinyl Marketing Information (IFB) METRO Board Meeting - January 27, 2016

26 BOARD BRIEFING SUMMARY SUBJECT: AGENDA ITEM #: FY2016 Goals and Objectives AGENDA DATE: 11/11/15 DEPARTMENT: PRESENTER: Executive Office Thomas Lambert SUMMARY:

27 Goals and Objectives for FY2016 GREATER FOCUS ON THE CUSTOMER

28 Page 1 of 5 Metropolitan Transit Authority of Harris County Goals and Objectives for FY2016 GREATER FOCUS ON THE CUSTOMER Goal 1: Improve Service Delivery Better management of local bus operations leverage technology and personnel to continuously improve on-time performance and headway management by: o Complete technology update and utilize full functionality of Bus Computer Aided Dispatch o Cross-train Street Supervisors and Bus Controllers o Re-train all Bus Controllers and Street Supervisors, with focused emphasis on service needs o Refine the bus accident investigation procedure to reduce street supervisor time collecting data to focus on service needs o Review industry best practices for on-time performance and headway management to adopt lessons learned Implement service changes to improve the New Bus Network better connect routes, reduce overloads, and respond to street constructionrelated detours Evaluate the use of traffic signal technology to enhance on-time performance and trip reliability for possible service enhancements in partnership with the City of Houston, Harris County, Multi-Cities, and TxDOT Bring to resolution all items identified as part of METROLift Moving Forward

29 Page 2 of 5 Goal 2: Enhance Customer Experience Launch a mobile ticketing application Update fare policy to include the Freedom Pass, allowing METROLift customers to use fixed-route service for free Provide more real-time service alert information to customers (immediate service information to patrons via social media and Gov Delivery, etc.) Create an intra-agency committee to address the top five customer service complaints/comments for short and longer-term improvements Develop and implement a written coordinated response plan to improve communication with customers during service disruptions Empower employees to assist customers (give employees the flexibility and tools needed training, information cards, etc) Improve transit amenities at bus stops by: o Installing 100 bus shelters at prioritized locations throughout the METRO service area o Implementing a rehabilitation program for bus shelters and bus stops to prioritize the replacement, repair, and refurbishment of bus shelters, trash cans, and benches at 100 locations throughout the system o Making improvements at Super Stops, including adding bus shelters, improving accessibility, and conducting safety/security assessments Improve transit facility cleanliness by: o Adjusting cleaning frequencies throughout the transit system taking into account shifts in usage due to New Bus Network

30 Page 3 of 5 o Working with management districts and other partners to expand the adopt-a-stop/adopt-a-shelter program Focus on the cleanliness of buses and railcars Increase Safety and Security at transit facilities by: o Creating a comprehensive security review program. This is a multidepartmental review of transit facilities and customer input to recommend improvements (i.e. security, lighting, cameras, signage, facility improvements, operational issues, etc.) o Implement a safety and security campaign for customers and employees on the new Code of Conduct ; provide instruction on where to report issues; educate employees on appropriate action and response o Improve way-finding signage and customer information at transit facilities (Transit Centers, Park & Rides, rail stations, Super Stops, bus shelters, and bus stops) Improve connectivity of bicycles and other transportation modes to METRO services Develop strategies and partnerships to enhance the first and last mile of transit trips (Uber, B-Cycle, Zip Car, taxi companies, etc.) Improve accessibility by working with the City of Houston, Harris County, Multi-Cities, TxDOT, management districts, tax increment reinvestment zones, and others to improve access to 200 bus stops Wrap-up rail and roadway construction of East End Line and begin testing

31 Page 4 of 5 Goal 3: Increase Public and Regional Engagement Promote METRO services through marketing and advertising efforts (campaigns for the New Bus Network, HOV/HOT Lanes, Next Bus Texting, Mobile Ticketing) Increase public information about METRO and its services to the community through all media platforms (web page, social media, traditional press) Increase community connections (build stronger connections to community groups and build a coalition of METRO advocates through METRO community meetings and events) Initiate ways to increase the use of special transit passes through robust sales strategies and increased marketing (special event/convention passes and student passes) Increase engagement with regional partners, business leaders, and elected officials to influence transportation decisions and outcomes (e.g. H-GAC Transportation Policy Council, Houston TranStar, and others to cooperate on regional transportation issues) Continue to build upon our relationships with the Federal Transit Administration and other agencies to support mobility services for our region Increase coordination with regional transit providers to improve connectivity of their systems to METRO services and continue coordinating efforts to develop a regional transit pass Implement a plan for better regional coordination of construction projects and mobility/traffic management through Houston TranStar Work with regional transportation partners to create the framework for a new Regional Multi-Modal Transportation Plan

32 Page 5 of 5 Goal 4: Change Management Practices Create succession plans for each department to ensure continuity of operations Focus FY 2016 on senior management Finalize pay-for-performance program to tie compensation decisions to performance and enhance development opportunities for employees Program to be launched in FY 2017 Continue to foster a culture into all levels of the organization that emphasizes openness, responsiveness, transparency, and a can-do attitude Continue efforts to diversify METRO s workforce to better reflect the community Continue employing sound financial principles and transparency practices by: o Prudently managing expenses at or below budgeted levels o Seeking external recognition of METRO's financial transparency and excellence in reporting o Maintaining an audit environment clear of significant findings or exceptions o Utilize the 2012 General Mobility referendum increment accordingly Finalize real estate utilization plan Complete lessons learned documents related to rail expansion program and New Bus Network

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34 Metropolitan Transit Authority Sales & Use Tax Report January 2016 Treasury Services 1/6/2016

35 Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) FY 2016 NET NET GROSS NET VARIANCE CHANGE IN ACTUALS REC'D SALES RECEIPTS ESTIMATE RECEIPTS REBATES RECEIPTS TO FY16 ESTIMATE FY16- FY15 IN IN FY15 FY16 FY16 FY16 FY16 $ % $ % OCT AUG $ 54,330, $ 51,830, $ 53,532, $ 303, $ 53,228, $ 1,397, % $ (1,101,739.19) -2.03% NOV SEP $ 64,787, $ 60,325, $ 63,680, $ 221, $ 63,459, $ 3,133, % $ (1,328,537.02) -2.05% DEC OCT $ 59,498, $ 52,059, $ 56,111, $ 130, $ 55,981, $ 3,921, % $ (3,517,546.99) -5.91% JAN NOV $ 56,563, $ 51,908, $ 55,658, $ 224, $ 55,433, $ 3,525, % $ (1,129,386.75) -2.00% FEB DEC $ 78,343, $ 74,769, $ - $ - $ - $ % $ % MAR JAN $ 54,449, $ 50,814, $ - $ - $ - $ % $ % APR FEB $ 51,992, $ 50,121, $ - $ - $ - $ % $ % MAY MAR $ 66,900, $ 68,110, $ - $ - $ - $ % $ % JUN APR $ 54,419, $ 54,549, $ - $ - $ - $ % $ % JUL MAY $ 54,840, $ 56,813, $ - $ - $ - $ % $ % AUG JUN $ 66,392, $ 68,102, $ - $ - $ - $ % $ % SEP JUL $ 55,867, $ 55,953, $ - $ - $ - $ % $ % TOTAL $ 718,386, $ 695,359, $ 228,982, $ 879, $ 228,102, $ 11,978, % $ (7,077,209.94) -3.01% Net Receipts Estimate Net Receipts Net Receipts YTD % Over YTD % Chge YTD FY 16 YTD FY 15 YTD FY 16 FY 16 Est FY Act $ 216,124, $ 235,180, $ 228,102, % -3.01% Treasury Services 1/6/2016 Page 1 of 4

36 Metropolitan Transit Authority Sales & Use Tax Net Receipts (Cash Receipts Basis) Most Recent 12-Month History Including Accrual for Rebates NET RECEIPTS REC'D SALES NET CHANGE IN IN FISCAL NET FISCAL GROSS REBATES RECEIPTS AMOUNT % FEB DEC FY '14 $ 72,282, FY'15 $ 78,519, $ 176, $ 78,343, $ 6,060, % MAR JAN FY '14 $ 51,684, FY'15 $ 54,617, $ 167, $ 54,449, $ 2,765, % APR FEB FY '14 $ 49,701, FY'15 $ 52,217, $ 224, $ 51,992, $ 2,291, % MAY MAR FY '14 $ 62,313, FY'15 $ 67,152, $ 251, $ 66,900, $ 4,586, % JUNE APR FY '14 $ 55,132, FY'15 $ 54,633, $ 213, $ 54,419, $ (712,617.10) -1.29% JULY MAY FY '14 $ 54,501, FY'15 $ 55,005, $ 165, $ 54,840, $ 338, % AUG JUNE FY '14 $ 62,285, FY'15 $ 66,518, $ 125, $ 66,392, $ 4,106, % SEPT JULY FY '14 $ 56,517, FY'15 $ 56,803, $ 935, $ 55,867, $ (649,626.40) -1.15% OCT AUG FY'15 $ 54,330, FY'16 $ 53,532, $ 303, $ 53,228, $ (1,101,739.19) -2.03% NOV SEP FY'15 $ 64,787, FY'16 $ 63,680, $ 221, $ 63,459, $ (1,328,537.02) -2.05% DEC OCT FY'15 $ 59,498, FY'16 $ 56,111, $ 130, $ 55,981, $ (3,517,546.99) -5.91% JAN NOV FY'15 $ 56,563, FY'16 $ 55,658, $ 224, $ 55,433, $ (1,129,386.75) -2.00% TOTAL $ 699,598, $ 714,448, $ 3,138, $ 711,309, $ 11,711, % CURRENT MONTH REBATE ACCRUALS Reliant Stadium $ 108, Baybrook MUD $ 115, Total Rebates $ 224, Treasury Services 1/6/2016 Page 2 of 4

37 METRO INVESTMENT REPORT ALL FUNDS December 2015

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39 Metropolitan Transit Authority of Harris County Monthly Changes in Position As of December 31, 2015 Maturity Purch Book Value Market Value No. Description Coupon Rating Date Date Par Cost Price YTM Type 11/30/ /31/ /30/ /31/2015 General Fund Wells Fargo Master Account 1/1/ /31/2015 5,386,479 5,386, % DDA 4,504,318 5,386,479 4,504,318 5,386,479 Wells Fargo HOT Lanes Account 1/1/ /31/ ,709 32, % DDA 53,820 32,709 53,820 32,709 TexStar Investment Pool AAAm 1/1/ /31/ ,362,844 54,362, % LGIP 62,009,859 54,362,844 62,009,859 54,362,844 TexDaily Investment Pool AAAm 1/1/ /31/2015 9,663,170 9,663, % LGIP 100,069,190 9,663, ,069,190 9,663, BEL2 / City of Houston 0.070% A 1/F 1/P 1 5/12/2015 2/10/ % MCP Matured/Called Matured/Called Matured/Called Matured/Called LLB8 / City of Houston 0.060% A 1/F 1/P 1 5/28/2015 2/25/ % MCP Matured/Called Matured/Called Matured/Called Matured/Called EWBCD14 East West Bank CD 0.350% Coll = Aaa 5/29/2015 2/27/ % CD Matured/Called Matured/Called Matured/Called Matured/Called KF70 / Federal Agricultural Mortage Corp % NA* 9/13/2016 9/14/ ,000,000 19,904, % A 19,924,855 19,932,972 19,928,200 19,913, UB9 / Fannie Mae 0.290% NA* 3/9/2016 9/14/ ,000,000 29,957, % A 29,975,939 29,983,473 29,981,100 29,983,800 EWBCD17 East West Bank CD 0.400% Coll = Aaa 3/12/2016 9/14/ ,000,000 10,000, % CD 10,000,000 10,000,000 10,000,000 10,000, KG61 / Federal Agricultural Mortage Corp % NA* 9/20/2016 9/22/ ,000,000 14,931, % A 14,944,723 14,950,552 14,944,800 14,933,400 EWBCD18 East West Bank CD 0.450% Coll = Aaa 5/22/ /24/ ,000,000 10,000, % CD 10,000,000 10,000,000 10,000,000 10,000, TE9 / Federal Home Loan Banks 0.290% NA* 2/17/ /24/2015 5,000,000 4,997, % A Did Not Own 4,998,037 Did Not Own 4,998, UW7 / Federal Home Loan Banks 0.380% NA* 3/28/ /28/2015 5,000,000 4,995, % A Did Not Own 4,995,357 Did Not Own 4,996, SH3 / Federal Home Loan Banks 0.230% NA* 1/27/ /28/2015 5,000,000 4,999, % A Did Not Own 4,999,141 Did Not Own 4,999, KVA5 / Federal Agricultural Mortage Corp % NA* 4/1/ /29/2015 5,000,000 4,994, % A Did Not Own 4,994,890 Did Not Own 4,995, SG5 / Federal Home Loan Banks 0.210% NA* 1/26/ /29/2015 5,000,000 4,999, % A Did Not Own 4,999,244 Did Not Own 4,999, QF0 / US Treasury Note 0.063% Aaa 4/30/ /29/2015 5,000,000 5,042, % T Did Not Own 5,042,200 Did Not Own 5,025, P66 / Fannie Mae 0.660% NA* 11/15/ /29/2015 5,000,000 4,970, % A Did Not Own 4,970,667 Did Not Own 4,972, G0ES8 / Fannie Mae 1.012% Aaa/AA+ 11/15/ /29/ ,000,000 10,069, % A Did Not Own 10,068,874 Did Not Own 10,046, QF0 / US Treasury Note 0.535% Aaa 4/30/ /29/ ,000,000 10,085, % T Did Not Own 10,084,524 Did Not Own 10,050, UM0 / US Treasury Note 0.160% Aaa 2/15/ /29/2015 5,000,000 5,008, % T Did Not Own 5,007,943 Did Not Own 5,000, KVA5 / Federal Agricultural Mortage Corp % NA* 4/1/ /29/ ,000,000 9,989, % A Did Not Own 9,989,780 Did Not Own 9,991, SH3 / Federal Home Loan Banks 0.222% NA* 1/27/ /29/ ,000,000 9,998, % A Did Not Own 9,998,341 Did Not Own 9,999, UY3 / Federal Home Loan Banks 0.370% NA* 3/30/ /29/ ,000,000 9,990, % A Did Not Own 9,990,752 Did Not Own 9,992, GY9 / US Treasury Bond 0.100% Aaa 1/21/ /29/ ,000,000 9,999, % T Did Not Own 9,999,419 Did Not Own 9,999,500 Total General Fund 293,477, ,449, ,442, ,306,102 Construction Fund Interest & Sinking Fund 2008B (Wells Fargo) 0.00% AAAm 1/1/ /31/ ,985 17, % 17,538 17,985 17,538 17,985 Series 2008B DSR (TexStar) 0.19% AAAm 1/1/ /31/2015 4,706,841 4,706, % LGIP 4,706,542 4,706,841 4,706,542 4,706,841 Sales & Use Tax Bonds DSR (TexStar) 0.19% AAAm 1/1/ /31/ ,935,853 20,935, % LGIP 20,932,533 20,935,853 20,932,533 20,935,853 Contractual Obligations DSR (TexStar) 0.19% AAAm 1/1/ /31/2015 8,229,015 8,229, % LGIP 8,227,710 8,229,015 8,227,710 8,229,015 Interest & Sinking Fund (2009 & 2010) (TexStar) 0.19% AAAm 1/1/ /31/2015 4,073,402 4,073, % LGIP 2,036,594 4,073,402 2,036,594 4,073,402 Interest & Sinking Fund 2011A (TexStar) 0.19% AAAm 1/1/ /31/2015 5,120,296 5,120, % LGIP 2,559,996 5,120,296 2,559,996 5,120,296 Interest & Sinking Fund 2011B (TexStar) 0.19% AAAm 1/1/ /31/ , , % LGIP 445, , , ,858 Interest & Sinking Fund 2014 (TexStar) 0.19% AAAm 1/1/ /31/2015 2,088,708 2,088, % LGIP 1,044,292 2,088,708 1,044,292 2,088,708 Proceeds Fund 2014 (TexStar) 0.19% AAAm 1/1/ /31/ ,800,978 13,800, % LGIP 17,091,630 13,800,978 17,091,630 13,800,978 Interest & Sinking Fund 2015A (TexStar) 0.19% AAAm 1/1/ /31/2015 1,016,360 1,016, % LGIP 813,039 1,016, ,039 1,016,360 Interest & Sinking Fund 2015B (TexStar) 0.19% AAAm 1/1/ /31/2015 1,166,846 1,166, % LGIP 583,388 1,166, ,388 1,166,846 Total Construction Fund 58,459,164 62,048,142 58,459,164 62,048,142 General Mobility Fund TexStar Investment Pool GMP 0.19% AAAm 1/1/ /31/ % LGIP 94,593,971 94,593,971 TexDaily Investment Pool GMP 0.23% AAAm 1/1/ /31/ ,425,181 90,425, % LGIP 90,425,181 90,425,181 Total General Mobility Fund 94,593,971 90,425,181 94,593,971 90,425,181 Grand Total All Funds 446,531, ,922, ,496, ,779,425 Notes: AAA is the highest long-term rating. A-1+ is the highest short term rating. DDA: Demand Deposit Account LGIP: Local Government Investment Pool MB: Municipal Bond MCP: Municipal Commercial Paper CD: Certificate of Deposit A: U. S. Agency & Instrumentality Bond MMA: Money Market Account T: U. S. Treasuries NA*: Implicit backing of the Federal Government

40 Metropolitan Transit Authority of Harris County Texas General Mobility Escrow Activity Summary As of December 31, 2015 FY2016 Year to Date Escrow Disbursements Interest to Interest Earned Escrow Description Funding from Escrow General Fund on Escrow Funds Balance Dec-15 Escrow Balance Forward 29,418, (30,707,327.84) - 17, ,593, Dec-15 Net Sales Tax Received ((((Net Sales Tax X 25%)-FY2014 Nov GMP)/2)+FY2014 Nov GMP) (((($55,878, X 25% - $12,915,695.95)/2 ) + $12,915,695.95) 13,442, ,036, Dec-15 City of Houston See attached for details (9,802,928.00) 98,233, Dec-15 Harris County See attached for details (4,611,926.00) 93,621, Dec-15 City of Katy, Humble & Missouri City Monthly Congestion Mitigation and Traffic Management (2,571,362.01) 91,050, Dec-15 City of Bellaire, Hedwig Village, Hunters Creek, Southside Place, Spring Valley & West University Place Monthly Congestion Mitigation and Traffic Management (641,542.81) 90,408, Dec-15 Interest Earned 16, ,425, Dec-15 Escrow - Fiscal Year to Date 42,861, (48,335,086.66) - 34, ,425,181.03

41 General Mobility Program Political Jurisdictions of Projects Funded in December 2015 Invoiced City Council City of Houston Projects Amount District 17th Pd: City Wide Overlay #22 $ 3,748, Various 17th Pd: Citywide Intersection Redesign & Safety Improvements 1,169, Various 16th Pd: Safe Sidewalk Program Package III 993, Various 17th Pd: Intersection Redesign & Safety Improvement 580, Various 17th Pd: Traffic Signal Rebuild Package #11 556, Various 17th Pd: Citywide Overlay / Rehabilitation Project 535, Various 17th Pd: Concrete Panel Replacement 535, Various 17th Pd: Safe Sidewalk Program 527, Various 15th Pd: Lawndale & Magnolia Park Area 503, TBD 16th Pd: Roadway Surface Replacement 424, Various 14th Pd: Cambridge Bridge Paving & Drainage 228, TBD $ 9,802, Invoiced County Harris County Projects Amount Precinct 12th Pd: TC Jester (between Spears & FM1960) $ 3,300, th Pd: Kukendahl Rd. from Indian Hill to Timarron 1,311, $ 4,611, $ 14,414,854.00

42 Metropolitan Transit Authority of Harris County Texas Debt Report As of December 31, 2015 Type of Debt Purpose Par Value Average Rate Issuance Date Commercial Paper General Mobility $ 169,402,000 Sales & Use Tax Contractual Obligations Series 2009D 40 Orion HEV Buses 20 MCI HEV Buses Wtd. Avg % Program Inception 10-Jan-06 Maturity / Term Current Wtd. Avg days Cost of Issuance Interest Earned on Disbursements from Proceeds Proceeds Outstanding Balance $ 7,014,204 $ 241,452 $ 169,402,000 $ 96,802,000 $ 35,050, % 30-Dec-09 1-Nov-21 $ 175,686 $ 8,913 $ 35,612,306 $ 19,465,000 Sales & Use Tax Contractual Obligations Series 2010A Sales & Use Tax Contractual Obligations Series 2011B 80 Orion HEV Buses $ 40,290, % 23-Jun-10 1-Nov-22 $ 186,496 $ 27,485 $ 41,902,115 $ 25,855, Orion HEV Buses $ 49,405, % 28-Sep-11 1-Nov-23 $ 93,614 $ 7,784 $ 53,007,784 $ 35,500,000 Sales & Use Tax Contractual Obligations Series Nova Artics 70 Commuter Buses $ 97,953, % 22-Apr-14 1-Nov-29 $ 881,445 $ 11,381 $ 128,853,736 $ 93,457,500 Sales & Use Tax Contractual Obligations Series 2015B 75 NABI Buses 50 NABI CNG Buses 25 MCI Commuter Buses $ 62,485, % 28-Aug Sep-20 $ 514,328 $ 5 $ 72,789,714 $ 62,485,000 Sales & Use Tax Series 2015A CP Take Out $ 52,575, % 28-Aug Sep-28 $ 399,303 $ - $ 60,000,000 $ 52,575,000 Certificates of Participation (COPS) Series 2008A Certificates of Participation (COPS) Series 2008B 46 Orion HEV Buses 52 MCI HEV Buses 10 Signature Orions 50 MCI HEV $ 62,255, % 15-Jul-08 1-Nov-20 $ 215,568 $ 420,316 $ 61,959,754 $ 29,910,000 $ 45,785, % 9-Dec-08 1-Nov-21 $ 151,402 $ 97,461 $ 41,937,000 $ 26,525,000 Total Non-METRORail Expansion $ 615,200, % $ 9,632,046 $ 814,797 $ 665,464,409 $ 442,574,500 Sales & Use Tax Contractual Obligations Series 2009B Rail Vehicles & Set-Up $ 42,780, % 11-Jun-09 1-Nov-33 $ 253,994 $ 83,868 $ 42,161,735 $ 35,745,000 Sales & Use Tax Bonds Series 2009A* Sales & Use Tax Bonds Series 2009C - Build America Bonds North and Southeast Corridor Expansion North and Southeast Corridor Expansion $ 94,465, % 11-Jun-09 1-Nov-29 $ 560,859 $ 145,597 $ 96,577,321 $ 75,025,000 $ 82,555, % 11-Jun-09 1-Nov-38 $ 440,193 $ 222,578 $ 77,116,267 $ 82,555,000 Commercial Paper METRORail Expansion Real Estate $ 20,598,000 Wtd. Avg % Inception 1Wtd. Avg 1 $ 852,967 $ 29,362 $ 20,598,000 $ 20,598,000 Sales & Use Tax Bonds Series 2011A* Sales & Use Tax Bonds Series 2014 North and Southeast Corridor Expansion East Corridor Light Rail Vehicles $ 461,010, % 28-Sep-11 1-Nov-41 $ 869,366 $ 285,759 $ 461,301,403 $ 453,350,000 $ 32,651, % 22-Apr-14 1-Nov-29 $ 293,815 $ 6,310 $ 26,504,415 $ 31,152,500 Total METRORail Expansion $ 734,059, % $ 3,271,194 $ 773,474 $ 724,259,141 $ 698,425,500 Total Debt $ 1,349,260, % $ 12,903,241 $ 1,588,270 $ 1,389,723,550 $ 1,141,000,000 *Note: The 'Disbursements from Proceeds' total has been updated to reflect accurate historical disbursement activity.

43 DRAFT METRO Fiscal Year 2016 Monthly Board Report Revenue Expense Ridership Performance December 2015 (First Quarter Fiscal Year-to-Date) 1/14/2016

44 MONTHLY BOARD REPORT December 2015 Table of Contents Section A Section B Section C Section D Section E Section F Section G Section H Section I Section J Summary Sales Tax Revenue Fare Revenue Grant and Interest & Miscellaneous Revenue Budget and Expense Summary Operating Expenses December 2015 Budget vs. Actual FY2016 YTD Budget vs. Actual FY2016 YTD Major Variance Items FY2016 YTD Operating Budget/Expenses by Department Capital, General Mobility & Debt Service Expenditures Ridership by Service Category Performance Statistics Performance Statistic Notes Balance Sheet

45 MONTHLY BOARD REPORT December 2015 Summary Sales Tax revenue of $228.1 million through January 2016 year-to-date is $12.0 million or 5.6% over estimates. Sales Tax revenue for January 2016 (FY2016) is $55.4 million, $3.5 million or 6.8% over estimates. Fare revenue of $16.2 million through December 2015 year-to-date is $0.7 million or 4.1% under budget. December 2015 revenue of $5.3 million is $0.2 million or 4.0% over budget. Service related grant revenue for the year-to-date of $1.0 million through December 2015 is $0.3 million or 22.7% under budget. December 2015 revenue of $0.2 million is $0.3 million or 62.6% under budget. Capital Grant revenue year-to-date of $0.7 million through December 2015 is $ 81,000 under budget. Interest & Miscellaneous revenue year-to-date of $3.6 million through December 2015 is $1.4 million or 64.7% over budget. December 2015 revenue of $0.8 million is $0.1 million or 21.6% over budget. Operating expenses year-to-date of $127.4 million through December 2015 are $8.4 million or 6.2% under budget. December 2015 expenses of $43.9 million are $1.9 million or 4.2% under budget. METRORail Expansion expenses year-to-date of $19.7 million through December 2015 are $13.0 million or 39.9% under budget. December 2015 expenses of $15.9 million are $0.9 million or 5.3% under budget. Other Capital Improvement Program expenses year-to-date of $6.2 million through December 2015 are $10.4 million or 62.7% under budget. December 2015 expenses of $3.5 million are $3.2 million or 48.1% under budget. General Mobility Program expenses year-to-date of $25.9 million through December 2015 are $15.3 million or 37.1% under budget. December 2015 expenses of $16.1 million are $2.6 million or 19.4% over budget. Debt Service expenses of $30 million through December 2015 year-to-date is on budget. Fixed route ridership year-to-date of 21.7 million through December 2015 is 1,323,000 or 6.5% over last year. December 2015 ridership of 6.9 million is 510,000 or 7.9% over last year. METRORail ridership year-to-date of 4.6 million through December 2015 is 1,244,000 or 37.5% over last year ridership of 1.4 million is 378,000 or 36.0% over last year. December Performance Indicator Summary: Safety & Security Bus Accidents met the benchmark for the month and for the year-to-date. Rail Accidents met the benchmark for the month and for the year-to-date. Total Major Security Incidents met the benchmark for both the month and the year-to-date. Major Security Incidents on METRO properties met the benchmark for both the month and the year-to-date. Service Reliability On-Time Performance for Local Bus routes met the minimum performance standards for the month and for the year-to-date. On-Time Performance for Park & Ride routes did not meet the minimum performance standards for the month but did meet the year-to-date goal. On-Time Performance for METROLift met the minimum performance goal for the month and for the year-todate. On-Time Performance for Rail (red line) missed the benchmark for both the month and year to date. On-Time Performance for Rail (both the green and purple lines) met the benchmark for the month and for the year-to-date. The Mean Distance Between Mechanical Failures (MDBF) for all buses met minimum standards for the month and year-to-date. MDBF for METROLift met the minimum standards for the month but did not meet the minimum standards for the year-to-date. Mean Distance Between Service Interruptions for METRORail met minimum standards for the month and year-to-date. Customer Service Complaint Contacts met the goal for the month and for the year-to-date. The number of Commendations exceeded the goal for the month and for the year-to-date. The Average Call Center Answer Delay met the goals for the month and for the year-to-date. Section A Page 1

46 MONTHLY BOARD REPORT December 2015 Sales Tax Revenue thru January 2016 millions $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY2016 Budget FY2016 Actual FY2015 Actual Total FY2016 Sales Tax budget is $695.4 million Budget to Actual FY2016 ($ millions) Budget Actual Variance % October % November % December % January % February % March % April % May % June % July % August % September % FY 2016 YTD $ $ $ % Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October (1.1) (2.0%) November (1.3) (2.1%) December (3.5) (5.9%) January (1.1) (2.0%) February % March % April % May % June % July % August % September % FY 2016 YTD $ $ $ (7.1) (3.0%) Section B Page 2

47 MONTHLY BOARD REPORT December 2015 Fare Revenue Total FY2016 Fare Revenue budget is $75.1 million Budget to Actual FY2016 ($ millions) Budget Actual Variance % October (0.6) (8.7%) November (0.3) (6.2%) December % January % February % March % April % May % June % July % August % September % FY 2016 YTD $ 16.9 $ 16.2 $ (0.7) (4.1%) Prior Year vs. Current Year ($ millions) Prior Year Current Year Variance % October (0.6) (9.4%) November (0.0) (0.3%) December % January % February % March % April % May % June % July % August % September % FY 2016 YTD $ 16.8 $ 16.2 $ (0.6) (3.6%) Section C Page 3

48 MONTHLY BOARD REPORT December 2015 Service Related Grant Revenue Total FY2016 Service Related Grant budget is $77.8 million Budget to Actual FY2016 ($ millions) Budget Actual Variance % October % November (0.02) (6.0%) December (0.26) (62.6%) January % February % March % April % May % June % July % August % September % FY 2016 YTD $ 1.25 $ 0.97 $ (0.28) (22.7%) Capital Grant Revenue Year-to date Capital Grant revenue is $731,000 versus $812,000 budgeted Interest & Miscellaneous Revenue Total FY2016 Interest & Miscellaneous Revenue budget is $11.2 million Budget to Actual FY2016 ($ millions) Budget Actual Variance % October % November % December % January % February % March % April % May % June % July % August % September % FY 2016 YTD $ 2.2 $ 3.6 $ % Section D Page 4

49 MONTHLY BOARD REPORT December 2015 Budget and Expense Summary (in $ millions) Operating Budget -6.2% METROLift Budget -3.9% GMP Budget -37.1% Debt Service Budget 0.0% METRORail Expansion -39.9% CIP Program -62.7% Budget Actual $- $20 $40 $60 $80 $100 $120 $140 Section E Page 5

50 MONTHLY BOARD REPORT December 2015 Operating Expenses Comparison of Budget to Actual for the Month (December 2015) FY16 Annual December December $ Variance % Variance Budget Budget Actual (favorable)/unfavorable Labor and Fringe Benefits $ 331,666,613 $ 27,349,955 $ 26,808,249 $ (541,706) (2.0%) Non-Labor 230,648,987 19,695,528 18,167,491 (1,528,037) (7.8%) Subtotal Labor & Non-Labor 562,315,600 47,045,483 44,975,740 (2,069,743) (4.4%) Contingency 10,938, % Allocation to Capital and GMP (14,982,923) (1,259,853) (1,104,850) 155,003 (12.3%) Total Operating Budget $ 558,271,000 $ 45,785,630 $ 43,870,890 $ (1,914,740) (4.2%) Comparison of Budget to Actual Year-to-Date December 2015 (3 months) FY16 Annual Year-to-Date Year-to-Date $ Variance % Variance Expense Category Budget Budget Actual (favorable)/unfavorable Wages $ 131,165,999 $ 33,295,948 $ 31,682,193 $ (1,613,755) (4.8%) Union Fringe Benefits 70,129,124 16,916,308 16,887,660 (28,648) (0.2%) Subtotal Union Labor 201,295,123 50,212,256 48,569,853 (1,642,403) (3.3%) Salaries and Non-Union Wages 91,407,757 22,446,425 21,829,672 (616,753) (2.7%) Non-Union Fringe Benefits 38,963,733 9,669,399 9,341,212 (328,187) (3.4%) Subtotal Non-Union Labor 130,371,490 32,115,824 31,170,884 (944,940) (2.9%) Subtotal Labor and Fringe Benefits 331,666,613 82,328,080 79,740,737 (2,587,343) (3.1%) Services 42,779,211 10,871,860 6,979,670 (3,892,190) (35.8%) Materials and Supplies 24,871,902 5,945,375 5,539,373 (406,002) (6.8%) Fuel and Utilities 49,403,346 12,129,949 11,279,612 (850,337) (7.0%) Casualty and Liability 4,910,742 1,176,730 1,209,406 32, % Purchased Transportation 99,584,504 24,185,482 23,786,330 (399,152) (1.7%) Leases, Rentals and Misc. 9,099,282 2,776,499 2,792,372 15, % Subtotal Non-Labor 230,648,987 57,085,895 51,586,762 (5,499,133) (9.6%) Subtotal Labor and Non-Labor 562,315, ,413, ,327,499 (8,086,476) (5.8%) Contingency 10,938, % Allocation to Capital and GMP (14,982,923) (3,631,292) (3,975,231) (343,939) (9.5%) Subtotal Contingency / Allocations (4,044,600) (3,631,292) (3,975,231) (343,939) (9.5%) Total Operating Budget $ 558,271, ,782, ,352,268 (8,430,415) (6.2%) Section F Page 6

51 MONTHLY BOARD REPORT December 2015 Major Operating Budget Variance Items - Categories with major variances Expense Type YTD Budget YTD Actual December 2015 Year-to-Date $ Variance (favorable) / unfavorable Union Labor 50,212,256 $ 48,569,853 $ (1,642,403) Wages & Fringe Benefits - primarily mechanic, technician, cleaner, and operator vacancies $ (4,721,000) Overtime wages mostly due to vacancies in bus operator positions 2,967,000 Effect of the unbudgeted rate increase for Benefit Trust for Retirees 125,000 Non-Union Labor Savings in salaries and fringes primarily related to vacancies 32,115,824 31,170,884 (944,940) (1,282,000) Offset by Authority overtime mostly within the Operations More than expected use of Vacation/401a/Sick/Other Paid Absences Unbudgeted vacation buyback activity 121, , ,000 Services 10,871,860 6,979,670 (3,892,190) Timing in Delays in the receipt and processing IT Equipment Maintenance invoices including CIP Warranty (-$108K), SmartNet Invoice (-$435K), VCE (-$340K) and WMWare (-$372K) Delayed start in both system planning and system development projects Change in direction in major advertising programs Support services throughout the Authority mostly within Operations (in Warranty) Delayed Facility Maintenance elevator and system repairs, and over accrual of FY2015 expenses and timing delays in reporting of current month activity Education and Training within Operations throughout the Authority Legal fees - lower than expected case load requiring external legal services in the 1st Qtr Equipment repair and maintenance spread in areas other than IT and Facility Maintenance e.g. ticket and fare collections Delayed contract related projects in Finance Facility Maintenance Rail Equipment Repair and Maintenance Delayed work in rail operations for rail grinding, track geometry and vegetation control; delayed billing for completed ultrasonic testing work (1,263,000) (460,000) (291,000) (248,000) (236,000) (197,000) (197,000) (151,000) (129,000) (118,000) (110,000) Delays in the purchasing of ticket and fare collection equipment and the repair and maintenance of existing equipment Other miscellaneous services spread across the Authority mostly in legislative coordination, contracted HR services, custodial services and contracted employment services (108,000) (401,000) Offset by Early invoicing of the annual financial audit fee 75,000 Materials & Supplies 5,945,375 5,539,373 (406,002) Underspending in general bus maintenance parts offset by minor overruns in other expense areas (310,000) Underspending in bus parts mostly for bus engines (206,000) Offset by overruns in Replacement of defective rail couplers sent out for repair 112,000 Fuel & Utilities 12,129,949 11,279,612 (850,337) Lower than expected gasoline cost (257,000) Savings in Compressed Natural Gas largely due to a delayed start of 35/50 CNG buses going into service (235,000) Omitted re-accrual of a prior period power expense. This will be corrected in the upcoming month (139,000) Underspending in the Authority's routine telephone expenses and in METROLift Operations (118,000) Lower than expected natural gas expense due to less than planned consumption (100,000) Offset by Higher than expected diesel costs and related taxes resulting from running more METRO bus miles on diesel buses than budgeted as CNG buses not fully operational; and pricing variances 132,000 related to use of product inventoried at a higher cost Casualty and Liability 1,176,730 1,209,406 32,676 Vehicle liability offset by higher than expected subrogation recovery 33,000 Purchased Transportation 24,185,482 23,786,330 (399,152) METROLift - Hours operated under budget due to lower than expected ridership Fewer vanpools in operation as a result of significant layoffs in the energy sector (241,000) (87,000) Leases, Rentals and Miscellaneous 2,776,499 2,792,372 15,873 Underspending in discretionary items (Travel, Memberships, Subscriptions, etc.) (180,000) Timing in the receipt and processing of software, equipment usage and licensing fee invoices 219,000 Allocation to Capital and GMP (3,631,292) (3,975,231) (343,939) Higher than expected capital related activity within METRORail operations (281,000) Higher than expected capital related activity within Bus Maintenance (167,000) General delays in capital program activities in Procurement, Planning and other areas (108,000) Timing delays in IT related projects 211,000 Section F Page 7

52 MONTHLY BOARD REPORT December 2015 Total Net Operating Budget / Expenses by Department Authorized EOY Year-to-Date Current Month-- Headcount Department Annual Budget Budget Expense Variance Variance 3,325 Operations, Public Safety and Customer Service $ 435,046,755 $ 107,090,205 $ 102,975,838 $ (4,114,367) $ (464,826) 2,935 Operations 400,540,762 98,615,643 95,078,598 (3,537,045) (264,055) 305 Public Safety 28,438,625 6,900,269 6,557,326 (342,943) (135,039) 76 Customer Service 4,912,604 1,284,139 1,079,609 (204,530) (53,709) 9 EVP Operations, Public Safety & Customer Service 1,154, , ,305 (29,849) (12,023) 309 Finance & Administration 58,923,637 16,073,002 14,281,472 (1,791,530) (703,561) 69 Information Technology 19,304,620 6,382,260 5,217,467 (1,164,793) (401,608) 40 Human Resources 19,315,143 4,826,546 4,645,415 (181,131) (67,600) 117 Procurement & Materials 10,179,651 2,556,732 2,334,654 (222,078) (69,455) 79 Finance 9,302,059 2,162,246 1,986,232 (176,014) (149,743) 4 EVP Finance & Administration 822, ,218 97,704 (47,514) (15,155) 250 Planning, Engineering and Construction 35,684,192 8,739,717 7,192,599 (1,547,118) (590,438) 186 Facility Maintenance 29,432,874 7,324,587 6,172,659 (1,151,928) (487,676) 32 Planning 6,570,940 1,554,705 1,019,484 (535,221) (130,449) 2 EVP Planning, Engineering and Construction (15,929) (8,348) (16,502) (8,154) (338) 30 Engineering and Construction (303,693) (131,227) 16, ,184 28, Gov't & Public Affairs 8,959,889 1,922,603 1,356,757 (565,846) (82,792) 24 Mktg & Corporate Communications 7,161,248 1,459,006 1,016,497 (442,509) (64,336) 4 Government Affairs 666, , ,372 (65,791) (16,200) 6 Public Engagement 682, , ,775 (24,265) (4,510) 6 Stakeholder Affairs 450, ,394 79,114 (33,280) 2, Legal 3,808, , ,308 (339,772) (21,120) 15 Legal 3,504, , ,760 (312,275) (12,868) 3 Records Management 303,640 78,045 50,548 (27,497) (8,252) 13 Executive & Board 2,542, , ,894 (25,175) (37,468) 13 Executive Office 2,542, , ,894 (25,175) (37,468) 11 Audit 1,486, , ,400 (46,606) (14,535) Audit 1,486, , ,400 (46,606) (14,535) Contingency 10,938, Contingency - President & CEO 10,938, Non Departmental 880, Non Departmental 880, ,966 TOTAL NET OPERATING $ 558,271,000 $ 135,782,682 $ 127,352,269 $ (8,430,413) $ (1,914,739) Per Board authorization, Year End Authorized headcount will increase by 61 in Jan 2016 from 3,905 to 3,966 i.e. 40 for the Alternative Service and Community Connector, and 21 for the Jan 2016 service change. Section F Page 8

53 MONTHLY BOARD REPORT December 2015 Total Net Operating Budget / Expenses by Department as of the end of December FY2016 vs. December FY2015 December FY2016 December FY Year-to-Date Year-to-Date Department Budget Expense Variance Budget Expense Variance Operations, Public Safety and Customer Service $ 107,090,205 $ 102,975,838 $ (4,114,367) $ 98,007,576 $ 92,235,105 $ (5,772,471) Operations 98,615,643 95,078,598 (3,537,045) 89,384,223 84,505,646 (4,878,577) Public Safety 6,900,269 6,557,326 (342,943) 7,158,357 6,407,401 (750,956) Customer Service 1,284,139 1,079,609 (204,530) 1,156,619 1,048,980 (107,639) EVP Operations, Public Safety & Customer Service 290, ,305 (29,849) 308, ,078 (35,299) Finance & Administration 16,073,002 14,281,472 (1,791,530) 16,119,463 12,475,077 (3,644,386) Information Technology 6,382,260 5,217,467 (1,164,793) 6,803,133 4,562,883 (2,240,250) Human Resources 4,826,546 4,645,415 (181,131) 4,622,392 3,918,772 (703,620) Procurement & Materials 2,556,732 2,334,654 (222,078) 2,439,409 2,225,170 (214,239) Finance 2,162,246 1,986,232 (176,014) 2,158,398 1,751,281 (407,117) EVP Finance & Administration 145,218 97,704 (47,514) 96,131 16,970 (79,161) Planning, Engineering and Construction 8,739,717 7,192,599 (1,547,118) 8,212,892 6,392,789 (1,820,103) Facility Maintenance 7,324,587 6,172,659 (1,151,928) 6,013,983 5,340,159 6,013,983 Planning 1,554,705 1,019,484 (535,221) 2,180,515 1,015,076 (1,165,439) EVP Planning, Engineering and Construction (8,348) (16,502) (8,154) 3,420 - (3,420) Engineering and Construction (131,227) 16, ,184 14,974 37,553 22,579 Gov't & Public Affairs 1,922,603 1,356,757 (565,846) 1,871,222 1,027,873 (843,349) Mktg & Corporate Communications 1,459,006 1,016,497 (442,509) 1,407, ,256 (694,320) Government Affairs 177, ,372 (65,791) 157, ,700 13,661 Public Engagement 174, ,775 (24,265) 199, ,538 (53,677) Stakeholder Affairs 112,394 79,114 (33,280) 107,392 (1,621) (109,013) Legal 940, ,308 (339,772) 951, ,990 (304,540) Legal 862, ,760 (312,275) 854, ,567 (290,534) Records Management 78,045 50,548 (27,497) 97,429 83,423 (14,006) Executive & Board 646, ,894 (25,175) 511, ,452 (4,720) Audit 371, ,400 (46,606) 328, ,028 (18,010) Non-Departmental Contingency TOTAL NET OPERATING $ 135,782,682 $ 127,352,269 $ (8,430,413) $ 126,001,893 $ 113,594,314 $ (12,407,579) Section F Page 9

54 MONTHLY BOARD REPORT December 2015 Capital, General Mobility and Debt Service Expenses Budget vs. Actual - Month and Fiscal Year-to-Date ($ millions) FY2016 Annual Month of December 2015 Variance Fiscal YTD December 2015 Variance Budget Budget Actual $ % Budget Actual $ % METRORail Expansion Capital Improvement Program Total Capital $ 83.2 $ 16.8 $ 15.9 $ (0.9) (5.3%) $ 32.7 $ 19.7 $ (13.0) (39.9%) $ $ 6.7 $ 3.5 $ (3.2) (48.1%) $ 16.6 $ 6.2 $ (10.4) (62.7%) $ $ 23.5 $ 19.4 $ (4.1) (17.5%) $ 49.3 $ 25.8 $ (23.4) (47.6%) General Mobility $ $ 13.5 $ 16.1 $ % $ 41.1 $ 25.9 $ (15.3) (37.1%) Debt Service $ 96.9 $ 6.9 $ % $ 30.0 $ % Section G Page 10

55 MONTHLY BOARD REPORT December 2015 Ridership by Service Category YTD % Change Dec-15 Dec-14 Dec-15 Dec-15 Service Category Dec-14 Dec-15 vs. YTD YTD vs. Boardings Boardings Dec-14 Boardings Boardings Dec-14 Fixed Route Services Local Network Local Bus 4,759,239 4,889, % 15,032,567 15,102, % METRORail Red Line 1,052,064 1,259, % 3,299,779 4,002, % Green Line (East) 0 74,798 N/A 0 222,106 n/a Purple Line (Southeast) 0 95,649 N/A 0 333,017 n/a METRORail (all lines) 1,052,064 1,430, % 3,299,779 4,557, % METRORail-Bus Bridge N/A 17,148 3,106 (81.9%) METRORail 1,052,064 1,430, % 3,316,927 4,560, % Subtotal Local Network 5,811,303 6,319, % 18,349,494 19,663, % Commuter Park & Ride 609, , % 2,014,780 2,024, % Subtotal Fixed Route Service 6,420,423 6,929, % 20,364,274 21,687, % Special Events * % 19, (95.2%) Total Fixed Route 6,420,525 6,930, % 20,383,519 21,688, % Customized Bus Services METROLift 155, , % 478, , % METRO STAR Vanpool 187, ,372 (7.7%) 601, ,594 (5.8%) Internal Service % % Subtotal Customized Bus 343, ,677 (2.6%) 1,080,606 1,053,918 (2.5%) HOV/HOT Carpools, Vanpools, and Non-METRO Buses 2,271,280 2,358, % 6,504,120 6,753, % Total System 9,035,519 9,623, % 27,968,245 29,495, % Fixed route ridership is reported on the same basis as in the National Transit Database * The Special Events category of ridership reflects customer service oriented short-term additional motor bus service provided for events at Reliant Park such as football games and RODEO Houston Fixed Route and Total System Ridership FY2015 FY2016 Total System Ridership Millions Fixed Route Ridership FY2015 in Blue FY2016 in Green OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Section H Page 11

56 MONTHLY BOARD REPORT December 2015 Performance Statistics Fiscal Year 2016 Benchmark Met Benchmark Missed FY2016 YTD SAFETY & SECURITY Monthly YTD FY2016 % OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target GOAL YTD Change Bus Accidents (Includes METROLift) % Bus Accidents per 100,000 vehicle miles % Rail Accidents % Rail Accidents per 100,000 vehicle miles % Major Security Incidents - total % Major Security Incidents per 100,000 boardings % Major Security Incidents - METRO properties % Major Security Incidents per 100,000 boardings % FY2016 YTD SERVICE & RELIABILITY Monthly YTD FY2016 % OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target GOAL YTD Change Local Bus OTP 72.9% 76.0% 74.8% 65% 68% 74.6% 10.5% Park & Ride Bus OTP 76.9% 75.4% 74.8% 75% 75% 75.7% 0.9% Weighted Average Bus OTP 73.9% 75.9% 74.8% 67% 69% 74.9% 8.5% METROLift OTP 90.0% 90.2% 90.0% 90% 90% 90.1% 0.1% Rail - Red Line OTP 93.4% 94.3% 92.0% 95% 95.0% 93.2% 1.9% Rail - East End Green Line OTP 93.2% 94.5% 91.5% 85% 85.0% 93.1% 9.5% Rail - South East Purple Line OTP 95.4% 94.4% 92.1% 85% 85.0% 94.0% 10.5% MDBF (Mean Distance Between Mechanical Failures) - All Buses MDBF (Mean Distance Between Mechanical Failures) - METROLift MDBSI (Mean Distance Between Service Interruptions) - METRORail 8,960 9,454 10,652 9,500 8,917 9, % 13,860 20,644 23,787 19,000 19,000 18, % 25,502 34,799 22,948 12,000 12,000 26, % 0.0% FY2016 YTD CUSTOMER SERVICE Monthly YTD FY2016 % OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Target GOAL YTD Change *Complaint Contacts per 100,000 boardings % Commendations , % Average Call Center Answer Delay (Sec.) % Section I Page 12

57 MONTHLY BOARD REPORT December 2015 Performance Statistic Definitions Bus and Rail Accidents - An accident is a transit incident with passenger injuries that require immediate medical treatment away from the scene or a collision between a revenue vehicle and an object such that the amount of damage exceeds $1,000. Bus accidents (which include METROLift) and rail accidents are reported separately and in terms of the absolute number of accidents and the relative number of accidents per 100,000 vehicle miles. Rail accidents reflect collisions between METRORail and other vehicles, pedestrians, or bicyclists. This definition has been revised beginning in FY2011 to include pedestrian accidents. Major Security Incidents - The total Major Security Incidents is based on two industry standards: the FBI Uniform Crime Report and the National Transit Database (NTD) Report issued by the Federal Transit Administration (FTA). The eight (8) categories included are: homicide, forcible rape, robbery, aggravated assault, burglary, larceny and theft, motor vehicle theft and arson. This metric is reported both in terms of the absolute number of incidents and the number of incidents per 100,000 boardings. Major Security Incidents - METRO Properties - The total Major Security Incidents - METRO Properties is the number of incidents that occur at Park & Ride lots, Transit Centers, on-board buses and trains and on Light Rail Vehicle (LRV) platforms. This metric is reported both in terms of the absolute number of incidents and the number of incidents per 100,000 boardings. On-Time Performance (OTP) - A local bus is considered on-time if it does not leave early and is within a five (5) minute window after the scheduled departure time. A Park & Ride bus is considered on-time if it does not depart early (except in the morning when a bus can leave from a Park & Ride lot when full) and is within a five (5) minute window after the scheduled departure time, with measurements during peak hours. OTP is measured by the IVOMS system which calculates data to the second, and the five (5) minute window is defined as anything less than six (6) minutes. For METRORail, a train departing from the beginning of the line or arriving at the end of the line less than five (5) minutes after the scheduled time is considered on-time. For METROLift, a trip is considered on-time if the vehicle arrives within 30 minutes of the scheduled pick-up time and no later than the appointment time. Mean Distance Between Mechanical Failures (MDBF) - MDBF reflects any mechanical issue encountered during operation of the vehicle in revenue service that requires a maintenance action resulting from a mechanical failure. Mechanical failures include warranty and fleet defects but exclude accidents. Mean Distance Between Service Interruptions (MDBSI) - measures total revenue service miles traveled by Light Rail Vehicles (LRVs) between service interruptions that delay LRVs for one minute or more due to mechanical failures. Complaint Contacts - Patrons may contact METRO s Customer Care Center to express dissatisfaction with METRO Operations. Contacts made via telephone and over the internet which result in a complaint record being generated in the Public Comment System are reported as the number of contacts per 100,000 boardings. Commendations - Patrons may contact METRO's Customer Care Center to recognize, compliment or praise a METRO employee or the METRO organization for exemplary work or performance. Contacts made via telephone, internet, or mail which result in a commendation record being generated in the Public Comment System are reported only on the basis of the absolute number of contacts received. Average Call Center Answer Delay - METRO is committed to providing customers with accurate, customer-friendly bus and service information in a timely manner. Customers may obtain bus information over METRO's website and by telephone using an interactive voice response system without speaking to a representative and with no customer wait time. For those customers who prefer to speak with a representative, METRO's goal is to answer their calls in 120 seconds or less. Section I Page 13

58 MONTHLY BOARD REPORT December 2015 Balance Sheet Dec. 31, 2014 ($) Dec. 31, 2015 ($) Change ($) Cash $ 3,552,019 $ 5,715,153 $ 2,163,134 Receivables 154,063, ,977,708 (6,085,459) Inventory 24,951,836 30,467,183 5,515,347 Investments 385,452, ,571,843 31,119,455 Other Assets 41,181,581 12,935,505 (28,246,076) Property Net of Depreciation 2,695,113,431 2,735,120,863 40,007,432 Land & Improvements 389,579, ,775,083 (10,804,092) Deferred Outflow of Resources 1,899,588 47,425,703 45,526,115 Total Assets and Other 3,695,793,185 3,774,989,041 79,195,856 Liabilities Trade Payables 58,257,325 73,410,362 15,153,037 Accrued Payroll 28,753,366 26,614,666 (2,138,700) Commercial Paper 181,300, ,400,000 (63,900,000) Long-Term Liabilities 1,226,674,475 1,506,177, ,502,956 Other Liabilities 32,744,460 69,099,730 36,355,270 Total Liabilities 1,527,729,626 1,792,702, ,972,563 Deferred Inflow of Resources Net Assets - Retained 2,168,063,559 1,982,286,852 (185,776,707) Total Liabilities and Net Assets $ 3,695,793,185 $ 3,774,989,041 $ 79,195,856 Section J Page 14

59 FUEL PRICE RISK MANAGEMENT POLICY REPORT "FUEL HEDGE" Dec-15

60 FUEL PRICE RISK MANAGEMENT POLICY REPORT Dec-15 (Budget Services 01/06/2016) The Fuel Price Risk Management Policy approved by the Board on February 16, 2006 requires monthly reports to the Finance/Audit Committee. Per the Finance Chair in 2009, the report is to be presented quarterly to the F/A committee. The Board has approved resolutions authorizing implementation of the Fuel Hedge Policy for FY2008 (October 2006). In July 2008 the Board amended the Fuel Risk Management Policy by eliminating the July 15 deadline for hedging the next fiscal years fuel requirement. A. Diesel Fuel Hedges For FY2016 seven hedges totaling 10.58M gallons were executed at an average price of $ As of December 31, 2015 a total of eight hedges totaling 9.16M gallons at an average price of $ have been executed for FY2017. Note that for FY2015 four hedges totaling 10.84M gallons were executed at an average price of $ (Hedge prices are market price only, not including transportation, additive and taxes). See Attachment A for hedge details. METRO currently has chosen, Merrill Lynch Commodities Inc., and Goldman, Sachs & Co. to bid financial hedges. A comparison of the FY2016 hedged gallons, actual usage and hedge collections is outlined in Attachment B. Hedge payments fiscal year to date total $3.65M. B. 5 Year Contract for Electricity In May 2015 the Board authorized the President and CEO to execute and deliver a contract for electricity provider services for an amount not-to-exceed $26,491,835, with a 25% energy component and an option to participate in demand response services. The contract was awarded in June 2015 to GDF SUEZ Energy Resources NA Inc. (Suez) to supply electricity for 5 years beginning June 2015 to June The contract rate of $ per kilowatt hour was fixed for the term of contract while the Transmission and Distribution (TDSP) charges may vary depending on the Texas Utilities Commission policies. This contract hedges METRO's electricity requirements for 5 years, providing budget certainty on price in accord with the Board's Fuel Price Risk Management Policy adopted February 2006.

61 ATTACHMENT A

62 METRO FY2015, FY2016 and FY2017 Fuel Hedge (Diesel) - Status 12/31/2015 (Budget Services 01/06/2016) Financial Hedge (Oct-Sep Delivery) Delivery Year Gallons Fuel Type Vendor Date of Purchase Avg. Price per gallon Cost a. b. c. d. FY2015 1,512,000 USLD Goldman, Sachs & Co. 12/18/12 $ $ 4,227,552 FY2015 2,058,000 USLD Goldman, Sachs & Co. 4/18/13 $ $ 5,564,832 FY2015 3,990,000 USLD Merrill Lynch 9/24/13 $ $ 10,850,700 FY2015 3,276,000 USLD Merrill Lynch 4/2/14 $ $ 9,077,943 10,836,000 $ $ 29,721,027 e. FY2016 1,512,000 USLD Goldman, Sachs & Co. 1/3/14 $ $ 4,067,280 f. FY2016 1,386,000 USLD Merrill Lynch 1/15/14 $ $ 3,718,638 g. FY2016 2,226,000 USLD Goldman, Sachs & Co. 4/2/14 $ $ 6,010,200 h. FY2016 3,024,000 USLD Merrill Lynch 9/11/14 $ $ 8,172,310 i. FY2016 1,512,000 USLD Merrill Lynch 9/29/14 $ $ 4,055,184 j. FY ,000 USLD Merrill Lynch 10/7/14 $ $ 1,093,478 k. FY ,000 USLD Merrill Lynch 10/16/14 $ $ 1,244,536 10,584,000 $ $ 28,361,626 l. FY ,000 USLD Merrill Lynch 10/7/14 $ $ 1,092,202 m. FY ,000 USLD Merrill Lynch 10/16/14 $ $ 522,291 n. FY ,000 USLD Goldman, Sachs & Co. 12/19/14 $ $ 1,703,100 o. FY ,000 USLD Goldman, Sachs & Co. 1/22/15 $ $ 765,450 p. FY2017 2,100,000 USLD Merrill Lynch 6/8/15 $ $ 4,162,200 q. FY2017 1,932,000 USLD Merrill Lynch 7/2/15 $ $ 3,794,494 r. FY2017 2,016,000 USLD Merrill Lynch 7/17/15 $ $ 3,674,215 s. FY2017 1,218,000 USLD Goldman, Sachs & Co. 8/11/15 $ $ 2,109,530 9,156,000 $ $ 17,823,481 2

63 ATTACHMENT B

64 METRO FY2016 DIESEL FUEL (Budget Services 01/06/2016) Swap Receipts From/ (Payments To) Month Fuel Source Gallons in Financial Hedge Gallons Purchased Gallons Used Gallons Used Variance Trader/s Oct-15 Financial Hedge 966,000 1,066,902 1,074, ,554 $ (1,260,395) Nov-15 Financial Hedge 798, ,965 1,065, ,957 $ (1,061,626) Dec-15 Financial Hedge 840, , , ,661 $ (1,328,794) Jan-16 Financial Hedge 798,000 Feb-16 Financial Hedge 798,000 Mar-16 Financial Hedge 924,000 Apr-16 Financial Hedge 882,000 May-16 Financial Hedge 882,000 Jun-16 Financial Hedge 924,000 Jul-16 Financial Hedge 924,000 Aug-16 Financial Hedge 966,000 Sep-16 Financial Hedge 882,000 Total 10,584,000 2,965,124 3,082, ,171 $ (3,650,814) NOTE 1. The gallons above the financial hedge volumes, as shown in the variance, were bought at the prevailing market prices. 3

65

66 RESOLUTION 2016 A RESOLUTION APPOINTING COMMITTEE MEMBERS TO SERVE ON THE METROPOLITAN TRANSIT AUTHORITY S NON-UNION PENSION PLAN COMMITTEE; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, Article of the Metropolitan Transit Authority s Non-Union Pension Plan provides that METRO s Board of Directors will appoint members of a committee to administer the Metropolitan Transit Authority s Non-Union Pension Plan; and WHEREAS, the committee has the fiduciary duty and exclusive responsibility for the general administration of the Plan and Trust Fund, and has all powers necessary to accomplish that purpose; and WHEREAS, the Board finds it is necessary to appoint two new members of the pension plan committee to replace Jim Moncur and Pat Sanchez; and plan committee. WHEREAS, the Board appoints Marcus Smith and Rey Reza to serve as a member of the pension NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board hereby appoints Marcus Smith and Rey Reza to serve as committee member on Metropolitan Transit Authority s Non-Union Pension Plan Committee. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January 27, 2016 APPROVED this 27 h day of January 27, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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68 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO NEGOTIATE, EXECUTE AND DELIVER CONTRACTS FOR CONSULTING SERVICES FOR FEDERAL LEGISLATIVE AND AGENCY COORDINATION WITH FTI CONSULTING LLC, AND SQUIRE PATTON BOGGS (US) LLP; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO interacts with the State and Federal governments regarding legislative matters and agency coordination; and WHEREAS, contracts for legal and lobbying services is required to ensure representation in State and Federal Legislative matters; and WHEREAS, the contracts with FTI Consulting LLC, will be for $360,000 and Squire Patton Boggs (US) LLP will be for $60,000. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to negotiate and execute contracts for consulting services for State and Federal legislative and agency coordination with FTI Consulting LLC, for $360,000 and Squire Patton Boggs (US) LLP for $60,000. ATTEST: Section 2. This Resolution is effective immediately upon passage. PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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75 RESOLUTION A RESOLUTION APPROVING PERMANENT CHANGES TO METRO S SMALL BUSINESS PROGRAM TO ALLOW WORK PERFORMED BY A SMALL BUSINESS PRIME TO COUNT TOWARD THE SMALL BUSINESS GOAL OF THE CONTRACT; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, Resolution established a pilot program to allow the work performed by small business prime companies to count toward the small business goal of a contract; and WHEREAS, this pilot program was in effect from October 1, 2014 to September 31, 2015; and WHEREAS, the Board of Directors wishes to make the changes to the small business program permanently, allowing the work performed by the small business prime to count toward the small business goal of the contract. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to make permanent changes to METRO s Small Business Program to allow work performed by a small business prime to count toward the small business goal of the contract. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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77 METRO STAR Request for Board Action Vanpool Management Services Public Safety, Customer Service & Operations Committee January

78 What is a Vanpool and Who Participates? Vanpools are a public transit mode with vans operating as a ride sharing arrangement. Vanpools provide transportation to groups of individuals traveling directly to and from work people sharing a ride to work Common starting point, destination and schedule Participants share driving and operating costs STAR provides the vehicle (capital cost) Travel between residential areas and work sites without convenient transit Motivation is cost savings, sustainability or desire not to drive Page 2 2

79 Program History 1970 s - Private vanpools grew in response to energy crises 1980 s - METRO involvement for contra-flow/hov use METROVan program established as Experimental Services Program (local funding only) H-GAC added grant funding to make METROVan a regional service METRO contracted with 2Plus of Texas for outside vanpool management services Consolidated minipool with METROVan Rebranded service as STAR, A Service of METRO Plus entered into master lease agreements for vanpool vehicles, established a fuel card program and established fare bank accounts on behalf of METRO METRO renewed the contract with 2Plus of Texas for 5 years with 2 one-year options Page 3 3

80 METRO STAR Service History Routes (year-end) Number of Vans (year-end fleet incl. spares) Riders (year-end) 7,025 7,173 7,192 7,182 7,066 Passenger Trips (ridership - FY) 2,430,852 2,497,071 2,497,191 2,462,771 2,478,143 Reduction in Vehicle Miles Travel 58,246,938 60,027,818 63,484,866 61,021,597 62,112,120 Public Subsidy/Boarding $2.04 $2.10 $1.98 $2.10 $2.17 Page 4 4

81 What is the Value for METRO? Public transportation role Alternative regional service 2.5 million passenger trips annually Federal Highway Administration provides dedicated funding (~$5M/year) Ridership generates formula grants for transit (~$5M/year) Regional partnerships Cost effective 60% farebox recovery Match supply and demand (expand/contract rapidly) Better match equipment to infrastructure for many sites Service to locations not served by fixed route Reverse commute options Page 5 5

82 Vanpool Management Services Contract 2Plus of Texas, Inc. 5-year contract with two 1-year options Contract expires February 28, 2016 $31,000,000 base contract Projected contract value remaining = $5,000,000 Page 6 6

83 Vanpool Management Services Program Administration Provide staffing, materials and processes for operating program Business Development Marketing, outreach, customer service and account management Support Services Vehicle arrangements, emergency ride home and systems Page 7 7

84 Recommendation Exercise first 1-year option Extend expiration to February 28, 2017 Increase by $2,015,845 for a not-to-exceed amount of $33,015,845; Provides maximum contract capacity for growth potential Fixed rate amounts established through original solicitation Realign resources within fixed rate amounts to meet current program needs for parking management, outreach, rider placement and billing Benefits of exercising an option year Complete assumption of master lease agreements, fuel card program and fare collection bank accounts Provide time for evaluating future program and lease management opportunities Staff is evaluating options to continue to contract vanpool management services or operate services with METRO staff. Page 8 8

85 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE AND DELIVER A CONTRACT MODIFICATION WITH 2PLUS OF TEXAS, INC. FOR VANPOOL MANAGEMENT SERVICES; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of continued STAR regional van pool management service; and WHEREAS, METRO has a contract with 2Plus of Texas, Inc. to provide STAR regional van pool management services; and WHEREAS, the Board of Directors wishes to continue the STAR regional van pool program; and WHEREAS, it is recommended that a contract modification for the STAR regional van pool program management be executed and delivered, exercising the one year option and increasing the contract amount by $2,015,845. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to execute and deliver a contract modification with 2Plus of Texas, Inc., for vanpool management services, exercising a one year option and increasing the contract amount by $2,015,845. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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87 Service, Monitoring and Inspections of Fire Protection Equipment and Systems January 2016

88 This action involves the execution of a new service contract to provide monitoring, preventive maintenance, inspections, and repairs on the Fire Protection and Life Safety Systems at various METRO Facilities. Current contract CT with Simplex Grinnel LP Awarded on 01/29/13 - NTE $559,568 Expires 1/29/16 Current Contract Small Business Goal attainment 38% vs 35%

89 This contract was procured under solicitation IFB # Solicitation was advertised on 7/19/15 Three bids were received and evaluated Evaluation concluded that only one was a responsive bidder, SimplexGrinnell LP Total Contract is for a NTE of $772,144 Funds for this contract are included in Facilities approved FY16 operational budget and will be included in future budget requests

90 Authorize President and CEO to award a three year contract to SimplexGrinnell LP in an amount not-to-exceed $772,144

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96 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO NEGOTIATE, EXECUTE AND DELIVER A CONTRACT WITH SIMPLEXGRINNELL, L.P. FOR SERVICE, MONITORING AND INSPECTION OF FIRE PROTECTION SYSTEMS; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of service, monitoring and inspection of its fire protection systems at various METRO facilities; and WHEREAS, METRO issued an invitation for bid for these services; and WHEREAS, SimplexGrinnell, L.P. was the only responsive bidder; and WHEREAS, METRO staff recommends a contract for service, monitoring and inspection of METRO s fire protection systems with SimplexGrinnell, L.P. for an amount not-to-exceed $772,144. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to negotiate, execute and deliver a contract for service, monitoring and inspection of METRO s fire protection systems to SimplexGrinnell, L.P. for an amount not-to-exceed $772,144. ATTEST: Section 2. This Resolution is effective immediately upon passage. PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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98 January 2016

99 Current Contract CT with Maldonado Nursery & Landscaping Awarded on 3/7/13 - NTE $1,1144,276 Expires on 03/10/16 Small Business Goal 35% - Achieved Goal 41%

100 This contract was procured under solicitation IFB # Three bids were received and evaluated Lowest responsive bidder was Maldonado Nursery & Landscaping Total contract is for an amount NTE - $1,245,552 Small Business Goal of 35% has been assigned

101 Authorize President and CEO to award a three year contract to Maldonado Nursery & Landscaping in an amount not-to-exceed $1,245,552.

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107 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE AND DELIVER A CONTRACT TO MALDONADO NURSERY & LANDSCAPING TO PERFORM LANDSCAPING SERVICES AT VARIOUS METRO FACILITIES; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of landscaping services at various METRO facilities; and WHEREAS, METRO issued an invitation for bid for landscape services; and WHEREAS, Maldonado Landscaping was the lowest responsive and responsible bidder; and WHEREAS, METRO staff recommends a contract to provide landscape services with Maldonado Landscaping for an amount not-to-exceed $1,245,552. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to execute and deliver a contract for landscaping services at various METRO facilities to Maldonado Nursery & Landscaping for an amount not-to-exceed $1,245,552. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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109 January 2016

110 As a result of the implementation of the new bus network system ridership dynamics have changed drastically Facilities Maintenance went through a comprehensive analysis revisiting every stop, transit center, and park and ride in the system to ensure that the appropriate cleaning frequencies were in place Once this exercise was completed a scope of work was developed and an Invitation for Bids issued to obtain new cleaning contracts In this item we are looking to issue a contract to Elite Janitorial Services to provide cleaning services to stops and shelters in the Southeast and Southwest Sectors. This contract will include the cleaning of 1500 bus stops

111 This solicitation was procured under an Invitation for Bid IB Solicitation was advertised in the early fall of 2015 All bids were submitted on the basis of providing (5) times a week cleaning and once a month pressure washing however; METRO will determine the frequencies of cleaning on a per stop basis Total for this contract will be a NTE $2,961,021

112 Authorize President and CEO to enter in to a (3) year contract with Elite Janitorial Services for a not to exceed amount of $2,961,021

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120 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE AND DELIVER A CONTRACT WITH ELITE JANITORIAL SERVICES, LLC, TO PROVIDE CLEANING SERVICES FOR THE BUS STOPS AND BUS SHELTERS IN THE SOUTHEAST AND SOUTHWEST AREAS OF HOUSTON; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of janitorial services to clean METRO bus stops and bus shelters in the Southeast and Southwest area of Houston; and bidder; and WHEREAS, METRO issued and invitation for bid for janitorial services; and WHEREAS, Elite Janitorial Services, LLC was found to be lowest responsive and responsible WHEREAS, METRO staff recommends a contract for janitorial services with Elite Janitorial Services, LLC for an amount not-to-exceed $2,961,021. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to execute and deliver a contract to Elite Janitorial Services, LLC, for an amount not-to-exceed $2,961,021 for janitorial services in the Southeast and Southwest areas of Houston. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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122 January 2016

123 As a result of the implementation of the new bus network system ridership dynamics have changed drastically Facilities Maintenance went through a comprehensive analysis revisiting every stop, transit center, and park and ride in the system to ensure that the appropriate cleaning frequencies were in place Once this exercise was completed a scope of work was developed and an Invitation for Bids issued to obtain new cleaning contracts In this item we are looking to issue a contract to D&J Cleaning Services to provide cleaning services to stops and properties in the Northeast and Northwest Sectors. This contract will include the cleaning of 800 bus stops

124 This solicitation was procured under an Invitation for Bid IB Solicitation was advertised in the early fall of 2015 All bids were submitted on the basis of providing (5) times a week cleaning and once a month pressure washing however; METRO will determine the frequencies of cleaning on a per stop basis Total for this contract will be a NTE $975,761

125 Authorize President and CEO to enter in to a (3) year contract with D&J Cleaning Services for a not to exceed amount of $975,761

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133 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE AND DELIVER A CONTRACT WITH D&J CLEANING SERVICE, TO PROVIDE CLEANING SERVICES FOR THE BUS STOPS AND BUS SHELTERS FOR THE NORTHEAST AND NORTHWEST AREAS OF HOUSTON; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO is in need of janitorial services to clean METRO bus stops and bus shelters in the Northeast and Northwest Houston area; and and WHEREAS, METRO issued and invitation for bid for janitorial services; and WHEREAS, D&J Cleaning Service was found to be lowest responsive and responsible bidder; WHEREAS, METRO staff recommends a contract for janitorial services with D&J Cleaning Service, for an amount not-to-exceed $975,761. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to execute and deliver a contract to D&J Cleaning Service, for an amount not-to-exceed $975,761, for janitorial services in the Northeast and Northwest Houston areas. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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137 BUDGET CHANGE REQUEST POLICY PURPOSE: The purpose of this policy is to provide guidance to staff relative to changes to any of the Boardapproved budgets. PROVISONS: In October, 2015, the Finance & Audit Committee requested staff to prepare a recommendation relative to the processing and approval of Budget Change Requests and potential Budget Amendments. This policy applies to changes to any of the four budgets that are approved annually by the Board: Operating, Capital, General Mobility or Debt Service. In the course of normal business, there is a periodic need to reallocate funds between line items within approved budgets either within and/or between departments. These transfers occur only within the same budgets, not between budgets. Changes to approved budgets may be made with authorization/approval as follows: Changes up to $250,000 require approval by the CFO or the Director, Office of Management & Budget Changes between $250,000 and $1,000,000 require approval by the President & CEO Changes in excess of $1,000,000 will require Board approval Administrative or Technical changes are changes within the original scope of the budgets and do not represent a change in the Authority's work plan or priorities. These can include changes such as moving budget from one month to another to coincide with a planned expenditure or distributing a COLA when awarded. This type of change may be processed with approval of the CFO or the Director, Office of Management & Budget. Any modifications increasing budgets (Budget Amendments) would require Board approval and will adhere to Texas Transportation Code /103. All budget changes will be reported to the Finance & Audit Committee on a quarterly basis. EXCEPTIONS: None

138 RESOLUTION 2016 A RESOLUTION ADOPTING A POLICY FOR THE APPROVAL OF BUDGET CHANGES; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, financial parameters were approved by the METRO Board of Directors to be used as a framework for the development of the FY2016 Business Plan and Budgets; and WHEREAS, in the course of normal METRO business, there is a periodic need to reallocate funds between line items within approved budgets; and WHEREAS, the Board of Directors would like to establish a policy for the approval of budget change requests and potential budget amendments; and WHEREAS, administrative or technical changes within the original scope of the budgets that do not represent a change in METRO s work plan or priorities may be processed with the approval of the Chief Financial Officer or the Director of the Office of Management & Budget; and WHEREAS, any modifications increasing budgets ( Budget Amendments ) will require Board approval and will adhere to Section of the Texas Transportation Code; and WHEREAS, the Board of Directors Policy allows budget changes within METRO s adopted budgets up to $250,000 to be approved by METRO s Chief Financial Officer or the Director of the Office of Management & Budget; budget changes between $250,000 and $1,000,000 require approval by the President & CEO; and changes in excess of $1,000,000 will require approval by METRO s Board of Directors. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby establishes a Policy to allow for changes up to $250,000 to be approved by METRO s Chief Financial Officer or the Director of the Office of Management & Budget; changes between $250,000 and $1,000,000 to require approval by the President and CEO and Chief Financial Officer; and changes in excess of $1,000,000 will require approval by METRO s Board of Directors. Page 1 of 2

139 Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 2 of 2

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141 January 2016

142 May 2015 Board approved contract with McCarthy Building Companies Contract budget amount of $30,668, Base contract value of $26,584, Owner Controlled Contingency of $4,083, % for unknowns ($2,733,457) Changes from 95% to 100% design plans (est. $750,000) Potential incentive ($600,000) Completion within 367 calendar days from Notice to Proceed 20% small business goal 2

143 Original Baseline Contract Schedule developed by McCarthy is based on: 367 calendar day duration from Notice to Proceed 6 day work week schedule, 1 ten hour shift per day, and 3 construction phase / 4 quadrant approach 3

144 Full Notice-to-Proceed Issued May 11, 2015 Through Traffic At-Grade Open May 12, 2016 Bridge Open for Traffic May 12, 2016 Bridge Completion May 12, 2016 Rail Revenue Ready Fall

145 Unforeseen Site Conditions & Third Party Delays Sub-contractor delays Mobilization of utility crews Real Estate Availability Issues Overhead power line (CenterPoint-Electric) and communications (Comcast and AT&T Legacy) Unknown underground storage tanks & associated soil removal Unknown public utilities Unknown private utilities (CenterPoint-Gas and AT&T) 5

146 Impacts resulted in: Delays in start of public & private utility relocations Contractor adjusted sequence of scheduled work activities to move the project ahead Inefficiencies in performing overall work Overhead power lines and power poles AT&T duct banks Contractual impact to project schedule Contractor submitted request of 90 work days of owner delay. (correlates to 60 calendar days) METRO has negotiated 45 working days 6

147 Original Baseline Revised Baseline Full Notice-to-Proceed Issued May 11, 2016 May Through Traffic At-Grade Open May 12, 2016 July 12, 2016 Bridge Open for Traffic May 12, 2016 July 12, 2016 Bridge Completion May 12, 2016 July 12, 2016 Rail Revenue Ready Fall

148 To improve the opening of the at-grade roadway crossing milestone completion date: Re-sequencing of schedule Acceleration costs of $150,000 At-grade completion date of June 12, 2016 Bridge open to traffic completion date of July 12, 2016 Incentive to complete at-grade by May 31, 2016 Limited to 15 days at $10,000 per day for each day the milestone is completed prior to June 12 Completion of rail installation September 15,

149 Revised Baseline Mitigated Schedule Through Traffic At-Grade Open July 12, 2016 June 12, 2016 *incentivized to May 31, 2016 Bridge Open for Traffic July 12, 2016 July 12, 2016 Bridge Completion July 12, 2016 Sept 15, 2016 Rail Revenue Ready Fall

150 Weather Availability of Materials Union Pacific availability to install crossing City of Houston Noise Ordinance 10

151 Authorize President & CEO to execute a contract modification with McCarthy Building Companies to compensate contractor for unforeseen site conditions, third party delays and to mitigate project schedule to accelerate schedule to meet established milestones with associated costs in the amount of $1.15M, and the discretion to authorize the release, as required, of the balance of the Board approved contract budget amount of $30,668,

152 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE AND DELIVER A CONTRACT MODIFICATION WITH MCCARTHY BUILDING COMPANIES, INC. TO COMPENSATE CONTRACTOR FOR UNFORESEEN SITE CONDITIONS, THIRD PARTY DELAYS AND TO MITIGATE PROJECT SCHEDULE WITH ASSOCIATED COSTS; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, METRO has a contract for the construction of the Harrisburg Overpass Project with McCarthy Building Companies, Inc.; and WHEREAS, the Harrisburg Overpass Project has experienced unforeseen site conditions, third party delays and adjustment of work sequencing to mitigate schedule delays; and WHEREAS, the approved budget amount for the contract to build the Harrisburg Overpass is $30,668,030; and WHEREAS, METRO staff recommends a contract modification be executed and delivered to McCarthy Building Companies, Inc., to compensate the contractor for unforeseen site conditions, third party delays and associated costs to mitigate the contract schedule in the amount of $1,150,000 and that the Board authorize the President and CEO the discretion to spend up to the approved contract budget amount balance to complete the Harrisburg Overpass Project. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to execute and deliver a contract modification with McCarthy Building Companies, Inc., for the construction of the Harrisburg Overpass, to compensate the contractor for unforeseen site conditions, third party delays and associated costs to mitigate the contract schedule in the amount of $1,150,000 and that the Board authorize the President and CEO the discretion to spend up to the approved contract budget amount balance to complete the Harrisburg Overpass Project. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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155 January 2016 Metropolitan Transit Authority of Harris County, Texas

156 METRO Board approved the METRO Rail Expansion Business Assistance Fund (BAF) Program in December In June 2015, METRO Board approved the BAF Program for the Harrisburg Overpass Construction project, established the projects limits for the program (Lockwood Drive to Wayside Drive) and increased the budget of the program to $2.45 M. In September 2015, METRO Board approved revisions to the BAF Guidelines modifying the Diminished Access criteria and the threshold limits for the Loss of Revenue. 2

157 Detour Local Access Only Overpass Construction Limits (Linwood St. to Cesar Chavez) Business Non-Profit Church 3

158 To quickly provide business assistance to affected businesses, modifications to the Eligibility Criteria, the Diminished Access definition and to the notification timeline are being considered. These modifications will allow staff to meet the needs of the businesses that are affected by the construction of the Harrisburg Overpass. 1. Remove definition for Diminished Access i. Utility, roadway, sidewalk, guideway, bridge or foundation work related to the Harrisburg Overpass immediately adjacent to the business ii. Temporary traffic control associated with the work listed above adjacent to the business. 4

159 2. Add Eligibility section to Diminished Access All businesses located within the Direct Construction Limits will be eligible for the Program as long as they meet all the other eligibility requirements outlined in Section II.B, except for Section II.B.4. Property owners located within the Direct Construction Limits may apply for an award even if their tenant is registered in the Program and receiving reimbursement to cover rent. 5

160 3. Revise notification timeline for fund requests to 45 days after beginning rail revenue operations. 4. Add The President & CEO has the discretion to add businesses within the Direct Construction Limits or within the diminished access limits and will report these additions to the Board of Directors. 6

161 Authorize President & CEO to modify the Harrisburg Overpass Business Assistance Fund Administrative Guidelines. 7

162 I. INTRODUCTION HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES To mitigate the impact on small businesses of loss of revenue during light rail construction, METRO has developed a Business Assistance Fund (BAF) for the Harrisburg Overpass. The Business Assistance Fund offers financial help to cover fixed operating expenses. This program is a demonstration of METRO s commitment to being a trusted community partner, and reflects the agency s principles of Partnership, Customer Service and Sustainability. In no event will the award exceed an aggregate amount of $25,000 per business. II. GENERAL PROVISIONS A. Definitions 1. Small business for the purposes of this program is defined as a for-profit business or non-religious, non-profit with less than $1,000,000 in gross annual revenue. 2. Project Limits: Overall project limits are from Lockwood Dr. to Wayside Dr. Direct Construction Limits are defined as immediately adjacent to the Harrisburg Overpass Construction for those businesses that are within the project limits of Linwood St. and 67 TH St. and whose property line abuts and faces the construction 3. Solvency is defined as ability to pay legal debts. Businesses in bankruptcy are still considered solvent as long as they aren t in the process of liquidation. Sole Proprietors that have filed for bankruptcy are not considered solvent. 4. Revenue Decrease is defined as a business whose revenues have decreased by at least 10% in one quarter as compared to the same quarter prior to the start of construction or the quarter immediately prior to the start of construction (February April 2015). This analysis is only applied to those businesses applying for loss of revenue. Businesses will be awarded based on the following scale: 10-16% Revenue Decrease = 50% of award % Revenue Decrease = 75% of award 20% Revenue Decrease = 100% of award 5. Sole Proprietor: a single individual engaging in a business activity without necessity of formal organization. 6. Commercial Property Owners: owners who rent or lease commercial space for retail or office use. Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 1 of 6

163 HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES 7. Residential Property Owners: owners of apartments, duplexes, single family or multi-family complexes are eligible to participate so long as they are immediately adjacent to the Harrisburg Overpass and directly affected by the Harrisburg Overpass construction and are within the limits of the project. B. Eligible Businesses 1. Must be a for-profit business or non-religious, non-profit. 2. Must be immediately adjacent to the light rail corridor whose property line abuts and faces the construction, directly affected by the Harrisburg Overpass construction and within the project limits. 3. Must be pre-qualified to participate in program. 4. Must not have more than $1,000,000 in gross annual revenue 5. Must be solvent. 6. Must be in compliance with all local, state and federal tax filing requirements and must not owe delinquent taxes from any year. 7. Must be operational on or prior to February 1, C. Ineligible Businesses The following types of businesses are ineligible to participate in the Business Assistance Program: 1. Businesses engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs. 2. Businesses generating over 60% of revenues from the sale of alcoholic beverages. 3. Businesses with any products or services of a sexual nature representing over 50% of their revenue. 4. National retailers or outlets unless operated by a single owner under a franchise agreement. 5. Businesses that have not completed the pre-qualification process. D. Eligibility Requirement for Residential & Commercial Property Owners 1. BAF will not accept applications where the property is unoccupied and the owner alleges they are unable to rent/lease property due to construction. 2. If occupied the owner must provide documentation from the tenant that they will not rent or are ending their lease due to construction of the Harrisburg Overpass. Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 2 of 6

164 HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES III. FINANCIAL ASSISTANCE A. Eligible Expenses Upon approval for financial assistance, the following costs may be requested to cover business expenses limited to: 1. Utilities 2. Insurance 3. Rent or Mortgage payments 4. Payroll, or 5. BAF program may consider other types of documented business related expenses. 6. Property owners may only file a claim for mortgage, utilities, insurance and other miscellaneous expenses. B. Multiple requests may be filed but in no event will the amount paid exceed an aggregate amount of $25, per business. IV. APPLICATION PROCESS A. Applicants must be pre-qualified to participate in the program. In order to pre-qualify a business will be required at minimum to provide the following items: Financial Statement, Federal Tax Returns, or Sales Tax Reports as required and requested to analyze eligibility. Official copies of Bills or Debt Obligations. If an applicant is a property owner, the applicant must also provide: o Proof of ownership. o Copies of Tenant Leases. B. The above mentioned items will be used to determine an appropriate amount of BAF assistance. Approval will be based upon a combination of factors including: confirmation of pre-registration/qualification, the financial stability and viability of the company as an ongoing concern, length of time in business, past financial performance, debt capacity, and the overall impact of the construction on the businesses. Management and technical assistance may be provided in preparation of requisite financial statements for determining financial viability. Property owners may not apply for an award if their tenant is also in the Program and is receiving reimbursement to cover rent. Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 3 of 6

165 HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES C. Any requests that do not meet the requirements listed above will be disallowed. V. CONSTRUCTION IMPACTS: AWARDS Awards can be granted based on Loss of Revenue, Diminished Access and Utility Interruption. But at no time will the award from the aggregate of these categories exceed $25,000. The preferred documents used to determine revenue are: Federal tax returns Financial statements Sales tax reports Motor vehicle inventory tax statements Other documents may be accepted at the discretion of the review committee. A. Loss of Revenue Definition A business within the limits of the project that can demonstrate that they have lost at least 10% in gross revenue due to the Harrisburg Overpass construction may receive an award in the amount of their revenue, but limited to a maximum amount of $25,000. Eligibility: Any business applying for loss of revenue must meet the eligibility requirements found at II(B) and the requirements below: 1. Existing corridor businesses that have been acquired by new owners may qualify using a history of past performance by the previous owner. 2. Must have experienced a revenue decline of at least 10% in one quarter as compared to the same quarter prior to the start of construction or the quarter immediately prior to the start of construction (February April 2015). Notification Timeline. All fund request applications must be submitted by August 31, 2016All fund request applications must be submitted no later than 45 days after METRO begins rail revenue operations. Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 4 of 6

166 HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES B. Diminished Access Definition A loss of business access is defined as the loss of use or substantial impairment of customer access to a business within the Direct Construction Limits of the project as a direct result of the Harrisburg Overpass construction. defined by: i. Utility, roadway, sidewalk, guideway, bridge or foundation work related to the Harrisburg Overpass immediately adjacent to the business. ii. Temporary traffic control associated with the work listed above adjacent to the business. Eligibility All businesses located within the Direct Construction Limits will be eligible for the Program as long as they meet all other eligibility requirements outlined in Section II.B, except for Section II.B.4. Property owners located within the Direct Construction Limits may apply for an award even if their tenant is already registered in the Program and receiving reimbursement to cover rent. Award Businesses experiencing Diminished Access will be awarded $5,000 for each month impacted; with the $25,000 maximum award limit for all awards. Notification Timeline. All fund request applications must be submitted no later than 45 days after METRO begins rail revenue operations. All fund request applications must be submitted by August 31, C. Utility Interruption Definition A business that is impacted by a scheduled utility interruption due to the Harrisburg Overpass construction which lasts longer than one operating day as confirmed by the utility company, 311 or the METRO construction field team may be awarded the equivalent of 20% of average daily gross revenues for each day of the scheduled utility interruption or Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 5 of 6

167 HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES actual documented expenses up to 100% of average daily gross revenue for each day the utility outage continues. D. Unscheduled Utility Interruption A business that is impacted by an unscheduled utility interruption resulting in property damage or bodily injury is excluded from these guidelines and a claim must be filed through METRO s OCIP division for their loss. Notification Timeline. All fund request applications must be submitted no later than 45 days after METRO begins rail revenue operations. All fund request applications must be submitted by August 31, VI. APPELLATE PROCESS A. A business denied BAF assistance may request reconsideration of their denial. Such requests must be in writing and include an explanation of why the denial should be reconsidered along with any supporting documentation. Requests must be sent to: Director, Business Assistance Fund METRO, Planning, Engineering & Construction P.O. Box th Floor, Room Houston, TX B. The review will be conducted by the BAF Project Manager who will refer his/her recommendation to an internal METRO review team selected by METRO s President & CEO. C. The decision of the review team is final. VII. METRO RIGHTS AND RESPONSIBILITIES A. METRO reserves the right to make final decisions regarding BAF requests. B. METRO reserves the right to deny or rescind a BAF award at any time. C. The President & CEO has the discretion to add businesses within the Direct Construction Limits or within the diminished access limits and will report these additions to the Board of Directors. B. C.D. METRO is not responsible for closures by entities other than METRO. D.E. METRO is not responsible for scheduled business disruptions of less than one business day. Harrisburg Overpass Business Assistance Fund 1/20/2016 Page 6 of 6

168 RESOLUTION 2016 A RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO MODIFY THE HARRISBURG OVERPASS BUSINESS ASSISTANCE FUND ADMINISTRATIVE GUIDELINES; AND MAKING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, Board Resolution approved the Business Assistance Fund Program for the Harrisburg Overpass construction project and established the project limits for the program; and WHEREAS, Board Resolution approved revisions to the Business Assistance Fund Program modifying the diminished access criteria and threshold limits for loss of revenue; and WHEREAS, the Board of Directors wishes to modify the eligibility and diminished access criteria, the threshold limits for the loss of revenue and the notification timeline to quickly provide business assistance to affected businesses and to allow the President and CEO the discretion to add businesses within the direct construction limits or within the diminished access limits. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE METROPOLITAN TRANSIT AUTHORITY THAT: Section 1. The Board of Directors hereby authorizes the President and CEO to modify the Harrisburg Overpass Business Assistance Guidelines. Section 2. This Resolution is effective immediately upon passage. ATTEST: PASSED this 27 th day of January, 2016 APPROVED this 27 th day of January, 2016 Assistant Secretary Gilbert Andrew Garcia, CFA Chairman Page 1 of 1

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170 January 2016

171 Pilot Program Category Days of Operation ARBOC Shuttle Cab Service 1 st Tuesday of each month 1 st Tuesday of each month Daily Hours 9 9 Cost Per Hour $ 52 + $ 8 (OT) $ 39 Daily Cost $ 540 $ 351 ANNUAL COST $ 6,480 $ 4,212 Fare Free with Rail transfer Free with Rail transfer 311 Bayou Event Shuttle (Southbound) From Fannin South TC, right onto Bellfort, left onto Fannin, left onto Holmes, right onto Almeda, right onto Bayou Event Center property. 311 Bayou Event Shuttle (Northbound) From Bayou Event Center, right onto Knight Road, right onto Holmes, make U-turn at Holmes and Almeda under the Almeda overpass, continue west on Holmes to Fannin, make right on Fannin, make right onto Bellfort, make left into Fannin South TC. 2 2