The agenda and supporting materials are included in this package for your review.

Transcription

1 Meeting of the Transportation District Commission of Hampton Roads Thursday, January 31, :00 p.m. 2nd Floor Board Room 3400 Victoria Boulevard, Hampton, VA A meeting of the Transportation District Commission of Hampton Roads will be held on Thursday, January 31, 2019 at 1:00 p.m. at 3400 Victoria Boulevard, Hampton, VA. The meeting is open to the public and in accordance with the Board s operating procedures and in compliance with the Virginia Freedom of Information Act, there will be an opportunity for public comment at the beginning of the meeting. The agenda and supporting materials are included in this package for your review.

2 Meeting of the Transportation District Commission of Hampton Roads Thursday, January 31, :00 p.m. 2nd Floor Board Room 3400 Victoria Boulevard, Hampton, VA. 1. Call to Order & Roll Call 2. Public Comments 3. Approval of December 13, 2018 Meeting Minutes 4. President s Monthly Report - William Harrell A. Board Updates 5. Committee Reports A. Audit & Budget Review Committee - Commissioner Hunter/ Conner Burns, Chief Financial Officer November & December 2018 Financial Reports Acceptance of the Annual Financial Audit B. Operations & Oversight Committee - Commissioner Parnell/ Sonya Luther, Director of Procurement Contract No: Automated Bus Technology Consortium (Phase I) Recommending Commission Approval: Award of a contract to AECOM Technical Services, Inc. for participation in a transit agency consortium for an automated bus technology deployment program in the not-to-exceed amount of $100,000. Contract No: Elizabeth River Ferry Dock Reconstruction Recommending Commission Approval: Award of a contract to Corman Kokosing Construction Company to perform Elizabeth River Ferry dock reconstruction in the not-to-exceed amount of $2,637,000.

3 Contract No: Legal Services (Renewal) Recommending Commission Approval: Award of a renewal contract to Williams Mullen, Vandeventer Black, and Pender & Coward to provide legal services in the combined not-to-exceed amount of $2,975,000 for a term of five (5) years. Contract No: Security Guard Services (Renewal) Recommending Commission Approval: Award of a renewal contract to Top Guard Services to provide security guard services in the not-to-exceed amount of $5,636, over a five-year period. Contract No: TRAFFIX General Communications and Marketing Consultant Services Recommending Commission Approval: Award of a contract to Siddall Communications, Inc. to provide HRT s TRAFFIX Department with general communications and marketing consultant services in the not-toexceed amount of $450,000. Contract No: Two (2) 40 MAX Suburban Diesel Buses Recommending Commission Approval: Award of a contract to Gillig to procure two (2) heavy duty 40 Suburban buses in the total amount of $1,001,306. C. Planning and New Starts Development Committee - Commissioner Wood D. External/Legislative Advisory Committee - Commissioner Kanoyton E. Management/Financial Advisory Committee Brian DeProfio/ Conner Burns, Chief Financial Officer F. Paratransit Advisory Subcommittee - Ms. Janice Taylor, Chair G. Transit Ridership Advisory Sub-Committee Ms. Doris Johnson, Chair

4 6. Old and New Business Resolution No : Authorizing the issuance of bonds, notes and other obligations in a maximum principal amount not to exceed $17,000, to evidence a revolving line of credit. 7. Comments by Commission Members 8. Closed Session (as necessary) 9. Adjournment The next meeting will be held on Thursday, February 28, 2019 at 1:00 p.m. in the 2nd Floor Board Room at 509 E. 18 th Street, Norfolk, VA.

5 Meeting Minutes of the Transportation District Commission of Hampton Roads Thursday, December 13, :00 p.m. 2nd Floor Board Room 509 E. 18 th Street, Norfolk, VA Call to order A quorum was attained, and Chairman Fuller called the meeting to order at 3:04 p.m. Commissioners in attendance: Chairman Fuller, Chesapeake Past Chair Woodbury, Newport News Vice Chair Hunter, Portsmouth Commissioner West, Chesapeake Alt. Commissioner Sorey, Chesapeake Commissioner Pittard, VDRPT Alt. Commissioner Cipriano, Newport News Commissioner Gray, Hampton Commissioner McClellan, Norfolk Alt. Commissioner Inman, Norfolk Commissioner Rowe, Portsmouth Commissioner Ross-Hammond, Virginia Beach Commissioner Wood, Virginia Beach Alt. Commissioner Reel, Virginia Beach Hampton Roads Transit Staff in attendance: Kim Ackerman, Chief Human Resource Officer Ray Amoruso, Chief Planning and Development Officer Debbie Ball, Assistant Director of Finance Keisha Branch, Capital Programs & Grant Administration Officer Conner Burns, Chief Financial Officer David Burton, General Counsel, Williams Mullen Alesia Cain, Chief Technology Officer Gene Cavasos, Director of Marketing & Communications Rodney Davis, Director of Customer Relations Margaret Denoncourt, Internal Auditor Glenda Dixon, Director of ERP Services Sheri Dixon, Manager of Revenue Services Angela Glass, Director of Budget & Financial Analysis William Harrell, President and CEO Tom Holden, Media Relations Specialist Keith Johnson, Manager of Paratransit 1

6 Sonya Luther, Director of Procurement Shanti Mullen, Auditor I Sibyl Pappas, Chief Engineering & Facilities Officer Mike Perez, Director of Rolling Stock Jim Price, Chief Transit Operations Officer Luis R. Ramos, Sr. Executive Assistant/Commission Secretary Sylvia Shanahan, Director of Finance Benjamin Simms, Director of Transportation Brandon Singleton, Assistant Director of Budget Brian Smith, Chief of Staff Mark Stemple, Director of Maintenance Brittany Sumpter, DBE & Grants Coordinator Robert Travers, Corporate Counsel Others in attendance: Tracy Bedgood, Cherry Bekaert Consultants Judith Brown, League of Women Voters Krista Edoff, Cherry Bekaert Consultants Andrew Innis, VADRPT Carl Jackson, City of Portsmouth Denise Johnson, Chair, Transit Ridership Advisory Committee Roy Kientz, WSP Ina Kreps, Citizen Paratransit Customer Simon Mosbah, WSP Janice Taylor, Chair, Paratransit Advisory Committee Constantinos Velissarios, City of Newport News Andrew Zalewski, Foursquare ITP The TDCHR meeting package was distributed electronically to all Commissioners, the media, and the public in advance of the meeting. The meeting package consisted of: Agenda Meeting Minutes President s Report Presentation Social Media Analytics Committee Reports Alt. Commissioner Sorey and Commissioner Ross Hammond arrived 3:07 p.m. Public Comments Ms. Judith Brown stated that she traveled to the Commission meeting by bus and shared some insight on what made it a very pleasant experience to include a very courteous operator. A motion to close the Public Comments was made by Alternate Commissioner Iman and properly seconded by Commissioner Ross-Hammond. A roll call vote resulted as follows: 2

7 Ayes: Nays: Abstain: Commissioners Fuller, Sorey, Pittard, Gray, Inman, Jackson, Ross-Hammond, and Wood. None None Approval of the November 2018 TDCHR Meeting Minutes A motion to approve the November 2018 meeting minutes, was made by Alternate Commissioner Jackson and properly seconded by Commissioner Gray. A roll call vote resulted as follows: Ayes: Nays: Abstain: Commissioners Fuller, Sorey, Pittard, Gray, Iman, Jackson, Ross-Hammond, and Wood. None None President s Monthly Report Mr. Harrell welcomed everyone to the meeting. Commissioner Jim Wood was recognized for his commitment and dedication to the Commission. Commissioner Wood gave some words of thanks and noted City Councilman Aaron Rouse will be representing the City of Virginia Beach on the Board. Mr. Harrell thanked everyone for pushing the meeting back to 3:00 p.m. and accommodating the Joint HRTPO/HRTAC meeting that was held in Chesapeake. Mr. Harrell stated that the regional Transit Transformation Project was underway and introduced Dr. Brian Smith. Dr. Smith provided information on the project and introduced Roy Kienitz of WSP, who is the lead consultant on the project. Mr. Kienitz gave a presentation on a Performance Diagnostic of HRT that was recently completed, comparing HRT with eight peer agencies using data from the National Transit Database. Key observations that were noted included: HRT operating costs are 20% below average, the lowest among peers. Bus service offered per rider is 25% above the peer average. The base bus fare of $2.00 is slightly above average, however fare discounting and longer average trips contribute to fare earnings per mile at 25% below average. HRT farebox recovery ratio is slightly below average. HRT bus ridership is down 15% over 10 years, while ridership at peers agencies is down 20%. 3

8 The HRT bus fleet is older and experiences more breakdowns than the peer average. The region spends significantly less per capita on transit compared to peers. It was stated that HRT is efficient overall, but services may not be aligned with highest demand and that WSP would be looking at what a different bus network for the region could look like. There was discussion on how new service may look different. There was a discussion regarding ridership and its relation to the size of the bus fleet. There was some discussion regarding geography playing a role in the length of time passengers are on a bus. Commissioner Rowe stated that where we send our buses is more important and that HRT needs to go where people are. Mr. Harrell commented on the benefit of having this data as the project evaluates and determines how the HRT of tomorrow will look very different than it does today. NOTE: Commissioner s Rowe, Woodbury, and McClellan arrived shortly thereafter. Commissioner West arrived at 3:17 p.m. and was sworn in by Mr. Burton. Commissioner West replaced Alternate Commissioner Sorey at the table. COMMITTEE REPORTS Audit and Budget Review Committee Financial Report Mr. Conner Burns introduced Ms. Krista Edoff and Tracy Bedgood with Cherry Bekaert. Ms. Edoff gave a presentation on the draft financial audit conducted by Cherry Bekaert. Cherry Bekaert stated it will finalize the work next week to be transmitted to the Board. Cherry Bekaert is requesting that the Commissioners review the data and present questions next week, so a proper response to any question can be brought forth. There was a question regarding utilizing HRTs internal auditor in the financial audit and it was stated that Cherry Bekaert does not use services of our internal audit. Mr. Burns stated that financial variance was less than $500 and commended staff on the report. Mr. Burns stated that Ms. Silvia Shanahan is retiring at the end of December and Mr. Brandon Singleton was leaving HRT to pursue a new career opportunity in the private sector. Mr. Burns presented the October Financial Report and noted that he gave a full presentation at MFAC. Commissioner McClellan left the meeting at 4:04 p.m. and was replaced at the table by Alternate Commissioner Inman. 4

9 Operations and Oversight Committee Ms. Sonya Luther presented the following contracts for approval: Contract No , Provision of Magnetic Fare Media (Renewal) was recommended for Commission approval to award a contract to Electronic Data Magnetic, Inc to provide commercial banking services in the amount of $165, A motion to approve Contract No , Provision of Magnetic Fare Media (Renewal) was made by the Operations and Oversight Committee and properly seconded by Commissioner Woodbury. A roll call vote resulted as follows: Ayes: Nays: Abstain: Commissioners Fuller, Woodbury, West, Pittard, Gray, Cipriano, Inman, Rowe, Ross- Hammond, Wood None None Planning and New Starts Development Committee The Planning and New Starts Development Committee did not meet in November and no report was given. External Legislative Advisory Committee (ELAC) Mr. Joe Dillard stated that ELAC did not meet, however in lieu of this HRT hosted a round table lunch meeting with regional lobbyists from various organizations. Mr. Dillard stated that the discussion included transit service levels and funding for the Hampton Roads region as well as was going on in Northern Virginia related to statewide transit funding. Commissioner West left at 4:16 p.m. and was replaced by Alternate Commissioner Sorey at the table. Management Finance Advisory Committee (MFAC) Mr. Karl Daughtrey spoke in the absence of MFAC Chair, Mr. DeProfio, and provided an overview of the MFAC meeting. It was stated that the MFAC recommends that localities be credited over the remaining half of the fiscal year approximately half of the $554,000 in additional State funding that was provided for FY

10 Mr. Harrell spoke regarding state revenues and stated that HRT intends at the January meeting to have a projection of revenues and expenses through the end of the fiscal year to help inform decision making Mr. Harrell requested that the Board not entertain any refunds or advance credits to localities at this time, until HRT provides financial projections at the January board meeting. There was a discussion regarding potential credits and the budget. Recommendations were discussed. Mr. Harrell stated that had, HRT known earlier in the FY2019 budget development process that there would be additional funding coming from state, HRT would have moved more federal dollars to the capital program, which has been a need the Commission has discussed and was also documented in the recent financial review conducted by the DRPT. Ms. Cipriano stated that this topic has been very actively discussed since May and she would support a one-month delay however wants to also know what steps have been taken to secure funding relief due to inclement weather events. Paratransit Advisory Sub-Committee (PAC) There was no report given. It was stated that the committee met on Tuesday. Transit Ridership Advisory Committee (TRAC) Ms. Doris Johnson stated that TRAC met on November 17 th and provided an update of the meeting. Ms. Johnson stated that public participation on transformation project was requested at the meeting. Ms. Johnson stated that HRT security initiatives and security issues were addressed by HRT. Old and New Business Mr. Andrew Innis with the Department of Rail and Public Transportation gave a presentation on a safety audit of light rail as included in the meeting package. Commissioner Rowe motioned that the President and CEO be directed to write a letter to the Norfolk City Manager regarding the report on the light rail safety hazards and asking the City of Norfolk to take corrective actions. Commissioner Ross-Hammond seconded the motion. A roll call vote resulted as follows: Ayes: Nays: Abstain: Commissioners Fuller, Cipriano, Sorey, Gray, Rowe, Ross-Hammond, and Reel. None Pittard, Inman 6

11 Alternate Commissioner Inman stated that Norfolk is looking at the report and their first concern is the safety of the customers, and they will take the information into consideration as they move forward with the report and corrective actions. NOTE: Commissioner Wood left the meeting at 4:29 p.m. and was replaced by Alternate Commissioner Reel. Commissioner Woodbury left at 4:31 p.m. Attorney David Burton read Resolution , Adopting Update to the HRT Capital Improvement Plan (CIP) for FY FY A motion to approve Resolution , Adopting Update to the HRT Capital Improvement Plan (CIP) for FY FY 2025 was made by Commissioner Gray and properly seconded by Commissioner Ross-Hammond. A Roll call vote resulted as follows: Ayes: Nays: Abstain: Commissioners Fuller, Sorey, Cipriano, Pittard, Gray, Rowe, Inman, Ross-Hammond, and Reel. None None Comments by Commissioners There were no comments by commissioners Adjournment The meeting adjourned at 4:54 p.m. TRANSPORTATION DISTRICT COMMISSION OF HAMPTON ROADS ATTEST: Douglas Fuller Chair Luis R. Ramos, Commission Secretary January 24,

12 TDCHR Board Meeting December 13,

13 Board Update HRT Performance Diagnostic - WSP Annual Financial Statements - Cherry Bekaert 2

14 TDCHR Board Meeting December 13,

15 HAMPTON ROADS TRANSIT President s Report January 2019 EVALUATING PERFORMANCE AND CHARTING THE PATH AHEAD The Transit Transformation Project ( is underway. This is an opportunity, working with stakeholders, to shape the future with more efficient and effective bus transit to serve the region better. In the months ahead, we ll be evaluating our options, keeping in mind these six overarching goals for the HRT system: 1. Provide multimodal options for access to major activity centers, jobs, higher education, schools, healthcare, grocery stores, cultural and sports venues and community services across the region, regardless of jurisdictional boundaries. 2. Provide safe and accessible service to all users including people with disabilities, people who depend on transit, seniors, and youth. 3. Provide frequent and reliable service that offers regional connections in line with travel demand. 4. Provide a customer-centric service by making it easier to understand and more attractive, leveraging up-to-date technology for providing real-time information and payment options. 5. Support economic and land use development plans and attract new businesses to the region. 6. Reduce congestion and limit the environmental impacts of transportation by making a more efficient use of roadway space, taking cars off the road, and reducing bus emissions. We know the HRT bus system needs to be relevant and reliable to effectively support the region s economic health and prosperity, as reflected in these goals. It s also important, as we look to evaluate new service options, to have a comprehensive understanding of the performance of the current system. To this end, last month Roy Kienitz of WSP, the lead consultant for the Transit Transformation Project, reported results of a performance diagnostic on HRT. This information helps provide a strong baseline to compare between what the region has today and what HRT could look like in the future. WSP s assessment relied on data reported to the National Transit Database. This is the most reliable depository of data available nationwide. HRT was compared to 8 peer agencies (Pinellas Suncoast Transit Authority; Jacksonville Transit Authority; Central Ohio Transit Authority; Sacramento Regional Transit District; San Bernardino County Public Transit; Southwest Ohio Regional Transit Authority; Kansas City Area Transit Authority; Charlotte Area Transit System; and Greater Richmond Transit Company). Here is a snapshot of observations from WSP s assessment: HRT Operating Costs are the lowest among peer agencies 20 percent lower than the average. HRT provides a broad level of service the overall amount of bus service offered per rider is 25 percent above the peer average. HRT s base fare of $2.00 is slightly above average. However, longer average trips and fare discounts appear to result in actual earnings retained from fares that are about 25 percent below average. HRT s farebox recovery (which is the amount of operating costs that are covered by passenger fares) is slightly below average. Ridership on HRT buses has decreased about 15 percent over 10 years, while peer agencies have experienced about a 20 percent decrease. HRT s bus fleet is older than others and is subject to more frequent breakdowns. There is significantly less spending per capita on transit in Hampton Roads compared to other regions.

16 HAMPTON ROADS TRANSIT President s Report January 2019 As these observations suggest, the design and performance of the current system as well as the funding that is necessary to deliver more reliable service certainly merit closer scrutiny. It s time to roll up our sleeves! We ll be diving deeper in the months ahead. Here are the 8 goals for the Transit Transformation Project moving forward: 1. Present a truly regional, cross-boundary analysis of service needs based on a blank-slate analysis of current travel demand, demographics, land uses, and new service design in comparison to current system performance. 2. Be open to hard conversations on service trade-offs such as frequency vs. coverage, on system inefficiencies, and on planning and funding while explaining the steps necessary to implement service changes. 3. Think outside the box to propose solutions to operational, service provision, and financial issues: consider testing and revisiting new service/service changes, pilots for new technologies and mobilities, different service patterns for different areas, etc. 4. Describe and promote the value of transit as a critical regional need for supporting economic growth and access to jobs in the region, as well as transit branding, including vehicles. 5. Present clear and new options of service models for transit in Hampton Roads including high-frequency service and on-demand service, while considering local needs. 6. Develop a final cost-neutral plan with recommendations for service, cost allocation and funding strategy (if different from current model), and customer-oriented improvements, which shall be adopted by HRT s governing board and endorsed by the Hampton Roads Metropolitan Planning Organization as required by the Commonwealth of Virginia. 7. Develop additional options for targeted capital and operating investments for the cities and the region, including improvements to reduce trip time and appropriate vehicle investments and amenities. 8. Communicate broadly, spread the enthusiasm, and engage the cities, regional stakeholders, the HRT governing board, and the general public, including current users, in decision-making at all stages of the project. Sincerely, William E. Harrell President and CEO Hampton Roads Transit

17 HAMPTON ROADS TRANSIT Social Media Analytics November - December 2018 FACEBOOK STATS November 1 November 30, 2018 HRT s Total fans: 12,706 Total posts: 9 Impressions: 13,363 Engagements: 211 Clicks: 29 People engaged: 59% female, 41% male Women between most active users December 1 December 31, 2018 HRT s Total fans: 12,715 Total posts: 13 Impressions: 27,864 Engagements: 620 Clicks: 550 People engaged: 59% female, 41% male Women between most active users FACEBOOK TOP POSTS Post Reactions Comments Engagement Reach Hampton Roads Transit HRT will operate The Tide light rail and the Elizabeth River Ferry until 2 a.m. on #NewYearsEve for those celebrating in Downtown Norfolk or Portsmouth, Virginia. Rail service will run every 30-minutes starting at 9 p.m. The last train will leave MacArthur Square for Newtown Road at about 1:30 a.m. Normally, service stops at 11 p.m. on weekdays. Parking is free at Ballentine/Broad Creek, Military Highway and Newtown Road train stations. For customers of the Elizabeth River Ferry, the last boat leaving Waterside will be 1:45 a.m. Ferry service will operate every 30 minutes. The additional service is being provided by the City of Norfolk Government and City of Portsmouth in support of events celebrating the year's end. Waterside District is hosting a large party, New Year s Eve Live, while the Hilton Norfolk THE MAIN is also hosting special events. Both locations are served by the MacArthur Square light rail station. HRT will provide regular weekday bus service. For more information on transit services, visit gohrt.com % 1,887 (Post) December 26, :23 am Hampton Roads Transit #ThrowbackThursday to December 1, 1955 when Civil rights activist Rosa Parks refused to surrender her bus seat to a white passenger, spurring the Montgomery boycott and other efforts to end segregation. This past Halloween, this adorable young lady dressed as Rosa Parks for a school history project. We had a blast doing this photoshoot at HRT. #RosaParks #MotherOfTheFreedomMovement #gohrt % 1,205 (Post) December 20, :30 am Hampton Roads Transit Happy New Year s Eve! Goodbye , Hello ! Just a reminder, HRT will operate The Tide light rail and the Elizabeth River Ferry services until 2:00 a.m. for people participating in any of the numerous events taking place in Downtown Norfolk or Portsmouth, Virginia #TagAFriend #gohrt % 1,010 (Post) December 31, :42 pm

18 HAMPTON ROADS TRANSIT Social Media Analytics November - December 2018 TWITTER STATS November 1 November 30, 2018 HRT s Total followers: 6,468 Tweets sent: 60 Retweets: 27 Mentions received: 67 Impressions: 62,349 Engagements: 302 Clicks: 44 People engaged: 54% male, 46% female Men between most active users December 1 December 31, 2018 HRT s Total followers: 6,486 Tweets sent: 56 Retweets: 44 Mentions received: 111 Impressions: 59,663 Engagements: 511 Clicks: 83 People engaged: 54% male, 46% female Men between most active users TWITTER TOP POSTS Tweet Reach Responses Clicks Retweets gohrt_com Planning to ring in the New Year this year? HRT and have extended light rail and ferry service until 2am Dec. 31st. #HappyNewYear #TryTransit #Safetyfirst 23, (Tweet) December 22, :51 pm gohrt_com 7, (Tweet) December 29, :14 pm gohrt_com Party on, HRT extends hours for New Year's Eve 6, (Tweet) December 29, :46 pm gohrt_com HRT s offering extended service for rail and ferry on New Year's Eve 6, (Tweet) December 25, :25 pm Please provide stop location and direction of travel so we can investigate. 1 (Tweet) December 19, :53 pm

19 Draft Financial Statement NOVEMBER 2018 FISCAL YEAR 2019 FINANCIAL REPORT 1

20 OPERATING FINANCIAL STATEMENTS NOVEMBER 2018 FISCAL YEAR 2019 Annual Month to Date Year to Date Dollars in Thousands Budget Budget Actual Variance Budget Actual Variance Operating Revenue Passenger Revenue $ 15,160.4 $ 1,163.8 $ 1,212.6 $ % $ 6,750.1 $ 6,754.9 $ % Advertising Revenue % % Other Transportation Revenue 2, % % Non-Transportation Revenue % % Total Operating Revenue 18, , , % 7, , % Non-Operating Revenue Federal Funding 18, , ,509.3 (127.5) (7.8) % 7, ,863.4 (309.4) (4.3) % State Funding 19, , , % 8, , % Local Funding 43, , ,607.4 (0.0) (0.0) % 18, ,037.0 (0.0) (0.0) % Total Non-Operating Revenue 80, , ,788.5 (81.3) (1.2) % 33, ,259.8 $ (78.4) (0.2) % TOTAL REVENUE $ 98,888.6 $ 8,275.9 $ 8,306.2 $ 30.3 $ 41,299.4 $ 41,495.3 $ Personnel Services $ 64,152.7 $ 5,425.6 $ 5,247.3 $ % $ 26,616.3 $ 25,980.6 $ % Contract Services 8, (108.6) (15.5) % 3, , % Materials & Supplies 10, (93.0) (11.5) % 4, ,936.1 (419.7) (9.3) % Utilities 1, % % Casualties & Liabilities 4, % 1, , % Purchased Transportation 8, % 3, , % Other Miscellaneous Expenses 1, % % TOTAL EXPENSE $ 98,888.6 $ 8,275.9 $ 8,235.5 $ 40.4 $ 41,299.4 $ 40,454.1 $ SURPLUS (DEFICIT) ,041.2 Draft Financial Statement 2

21 OPERATING FINANCIAL STATEMENTS NOVEMBER ,800, ,600, ,400, ,200, ,000, , , , , Farebox Revenue JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY18 ACTUAL FY19 BUDGET FY19 ACTUAL Total Expenses 9,500, ,000, ,500, ,000, ,500, ,000, ,500, ,000, ,500, ,000, JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY18 ACTUAL FY19 BUDGET FY19 ACTUAL Draft Financial Statement 3

22 PROCUREMENTS BETWEEN $50K-$100K NOVEMBER 2018 Contract Number Contract Description Cost Center Funding Source Nov 18 Method of Procurement Award Amount Award Date Awarded Vendor Performance Period Elevator Maintenance and Facilities Operations RFQ $ 85, /15/2018 Atlantic Blueridge Elevator Co. 1 yr. w/4 1 yr. options Inspection Services PeopleSoft HCM Payroll North Ameri Technology Operations RFQ $ 75, /29/2018 Oracle America, Inc. 1 year Rapid Recovery Appliance Technology Operations RFQ $ 78, /29/2018 Electronic Systems, Inc. 5 years 4

23 Draft Financial Statement DECEMBER 2018 FISCAL YEAR 2019 FINANCIAL REPORT 1

24 OPERATING FINANCIAL STATEMENTS DECEMBER 2018 FISCAL YEAR 2019 Annual Month to Date Year to Date Dollars in Thousands Budget Budget Actual Variance Budget Actual Variance Operating Revenue Passenger Revenue $ 15,160.4 $ 1,195.2 $ 1,188.4 $ (6.8) (0.6) % $ 7,945.3 $ 7,943.2 $ (2.0) (0.0) % Advertising Revenue (21.8) (88.5) (132.8) % % Other Transportation Revenue 2, % 1, , % Non-Transportation Revenue % % Total Operating Revenue 18, , ,393.1 (44.3) (3.1) % 9, , % Non-Operating Revenue Federal Funding 18, , ,507.2 (129.6) (7.9) % 8, ,370.7 (353.5) (4.1) % State Funding 19, , , % 9, , % Local Funding 43, , ,607.4 (0.0) (0.0) % 21, ,644.5 (0.0) (0.0) % Total Non-Operating Revenue 80, , ,786.5 (83.4) (1.2) % 40, ,046.3 $ (76.2) (0.2) % TOTAL REVENUE $ 98,888.6 $ 8,307.2 $ 8,179.6 $ (127.7) $ 49,521.1 $ 49,674.9 $ Personnel Services $ 64,148.6 $ 5,357.5 $ 5,406.4 $ (48.9) (0.9) % $ 31,972.1 $ 31,387.0 $ % Contract Services 8, % 4, , % Materials & Supplies 10, (94.2) (11.5) % 5, ,851.1 (513.8) (9.6) % Utilities 1, (9.3) (8.9) % % Casualties & Liabilities 4, % 2, , % Purchased Transportation 8, % 4, , % Other Miscellaneous Expenses 1, (2.7) (1.9) % % TOTAL EXPENSE $ 98,888.6 $ 8,221.8 $ 8,173.3 $ 48.4 $ 49,521.1 $ 48,627.4 $ SURPLUS (DEFICIT) 6.3 1,047.5 Draft Financial Statement 2

25 LOCALITY CROSSWALK DECEMBER 2018 Draft Financial Statement 3

26 OPERATING FINANCIAL STATEMENTS DECEMBER ,800, ,600, ,400, ,200, ,000, , , , , Farebox Revenue JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY18 ACTUAL FY19 BUDGET FY19 ACTUAL Draft Financial Statement 4

27 LOCALITY RECONCILIATION DECEMBER 2018 YTD October 2018 FISCAL YEAR 2019 (Dollars in Thousands) Total Local Annual Year to Date Budget Budget Actual Variance Locality Operating Share $ 43,288.9 $ 14,429.7 $ 14,429.7 Plus: Local Farebox $ 14,546.2 $ 5,359.9 $ 5,215.9 Locality Share Sub Total $ 57,835.1 $ 19,789.6 $ 19,645.6 $ (144.0) Plus: Federal Aid $ 13,975.7 $ 4,229.4 $ 4,304.2 $ 74.8 State Aid $ 18,142.3 $ 6,047.5 $ 6,232.3 $ Total Revenue Contribution $ 89,953.1 $ 30,066.5 $ 30,182.1 $ Operating Expenses $ 89,953.1 $ 30,066.5 $ 29,445.2 $ (621.3) Budget Status to Date: $ * KPI's Farebox Recovery 16.2% 17.8% 17.7% Farebox as a % of Locality Share Sub Total 25.2% 27.1% 26.5% Farebox as a % of Locality Operating Share 33.6% 37.1% 36.1% Draft Financial Statement 5

28 LOCALITY RECONCILIATION DECEMBER 2018 FISCAL YEAR 2019 (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 2,510.4 $ 1,255.2 $ 1,255.2 Plus: Local Farebox $ $ $ Locality Share Sub Total $ 3,257.3 $ 1,646.7 $ 1,635.0 $ (11.7) Plus: Federal Aid $ $ $ $ (0.6) State Aid $ 1,015.0 $ $ $ 9.2 Total Revenue Contribution $ 5,161.0 $ 2,581.4 $ 2,578.3 $ (3.1) Operating Expenses $ 5,161.0 $ 2,581.4 $ 2,522.9 $ (58.5) Budget Status to Date: $ 55.4 KPI's Chesapeake Farebox Recovery 14.5% 15.2% 15.1% Farebox as a % of Locality Share Sub Total 22.9% 23.8% 23.2% Farebox as a % of Locality Operating Share 29.8% 31.2% 30.3% YTD October 2018 Chesapeake FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance $ 2,510.4 $ Locality Operating Share $ $ Plus: Local Fa rebox $ $ $ 1, ,098.5 Locality Share Sub Total 3,257.3 $ $ (13.5) $ $ (0.6) Plus: Federa l Aid $ $ $ $ State Aid 1,015.0 $ $ $ $ 1,708.0 (11.3) Total Revenue Contribution 5,161.0 $ 1,719.3 $ $ $ 1,652.9 (66.4) Operating Expenses 5,161.0 $ 1,719.3 $ $ Budget Status to Date: $ 55.1 KPI's Farebox Recovery 14.5% 16.0% 15.8% Farebox as a % of Locality Share Sub Total 22.9% 24.7% 23.8% Farebox as a % of Locality Operating Share 29.8% 32.9% 31.3% Draft Financial Statement 6

29 LOCALITY RECONCILIATION DECEMBER 2018 FISCAL YEAR 2019 (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 7,220.0 $ 3,610.0 $ 3,610.0 Plus: Local Farebox $ 2,473.1 $ 1,296.1 $ 1,300.0 Locality Share Sub Total $ 9,693.1 $ 4,906.1 $ 4,910.0 $ 3.9 Plus: Federal Aid $ 2,697.4 $ 1,296.4 $ 1,304.1 $ 7.7 State Aid $ 3,132.1 $ 1,566.0 $ 1,617.7 $ 51.7 Total Revenue Contribution $ 15,522.6 $ 7,768.5 $ 7,831.8 $ 63.3 Operating Expenses $ 15,522.6 $ 7,768.5 $ 7,699.3 $ (69.2) Budget Status to Date: $ KPI's Newport News Farebox Recovery 15.9% 16.7% 16.9% Farebox as a % of Locality Share Sub Total 25.5% 26.4% 26.5% Farebox as a % of Locality Operating Share 34.3% 35.9% 36.0% YTD October 2018 Newport News FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance 7,220.0 $ 2, ,406.7 Locality Operating Share $ $ $ Plus: Local Farebox 2,473.1 $ $ $ 3, ,296.1 Locality Share Sub Total 9,693.1 $ $ (21.9) $ $ (4.4) Plus: Federa l Aid 2,697.4 $ $ $ $ 1, State Aid 3,132.1 $ 1,044.0 $ $ $ 5,165.2 (13.1) Total Revenue Contribution 15,522.6 $ 5,178.3 $ $ $ 4,993.6 (184.7) Operating Expenses 15,522.6 $ 5,178.3 $ $ Budget Status to Date: $ KPI's Farebox Recovery 15.9% 17.6% 17.8% Farebox as a % of Locality Share Sub Total 25.5% 27.5% 27.0% Farebox as a % of Locality Operating Share 34.3% 37.9% 37.0% Draft Financial Statement 7

30 LOCALITY RECONCILIATION DECEMBER 2018 YTD October 2018 Hampton FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance $ 4, , ,496.3 Locality Operating Share $ $ $ Plus : Local Farebox 1,442.4 $ $ $ 2, ,983.4 Locality Share Sub Total 5,931.2 $ $ (44.4) $ $ (4.4) Plus : Federal Aid 1,652.1 $ $ $ $ State Aid 1,897.6 $ $ $ $ 3,114.8 (45.5) Total Revenue Contribution 9,480.9 $ 3,160.3 $ $ $ 3,028.0 (132.3) Operating Expenses 9,480.9 $ 3,160.3 $ $ Budget Status to Date: $ 86.8 KPI's Farebox Recovery 15.2% 16.8% 16.1% Farebox as a % of Locality Share Sub Total 24.3% 26.2% 24.6% Farebox as a % of Locality Operating Share 32.1% 35.5% 32.6% FISCAL YEAR 2019 (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 4,488.8 $ 2,244.4 $ 2,244.4 Plus: Local Farebox $ 1,442.4 $ $ Locality Share Sub Total $ 5,931.2 $ 3,000.3 $ 2,954.5 $ (45.8) Plus: Federal Aid $ 1,652.1 $ $ $ (1.0) State Aid $ 1,897.6 $ $ $ 21.4 Total Revenue Contribution $ 9,480.9 $ 4,743.2 $ 4,717.8 $ (25.4) Operating Expenses $ 9,480.9 $ 4,743.2 $ 4,655.1 $ (88.1) Budget Status to Date: $ 62.7 KPI's Hampton Farebox Recovery 15.2% 15.9% 15.3% Farebox as a % of Locality Share Sub Total 24.3% 25.2% 24.0% Farebox as a % of Locality Operating Share 32.1% 33.7% 31.6% Draft Financial Statement 8

31 LOCALITY RECONCILIATION DECEMBER 2018 FISCAL YEAR 2019 (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 19,243.1 $ 9,621.4 $ 9,621.4 Plus: Local Farebox $ 6,702.8 $ 3,512.8 $ 3,473.4 Locality Share Sub Total $ 25,945.9 $ 13,134.2 $ 13,094.8 $ (39.4) Plus: Federal Aid $ 5,128.5 $ 2,464.9 $ 2,519.5 $ 54.6 State Aid $ 7,930.1 $ 3,965.0 $ 4,026.7 $ 61.7 Total Revenue Contribution $ 39,004.5 $ 19,564.1 $ 19,641.0 $ 76.9 Operating Expenses $ 39,004.5 $ 19,564.1 $ 19,025.6 $ (538.5) Budget Status to Date: $ KPI's Norfolk Farebox Recovery 17.2% 18.0% 18.3% Farebox as a % of Locality Share Sub Total 25.8% 26.7% 26.5% Farebox as a % of Locality Operating Share 34.8% 36.5% 36.1% YTD October 2018 Norfolk FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance 19, , ,414.3 Locality Operating Share $ $ $ $ 2, ,417.7 Plus: Local Farebox 6,702.8 $ $ $ 8, ,832.0 Locality Share Sub Total 25,945.9 $ $ (52.1) $ $ 1, Plus: Federal Aid 5,128.5 $ 1,552.0 $ $ $ 2, State Aid 7,930.1 $ 2,643.4 $ $ $ 13,045.9 (33.6) Total Revenue Contribution 39,004.5 $ 13,079.5 $ $ $ 12,447.8 (631.7) Operating Expenses 39,004.5 $ 13,079.5 $ $ Budget Status to Date: $ * KPI's Fa rebox Recovery 17.2% 18.9% 19.4% Farebox as a % of Locality Share Sub Total 25.8% 27.8% 27.4% Farebox as a % of Locality Operating Share 34.8% 38.5% 37.7% Draft Financial Statement 9

32 LOCALITY RECONCILIATION DECEMBER 2018 (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 2,773.2 $ 1,386.6 $ 1,386.6 Plus: Local Farebox $ $ $ Locality Share Sub Total $ 3,694.8 $ 1,869.6 $ 1,850.0 $ (19.6) Plus: Federal Aid $ $ $ $ (27.3) State Aid $ 1,152.9 $ $ $ 27.6 Total Revenue Contribution $ 5,836.4 $ 2,921.3 $ 2,902.0 $ (19.3) Operating Expenses $ 5,836.4 $ 2,921.3 $ 2,933.9 $ 12.6 YTD October 2018 Budget Status to Date: $ (31.9) Portsmouth FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance Locality Operating Share $ 2,773.2 $ $ Plus: Local Farebox $ $ $ Locality Share Sub Total $ 3,694.8 $ 1,264.0 $ 1,248.7 $ (15.3) Plus: Federal Aid $ $ $ $ (20.1) State Aid $ 1,152.9 $ $ $ 12.4 Total Revenue Contribution $ 5,836.4 $ 1,947.5 $ 1,924.5 $ (23.0) Operating Expenses $ 5,836.4 $ 1,947.5 $ 1,912.5 $ (35.0) Budget Status to Date: $ 12.0 FISCAL YEAR 2019 KPI's Portsmouth Farebox Recovery 15.8% 16.5% 15.8% Farebox as a % of Locality Share Sub Total 24.9% 25.8% 25.0% Farebox as a % of Locality Operating Share 33.2% 34.8% 33.4% KPI's Farebox Recovery 15.8% 17.4% 17.0% Farebox as a % of Locality Share Sub Total 24.9% 26.9% 26.0% Farebox as a % of Locality Operating Share 33.2% 36.7% 35.1% Draft Financial Statement 10

33 LOCALITY RECONCILIATION DECEMBER 2018 FISCAL YEAR 2019 Virginia Beach (Dollars in Thousands) Annual Budget Budget Year to Date Actual Variance Locality Operating Share $ 7,053.4 $ 3,526.8 $ 3,526.9 Plus: Local Farebox $ 2,259.4 $ 1,184.1 $ 1,116.1 Locality Share Sub Total $ 9,312.8 $ 4,710.9 $ 4,643.0 $ (67.9) Plus: Federal Aid $ 2,620.3 $ 1,259.3 $ 1,321.2 $ 61.9 State Aid $ 3,014.6 $ 1,507.3 $ 1,613.0 $ Total Revenue Contribution $ 14,947.7 $ 7,477.5 $ 7,577.2 $ 99.7 Operating Expenses $ 14,947.7 $ 7,477.5 $ 7,677.0 $ Budget Status to Date: $ (99.8) * KPI's Farebox Recovery 15.1% 15.8% 14.5% Farebox as a % of Locality Share Sub Total 24.3% 25.1% 24.0% Farebox as a % of Locality Operating Share 32.0% 33.6% 31.6% YTD October 2018 Virginia Beach FISCAL YEAR 2019 Annual Year to Date (Dollars in Thousands) Budget Budget Actual Variance 7,053.4 $ 2, ,351.2 Locality Operating Share $ $ $ Pl us : Local Fa rebox 2,259.4 $ $ $ 3, ,186.9 Locality Share Sub Total 9,312.8 $ $ 3.2 $ $ 97.4 Plus: Federal Aid 2,620.3 $ $ $ $ 1, State Aid 3,014.6 $ 1,005.0 $ $ $ 5, Total Revenue Contribution 14,947.7 $ 4,981.6 $ $ $ 5, Operating Expenses 14,947.7 $ 4,981.6 $ $ Budget Status to Date: $ (186.7) * KPI's Farebox Recovery 15.1% 16.7% 15.4% Farebox as a % of Locality Share Sub Total 24.3% 26.1% 26.2% Farebox as a % of Locality Operating Share 32.0% 35.4% 35.5% *Heavily weighted service hours for July September Draft Financial Statement 11

34 PROCUREMENTS BETWEEN $50K-$100K DECEMBER 2018 December 2018 Contract Funding Method of Award Number Contract Description Cost Center Source Procurement Amount Award Date Bus and Light Rail Vehicle Video Surveillance PO System Replacement Parts Operations Operations RFQ $ 88, /17/2018 Awarded Vendor Apollo Video Technology, LLC Performance Period N/A 12

35 Draft Projection DECEMBER 2018 FISCAL YEAR END 2019 PROJECTION 13

36 FISCAL YEAR END 2019 PROJECTION FY2019 FY2019 Approved Year End Surplus/ Budget Projections (Deficit) REVENUE Operating Revenue $ 18,067,097 $ 18,615,878 $ 548,781 Federal Funding $ 18,024,749 $ 17,723,908 $ (300,841) State Funding $ 19,507,857 $ 20,062,368 $ 554,511 Local Funding $ 43,288,906 $ 43,288,906 $ TOTAL REVENUE $ 98,888,609 $ 99,691,060 $ 802,451 TOTAL EXPENSE $ 98,888,609 $ 98,888,609 $ SURPLUS/(DEFICIT) $ (0) $ 802,451 $ 802,451 LOCALITY TRUE UP Chesapeake $ 45,514 Newport News $ 116,221 Hampton $ 11,272 Norfolk $ 760,727 Portsmouth $ (105,774) Virginia Beach $ (25,509) TOTAL LOCALITY TRUE UP $ 802,451 Draft Projection 14

37 STATE REVENUE LOCALITY PAYMENT REDUCTION FISCAL YEAR END 2019 PROJECTION FY2019 FY2019 Approved Year End Surplus/ Budget Projections (Deficit) REVENUE Operating Revenue $ 18,067,097 $ 18,615,878 $ 548,781 Federal Funding $ 18,024,749 $ 17,723,908 $ (300,841) State Funding $ 19,507,857 $ 20,062,368 $ 554,511 Local Funding $ 43,288,906 $ 43,011,650 $ (277,257) TOTAL REVENUE $ 98,888,609 $ 99,413,803 $ 525,195 TOTAL EXPENSE $ 98,888,609 $ 98,888,609 $ SURPLUS/(DEFICIT) $ (0) $ 525,194 $ 525,195 LOCALITY TRUE UP Chesapeake $ 30,004 Newport News $ 68,356 Hampton $ (17,728) Norfolk $ 639,533 Portsmouth $ (123,394) Virginia Beach $ (71,577) TOTAL LOCALITY TRUE UP $ 525,194 Draft Projection 15

38 Contract No: Title: Automated Bus Technology Consortium (Phase 1) Total Price: $100,000 Acquisition Description: Enter into a sole source contract with AECOM Technical Services, Inc. (AECOM) for participation in a transit agency consortium for the development of an automated bus technology deployment program. Background: AECOM has created a unique public transit agency consortium for the purpose of conducting a multi-phase examination of the viability of implementing automated buses in each agency s fixed route service. The AECOM consortium will be comprised of transit agencies from around the country selected by AECOM. AECOM s stated goal is to diversify the characteristics of its participating agencies to the greatest extent possible in order to obtain a wide array of autonomous vehicle performance characteristics primarily based upon weather, terrain and geography. Such diversity will permit AECOM and the consortium participants to gain and benefit from as much data as possible from varying geographic locations and individual agency needs. AECOM has divided the work of the consortium into two (2) separate phases. A brief description of the work performed in each phase is as follows: The first phase, currently referred to AECOM as Preliminary Development, involves the participation by seven (7) to nine (9) diverse transit agencies. Preliminary Development will define potential routes, operating plans, automated bus specifications, funding strategies, deployment plans and an estimate of initial and ongoing costs for automated bus service for each agency. At the end of Preliminary Development, each agency will decide whether to continue their participation in the consortium. If an agency elects to proceed, it is anticipated that the participating agencies will join in a joint procurement to purchase the automated buses and deploy the same. AECOM will continue to work with participating agencies to optimize the efficient operation and maintenance of automated bus service. If a transit agency determines that automated buses are not prudent or viable for its operations at the conclusion of Phase One, the agency may terminate its participation in the consortium at that time without penalty. This procurement pertains exclusively to Phase One. Contract Approach: Sole source procurements are permissible when only one source is practicably available, and the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals. Additionally, sole source procurements are permissible when the good or service is only available from one (1) responsible source because it involves a unique or innovative concept or capability not available from another source. After reasonable inquiry, HRT could not find any comparable programs employing similar concepts by any other entity in the transit field. Therefore, full and open competition was not

39 Contract No: Title: Automated Bus Technology Consortium (Phase 1) Total Price: $100,000 feasible. Sole Source procurements are accomplished through solicitation and acceptance of a proposal from only one source. A Request for Proposal (RFP) was issued on December 20, 2018 and AECOM provided a responsive proposal on January 2, 2019 in the amount of $100,000. The proposal included pricing for partnership in the consortium for Phase 1. A price analysis was performed utilizing comparative pricing for other general planning Consultants. Based on the result of the price analysis performed, AECOM s proposal is deemed fair and reasonable. AECOM is a global engineering firm based in Los Angeles, CA that provides professional, technical and management support services to both public and private sector clients. The period of performance for this contract is one (1) year to complete Phase 1. Cost/Funding: Project Manager: This contract will be funded with operating and grant funds. Brian Smith, Chief of Staff Contracting Officer: Sonya Luther, Director of Procurement Recommendation: It is respectfully recommended that the Commission approve the award of a contract to AECOM Technical Services, Inc. for participation in a transit agency consortium for an automated bus technology deployment program in the not-to-exceed amount of $100,000.

40 Contract No: Title: Elizabeth River Ferry Dock Reconstruction Total Price: Term $2,637, months Acquisition Description: Enter into a contract with a qualified firm for the design and reconstruction of the four (4) Elizabeth River Ferry (ERF) docks. Background: The four (4) ERF ferry docks were built or reconstructed during a period from 1991 (High Street) to 2001 (North Landing). General repair efforts to correct storm damage and other obvious deficiencies affecting the ferry operation were completed in Subsequent ferry dock inspections were conducted in December The docks are generally in fair-to-good condition; however, a number of structural repair items requiring attention were identified. As of 2018, the current ERF ferry docks will have been in revenue service from sixteen (16) to twenty-seven (27) years; the ferry fleet has an average age nearing thirty (30) years. Given that all vessels and docks are exposed to a harsh marine environment and occasional storm events, almost all floating ferry assets are approaching the end of their useful lives and require either replacement or reconstruction. HRT has a requirement to restore and maintain the ERF to a state of good repair. ERF ferry service commenced in 1984 and the current service is exempt from ADA accessibility compliance under the Act s grandfather clause. Replacement of the ferry fleet and reconstruction of the dock structures triggers a concurrent evaluation of facility access. The current ferry dock facilities, with respect to ADA requirements, are not in full compliance with the applicable provisions of 36 CFR 1196, Passenger Vessels Accessibility Guidelines. Under the terms of this agreement, the Contractor is required to develop the ferry dock design, fabrication, installation, and project scheduling to bring the ERF facilities into a state of good repair, upgrade capacity where specified, and provide docks that are compatible with ERF s new vessels. Contract Approach: A Request for Proposals (RFP) was issued on August 30, Twentyeight (28) vendors were solicited through direct . The solicitation was also posted to the Virginian Pilot and Daily Press (print and online); HRT s website; and, eva s website. The eva Report of Vendors Notified stated that 542 vendors were advised of the solicitation via . Thirty (30) vendors registered on HRT s website to download copies of the solicitation. One (1) proposal was received on October 22, 2018 from Corman Kokosing Construction Company (Corman) in the total amount of $2,637,000. A post-solicitation survey conducted concluded that the other firms solicited did not possess the capability and/or capacity to provide the requirements as described in the Scope of Work (SOW); were reviewing the SOW for subcontracting opportunities; or, were currently otherwise committed to other projects. There was no indication that a re-solicitation to pursue more competition would have resulted in greater participation. After an initial review and evaluation of the proposal, HRT staff determined that Corman is deemed technically qualified, and therefore invited for discussions and negotiations. Negotiations focused on clarify scope items; and, reducing the proposed pricing. At the conclusion of negotiations, a Best and Final Offer (BAFO) was requested.

41 Contract No: Title: Elizabeth River Ferry Dock Reconstruction Total Price: Term $2,637, months After an in-depth review and analysis of the BAFO received, and although Corman offered no concessions in price, HRT staff determined that Corman provided the best value to HRT based on a combination of technical capability and price. As a result, Corman s pricing is deemed fair and reasonable based on a price analysis performed utilizing the independent cost estimate and historical data. A contractor responsibility review performed confirmed that Corman is both technically and financially capable to perform the work. Corman is located in Chesapeake, VA and has provided similar services to the Maryland Port Administration, based in Baltimore, MD; and, CSX Transportation, Inc., based in Jacksonville, FL. The period of performance for this contract is twenty (20) months. A DBE goal of 9% was established for this solicitation. Corman has committed to 1.48% DBE participation and provided acceptable documentation to demonstrate good faith effort for the remaining 7.52%. Cost/Funding: Project Manager: This contract will be funded by grant funds. Lee Roy Padgett, Director of Engineering Contracting Officer: Sonya Luther, Director of Procurement Recommendation: It is respectfully recommended that the Commission approve the award of a contract to Corman Kokosing Construction Company to perform Elizabeth River Ferry dock reconstruction in the not-to-exceed amount of $2,637,000.